{"id":974,"date":"2019-08-26T16:38:32","date_gmt":"2019-08-26T16:38:32","guid":{"rendered":"https:\/\/www.shipbob.com\/uk\/blog\/dtc-brand-success-formula-web-smith\/"},"modified":"2024-04-15T16:18:24","modified_gmt":"2024-04-15T16:18:24","slug":"dtc-brand-success-formula-web-smith","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/uk\/blog\/dtc-brand-success-formula-web-smith\/","title":{"rendered":"The DTC Success Formula: Building a Brand [With Web Smith]"},"content":{"rendered":"\n<div class=\"wp-block-shipbob-blocks-single-toc single-toc\" data-controller=\"blog-toc-controller\" data-action=\"scroll@window-&gt;blog-toc-controller#scrollChanged:passive\" id=\"toc-component\"><div class=\"single-toc-overview\"><p>Table of Contents<\/p><div class=\"single-toc-read-time\"><p>** Minutes<\/p><\/div><\/div>\n<p><a href=\"#\">Connect with early adopters to tap into their innate desires<\/a><\/p>\n\n\n\n<p><a href=\"#\">Nail your segment and scale effectively to coexist with Amazon<\/a><\/p>\n\n\n\n<p><a href=\"#\">Provide the customer experience to match expectations<\/a><\/p>\n\n\n\n<p><a href=\"#\">Learn more: Offer best-in-class shipping<\/a><\/p>\n<\/div>\n\n\n\n<p><em>This is part one in our interview series to demystify the <a href=\"https:\/\/www.magnificent.com\/magnificent-stuff\/e-commerce-marketing-build-a-successful-e-commerce-business-using-social-media\" target=\"_blank\" rel=\"noopener noreferrer\">secret to ecommerce<\/a> and DNVB success.<\/em><\/p>\n\n\n\n<div class=\"wp-block-shipbob-blocks-blog-callout blog-callout\">\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-5332\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2019\/12\/Web-Smith.jpg?w=1280px\" alt=\"\" width=\"300\" height=\"412\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2019\/12\/Web-Smith.jpg?w=700px 650w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2019\/12\/Web-Smith.jpg?w=860px 768w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2019\/12\/Web-Smith.jpg?w=1180px 1080w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2019\/12\/Web-Smith.jpg?w=1400px 1280w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2019\/12\/Web-Smith.jpg?w=1600px 1440w\" fetchpriority=\"low\" \/><\/p>\n\n\n\n<p><strong>Web Smith, Founder of&nbsp;<a href=\"https:\/\/2pml.com\/\">2PM<\/a><\/strong><\/p>\n<\/div>\n\n\n\n<p>In a world where Amazon is \u201cthe everything shop\u201d and many consumers begin their search for a product there, direct-to-consumer brands face many challenges when it comes to standing out and competing.<\/p>\n\n\n\n<p>So, what are the successful DNVBs doing to build brand equity?<\/p>\n\n\n\n<p>We sat down with the Founder of <a href=\"https:\/\/2pml.com\/\">2PM<\/a>, Web Smith, who also co-founded Mizzen+Main, was the Director of eCommerce at Gear Patrol, and ran marketing at brands such as Rogue Fitness.<\/p>\n\n\n\n<p>We discussed, among other things:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How to cultivate a brand that really connects with customers<\/li>\n\n\n\n<li>How DNVBs coexist with Amazon<\/li>\n\n\n\n<li>The keys to an amazing customer experience<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-connect-with-early-adopters-to-tap-into-their-innate-desires\">Connect with early adopters to tap into their innate desires<\/h2>\n\n\n\n<p>Most companies hope to reach a certain level of brand awareness and <a href=\"https:\/\/www.custify.com\/blog\/product-adoption-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">adoption among their audience<\/a>. A great indication of that is seeing consumers who incorporate a product or brand into their lifestyle.<\/p>\n\n\n\n<p>Take Away, the luggage brand you see everywhere now.<\/p>\n\n\n\n<p>Web owns Away products and experiences a couple common moments of impact when travelling:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Walking through an airport with Away luggage in hand and you see somebody else doing the same &mdash; there&rsquo;s this smile and nod moment among complete strangers.<\/li><li>Entering a plane and the gate agent asks if your battery is out &mdash; just by looking at the bag or carry on itself. They&rsquo;re so used to seeing Away luggage that they know there&rsquo;s a detachable battery that comes out of it.<\/li><\/ol>\n\n\n\n<p>These interactions reinforce that Away has gained a significant level of penetration and brand awareness in those environments. This success comes without ever selling Away products on Amazon. In fact, they attribute that to their $1 billion+ valuation, with the belief that you choose a brand because you love the brand or product \u2014 not because it\u2019s just a commodity you can purchase on Amazon.<\/p>\n\n\n\n<p>While a piece of Away luggage is not an overly expensive product (as compared to a Louis Vuitton luggage that you might see once or twice when travelling depending on the city that you\u2019re in), Web\u2019s noticed there is an affinity that skews towards the affluent.<\/p>\n\n\n\n<p>\u201cI was sitting toward the front of a plane on a recent flight, and within five to six rows in either direction, I saw 12 different colours of Away luggage. On another trip, I saw a family of four that was dressed to the nines, and all four of them had Away luggage. The two children had the kids versions, and the parents had Louis Vuitton duffles on top of their Away bags,\u201d he added.