DTC-first companies have a major conviction problem lately The beauty of Ecomm is the speed of the feedback loop When things are going well, you know right away and the magnitude of success can surpass our previous mental models It’s not unusual for a brand to grow >2.5x year after year, compounding at a pace that would be absurd to a traditional wholesale brand Not only do results like that feel great, they are SO rich with data — you know so much about your consumer and how they behave. You can (and should) cut your retention data dozens of ways to inform why things are going so well and how you can keep the party alive This positively rigorous, data-driven behavior can be a seductive and eventually addictive, giving yourself the perception that your business is a rocket ship and you sit in a comfy chair at Mission Control, with endless dials at your fingertips Problem is what happens when the tide shifts direction and you’re swimming against the current, as has been happening in the past few months or years (depending on the brand) The speed of the feedback loop means that concerning stats start popping up at Mission Control faster than countermeasures can show impact The same channel dynamic that unlocked unheard of momentum can start to feel like an insurmountable challenge, especially if the culture of the company was to obsess over the data this can wreak absolute havoc on team morale and make you question your belief in the product/brand The only answer to this challenge of reversing momentum is deep, long-term conviction in your solution to the consumer problem that made you start this business in the first place That conviction is so important because of how long it will take for the new strategies to work: • Double down on great products • Shout your story from the rooftops • Maniacal execution in retail and ecomm There are no easy solutions that show impact quickly… the only way out of this stage is through
I think right now is the best time to launch a brand. The next billion dollar brand is probably being run out of somebody's dining room... I'm putting my bet on NØRSE CØDE.
Co-Founder | EIR | TechStars '22
6moheard! focus on product quality/economics some have the opportunity to test alt channels as well.