[shortmemo] the rise of d2c brands · d2c brands have also expanded into the beauty industry, with...

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Written by Tutor Anina Ku

[ShortMemo] The Rise of D2C Brands: Disrupting Diverse Industries

[source : https://www.hulu.com/series/chopped-505f251f-ab3e-4f2b-a503-15dbbf1476e3]




[Summary in English]

I. What are D2C brands?

● D2C (direct to consumer) companies manufacture and sell products directly to the consumer, whereas traditional B2C (business to consumer) retailers buy products from manufacturers before selling them to customers. Whereas a B2C company, such as Walmart, sells multiple products from diverse manufacturers, D2C companies only sell products they produce.

● D2C trends existed with mail orders in the 1990s, where customers could directly order products from a magazine. This trend died out with the rise of big retailers such as Target and WalMart, but with the arrival of the Internet, social media, and e-commerce, the popularity of D2C brands has boomed.

● D2C suppliers maintain control over the entire process of selling a product: producing, advertising, shipping, as well as providing customer service. This allows D2C brands to create a strong brand identity and have streamlined feedback flowing from customer service employees to the designers of the product. They can also effectively utilize the data they gather about their customers and sales.

● D2C brands have been disruptive across diverse industries, improving the customer experience of buying mundane products such as mattresses, glasses, or shaving supplies. D2C brands have also expanded into the beauty industry, with brands like Glossier, and even the automotive industry, with Tesla.

II. The popularity of D2C brands

● The recent rise of D2C brands is strongly correlated with increased use of the Internet to shop: 8 in 10 Americans now regularly shops online, meaning D2C brands have huge incentive to advertise through the Internet and can profit by only selling online.

● Millennials, in particular, are opting for trendy alternatives to large, traditional retailers like Walmart. In an online survey, it was found that 70% of millennials take company values into account before making a purchase, compared to 52% of all adults. D2C brands often have strong advertising of their values, which include being eco-friendly, affordable yet high quality, and even making the world a better place.

● D2C brands often have colorful personalities and maintain a friendly, youthful vibe while providing exceptional customer service. Their websites are often focused on providing an extremely enjoyable user-friendly experience, using bright colors and playful fonts. These




contrast with the more standard and traditional brand identities of retailers like Target and Walmart.

III. Case Study: Warby Parker

● One successful example of a D2C brand is Warby Parker, an online retailer for prescription glasses and sunglasses.

● Warby Parker was discovered by Vogue.com shortly after being created as a startup at the Wharton School, and raised significant funding through venture capital firms. As of April 2015, the company was valued at $1.2 billion, and continues to raise more funding as its success continues.

● Warby Parker’s business model includes a “home try-on program”, in which customers can choose five styles from their website and try them on at home, for free. This intelligent business tactic allows customers to visualize the product as a part of their daily life.

● Warby Parker’s success online can be attributed to their strong brand identity and aesthetic - their website is bright and easy to understand, while utilizing cinematic graphics and photographs of their products.

● With their positive reputation, Warby Parker began to open physical stores to allow customers to try on different types of glasses, as well as repair their other Warby Parker frames. Due to strong sales, Warby Parker expanded the number of physical stores from 71 to over 100 by the end of 2018.

● Their values also resonate positively with consumers, as they have a “buy one, give one” policy. For each pair of glasses purchased, the company pays for a pair to be produced for a charity, VisionSpring, that donates glasses to people in need. Over 1,000,000 pairs have been donated, and this work serves as positive marketing for the company.

IV. Discuss with your tutor

a. It is estimated that 81% of consumers will buy from a D2C brand in the next five years.

Have a discussion with your tutor about the most important factors contributing to these

brands’ success.

b. As a consumer that may or may not shop online, discuss with your tutor whether you

are drawn to D2C brands or whether you prefer to shop in person.




[Video clip] Please watch these video clips.

● Video #1

[source: Warby Parker on Youtube]

How Warby Parker Glasses Are Made

https://www.youtube.com/watch?v=Rw6EdzcJqdM




● Video #2

[source: PwC on Youtube]

The Future of Direct to Consumer https://www.youtube.com/watch?v=vma39DNkW9Y




● Video #3

[source: TODAY on Youtube]

‘V-Commerce’: How Direct-To-Consumer Products Cut Out

The Middleman

https://www.youtube.com/watch?v=qYUvCk-G6yk




[Article]

Please read the article

● Article #1

[source: https://www.curbed.com/2018/12/21/18150589/direct-to-consumer-home-products]

The Rise of the Direct-to-Consumer Home https://www.curbed.com/2018/12/21/18150589/direct-to-consumer-home-products




[8 Key Questions] 1. Why did you choose this topic for today’s class discussion? 2. Have you purchased any products from D2C brands? Would you be interested in doing so in the future? 3. What do you think is the most important factor behind D2C brands’ success?

[source: https://www.advancy.com/d2c-in-consumer-goods-a-passing-fad-no-a-revolution/7621/]




4. After watching the video on how Warby Parker glasses are made, how would you describe the company? How might it be different from other eyewear manufacturers?

[source: https://www.warbyparker.com/eyeglasses/men]




5. Explain the graphic below to your tutor. What are the pros and cons of the D2C business model?

[source: https://www.coredna.com/blogs/direct-to-consumer] 6. D2C brands often focus on illustrating their values to their customers. How important to you that a brand is socially conscious? Does it make you more likely or less likely to buy from them?




