Brands That Bring Us Joy: The Foremost 50
Posted by Amanda McLaughlin on Jan 14, 2021
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The retail landscape looks completely different than it did a decade ago. There have been the typical industry ebbs and flows but also an interesting eruption of digital native brands. These are companies that have created new product categories and grown their businesses without following traditional retail rules. The digital natives aren’t the only ones shaking things up, though. Many legacy retailers have followed suit. They have pivoted their business models, shifting away from wholesale and focusing on direct-to-consumer (DTC) sales.
According to a PYMNTS and PayPal study, 37% of U.S. shoppers expect this kind of selling and buying experience. The number one reason cited was loyalty. Consumers want to buy from brands they trust.
“When you focus on direct sales, you commit to the experience of buying over the act of selling,” said NewStore Chief Commercial Officer, Rick Berger in a recent post on DTC retail. Adore Me Vice President of Content echoed this sentiment to PYMNTS: “DTC has always been more about the direct connection between a brand and its customer, rather than simply selling things online.”
In short, it is becoming increasingly more important to shoppers to not feel like just another transaction.
The growth of digital native and DTC brands is here to stay. Adobe Analytics found that American shoppers spent 32.2% more online over the holidays than the year before. Digital is now the primary way for people of all demographics to shop. Even more online buying is likely to come in the weeks and months ahead.
So, who are the high-growth DTC brands that are embracing this retail market? The Lead, a research and events company at the intersection of fashion, retail, and technology, has identified a power list of rising direct-to-consumer businesses. Called The Foremost 50, it is a group of innovative brands across categories, from apparel, footwear, and jewelry, to wine, furniture, and plants.
Foremost 50 honorees were vetted and chosen by The Lead using a rigorous methodology. Companies were analyzed across seven dimensions: innovation, commercialization, media buzz, competition, team, market opportunity, and investor value creation. They were also honored for excellence in marketing and customer acquisition, customer experience, supply chain optimization, technology implementation, channel diversity, and capital efficiency.
We’ve seen many of the brands show up on other leading lists, too. Cuup, makers of bras and underwear, and Atoms, a sneakers and masks company, were two of the 15 fastest-growing DTC brands by web traffic in 2020. SimilarWeb found that all 15 companies grew with a mix of organic traffic and increased marketing spend.
Let’s meet a few of the brands on the Foremost 50 list that are reinventing and redefining the future of the fashion, retail, and consumer industries. Be sure to check out the full list of brands and hear from some of their CEOs at The Lead Forum on February 4, 2021.
Rhone is a performance lifestyle brand. Co-founder and CEO Nate Checketts told Digiday that direct-to-consumer is old school retail, really; however, what makes DTC so different now compared to decades ago is that customer relationships are formed online. Even so, customers are still buying clothes in stores. For Checketts, it is why there is a “good rationale for being omnichannel.”
The company is not only known for being digital-first and having good products. It is also known for having a great conscience. Rhone is one of a growing list of DTC brands participating in Brands x Better, a coalition of companies that are working to support their communities as they navigate social issues. Checketts founded the organization at the start of the pandemic. Andie, Enso Rings, Helix, and Summersalt are other Foremost 50 brands doing their part to give back to those in need.
Rothy’s is a global lifestyle brand transforming sustainable materials into timeless shoes, handbags, and accessories. The company has been direct-to-consumer from the start, launching the brand in response to consumer demand for eco-friendly products. It also owns its factory so it is able to make decisions with agility and speed.
Much of Rothy’s early growth is the result of a strong digital and content approach. It surpassed one million customers in less than four years. VP of Growth Matt Gehring told Chief Marketer it is in part to a “three-pronged digital strategy of connecting to its audience authentically across the full sales funnel.” That doesn’t mean traditional marketing or physical retail hasn’t been part of the mix. Rothy’s operates several shops which it uses to bring the brand closer to customers. Stores are a true complement to its digital business. They allow the brand to test, innovate, and acquire shoppers that believe in its brand promise.
Tecovas is a western brand offering cowboy boots, apparel, and accessories. It has sold its beautiful products to customers directly since 2015. CEO and founder Paul Hedrick told Cowboys & Indians magazine he “really like[s] the idea of buying direct [because] it’s a better brand experience.” He also said he saw the success of DTC brands in other categories but didn’t see anyone selling boots. So, he built Tecovas. From the beginning, selling direct to customers has been core to the business. It’s the only way to offer affordable prices without sacrificing quality.
Herick told Bloomberg that even with the industry experiencing lows, the company saw a 10% increase in sales. And its digital advertising is to thank. The marketing cost per customer is down, making it possible for the brand to attract a whole new set of customers. Tecovas also chugged forward with its plan to open more physical stores. It launched seven new physical locations in the U.S. after the start of the pandemic, more than doubling its retail fleet.
This post is part of our series on the brands we love at NewStore. Joy often comes in fleeting moments, but these moments are what connect us. Tell us: Do these brands bring you joy, too? Which ones do?
