Direct-to-Consumer Startups

Goals

Obtain case studies on new and up and coming direct-to-consumer (DTC) brands that are about to spend big on advertising. The data will be used to target A+E nets as a way to help expand their business.

Early Findings

Promising DTC Brand

  • Startups typically use the funding that they got to invest in marketing their products.
  • Given this, the conclusion drawn was that startups who receive funding will most likely spend more in marketing activities.

ASYSTEM

  • ASYSTEM offers wellness products that are developed for men.
  • The DTC startup announced to its customers that its wellness products can help men to regain their "focus, stamina, energy, mood, and sex drive."
  • The product launched last October 2019.
  • It was able to obtain around $4 million in seed funding from Firstminute Capital, S28 Capital, PLG Ventures, and other investors.

DTC Failure s

Cocodune

  • Cocodune allows customers to try on its swimwear offerings at their homes.
  • These customers can then opt to purchase these products after trying them out.
  • Initially, the company's campaign before launching the offering drew around 50,000 emails that signify interest in the product.
  • Additional public relations activities pushed more customers to the "free home try-on platform."
  • However, sky-high shipping, return and cleaning costs contributed to the company's decline.
  • Furthermore, the demand for swimwear dropped as the season changes.
  • This pushed the company's business health further down.
Eleven James
  • Eleven James allows its subscribers to rent luxury watches.
  • However, the cost of buying these high-priced watches significantly exceeded its customer acquisition expenses.
  • This model is seen to be detrimental to most DTC brands as they first need to increase their equity and debt to purchase the items.
  • This level of debt of DTC companies made them repel investors.

Proprietary Database Search Results

  • In addition to this public search, we scanned our proprietary research database of over 1 million sources and were unable to find any specific research reports that address your goals.

Proposed next steps:

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