What’s the one word marketers should focus on when transitioning from DTC to Retail?
- Part 1Has DTC Marketing Peaked
- Part 2Should growing retail brands double down on their in-store retail outlets or diversify to DTC?
- Part 3 What’s the one word marketers should focus on when transitioning from DTC to Retail?
- Part 4Are subscription models the best pricing strategy for DTC brands?
- Part 5What plays would you call to scale a DTC business from startup to $10 million ARR?
Show Notes
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00:30Transitioning strategies from DTC to Retail.Discussion on the essential focus for marketers when moving from DTC to Retail environments.
Quotes
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"If you do not have enough organizational scale and strength of brand, it's going to be very difficult. So organizational scale, having the people, the places, the processes in place to support a retail or wholesale business." - Kelly Thornton
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"The key to being successful in wholesale relationships is distribution." - Kelly Thornton
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"You have to be ready for distribution. You have to have things in place so that you can support distribution." - Kelly Thornton
Episode Chapters
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01:32: What's the Word? -- Transitioning to retail_ Discusses what marketers should focus on when transitioning from D2C to retail, emphasizing the need to be "ready" and why organizational scale and brand strength are crucial for success.
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02:25: Importance of Distribution in Retail Transition_ Highlights the significance of mastering distribution when moving from D2C to retail, detailing how intermediary relationships can facilitate bulk sales and manage logistics efficiently.
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03:51: Being Ready for Wholesale Relationships_ Explains the necessity of being prepared for distribution to achieve success in wholesale relationships, with a focus on the need for organizational readiness to support wide distribution.
Episode Summary
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# Transitioning from D2C to Retail — Are You Ready? ## Making the Shift Transitioning from direct-to-consumer (D2C) to retail is a significant step for any brand. It involves more than just putting products on store shelves — it’s about ensuring your brand is prepared to thrive in a new environment. In a recent episode of the MarTech Podcast, Kelley Thornton shared valuable insights on what it takes to make this leap successfully. This comprehensive discussion highlighted the critical aspects brands must consider to ensure smooth and effective transitions. ## The Power of Readiness The core message is simple — readiness. Thornton emphasized the importance of being thoroughly prepared before venturing into retail. Moving from D2C, where brands have full control over their customer interactions, to retail, where the dynamic changes significantly, requires meticulous pla ing and groundwork. ### Organizational Scale and Brand Strength First, it’s crucial to have sufficient organizational scale and brand strength. Without these, retail success may be out of reach. Here are key areas to focus o n- **Organizational Scale** Ensure you have the people, processes, and infrastructure needed to support retail operations. This might include expanding your team or enhancing your operational efficiencies.n- **Packaging** Your product packaging must be retail-ready. This means it needs to stand out on shelves and meet the logistical requirements of retail stores.n- **Product Readiness** Ensure your products meet retail standards and are market-ready. This might involve additional quality checks or certifications.n- **Pricing and Sales Materials** Develop competitive pricing and comprehensive sales sheets. These materials are essential for engaging potential retail partners and conveying the value of your products.n- **Trade Shows** Be prepared to present your products at trade shows and engage with potential retail partners. Trade shows are excellent avenues for showcasing your brand and products in a retail context.n- **Brand Presence** Your brand should already have enough recognition to attract customers in-store. This involves building brand awareness and loyalty through consistent and compelling marketing efforts. ## The Role of Distributio nWhile readiness is the foundation, mastering distribution is equally important. The host of the MarTech Podcast, Benjamin Shapiro, shared his perspective, emphasizing the role of distribution in the transition from D2C to retail. ### Shifting from Single Orders to Bulk Deliveries D2C brands are accustomed to delivering single orders directly to consumers. However, retail demands bulk deliveries to centralized locations, where partners will then distribute the products. This marks a significant shift in logistics and requires a different level of operational efficiency. Brands must adapt to ensure that their supply chain can handle these larger, more complex orders reliably. ### Intermediaries Before Flagship Stores Shapiro noted that most D2C brands use intermediaries