S8 E5: Cart Promo Hacks, Old School vs. New School DTC Brands, and Capitalizing on Private Labels
May 22, 2024
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Cart promos, new DTC brands, and private label trends are the hot topics of this podcast. Unravel the success story of Halara in the athleisure market. Explore the shift in DTC landscape and the rise of influencer-driven e-commerce. Dive into the world of private label brands and the potential franchising mindset in DTC.
44:19
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Quick takeaways
Cart promos drive sales with irresistible offers like 'buy 2, get 1 free', DTC brands prioritize audience validation over huge campaigns, Utilizing private label brands can boost loyalty and margins in the DTC landscape
Deep dives
Private Label Brands Expansion and Leverage
Walmart has embraced celebrity brands to drive foot traffic, focusing on margin and loyalty. Targeting Club Goods private label line capitalized on simplicity and pricing, utilizing lower product fees and ad-driven growth.
Influencer-Driven D2C Brand Success Story
The rise of Gen Z-centered digitally native brands like Halara showcases the power of influencer and customer content marketing. Utilizing TikTok and Instagram, Halara leveraged influencer posts to amass billions of views, fostering massive engagement and sales.
Strawberry Milk Mob: A TikTok-Driven E-Commerce Triumph
Strawberry Milk Mob's strategic content approach on TikTok led to massive sales during product drops, hitting 70-100K in a day. Their focus on engaging content and drop model sales strategy drove significant e-commerce success.
Insights on Consignment Sales Strategies in Retail
Exploring Walmart and Target's potential leverage in consignment sales for newer and startup brands, offering payment only upon sale. The concept of leveraging consignment for new brand entries to reduce upfront costs and build brand presence.
Unlocking Private Label Opportunities Across Retail Categories
Delving into the realm of private label brands, discussing Walmart's launch of Better Goods private label line. Exploring potential private label categories like sports, camping gear, supplements, and major appliances, highlighting the advantages of loyalty and margin focus in private label strategies.
Who can possibly resist the “add two more leggings to your cart—and get the third one free” offer?
Nik and Moiz discuss the power of cart promos—what do the best offers look like, and what are the game-changing moves brands are taking to capitalize on cart deals? They dive into the curious case of Halara, and unravel how the influencer-based brand leveraged cart deals, TikTok, and influencers to compete with the likes of Shein and Fashion Nova.
Then the guys break down the rise of new DTC brands—what sets companies like Strawberry Milk Mob and Crown Affair apart from their predecessors like Warby Parker and Bonobos? How has the DTC landscape changed so drastically in such a short period of time? Is this the death of huge campaigns and the shift to slow audience validation?
And later, Nik wonders whether there’s room for companies to start utilizing private label brands more often. Is there a world where a franchising type of mindset can work for DTC? Or has Nik completely lost his mind?
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And if you’re looking for an instant stream of on-demand DTC gold, check out the Limited Supply Slack Channel for Nik and Moiz’s most unfiltered, uncensored thoughts.