Advantage Unified Commerce’s Post

I'm still surprised by how often I hear high-level retail execs at well-known brands - Directors of Ecomm and Retail Operations, COOs and CTOs, etc. - refer to their website as their "DTC" channel. Sure, I get that a brand's website is how it sells its product directly to its consumer. So that by its very definition, yes, the website is a DTC channel. But that's not all it is. And looking at your website simply as the means to sell direct to consumer is an outdated - and potentially dangerous - way for retail execs to think. Your website is one way, of many, that any particular shopper can interact with your brand. Think about the modern customer journey: they discover an item via social, usually Instagram or TikTok, or maybe they saw a friend, a co-worker, or a stranger wearing something they like. Then they wind up on your site. They can buy there, or they can buy in one of your stores. Or on a 3rd party online marketplace like Amazon or FARFETCH. Or offline at one of your wholesalers like Nordstrom, or the local boutique. Or they could search vintage marketplaces, like The RealReal or Depop. Which channel they buy from depends on a lot of things - price, preference, location, convenience, etc. So what your website becomes is a touchpoint - or even a menu - of not only what is available to buy, but of all the different channels that a shopper can interact with your brand. In thinking of your website as solely the DTC channel where shoppers buy direct, and ignoring how the modern shopper discovers, searches, considers, interacts and ultimately purchases, you miss out on providing a consistent experience across the many channels your brand is visible. And that leads to lost sales and less loyalty in today's omnichannel world.

In today's digital era, the path to purchase has become more complex than ever before. Brands and retailers must adapt to consumers' evolving behavior by bridging the gap between physical and digital experiences. As digital touchpoints now play a crucial role in product discovery and conversion, businesses need to facilitate seamless interactions across all channels. Ultimately, while technology is important, maintaining a strong brand reputation and quality products remain key factors in standing out in a crowded marketplace. #Retail #DigitalMarketing #ConsumerBehavior #RetailTechnology

HOW DOES YOUR MARGIN STACK UP? Todays #knowledgebomb 💣 is a set of best in class benchmark margins and costs for a range of categories…. the kind of info that’s hard to find and worth reading. These are best in class metrics for GM%, advertising % and Net Profit across the biggest segments from Petcare to Health & Beauty from Wayflyer (USA). The general rule of thumb from Caroline Grace for 45-65% GM lines up with my own guide earlier this week (#validation). Although the Advertising spend % is higher than larger established brands (which generally spend much less thanks to economies of scale) - this kind of high marketing investment is needed for brands to get a foothold in mental availability with consumers. Building brands takes time and the right level of spend, especially in retail where your competition are directly on shelf & shopper attention is only a few seconds at best. This kind of information is incredibly helpful for any brands trying to get a handle on their commercial models. Big shout out Caroline Grace for sharing her insights as well 🙌 Debbie Stowe Sarah Sherriff Sherrelle Smith Consultant - Contractor Fiona Tomlinson Toby Hilliam (Skilton) Anna Henwood Neill Arnold Nicola O'Rourke - thought you might have some thoughts in this space if it lines up with your own experience.

This is the most common misunderstanding I see when brands transition from DTC to retail... What their gross margin & pricing need to be to succeed. I've been analyzing Wayflyer's financial benchmarks for consumer brands that they released earlier this quarter. In the report, best in class P&Ls had the following gross margins selling at their MSRP: 🥫 Food & Beverage Brand: 41% 💄 Beauty Brand: 74% 🐶 Animal & Pet Brand: 38% 🏡 Home & Garden Brand: 56% Say any of these brands want to go to retail. Assume most buyers, regardless of category, will expect 40-50% gross margin on the products they purchase. That means for the product they buy at $5 from the brand, they want to sell for $10 to the customer. How would these brands fare at retail? From what I'm analyzing, most would have little to no gross margin when selling wholesale. 👉 As a rule of thumb, what I look for and guide brands toward, is a gross margin of 45-65% at their wholesale price, no matter the category. Because at retail, we need to think about: distributors, brokers, promotions & trade spend, chargebacks, shipping, etc. ___ But this points to a common problem — and misunderstanding — as more and more brands turn to omnichannel sales. We MUST have adequate gross margin at a wholesale price. And we MUST calculate this before you even begin to sell DTC. ___ What are your thoughts? Am I reading this Wayflyer report correctly?

