Big brands have always had a prominent presence at large retail events. Their key focus remains on how to transform their model to grow in this new economy. Digitally native, DTC brands on the other hand, are in the scale and diversification game. After some success, they tend to diversify their offering.

A Tale of Two DTC Brands:

Dollar Shave Club (now part of Unilever) remains a standalone team. After driving success in shaving, they have focused on growing their portfolio into the larger grooming category. Scaling is easy thanks to an existing technology infrastructure, customer understanding and strong community (keeping in mind they own MEL Magazine).

Hubble (contact lenses) on the other hand, is trying to outsource their expertise and forge joint ventures with existing CPGs. Having cracked an end-to-end commerce model, Hubble wants to build it with other verticals.

Bottom Line:

Big brands might have been late to the game, but are readying to catch up. They’re under a lot of pressure to shift focus and become DTC brands, so we are helping them work through channel conflict and prioritize DTC efforts alongside retail partners. Navigating this terrain and creating a new commerce paradigm that satisfies both ventures will be one of the brands’ biggest challenges in 2019.

Author:Ali Nehme, Global Commerce Practice Lead, Publicis Media