Will holding companies be the saviour of DTC brands?

by Hugh Williams

The following is an excerpt from a post that originally appeared on DTC Daily.

In this piece for DTC Daily, Alex Song, CEO and founder, Innovation Department, analyses whether some of today’s DTC brands losing steam, and asks, with products from mattresses to beauty to food being delivered straight to the consumer’s doorstep, how are brands able to differentiate themselves from the competition?

With brands being laser focused on the shopper, are brands giving consumers too much control over how brand relationships are built and the content that brands put forth? We’re reaching a pivotal point in the DTC evolution. On the one hand, VCs continue to invest billions of dollars each year to help consumer brands grow, with the hopes that they will go public or even reach unicorn status. On the other hand, we have started to see cracks in these strategies, with many brands not focusing enough on early profitability and caving to pressure from VCs to meet the valuation expectations of the market at all costs.

The good news is that there’s a viable structure that isn’t actually all that new — one that today’s DTC brands are beginning to implement. More and more companies are finding success by returning to a traditional holding company approach…

Read the full post now on DTC Daily.