7. Many successful D2C brands have strong brand identities and focus on the aesthetics of their logos and websites. What are some brands that you know that attract many customers based on the appearance of their stores and websites? Is this important to you?

[source1: https://redantler.com/work/casper] [source2: http://www.elizabethdilk.com/Warby-Parker-s-Brand-Book] 8. What are some industries in the future that may see a rise in D2C brands? Why?




[Key business related terms and expressions]

[1] millennials: 밀레니얼 세대 (1980 – 2000년대 초반 에 태어난 세대)

● [영영사전] a person reaching young adulthood in the 21st century.

● [Ringle에서 드리는 팁] Millennials are born between 1981 and 1996, and are between 22

and 37 years old. They are also referred to as “Gen Y”. The next generation, born after 1997, is known as “Gen Z”.

● [예문] Millennials are beginning to favor D2C brands over traditional retailers like

Walmart. 밀레니얼 세대들은 월마트 같은 전통적 소매업체보다 D2C 브랜드를

선호하기 시작했다.

● [예문] Millennials witnessed the boom of the Internet, as they did not have it in their

childhood but grew up as technology rapidly developed. 밀레니얼은 어렸을 때는

인터넷이 없었지만, 기술의 엄청난 발전과 함께 성장한, 인터넷 붐을 목격한 세대이다.

[2] to die out: 소멸하다, 사라지다

● [영영사전] to fade away, to lose popularity

● [Ringle에서 드리는 팁] This expression is commonly used to describe things that were

once strong or popular, but are fading away and losing strength.

● [예문] The fire is going to die out soon, so please add more firewood to strengthen it. 불이

곧 꺼질 거 같아서, 불을 살리게 장작을 더 넣어줘.

● [예문] This tradition is beginning to die out as younger generations are no longer interested.

이 전통은 젊은 세대들이 더 이상 관심을 가지지 않게 되면서 사라지기 시작하고 있다.

[3] aesthetic (noun): 미적 특질, 미학, 미적인 패턴, 에스테틱

● [영영사전] the visual patterns that make something unique and beautiful

● [Ringle에서 드리는 팁] This word is used to describe the consistent visuals used by one

creator - a brand, designer, or artist.




● [예문] I love this interior designer because her aesthetic is minimalist but also beautiful.

나는 이 인테리어 디자이너를 좋아하는데, 그녀의 미학적 특성이 미니멀하면서도

아름답기 때문이다.

● [예문] Glossier’s aesthetic is elegant, pink, and artistic, which appeals to many younger

consumers buying from the beauty industry. Glossier의 미적 특징은 우아하고, 핑크하며

예술적인데 ,이러한 점이 젊은 소비자층들이 이 회사로부터 (상품을) 구매하도록

어필하고 있다.

[4] brand identity: 브랜드 아이덴티티, BI

● [영영사전] the visible elements of a brand, including the color scheme, logo, and design,

that distinguishes the brand in consumers’ minds

● [Ringle에서 드리는 팁] Brands with a strong brand identity are memorable by consumers;

for example, one can identify a Nike shirt based on the font used, or a Nike shoe based on the logo.

● [예문] One step to having a strong brand identity is to build a beautiful website, and to

have a common visual theme recurring through social media, advertisements, and the

products. 브랜드 아이덴티티를 강하게 가져가는 방법 한가지는 아름다운 웹사이트를

구축하고, 소셜미디어, 광고, 제품을 통해 공통적인 시각적 테마를 반복하는 것이다.

● [예문] The company wants to hire a graphic designer so that they can begin developing an

unforgettable brand identity. 그 회사는 잊을 수 없는 브랜드 아이덴티티 개발을

시작하기 위해 그래픽 디자이너를 고용하고 싶어한다.

[5] business tactic: 경영 전략, 전술

● [영영사전] A strategy businesses use to gain more customers or increase sales.

● [Ringle에서 드리는 팁] A synonym for “tactic” is strategy.

● [예문] Warby Parker’s “at home try on” tactic has proven to be very effective. Warby

Parker의 “집에서 착용해보세요” 전략은 매우 효과적인것으로 입증되었다.




● [예문] The cafe is using a new tactic to gain more customers by having a “buy one, get one

free” promotion.이 카페는 “하나를 사면, 하나는 무료” 프로모션을 함으로써 고객을 더

모을 수 있는 새로운 전략을 사용하고 있는 중이다.

[6] disruptive: 지장을 주는; 변혁을 일으키는

● [영영사전] an adjective used to describe something that has interrupted or changed the

current situation.

● [Ringle에서 드리는 팁] You can use “disruptive” to describe a brand that has changed the

way business is done in a certain industry. Though disruptive can have a negative connotation in certain social situations (“That child is disruptive because he keeps yelling”), disruptive can be a compliment in the business world.

● [예문] Shaving company Harry’s is disruptive to the shaving industry by allowing razors

and shaving cream to be shipped directly to the consumer’s door. 면도용품 회사 Harry’s는

면도날과 면도용 크림을 직접 소비자들의 문 앞에 배송해줌으로써 면도 업계에

지각변동을 일으키고 있다.

● [예문] The student is being disruptive to the class by continuing to talk to his friend and

play music loudly. 그 학생은 계속해서 친구들과 이야기하거나 노래를 시끄럽게 틀어

놓아서 수업 진행에 지장을 주고 있다.

[shortmemo] the rise of d2c brands · d2c brands have also expanded into the beauty industry, with...

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