Why DTC Brands Are Going Retail

Summary
Why are top DTC brands investing in retail stores? Learn how brick-and-mortar boosts acquisition and strengthens loyalty.
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Transcript
All these eight and nine figure brands are either exploring or growing their retail presence.
Yeah. I mean, I walked my kid to school the other day. I go right by the new Jones Road beauty store over on Madison Avenue. And it's just you and I joke that every time we walk through a mall, it's like half the DTC brands we know are there. And I think there's something to that. mean, Bonobos probably pioneered this what like 10 years ago, but they figured out that you put a store in front of your best customers and it essentially can drop your customer acquisition costs. So a lot of these brands, when they tap out on digital channels, find that the growth is going to come from brick and mortar.
Yeah, they're starting to hit that point of diminishing returns from a customer acquisition perspective when only focused on digital acquisition channels. And still most transactions happen, brick and mortar, and they've got to be there. They've got to be where their customers are. And to your point, Drew, not only are you servicing your good customers, but you're actually creating better customers in many cases who are buying through the retail store.