Why Direct-to-Consumer Startups Are Struggling
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- Опубликовано: 6 июн 2024
- An analysis of direct-to-consumer startups and why they are currently struggling.
A few years ago, DTC companies like Allbirds, Casper and Warby Parker had investors scrambling to work with them. Now, in 2024, all of these companies are struggling. Enjoy this video where we analyze the factors that led to this situation.
Chapters:
00:00 - DTC Companies are struggling
01:39 - The DTC business model
03:48 - DTC startups treated as tech companies
05:39 - Bad product fit
07:40 - Low entry barriers invite competition
09:15 - Rising ad costs
11:02 - Conclusion
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Another amazing video :)
Thank you so much for your support!
Great video as usual
I appreciate the support!
One thing you left out, the DTC model relies heavily on the assumption that you have a destination brand - which is oftentimes not the case. So most people are likely to not return or even try your product in the first place because they default to buying the product where it’s most readily available. Distribution wins - always.
So true, many ecommerce shopity drop-shipping gurus don't understand this
Another banger!!!!
From what I’ve seen the trend of higher cost for advertising on social media has driven brands to make deals directly with content creators, which albeit cheaper (for the moment) it brings other risks, mainly that your brand could be affected negatively if the image of that content creator suffers… looking closely on how digital marketing will evolve in the next 5 years
Yes, many brands have turned to influencer marketing. But influencer marketing ROI is also slowly decreasing, so it will be interesting to see how this industry evolves.
Thank you for another banger!
One small suggestion: Instead of the black screen, maybe add in a small quick transition. But the video is great without it already :)
Looking forward to the next!
Thank you so much for the feedback. I will definitely try to incorporate this in my next videos.
Holy cow this was a really good video
Thanks for stopping by and glad you enjoyed it!
Very informative video
Glad you liked it
The DTC business model certainly has potential, but its challenges lie in profitability and differentiation in a crowded market. Navigating valuation expectations is key! 📈
❤❤
Sounds like an ai voice 🤔🤔🤔
I'm still trying to discover if it's an AI voice and script, or just a human who has an incredible ability to talk in monotone.
It is not an AI voice. I like to edit the voice over to remove breaths and gasps in between, so maybe that makes it sound a bit more monotone.
But I promise that no part of this video has been created using AI. I do the research and write the script by myself and my friend/VO artist does the voice over.
@MBA-Maven If it's natural, then that's some top-tier voice-over!
@@MBA-Maven So you are really dedicated and incredible human being! Congratulations for the incredible channel, it's so rare to see such quality this times that we get a little suspicious.
Unless... it's also an AI also replying comments...
haha just kidding, it would not happen...
Or would?
Include your face next time! makes the video more human