In keeping up with sharing my show notes, here are some key personal insights from National Retail Federation's (#NRF) Big Show this week in NYC, with a focus on #DTC brands. 📢 🛒 𝐇𝐲𝐛𝐫𝐢𝐝 𝐕𝐢𝐠𝐨𝐫: Lots of talk about "ecommerce stagnating," as some DTC brands are actually moving beyond online-only sales, adopting a hybrid model. 🕸️ 𝐌𝐮𝐥𝐭𝐢-𝐏𝐥𝐚𝐭𝐟𝐨𝐫𝐦 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐞𝐬: These brands are engaging and selling through pop-up stores, permanent locations, wholesale partners, and their websites. 📈 𝐆𝐫𝐨𝐰𝐭𝐡 𝐓𝐫𝐞𝐧𝐝𝐬: Key trends include third-party partnerships, subscriptions, personalization, loyalty programs, physical presence, and intimate customer connections. 🔗 𝐂𝐨𝐧𝐧𝐞𝐜𝐭𝐞𝐝 𝐋𝐨𝐲𝐚𝐥𝐭𝐲: The time is now for brands to gamify consumer engagement with Kazm -- across IRL, ecommerce, social and ALL channels, everywhere they are. No one wants to be stuck with a loyalty program tied to just one platform. 🤫 𝐐𝐮𝐢𝐞𝐭 𝐨𝐧 𝐭𝐡𝐞 𝐖𝐞𝐛3 𝐅𝐫𝐨𝐧𝐭: Blockchain and Web3 rarely came up. Zeroes of mentions of Web3-led loyalty programs. Brands want to be where consumers are now, not where they might be someday. Web2-led, Web3-enabled seems like the right way to go. 🧱 𝐁𝐫𝐢𝐜𝐤-𝐚𝐧𝐝-𝐌𝐨𝐫𝐭𝐚𝐫 𝐄𝐱𝐩𝐚𝐧𝐬𝐢𝐨𝐧: Brands like Vuori, Lulus, and Rhone are opening physical stores, while others like Our Place and Adore Me are partnering with major retailers. 📊 𝐃𝐢𝐯𝐞𝐫𝐬𝐞 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞: The DTC model isn’t one-size-fits-all. Some brands benefit from wholesale, others from direct margins. 🦠 𝐏𝐨𝐬𝐭-𝐏𝐚𝐧𝐝𝐞𝐦𝐢𝐜 𝐒𝐡𝐢𝐟𝐭: A slowdown in online sales post-pandemic is pushing ALL ecommerce brands to adapt. 🤖 𝐀.𝐈., 𝐁𝐮𝐭 𝐍𝐨𝐭 𝐑𝐞𝐚𝐥𝐥𝐲: Lots of talk about A.I., but no consistent applications, ideas, adoption, or benefits to speak of yet. A lot of curiosity. Not a lot of command. Hype > Reality. 🤔 𝐀𝐥𝐭𝐞𝐫𝐧𝐚𝐭𝐢𝐯𝐞𝐬, 𝐀𝐧𝐲𝐨𝐧𝐞? The "Anyone have any good alternatives for Shopify?" questions raised in private. 👀 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬 𝐚𝐧𝐝 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬: Lots of "We don't want to be the next Peloton or Wayfair" buzz... brands heavily reliant on online sales, faced losses as consumers returned to in-person shopping. Flexibility and adaptation are key to success. 🧠 𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐟𝐨𝐫 𝐑𝐞𝐭𝐚𝐢𝐥: - 𝘈𝘥𝘢𝘱𝘵𝘢𝘣𝘪𝘭𝘪𝘵𝘺: Success hinges on adapting to changing consumer behaviors. - 𝘋𝘪𝘷𝘦𝘳𝘴𝘦 𝘊𝘩𝘢𝘯𝘯𝘦𝘭𝘴: Embracing multiple sales channels can lead to growth. - 𝘊𝘶𝘴𝘵𝘰𝘮𝘦𝘳 𝘌𝘯𝘨𝘢𝘨𝘦𝘮𝘦𝘯𝘵: Creating a physical presence and fostering connections is increasingly important.