before opening their flagship stores. Intermediaries distribute in bulk, manage relationships, and help the brand establish a retail presence without the immediate overhead of ru ing a standalone store. Using intermediaries can be a strategic move, allowing brands to test the retail waters and build their network before committing fully to their retail operations. ## The Dual Necessity — Readiness and Distributio nInterestingly, both Thornton and Shapiro agree that readiness and distribution are intertwined. Being ready means having the capability to support distribution effectively. Successful retail operations rely heavily on robust distribution networks that ensure products are available to consumers when and where they need them. ### Preparation Takes Time Thornton highlighted that his company took a few years to achieve retail readiness. This included building the necessary organizational scale, developing accurate pricing and sales materials, and ensuring the brand had enough market presence. Patience and persistence are crucial. Rushing into retail without sufficient preparation could lead to operational issues and damage brand reputation. ## Conclusion — The Wi ing Formula The conversation on the MarTech Podcast underscores that successfully transitioning from D2C to retail involves much more than a simple business decision. It demands a comprehensive strategy that includes perfecting organizational readiness and mastering distribution. Brands must be prepared to invest time and resources into ensuring they can support this significant shift. For any D2C brand considering the move to retail, the question isn’t just about wanting to expand — it’s about being ready to do so. Ensuring readiness across various facets of the business and mastering the art of distribution can pave the way for success in the retail market. Stay tuned to our podcast for more insights from industry leaders on navigating the ever-evolving landscape of marketing and technology. Keep focusing on what matters most — keeping your customers happy.
- Part 1Has DTC Marketing Peaked
- Part 2Should growing retail brands double down on their in-store retail outlets or diversify to DTC?
- Part 3 What’s the one word marketers should focus on when transitioning from DTC to Retail?
- Part 4Are subscription models the best pricing strategy for DTC brands?
- Part 5What plays would you call to scale a DTC business from startup to $10 million ARR?
Up Next:
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Part 1Has DTC Marketing Peaked
Kelley Thornton, the founder and CEO of Tiege Hanley, discusses the evolution and current landscape of direct-to-consumer (D2C) marketing. He shares insights from his journey as a serial entrepreneur, emphasizing the dynamic nature of content creation and channel optimization. Discussing the historical rise and strategic pivots of well-known D2C brands, Thornton highlights the significance of integrating social influencers and leveraging data to drive customer engagement and sustainable growth.
Play Podcast -
Part 2Should growing retail brands double down on their in-store retail outlets or diversify to DTC?
Kelley Thornton, founder and CEO of Tiege Hanley, explores the critical decision of whether retail brands should double down on in-store retail outlets or diversify into D2C marketing. Kelley shares his insights on the evolving consumer behavior, emphasizing the importance of meeting customers where they want to buy. He highlights how traditional retailers can compete with the convenience and speed of online giants like Amazon, ensuring their survival and relevance in the digital age.
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Part 3What’s the one word marketers should focus on when transitioning from DTC to Retail?
Kelley Thornton, founder and CEO of Tiege Hanley, explores the essentials of transitioning from D2C to retail. He emphasizes the importance of being ‘ready’ for organizational scale, brand strength, and mastering distribution. Kelley shares valuable insights on preparing packaging, developing pricing strategies, and ensuring a strong brand presence to succeed in retail environments.
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Part 4Are subscription models the best pricing strategy for DTC brands?
Kelley Thornton, founder and CEO of Tiege Hanley, explores the benefits and challenges of subscription models for D2C brands. He emphasizes the importance of flexibility in modern subscriptions, detailing how his company manages customer needs to prevent accumulation of excess products. Kelley shares insights on how to make subscription management painless for customers, enhancing their overall experience and satisfaction.
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Part 5What plays would you call to scale a DTC business from startup to $10 million ARR?
Kelley Thornton, Founder and CEO of Tiege Hanley, shares his insights on scaling a D2C business from zero to $10 million in ARR. Focus on execution and iterative product improvement, Thornton emphasizes the significance of early market testing and finding the right marketing channels. He also encourages aspiring entrepreneurs to seize the opportunities within the DTC channel, emphasizing its level playing field and potential for success.
Play Podcast