It’s Monday—
Did everyone catch the Oscars? Anora took Best Picture, Sean Baker scored Best Director, and Mikey Madison won Best Actress. Adrien Brody, Zoe Saldaña, and Kieran Culkin also grabbed top acting awards. Big night.
The evolution of DTC: What’s working now
The DTC boom was built on cutting out the middleman and selling direct. But after years of high ad costs, slowing growth, and retail competition, survival now means being everywhere consumers are.
DTC’s new playbook…
Wholesale matters. Brands like Glossier, Warby Parker, and Apothékary now sell at major retailers like Sephora and Target. Even Nike reversed course on ditching wholesale after seeing sales dip.
Retail is back—but smarter. Warby Parker now has 300 stores, but for brands that can’t afford big footprints, pop-ups (like Draper James’ regional activations) offer a low-risk way to engage customers.
Marketing is diversifying. With Facebook & Google ads getting pricier, DTC brands are turning to catalogs, direct mail, and in-store events (like Warby Parker’s free solar eclipse glasses promo).
Loyalty & exclusivity drive direct sales. Brands like Glossier and Rare Beauty offer exclusive merch only available on their websites, keeping superfans engaged.
Expanding beyond a single product. DTC brands are growing their catalogs—Draper James now sells home goods, kids’ clothing, and pet products, while Gatorade offers customizable bottles for loyalty members.
The next big DTC shift? Healthcare and wellness. Brands like Hims & Hers and Ro are shaking up pharmaceuticals, especially in the booming weight-loss drug space. New startups are also emerging in women’s health, menopause solutions, and alternative medicine.
DTC isn’t dead—it’s just evolving. The brands that win will be the ones that go beyond direct sales, adapt to retail, and meet customers wherever they are.
Amazon’s Haul is going global—can it take on Temu?
Amazon isn’t just dipping its toes into the budget shopping wars—it’s going all in. The company is expanding Haul, its bargain-focused shopping platform, to Europe and Mexico, taking direct aim at Temu and Shein.
If you haven’t heard of Haul, it’s Amazon’s answer to the wave of ultra-cheap, direct-from-China shopping apps that have taken over. Unlike Amazon’s usual fast shipping model, Haul focuses on rock-bottom prices, longer delivery times, and a gamified shopping experience that’s more about impulse buys than convenience.
The timing is interesting. The U.S. government recently delayed a ban on duty-free imports from China, but higher tariffs are still looming. That could put pressure on Amazon’s low-cost experiment, especially as Temu shifts to local warehouses to avoid trade headaches.
For Amazon, expanding Haul is a low-risk way to tap into the global discount shopping craze without overhauling its main business. It also lets the company test a new kind of e-commerce—one where price beats speed, and brand loyalty takes a backseat to whatever’s cheapest.
Will shoppers bite? Probably. But with tariffs in flux and competitors already ahead, Amazon will have to move fast to make Haul stick.
More than half of shoppers are switching to cheaper brands
Inflation is shifting consumer habits in ways that brands can’t ignore. A new Modern Retail+ survey with Attest found that 52% of shoppers are opting for cheaper brands, while 48% are delaying major purchases to manage rising costs.
The impact is widespread. Groceries and clothing are the top categories where consumers are cutting back, followed by gifts, home goods, and even subscription services. Meanwhile, 28% say they’re taking on more debt, and 40% are reducing social outings to stretch their budgets.
But the real takeaway? Price sensitivity is at an all-time high, and it’s affecting how people shop. More than 45% say the in-store experience is stressful, a sign that rising costs are taking an emotional toll. Consumers aren’t just looking for affordability—they’re navigating financial pressure with every purchase decision.
Retail executives are already responding. Lowe’s CEO Marvin Ellison noted that consumers are holding off on big-ticket purchases, while Walmart CFO John David Rainey acknowledged ongoing uncertainty around spending. With inflation and tariffs dominating headlines, brands must rethink pricing strategies, loyalty incentives, and value-driven messaging—or risk losing customers looking for the best deal.
Instagram might spin out Reels—and it makes sense
Meta is considering a standalone Reels app, betting big on short-form video as TikTok’s future in the U.S. remains uncertain.
Instagram has long struggled to balance social and entertainment, but users go to TikTok and YouTube purely for content. A Reels app would let Meta build livestream shopping, better editing tools, and new monetization options without Instagram’s social baggage.
It’s a move that worked for Threads, now at 300 million users. If done right, this could make Reels a true TikTok competitor instead of just an Instagram feature.
We’re also reading
Business Insider: Duolingo killed its cartoon owl mascot for another 'unhinged' marketing stunt — except in one country.
The Business of Fashion: Paris’ Printemps knows what’s missing from American retail.
Was this email forwarded to you?
Subscribe to our daily newsletters here.
