Compelling Brand Story/Messaging
In order to compete with legacy brands that have been around for decades, DTC brands are expert storytellers. Everlane emphasises its use of ethical factories, complete with information on each factory. Reformation tells a story of sustainable fashion through the use of natural fibres that are renewable and plant-based as well as recycled fibres. The details of the different fabrics, along with their fibre standards are made available on Reformation’s website.
Leveraging on the DTC concept, Everlane takes the opportunity to show customers its cost breakdown along with a price markup comparison against traditional retailers. Everlane reveals that its prices are half of what traditional retailers are charging. The radical transparency creates value, drawing customers away from legacy brands and towards Everlane.
Social Media Advertising
In the beginning, DTC brands focused their digital marketing efforts on social media to increase visibility. Consumers would be bombarded with ad banners and sponsored posts. This combined with the compelling storytelling by DTC brands contributed to their large success.
However, not only was this high cost of customer acquisition not scalable, but DTC brands have begun to face issues concerning securing funding from venture capital companies due to over-investment. Profits are insufficient to cover the rising cost of digital advertising.