20VC: From a $1.1M Acquisition to $1.4BN in Revenues; The Meteoric Rise of Hoka Running with Deckers CEO, Dave Powers
The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
Challenges of the Direct-to-Consumer Model and the Importance of Sustainable Brand Growth
The direct-to-consumer (DTC) model can be difficult to sustain due to high marketing costs, and withdrawing marketing spend can result in a significant drop in sales. Companies are finding that without continuous marketing spend, the brand may not maintain a positive growth trajectory. This highlights a flaw in the DTC model, emphasizing the importance of having other revenue sources and a strong brand that can outlast marketing spend. The sustainability of a brand is linked to having a great product and brand that is meaningful to consumers, rather than relying solely on digital marketing. Additionally, while effective resource allocation is important for CEOs, it is not the only component, as motivating teams and driving innovation are also crucial.
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