Target brings DTC brands in store
DigiDay reported that Target is out aggressively pitching so-called DTC brands with new deal terms, signaling a balancing of power in wholesale retail. The company now sells formerly online-only brands including Casper, Harry’s, Barkbox, Quip and Native. They all have an aesthetic instantly recognisable by online shoppers — or really anyone who has experienced targeted ads on social media. They have established customers, and troves of first-party customer data thanks to the direct-to-consumer launch strategy. They’re attractive players for Target to get its hooks into, and as the cost to advertise on Facebook and Google climbs and online growth slows, digital brands need new retail outlets to both increase brand awareness and drive customer acquisition. Target is not alone, Walmart and Nordstrom are also rewriting the rulebooks of merchandising in order to accommodate trendy digitally native brands. It's an interesting approach, as it reduces sales cannibalisation from brick and mortar. But, it does need extra merchandising and logistical effort.