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.
Peloton partners with TikTok to create #TikTokFitness Powered by Peloton
DTC fitness brand/platform Peloton just announced a partnership with TikTok, creating a new cobranded content hub called #TikTokFitness Powered by Peloton. Within the hub, users will find select live Peloton classes, original instructor series, Peloton class clips and more.
Peloton adds TikTok — which now boasts 1 billion active global users and recently became the first non-game mobile app to surpass $10 billion in in-app consumer spending — to a growing list of partners. In September, Peloton announced a partnership with Lululemon on a cobranded apparel line available online and at Peloton studios, as we noted in an earlier installment of The Week in Direct-to-Consumer.
Related coverage:
- “Peloton Jumps on Partnership with TikTok for New Fitness Hub” (Bloomberg)
- “Peloton and TikTok join forces to create fitness content” (CNN Business)
Beverage brands leverage Dry January in DTC campaigns
With the turn of the calendar, brands such as WhistlePig Whiskey, HOP WTR and Good Time Brewing Co. are leveraging Dry January (the health trend in which participants abstain from alcohol for the month) in their DTC campaigns. Dubbing its campaign “Dank January,” WhistlePig launched its Dank & Dry Old Fashioned, a non-alcoholic cocktail featuring non-psychoactive cannabis terpenes. Aimed at helping consumers “outsmart Dry January and form better habits,” non-alcoholic sparkling beverage brand HOP WTR’s “Hopnotist” campaign allows consumers to enter online for a chance to win a free session with a hypnotist and a free month’s worth of beverages. And non-alcoholic beer brand Good Time Brewing launched nationwide DTC shipping in time for Dry January.
U.S. non-alcoholic beer, wine and spirits sales have consistently risen over the past five years, surpassing half a billion dollars in 12-month sales as of October 2023, according to research from Nielsen IQ, per USA Today.
DTC health companies expand their offerings
In an article titled “Subscription-based care moves beyond peddling birth control and helping with hair loss,” Tom Murphy of The Associated Press explores the expanding offerings of hot DTC health companies. Among the brands cited by Murphy is Hims, known for marketing prescription drugs for hair loss and ED, which recently launched a subscription-based weight-loss program. Murphy notes that the rising DTC health brand surpassed 1.4 million subscribers in 2023 and projects $1.2 billion in sales by 2025.
Even as DTC health brands continue to gain in popularity, Murphy highlights common concerns associated with some subscription-based care models, such as clunky cancelation processes. Read the full story here.
Halsey’s af94 launches a partnership with Ulta Beauty
DTC beauty brand af94, which was founded by singer-songwriter Halsey, just launched a partnership with Ulta Beauty. Formerly partnered exclusively with Walmart, the brand is now also available on ulta.com and will land in select U.S. Ulta stores by mid-January. The partnership includes four new and exclusive products — including Lava Lust, a lip stain “inspired by a lava lamp visual effect” — set to launch Jan. 14.
Related coverage:
Further reading
- “‘Being very consistent’: Bombas co-founders David Heath & Randy Goldberg on how the apparel brand bucked the DTC doldrums” (Modern Retail)
- “FDA issues final guidance on major statement in DTC ads” (Regulatory Focus)
- “Shiseido to acquire Dr. Dennis Gross Skincare” (Retail Dive)
- “Digital Brands Group forecasts up to 90% 2024 revenue growth” (Fashion Network)
- “Unilever to acquire haircare brand K18” (Vogue Business)
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: December 22, 2023 edition”
