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The coming months will make or break the DTC boom

Digiday 29 May 2020 04:00
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May 29, 2020 by Anna Hensel

Over the past two months, digitally native startups have been some of the biggest beneficiaries of store closures.

Yes, many startups like Away and Rent the Runway were hammered, as appetite all for travel and high end fashion all but disappeared. Additionally, companies that expanded heavily into physical retail — once viewed as a prudent move in the face of rising customer acquisition costs online — have also been hurt. 

But, in having interviewed more than a dozen startups for this column over the past two months, a surprising number have reported seeing some of their best-ever sales days during the coronavirus pandemic, and/or seeing some of their highest month-over-month growth. Some of the bigger “winners” of the stay at home orders have been more obvious than others, like pet food and beverage brands. But others have been more unexpected, like DTC underwear brand Parade, which said that it’s been seeing 40% month-over-month growth on average. Or swimwear brand Andie, which is on track to report its highest month of sales in May after revenue plunged in mid-March.

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Andie2pm IncDTC brandsCivicScienceCaitlin Strandberg
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