Welcome to The Week in Direct-to-Consumer, a weekly roundup for marketers from Quad Insights that sums up the latest news in the DTC space.
Digital Brands Group announces retail store expansion plan
As part of an ongoing effort to grow its omnichannel strategy, digital-first apparel brands portfolio Digital Brands Group (DBG) just announced plans to open 50 retail stores over the next several years, Retail Dive’s Caroline Jansen reports. “We believe these stores will also drive revenue in our wholesale and e-commerce channels based on data from other brands who have opened retail stores,” DBG CEO Hil Davis said in a statement. Jansen noted that the company said it will utilize stores “to clear excess inventory at a higher margin than if it were to sell via an off-price channel.”
The takeaway: DBG joins a growing list of DTC apparel brands expanding their physical retail presences, including Lululemon and Vuori, as we noted in an earlier installment of The Week in Direct-to-Consumer.
Netflix announces deal to acquire media rights to WWE ‘Raw’
As part of its Q4 2023 earnings release, Netflix just announced a $5 billion deal to acquire the media rights to WWE’s “Raw,” Variety’s Joe Otterson reports. The 10-year deal, which begins in 2025, means that WWE’s flagship pro wrestling show “Monday Night Raw” will air live on Netflix, ending the show’s run on USA Network after this year. The deal will make Netflix the exclusive home of “Raw” content in the U.S., Canada, the U.K., Latin America and other territories.
The takeaway: With this high-profile addition to its live entertainment offerings, Netflix is continuing to evolve beyond film and TV — and it’s doing so with a powerful sports-entertainment franchise that appeals to mainstream viewers.
Melting Pot partners with Omaha Steaks to launch at-home fondue kits
Fondue restaurant chain Melting Pot just announced a partnership with food retailer Omaha Steaks, making at-home versions of the chain’s products available direct-to-consumer through Omaha Steaks’ distribution channel. Featuring a series of fondues and dippers as well as bread and dessert options, product bundles start at $84.99.
The takeaway: Melting Pot joins a growing list of restaurant chains forging partnerships to offer consumers at-home options. For instance, Taco Bell recently partnered with Kraft Heinz to launch Cravings Kits (meal-kit versions of its Crunchwrap Supreme and Chipotle Chicken Quesadilla) at Walmart, as we noted in an earlier installment of The Week in Consumer Packaged Goods.
Stella McCartney launches into the skincare supplement category
In a new interview with Wallpaper’s Hannah Tindle, English fashion designer Stella McCartney discusses her DTC beauty brand’s launch of the Alter-Care Supplement — the brand’s foray into the supplement category. Dubbed the world’s first vegan beauty edible, Tindle notes that, like all Stella McCartney products, the supplement leverages responsible production methods as well as ethically sourced and recycled materials. The Alter-Care Supplement is available at stellamccartneybeauty.com.
The takeaway: Stella McCartney’s beauty supplement debut comes as edible alternatives to traditional topical skincare products rise in popularity.
Further reading
DTC retail strategy/DTC partnerships:
DTC campaigns:
- “Snoop Dog and Solo Stove—3 lessons marketers can learn from the saga” (Ad Age)
- “Campaign Trail: Dr. Squatch uses hypnosis to inspire ‘Big Bricc Energy’” (Marketing Dive)
DTC companies going public:
DTC health:
Thanks for reading.
If you’d like to catch up on prior installments of this column, start by heading to our last recap: “The Week in Direct-to-Consumer: January 19, 2024 edition”
