The Modern Retail Podcast

Shopify has emerged anew in the direct-to-consumer era. The 15-year-old e-commerce platform that powered the small business segment is worth $25 billion. Now, it's setting its sights on the larger brands. Hana Abaza, director of marketing at Shopify Plus, the division in Shopify that works with larger merchants, says the pitch is about distinguishing between control and ownership. Abaza discusses evolving as a platform to retain bigger brands as they grow, why the DTC companies are here to stay and more.

The direct-to-consumer era is changing consumer behavior and expectations across categories, be it retail or insurance. Liberty Mutual has felt this shift, and in its new products as well as marketing is attempting to change in line with those expectations. Emily Fink, CMO at Liberty Mutual, joins us on this episode.

The direct-to-consumer playbook at this point is well known: Launch online with one product, expand to physical stores, and stretch into new products and even categories. For Brooklinen, the online-born bedding brand, it's no different. The company, which made about $48 million in revenue last year and says it's on track to be a $100 million company, just experimented with a pop-up store in SoHo last year. It has also expanded to bath wear, with more to come soon. Founder and CEO Rich Fulop said it comes with taking a broader view of the category. He talks about the best marketing channels, building a creative team in-house and more.

In the last year, Athleta, the women's workout wear brand owned by Gap Inc., has taken its creative in-house for its content creation efforts. Athleta CMO Sheila Shekar Pollak discusses the marketing mix for the brand that is on its way to becoming a $1 billion business, the importance of in-store events, omnichannel marketing and more.

There is no lack of success stories in the direct-to-consumer markets. But there are also questions being asked of how long the industry can sustain itself. With a plethora of new brands launched every day, built on VC money with tall growth targets, it's fair to ask if a shakeout is coming. Kevin Lavelle, founder and CEO of Mizzen and Main, a brand that sells men’s performance wear dress shirts, thinks a carnage is it's on the cards. Lavelle talks about building a brand, advertising on platforms versus TV and what’s in the future of the DTC space.

A few months ago, Verizon launched Visible, a new brand that sits within the multi-billion dollar company. Launched invite-only, Visible is a digital-only phone carrier with no stores and e-commerce only service. And the telco brand is taking cues from direct-to-consumer brands. Minjae Ormes, CMO at Visible, discusses Visible’s strategy, the cues the company’s taken from Glossier and its own direct to consumer playbook.

As DTC brands grow up, they begin to look a lot like traditional brands. The challenge then, is differentiation. The solution: better data management. MM. LaFleur, the “bento box” pioneer of women’s workwear is one of those brands that uses data to differentiate itself. LaFleur discusses fighting the downward price push in the e-commerce space, how the bento box came about, diversifying customer acquisition channels and more.

Consultancies are turning into agencies as agencies grapple for a seat at the table. Alicia Hatch, CMO of Deloitte Digital, the $1 billion ad agency that sits within Deloitte, has insight into why consultancies are built for the modern CMO. On this week's episode of Making Marketing, Hatch discussed the pressures on today’s CMO, why Deloitte believes in having skin in the game, and why in-house doesn’t scare her.

Born online direct-to-consumer brands are increasingly turning to traditional physical retail models to find new places for growth. Mike Grillo, CEO at Gravity Products, thinks DTC is just a launch model and not a sustainable business model for the longer term. Grillo discussed the impending DTC shakeout, why it’s important not to depend on Facebook and why TV remains important.

Thirty Madison, the parent company behind men’s hair loss treatment Keeps and migraine treatment company Cove, which just raised a little over $15 million in funding, is using the wellness and health momentum in the DTC industry as it looks to disrupt a giant, $17 billion industry. Steven Gutentag, co-founder of Thirty Madison discussed how the launch and growth model works at the company.