Creating Strong Awareness and Presence: The key to success for DTC brands is creative storytelling. Consumers are more willing to purchase products from brands that stand for something. Regardless of whether it’s holding certain principles or being a part of a larger purpose, they are willing to spend if it resonates with them.
Importance of Diversification: Whether it is in terms of supply chain or distribution strategy, diversification is crucial to the success of a brand.
Under normal circumstances, putting all eggs into one basket can occur without a hitch. However, hiccups surface during times of crisis. A disruption in one element of the supply chain or distribution strategy can be catastrophic for a brand.
Effectiveness of Promotions: During the period where online traffic has surged, Everlane experimented with different promotions each week, since mid March. Everlane and Reformation had similar sell-out rates before Everlane started running promotions.
This manoeuvre is what helped Everlane achieve sell-out 11x higher than the previous week – putting it ahead of Reformation. Everlane’s varying promotions successfully enticed consumers to purchase.
Next Steps for Brands
Keep an Eye on Social Media Trends: With everyone constantly scrolling social media, this is the perfect opportunity for brands to use this to their advantage. Brands can ride on current trends, challenges and hashtags to improve social media engagement and increase visibility without incurring extra cost.
For example, the Instagram account @wfhfits features fashionable work from home outfits and garnered over 18,000 followers in just two and a half weeks. Brands can submit their own ‘wfhfit’ to be featured as a form of marketing.
Brands can also create interactive content or Instagram story templates for users to fill in and tag friends. When tagged users want to obtain a blank version of the story template, they will stumble across the brand’s Instagram profile, making them potential customers.
Anticipate Shifts in Consumer Behaviour: As economies go through recession, consumers will begin to re-evaluate their spending habits. The Covid-19 crisis will cause consumers to shift away from frivolous spending and towards more intentional purchases. Brands must adapt to these shifts by ensuring that customer value is created.
Brands should ensure that their brand story is not only compelling but also consistent to produce lasting value for consumers.