This week, we revisit “The Uncorkening.” A spoken-word version of our Insiders essay of the same name, this episode is one of our most popular. In it, we question some of the factors that have led to the decline of DTC and how pent-up frustration with products that cost more without delivering on their promise will soon be a vestige of a bygone era.
It’s been three years since the episode’s first airing, but the content still resonates. This could largely be attributed to many “digitally native darlings” still struggling to maintain their positioning in a crowded market. One possible exception could be Warby Parker, a brand that has successfully evolved into an omnichannel, omnipresent brand, effectively retaining the high product quality, service, and experience that many shoppers have come to love.
When we discuss the struggles of DTC brands, what comes to mind for you?
DTC Groupthink and Brand Criticism… Three Years Later
Key takeaways:
- “The Uncorkening” is a latent criticism that was stymied by the loudest voices in an ecosystem who didn’t feel that they had permission to speak up, has now been unleashed
- DTC models (particularly VC-backed IPO exits) have proven unsuccessful. The original promise was that DTC would remove middlemen and form a direct connection with the consumer; meanwhile, eCommerce is nothing but middlemen.
- Many products don't live up to the hype. Another factor of The Uncorkening in DTC is that the loudest voices and advocates for DTC have often silenced criticism by playing a trump card—to critique a small brand is to criticize the founder behind the brand.
- The loudest DTC voices have quieted. As capital outcomes wither for those who had built their reputations on the examination of the DTC space, the loudest voices were silenced. Due in large part to The Great Resignation and the inaccessibility of capital in the current state of the markets, many of the most visible DTC acolytes have moved on to new projects or industries.
- What will The Uncorkening make us not want to buy next?
In-Show Mentions:
- Nate Poulin’s tweet outlining 12 DTC IPOs
- Immi ratings and reviews (since this essay’s launch, Immi’s score has increased to 3.4)
Associated Links:
- Check out Future Commerce on YouTube
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- Subscribe to Insiders and The Senses to read more about what we are witnessing in the commerce world
- Listen to our other episodes of Future Commerce
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