As a Digital Marketing Expert, I often see brands navigating the complexities of balancing online and offline channels. This insightful article by exchange4media dives deep into a critical question for D2C brands—Is the journey from online to offline really worth it? (Article link: in the First comment) In an era where digital channels dominate, it's interesting to see how well-established D2C brands are now exploring brick-and-mortar spaces. The article highlights key factors that D2C businesses must consider, such as scaling, customer experience, and omnichannel strategies. Offline presence isn't just about sales; it's about brand storytelling, trust-building, and creating a tangible connection with customers. For brands looking to expand into the offline world, it's crucial to have the right digital marketing strategies to keep the online and offline customer experiences seamless. The future is hybrid, and this article offers great insights into how D2C brands can leverage both worlds to their advantage. Definitely! It's worth a read for any marketer or entrepreneur thinking about the next phase of their brand's growth! #D2C #DigitalMarketing #Omnichannel #CustomerExperience #MarketingTransformation

📢 Don't Discount the Brick-and-Mortar: Why Retail Presence Still Matters The social media landscape is overflowing with new brands, making it a struggle to stand out. Building a strong online presence can be a budget strain for new entrepreneurs. While a retail location might seem like a luxury, its importance in today's omnichannel world shouldn't be underestimated. Omnichannel synergy is the key. It's the smooth integration of online and offline channels to create a unified customer experience, essentially building a bridge between your online store and your physical space. Here's why a retail presence can supercharge your online business: ❇ Tangible Experience: In-store, customers can touch, feel, and try on products, boosting their appeal and purchase confidence. This "reality check" reduces online uncertainty and translates into trust for future online purchases. ❇ Bridging the Expectation Gap: Beautiful online photos can sometimes create unrealistic expectations. A physical store allows customers to experience the product for real, reducing the fear of online misrepresentation and building confidence in your brand. These are just a few ways a retail presence complements your online strategy. There are other benefits like increased brand awareness, walk-in sales, and convenient returns, but the focus here is the synergy between online and offline channels. 🔶 The Bottom Line: A physical store isn't a replacement for your online store, it's a powerful partner. It's all about creating a seamless omnichannel experience that builds trust, reduces costs, and turns shoppers into loyal fans. So, the next time you think about building your online brand, don't discount the power of a brick-and-mortar location! 📝 Binal Weerasena #Branding #OmnichannelSynergy #Retail

Am I the only one that gets excited talking about #cpg #marketing? 🤣😂 👏🏽👏🏽👏🏽 Caroline Grace is spot on with her post on pricing and margin expectations, so I had to share. This is where so many #cpgfounders get tripped up…let’s normalize knowing what your pricing strategy is, what retailers expect, and whether or not you can offer what they want and make money — otherwise, you might not be ready. All roads lead back to the 4 Ps… #retailreadiness #cpgindustry #brandmarketing #pricingstrategy #channelstrategy

New Roland Berger Study out now: Making D2C and multi-brand channels work in the fashion and lifestyle industry The #fashion and #lifestyle industry is constantly evolving, and it is crucial for brands to adapt to changing consumer behaviors. Our latest study highlights three key findings that are essential for brands to consider in order to deliver a superior #omnichannel experience: 🏆 Immediate product availability: According to our research, immediate product availability emerged as the primary driver for consumers to visit offline direct-to-consumer (#D2C) stores. This means that customers value the convenience of being able to physically access and purchase products without any delays. 🏆Factors deterring #consumers: On the other hand, higher in-store prices, inconvenient store locations, and limited assortments were identified as deterrents for consumers when it comes to visiting D2C stores. Brands need to address these concerns in order to attract and retain customers. 🏆Clear #assortment and #pricing strategies: To successfully meet consumer expectations and ensure appealing in-store experiences, business leaders need to develop clear assortment and pricing strategies. This will help brands offer a wide range of products at competitive prices, making their stores more attractive to customers. As buying behaviors continue to change, implementing dedicated omnichannel strategies will be key for brands to stay competitive in the fashion and lifestyle industry. By understanding and addressing the factors that drive and deter consumers from visiting D2C stores, brands can create a seamless and satisfying shopping experience for their customers. If you're interested in learning more about best practices in this industry, we invite you to download our study to get the full picture. Join us in navigating the ever-changing landscape of the fashion and lifestyle industry. #RolandBerger #sportinggoods #luxury https://lnkd.in/dkiamy_G Theresa Werkhausen Nicolas Wüthrich Thorsten de Boer Lukas Stoner Alexander Belderok Apratim Sarkar Richard Federowski Magdalena Pos wataru matsumoto Justine Lee Helen Saade