Emerging fashion brands are increasingly launching with a direct-to-consumer (DTC) model, a shift that offers them more agency over their brand image, pricing, and customer experience.
By directly selling to consumers, these brands are charting a personalized shopping experience, keeping their fingers on pulse of customer needs, and gaining profit margin that would usually be shared with larger retailers.
The rise of DTC strategies results from a waning faith in major luxury retailers and a need for innovation in showcasing their work. Social media channels also offer an alternative platform for gaining visibility and popularity.
One such example is Clio Peppiatt, who launched her brand with a DTC orientation in 2015, proving successful with a strong online presence and global audience. She illustrates how a DTC model, paired with dominant social media marketing and authentic storytelling, creates a persuasive brand identity.
Today, 80% of Peppiatt’s total revenue comes from her DTC channel, offering her better control over her product and effective risk management. This move to a DTC model presents various rewards such as a deeper understanding of customer behavior, a more bespoke shopping experience and a larger profit margin.
However, the DTC approach also has its challenges.
Direct-to-consumer trend in emerging brands
For instance, managing inventories, forecasts, returns, and customer service can be complex and cost-intensive. But with proper strategy and expertise, these obstacles can be overcome.
Following the DTC strategy, Georgia Dant of Marfa Stance has also seen 90% of her total sales through this approach. Although she still values traditional wholesale methods for brand visibility, she asserts that the shift towards DTC gives brands greater control.
Notably, Anna Jewsbury, founder of Completedworks, suggests a hybrid, using both channels. In addition to ensuring a loyal customer base, the shift to DTC emphasizes engaging with consumers beyond maintaining a social media presence on a much more intimate level.
