Focusing solely on direct-to-consumer (DTC) or wholesale is a failed strategy. Nike's retreat from wholesale and Allbirds' late entry into physical retail both backfired. A balanced, multi-channel presence is now a non-negotiable for consumer brands to meet customer expectations.
Related Insights
Differentiate marketing channels by their purpose. Use online platforms for broad reach and repeated touchpoints. Reserve offline, in-person events for fostering the genuine, vulnerable connections that are difficult to replicate digitally and are critical for building strong relationships.
Most businesses mistakenly focus their marketing strategy solely on growth (lead generation). A complete strategy must also encompass brand strategy (messaging, positioning) and customer experience strategy (retention, referrals) to create a sustainable system.
While many celebrity brands hit a valuation ceiling around $1 billion, Skims has broken through by aggressively pursuing a multi-channel strategy. Expanding into a significant number of physical retail stores is the crucial step that elevates a personality-driven brand into a durable, multi-billion-dollar enterprise.
Tushy finds little sales cannibalization between its DTC site and Amazon because they serve different customer archetypes. Instead of forcing an 'Amazon shopper' to a .com site, brands should meet them where they are, focusing on mental and physical availability across all relevant channels.
The era of linear, multi-step marketing funnels is over. Brands must now craft succinct, cohesive stories that are effective regardless of the order in which a consumer encounters them across channels (email, SMS, social). Each touchpoint must stand on its own while contributing to the whole narrative.
AI will fragment the customer journey across countless platforms, moving purchases away from brand-owned websites. Retailers must build systems to manage inventory and product information across this decentralized landscape, not just focus on perfecting their own site experience.
Coterie treats its physical retail presence not just as a sales channel, but as a marketing tool. A well-placed product block acts like a billboard, driving discovery and funneling 10-12% of new customers back to their primary D2C subscription business.
The traditional divide between B2B and B2C marketing is obsolete. Effective brands must speak to business and consumer audiences with the same authentic voice, bridging efforts to create a cohesive identity, much like how the NFL mothership brand supports individual team brands.
For premium brands like Coterie, the choice of retail partner is a branding decision. A retailer's reputation for quality reinforces the product's own values, while a poor retail environment like a messy shelf can actively dilute brand equity.
Placing products in non-traditional venues like hotels or airports serves as a powerful discovery and sampling mechanism. This builds brand familiarity and trial, creating a flywheel effect where customers later recognize and purchase the product in traditional retail stores, boosting sales.
