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.
DTC brands increase out-of-home marketing
As competition for retail shelf space heats up, many DTC brands seeking brick-and-mortar store distribution are adding outdoor advertising to their marketing strategies, reports Ad Age’s Phoebe Bain. With Apple’s 2021 privacy update still impacting the effectiveness of social media platforms, Bain notes that DTC brands are increasingly taking marketing offline with tactics such as billboards and wrapped trucks.
Tom Shea, CEO and Co-founder of Adgile Media Group, shared that he has seen steady quarter-over-quarter growth in DTC marketing dollars coming into out-of-home (OOH) since 2021. Bain cites DTC body-care brand Curie — which worked with Adgile to launch a wrapped-truck campaign tied to a product rollout in Walmart — as an example of the trend. “To date, we’ve relied on digital advertising — but the timing felt right to make a big splash in real life,” Curie Founder and CEO Sarah Moret told Ad Age.
Athletic shoe and apparel brand On increases its use of recycled polyester
On has increased the use of recycled polyester in its products to 85%, per its 2022 Impact Progress Report released on Monday. The Swiss athletic shoe and apparel brand is on pace to reach its 100% recycled polyester goal for 2024 and reported that 30% of the materials used across all its products were fossil-free.
“We’re proving that we can grow our business and continue to put the environment first. This is extraordinary given the tremendous growth our company is experiencing and our expanded physical footprint with new stores and offices,” said Head of ESG Begum Kurkcu in a statement. Q2 2023 marked On’s sixth consecutive record quarter, totaling CHF 444.3 million (US $497.2 million) in net sales. As the brand continues to expand its wholesale footprint, DTC sales were also up 54.7% in Q2.
• “How On Is Progressing With Its Sustainability Goals” (Footwear News)
Mary Kay is No. 1 in Euromonitor International global ranking
As Mary Kay celebrates its 60th year in business, the DTC beauty brand announced on Tuesday that it has been named the No. 1 direct-selling brand of skin care and color cosmetics in the world by market research firm Euromonitor International. “It speaks volumes about our commitment to quality and innovation as well as our incredible community of independent beauty consultants who remain our heartbeat and driving force,” said President of Global Sales and Marketing Nathan Moore.
• “Mary Kay Named #1 Direct Selling Brand of Skin Care & Color Cosmetics in the World” (Direct Selling News)
Reese Witherspoon sells majority stake in her fashion/lifestyle brand Draper James
On Wednesday, private equity firm Consortium Brand Partners (CBP) announced its acquisition of a 70% stake in Reese Witherspoon’s fashion and lifestyle brand Draper James, reports Retail Dive’s Dani James. Founded in 2015, Draper James is inspired by the actress’ family roots and aims to provide consumers with Southern-inspired clothing, accessories and home décor.
“[CBP] are the perfect partners for Draper James as we continue to grow and build,” said Witherspoon. James notes that the brand will continue to support its DTC channels — an e-commerce site and three retail stores — while expanding department store partnerships, including its exclusive RSVP collection with Kohl’s.
• “Power Play: Reese Witherspoon Sells 70% Of Draper James To Consortium And Stays On Its Board” (Forbes)
• “Birchbox restarts fulfillment under new ownership” (Retail Dive)
• “FIGS and Eko Health Collaborate on the FIGS | Eko CORE 500 Digital Stethoscope” (Businesswire)
• “Wrangler and Staud Go All in On Westerncore in Limited-Edition Denim Collection” (Variety)
• “Hanna Andersson Gives Fans What They’ve Long Wanted — A Loyalty Program” (Retail TouchPoints)