🛍 DTC Daily - Tuesday, Jan 24

1 - Compostable streetwear to fight fast fashion

📰 TL;DR - Fast fashion is both big business and a big controversy. Customers are increasingly asking what the environmental costs are of ultra-cheap clothing and whether the impact is worth it. In response, there's now a selection of brands producing plant-based clothing that can simply be composted at the end of its lifecycle. One player is startup Unless, headed by a former Adidas exec, that entering this burgeoning market with compostable streetwear.

💡 Insight - We've seen backlash to fast fashion that focuses on extending the life of a garment, whether through sound construction or resale. We know that younger customers truly care about brand values and ethics so a novel move like compostable clothing will surely find its audience. In a crowded market with high acquisition costs, standing out is always a win.

You can read the article here...

2 - Is BeReal a viable platform for e-commerce?

📰 TL;DR - BeReal is an app where users receive a daily push alert to post a "real" moment within two minutes. It's meant to be a counter to the curated perfection of places like Instagram and has grown hugely popular with the under-45 set. Like, 73 million monthly active users popular. But is it actually useful for businesses? It has no ad options and doesn't encourage commercial use, but that hasn't stopped brands like Chipotle from trying.

💡 Insight - BeReal, at the very least, has proven it has more staying power than other flash-in-pan social media apps. And I can't help but think of a time when TikTok was just some silly Vine ripoff, whereas now it's a vital part of many marketing strategies. BeReal is absolutely not brand friendly (as was TikTok at one time!) but it stills seems worth taking a few minutes to download it, take a poke around, and get creative.

You can read the article here...

3 - This DTC brand is curating complementary products

📰 TL;DR - DTC brands are traditionally all hyping their own products, but Lunya is trying something different. The sleepwear brand has curated its own "Rest Shop" with products from other brands in the sleep hygiene space. Think, comfy slippers and melatonin chews. Founder Ashley Merrill has expanded her e-commerce store to welcome these brands in hopes of building trust with customers — and the hope they still purchase Lunya jammies.

💡 Insight - What better way to show customers you're truly the expert in your category than expertly hand-selecting complimentary products? Lunya already knows customers care about their sleep and here they can profit by offering beyond just their own line. It's a fascinating way to build one's brand and everyone involved benefits.

You can read the article here...

4 - Profitability, but not at all costs

📰 TL;DR - Retail Dive has a roundup of eight DTC trends for 2023, including the paramount need to find a path to profitability in this new year. You may have noticed the layoffs at places like Everlane and Wayfair, which is one side of the pain of trying to be profitable. Others are looking to expand product lines instead.

💡 Insight - It looks like 2023 is the year to find new forms of revenue. For some, like Lunya above, that means expanding product offerings with complimentary goods. But the list also notes that DTC brands are looking at wholesale as an opportunity to grow. Point is, it looks like simply having your own product and selling it on your one website is going to be a difficult path.

Read all 8 trends here...

5 - This celeb's CBD line is getting axed because people would rather get stoned

📰 TL;DR - Two and a half years ago, actress Kristen Bell launched a skincare brand that contained CBD with the tagline "It won't get you high!" Well, it turns out that getting people high might be the better business proposition. Happy Dance is now ending its run and the parent company, Cronos Group, is shifting to recreational THC products instead.

💡 Insight - According to the report from Glossy, CBD is on the decline. Once the wellness-oriented little sister of recreational weed, demand for CBD-containing beauty products has shrunk. Given that recreational cannabis is becoming increasingly legal, accessible, and less taboo, it's not surprising that brands are simply turning their focus to THC.

You can read the article here...

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