DTC's Daily Digest gives you the latest news on the fastest growing brands in the world. In today's edition: He rented a rhinoceros in Runway; DTC is a Nike savior. The Grayson launches DTC.
He rented a rhinoceros in Runway
Rent a runway has Unicorn's status has been achievedAnnounced an investment of $ 125 million (£ 95 million) from institutional investors including Franklin Templeton and Bain Capital. Bringing the company's total investment to $ 337 million (£ 256 million).
Rent the Runway offers women dresses and luxury dresses that can be rented for events so they do not have to buy them. They have been profitable since 2016. Since then, the company has expanded and now customers can now rent active clothes, maternity clothes, holiday clothes and casual clothing. This created an opportunity for Rent the Runway to expand its scope significantly by accelerating the subscription business, which grew last year by 160% year-on-year.
With new funds, Hayman says Rent the Runway is investing in creating more community for the subscriber base, including online tools that allow women to comment on fashion with their friends. The company also invests in technology and logistics operations – from a comprehensive cleaning facility to its own customization tools.
It was a good day for US start-ups led by women. Glossier announced its status as a rhinoceros last week, thanks to a new round of financing for the D Series.
DTC is a Nike savior
Nike has a direct consumer business Silver lining placed on disappointing North American sales figures. The DTC part of the Nike business, which is referred to as "Direct Consumer Crime "It's growing exponentially across all four geographical regions and is driven by continued momentum in China," said Andy Campion, chief financial officer, Nike. "We will continue to invest in the key capabilities to drive the digital transformation of Nike and foster strong profitable growth in the next fiscal year and beyond."
Least-than-expected sales figures are associated with fewer people who buy Converse goods. However, since the announcement TIt is a direct consumer infringing In 2017, when DTC's revenues amounted to 9.1 billion US dollars (£ 6.9 billion) DTC continued to be a major part of their business, With global revenues of $ 10.4 billion (£ 7.9 billion) in 2018. In March 2018, they also acquired Consumer Data Analysis zodiac, To accelerate digital transformation.
DTC will be the future for Nike's business, with many funds injected into these initiatives, ensuring that they can provide shoppers with the best digital consumer experiences around them. They beat their main rivals Adidas when it came to realizing the need to include DTC in their business, where German companies are now struggling to get Supply chain to meet digital demand.
Grayson launches DTC
Grayson, a new company based on the women's bottom button basic shirt, last week Make the debut as a direct brand to the consumer And wholesale partner.
Apart from its own DTC business, Grayson also began selling its products in Nordstrom and Anropicie last week. When asked about her biggest challenge, her boss, Audrey McLaughlin, told Retail Dive that she felt she was launching two commercial projects at the same time. "There is a lot of background infrastructure associated with wholesale that does not belong with DTC; a lot of storytelling and marketing with DTC does not have a sentence.
DTCs going into physical retailing is an increasing trend, with consumers still wanting to keep a product before buying it. This shows that DTCs run pop-ups, or even their own stores. Over the next five years, for example, there are original brands such as Warby Parker, Bonobos, and Away It is expected to open 850 stores.
Unlike many DTC companies, Grayson is not financed with venture capital funds. "Many direct consumer brands get hundreds of millions of dollars in cash and do not show profitability for years," McLaughlin says.