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Why Direct to Consumer Brands Struggle with Profitability

Indigo 9 Digital

Warby Parker Warby Parker which was founded over a decade ago in 2010 is often looked at as the crème de la crème of direct-to-consumer retailers. The eyeglass retailer famously disrupted the market for prescription eyeglasses with a slick website and a try-before-you-buy from home program which captured the hearts of millions of customers.

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eCommerce and its Profitability Issue. Why its So Hard to Make Money

Indigo 9 Digital

Take mattress retailer Casper. Since Casper launched in 2014 it has yet to make a profit. High marketing costs are one reason for Casper’s struggles but returns have also eaten into the brand’s profitability. Let’s not forget about advertising. Amazon’s advertising business generated $31 billion in 2021.

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5 Ways to Make Your Retail Store Grow Faster

Indigo 9 Digital

Trader Joe’s is another retailer that gives away a lot of free samples and “ what a lot of people may not know is the biggest marketing expense we have at Trader Joe's is actually just letting people try our food,” says Tara Miller, Trader Joe’s Director of Marketing. Stock options are not the only employee perk.

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6 of the Top Reasons Online Businesses Fail

Indigo 9 Digital

In the beginning beverage maker Dirty Lemon like many direct to consumer brands used Facebook and Instagram to market its products. But over time Dirty Lemon found that the success many brands found using Facebook and Instagram marketing attracted many competitors leading to higher customer acquisition costs.

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On Fire: Where Consumers are Buying Today’s Most Popular Smoking Products

Rangeme

According to IRI, a Chicago-based market research firm, sales of cigarettes declined by 3.8% in the four weeks ending May 15, 2022, in all multi-unit retailers. The move is said to bring Walmart more in line with the growing array of health and wellness products it offers, but the retailer is a little slow off the mark.

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The Top 15 Ways to Find New Customers in Retail

Indigo 9 Digital

Explore unconventional and creative marketing. While these are not the kinds of marketing moves that everyone is talking about these vehicles often have more captive audiences than a fast-moving social media feed. Free samples are really just another form of marketing retailers use to generate more sales.

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The Growth Strategy Behind Goop, a Brand Owned by Gwyneth Paltrow

Indigo 9 Digital

Actress Blake Lively who also has a huge following launched her own lifestyle brand and website called Preserve in 2014 but the actress was forced to quickly shut it down within a year due to a lack of interest. Paradoxically, going into a crowded market can feel easier. Entering a niche market is much scarier.