DTC marketing news and trends—tracking the industry ups and downs
The direct-to-consumer news you need to know this week, from retail moves to financial updates.
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Welcome to the first installment of Ad Age’s DTC news roundup. Each week, we'll publish all the major news in the direct-to-consumer industry, focusing on the DTC industry’s shift to retail shelves, tracking the financials of major players in the space and highlighting executive appointments and exits.
Have DTC tips or news to share? Email Phoebe Bain at [email protected]
Now in stores
Skims: Kim Kardashian’s shapewear brand has been spotted on Fifth Avenue—Saks Fifth Avenue, that is. Skims now has a shop within Saks’ New York City flagship store, complete with mannequins and a shapewear wall. Since rolling out as a DTC brand in 2019, Skims has expanded into retailers such as Nordstrom and Net-a-Porter, and the company plans to expand to more Saks locations (think Houston and Boston) by the end of this quarter.
Walmart: Apparently, when one automatic glass door at Walmart closes, another opens. After recently selling off DTC brands such as Bonobos and Eloquii, the chain has entered a partnership with Adore Me, the DTC lingerie brand. Adore Me, owned by Victoria’s Secret, is rolling out a line exclusive to Walmart called “Adored by Adore Me” at a discounted price point.
Taika: The cult DTC coffee and matcha drink brand is reportedly rolling out in Target stores soon. TBD on details, but it’s not a surprising move—the brand raised $2.2 million in seed funding in 2021 that included an angel investment from the former co-CEO of Whole Foods. The matcha market is expected to grow over the coming years, too. It was valued at $3.15 billion in 2022 and is expected to reach $5.72 billion by 2027.
DTC dollars
Peloton: The brand of “And Just Like That” and Chris Noth fame is currently dealing with more bad news—this time, of the financial persuasion. According to a shareholder letter and quarterly results issued last week, third-quarter revenue fell 22%, dropping to $748.9 million, and Peloton plans to “relaunch its brand” later this month.
Allbirds: News recently broke that an Allbirds shareholder filed a class action lawsuit in April accusing the DTC shoe brand of making false or misleading claims ahead of its 2021 IPO. Specifically, the complaint alleges that Allbirds failed to mention it would be promoting products outside of its most popular offerings, such as its wool sneakers. It was filed about a month after Allbirds reported a $24.9 million loss in 2022’s fourth quarter.
Thesis: Thesis, one of the companies in the (booming) DTC supplement space, recently closed a $8.4 million Series A round that included investors such as Unilever Ventures and Alive VC, as well as celebrity investors Levin Love and Kate Bock. The category seems as though it’s becoming increasingly competitive, with Care/of entering Sam’s Club in April, Ritual rolling out in Target stores the same month and Gainful planning to raise at least $20 million in VC funding before year’s end.
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People on the move
Therabody—the company behind the Theragun massager—announced Jim Allwein as its new chief financial officer on Tuesday. Previously, Allwein served as chief financial officer of Atkins Nutritionals (of Atkins diet fame).
Guitar brand Gibson’s CEO and President James Curleigh is stepping down; current brand president Cesar Gueikian will step in as president and interim CEO.
I wonder if someone could survive a year not buying groceries but just going to DTC dinners every night for food
— Colin Dougherty (@ColinDougherty_) May 3, 2023Subscribe to Ad Age
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