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  • Harvard Business Review

How Direct-to-Consumer Brands Can Continue to Grow

By: V. Kasturi Rangan, Daniel Corsten, Matt Higgins and Leonard A. Schlesinger
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Abstract

Direct-to-consumer (DTC) brands such as Allbirds, Casper, Peloton, and Warby Parker have creatively found a weakness in the marketing citadel of incumbent brands. By using data gleaned from daily interactions with customers, these brands have been able to adapt how they serve their unique customer communities across a start-to-finish purchase journey. The best of them have parlayed that ability into a profitable business model applied across multiple channels and customer segments. But as successful DTC brands mature, they must recognize the need to evolve. The authors offer four principles for continued success: (1) Focus on deepening customer relationships, not just making comparisons with competitors. (2) Accompany the customer beyond the initial transaction. (3) Omnichannel is about value addition, not cost reduction. (4) Strengthen the core first; consider extensions later.

Keywords

Direct-to-consumer; Customer Journey; Business Model; Customer Relationship Management; Growth and Development Strategy

Citation

Rangan, V. Kasturi, Daniel Corsten, Matt Higgins, and Leonard A. Schlesinger. "How Direct-to-Consumer Brands Can Continue to Grow." Harvard Business Review 99, no. 6 (November–December 2021): 101–109.
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About The Authors

V. Kasturi Rangan

Marketing
→More Publications

Leonard A. Schlesinger

General Management
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More from the Authors
  • KaBoom! Play at Scale By: V. Kasturi Rangan, Sarah Appleby and Christine Snively
  • The Meteoric Rise of Skims By: Ayelet Israeli, Jill Avery and Leonard A. Schlesinger
  • Quotient By: Thomas R. Eisenmann and Matt Higgins
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