Be a maker, not D2C

Maker businesses make money. Most D2C businesses lose money

Most D2C businesses are incurring losses. They mess upfundamentals of marketing. Running a maker business is an antidote to running a loss making, growth focused business.

Jaime Schimdt founded Schmidt Naturals. She had developed a waterless deodorant, packaged in glass with her own hands. Customers loved the natural and affordable products. She grew it and sold it to Unilever. In 2017 it had sales of $45mn with 160 employees.

She writes: an opportunity is clearing for a new wave of consumer businesses founded by makers — those producing products born from a mastery of skill, creativity, and the genuine passion of the founders behind the business.

Indian VCs fund 800 businesses in a year. Maker businesses such as Chumbak started as a passion project. Unlike Man Co., it started without the VC funding and celebrity endorsements.