When I consult companies I often get asked about either building a DTC (direct-to-consumer) strategy or growing wholesale/retailer partnerships. The argument for DTC is rooted in the continuing belief that it’s more profitable than selling your physical product through retailers. But what if it’s really not? There’s definitely arguments in support of a DTC strategy (better control of the brand experience, ability to collect 1st party data for consumer insights, offer a more personalized customer experience, etc) but it’s important to be realistic with your investors/stakeholders that there’s very likely a fallacy that it will be better for the bottom line.
At the Margins