DTCs Shelve Lofty Aspirations To Focus On Profits
Covid not only bolstered e-commerce penetration among consumers, it also bolstered the ambition of many Direct to Consumer brands. Encouraged by the unprecedented growth they saw in the channel (and believing it was sustainable) many DTCs began to chase much loftier goals for their company – e.g. “Instead of being just a category disruptor, why not be THE dominant brand?” or “Instead of being just an online retailer? Why not be a LIFESTYLE brand?”
Now faced with the reality of inflation and other lingering challenges that continue to impact their costs, brands like Casper are tempering their ambition and focusing on just maintaining a profitable and sustainable business…at least for now.
“The strategy was to be the Nike of sleep,” CEO [Casper] Emilie Arel said at a recent industry event. “Nobody knows what that means. That sounds very exciting, but hard to execute on. We weren’t making any money.”
Read the full article in ModernRetail here.