Direct To Consumer Brands
topic on 2 shows · 8 statements across 5 episodes
8 statements about Direct To Consumer Brands, every show
Paik: Most direct-to-consumer brands are not suitable venture investments
“I would say the vast majority of direct-to-consumer brands, not suitable venture investments.”
Aggarwal: Fundamentum has focused investments on distribution over D2C brands
“Direct to consumer brands we haven't yet made too many investments because the question is that is it better to invest in distribution or is it better to invest in brand? So far we have invested more in distribution.”
Aggarwal: High CAC forces single-product D2C brands to become distributors
“Brand will give you stronger unit economics, but brands will have very high, ah, cost of customer acquisition and repeat rates. So very quickly you will find that if you have very high cost of customer acquisitions, Then you can't be a single product company. …”
Brown: E-commerce shifted from liquidation to DTC models around 2009
“I think that the wave of e-commerce that had happened prior, which was the whole liquidation era of Guild Group and Rulala and Outlook was beginning to pass. Those companies were still very much present. But I think the tides started to change in that moment, …”
Brown: DTC brands lacking profitable unit economics will fail to raise capital
“Well, I think you're going to have a moment in time when a lot of these businesses need to show that they have the unit economics that allow them to be profitable, and I think if they're not able to show that, they're going to have a hard time continuing to gr…”
Brown: Legacy retailers will increasingly acquire DTC brands through mid-market M&A
“I think you'll probably see more mid-market M&A. I think, you know, we're already seeing a lot of companies being acquisitive in the sort of food and beverage space, certainly in the beauty category. I think we'll probably see that across the board where you h…”
Physical retail will survive because consumers rely on aggregators for curation
“No, because I think curation is important. I think the reality is not all brands can afford to distribute product directly at scale to their customers. I believe that similar to like wine, fashion needs someone to tell us What looks good. And maybe it's not go…”