<\/p>\n\n\n\n<p>The cost of each of their Away suitcases were in the $200 \u2013 $300 price range, but everything else they were wearing had to be worth at least $500 a piece.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWhen Away comes out with something that\u2019s more expensive, let\u2019s say a $1,500 version of their aluminum luggage, it will be interesting to see what percentage of their existing consumer base will adopt it. I venture to guess it\u2019s a significant amount.\u201d<\/em><\/p>\n\n\n\n<p>Web Smith, Founder of 2PM<\/p>\n<\/blockquote>\n\n\n\n<p>Web pointed out that Away\u2019s not the only brand experiencing this socioeconomic phenomenon: \u201cIf you are in certain circles around Sand Hill or at Menlo Park, you\u2019re going to see quite a few pairs of Allbirds. But there is not one person wearing those $100 pair of shoes that is worth less than $10 million.\u201d<\/p>\n\n\n\n<p>Not to get too psychological, but there seems to be some type of signaling that goes beyond the monetary value. So, what is in a brand\u2019s DNA that has wealthy people purchasing their moderately-priced products?<\/p>\n\n\n\n<p>Web has a hunch: \u201cI think that a lot of the people who are drawn to these products are typically independent thinkers. They like to associate themselves with innovation or exploration. So in a way, part of the appeal is that they were first. And I think that they expect the product will go up market sooner than later.\u201d<\/p>\n\n\n\n<p>With this logic, the traditional customer will buy the $300 hard shell Away carry on, and then they\u2019ll upgrade to the aluminum one over the next year or two. Then what\u2019s next?<\/p>\n\n\n\n<p>According to Web, these consumers expect something that will eventually meet the qualifications or the classifications of luxury. And he thinks that we\u2019re going to see that across the board.<\/p>\n\n\n\n<p>But if products that were $100 will eventually become $300, and products that are $400 will eventually become $900, will the market respond?<\/p>\n\n\n\n<p>\u201cAtoms is already anticipating that,\u201d Web explained. \u201cThey have their $180 pair of shoes but they\u2019re already testing custom leather versions with Alexis Ohanian that will eventually debut on the market for significantly more than $180.\u201d<\/p>\n\n\n\n<p>Get customers in. Appeal to the early adopter ethos at first. Then scale with them. He may be onto something.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-nail-your-segment-and-scale-effectively-to-coexist-with-amazon\">Nail your segment and scale effectively to coexist with Amazon<\/h2>\n\n\n\n<p>Amazon makes up 5.1% of all retail in America, which means 94.9% is still available to compete. And though they make up 47% of online retail in the US, Web knows the companies that have achieved the greatest exits over the last 10 years have been marketplaces that compete with Amazon in some way, shape, or form.<\/p>\n\n\n\n<p>Whether that\u2019s Chewy, The RealReal, Stitch Fix, or even Rent the Runway, these companies have found ways to take portions of Amazon\u2019s consumer base and optimise to meet their needs.<\/p>\n\n\n\n<p>Web explained it gets a little bit tougher for DNVBs though: \u201cYou\u2019re dealing with a few market forces that marketplaces don\u2019t have to deal with. Can Amazon knock you off? Do you have IP to protect yourself? Is your brand deep and strong enough to outlast Amazon\u2019s emergence into your category?\u201d<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cYou know that you\u2019ve made it as a direct-to-consumer brand when Amazon launches something completely similar to your product and it doesn\u2019t affect your bottom line.\u201d<\/em><\/p>\n\n\n\n<p>Web Smith, Founder of 2PM<\/p>\n<\/blockquote>\n\n\n\n<p>And Web knows this firsthand. As the former cofounding CMO of Mizzen+Main, there was a time when none of their products were sold on Amazon.com. At this time, there were several substitutes to consider; However, it didn\u2019t affect the company very much at all.<\/p>\n\n\n\n<p>What it did tell them was maybe they should also start selling on Amazon. And Amazon became a worthwhile channel for the company.<\/p>\n\n\n\n<p>\u201cWhen you look at how the actual product competed against Amazon\u2019s native brands as well as other smaller, lesser known companies, it was an example of how the company with the most brand equity \u2014 regardless of the price \u2014 tends to perform better,\u201d Web said.<\/p>\n\n\n\n<p>Amazon\u2019s assumption is that if you make a product that\u2019s similar enough and you make it cheaper, then people will peel off from the incumbent direct-to-consumer brand. And naturally, a very small percentage of those people will do that.<\/p>\n\n\n\n<p>\u201cI think that consumers are less focused on promotional pricing or value pricing than people tend to believe,\u201d Web said \u201cThey like the one-on-one connections with the founders and the C suites of those companies.\u201d<\/p>\n\n\n\n<p>Not only do consumers want brands that they can have a deep connection with, but they also want to be understood.<\/p>\n\n\n\n<p>Web recalled a recent dinner with several executives at some of the biggest mall brands in the country that had achieved such a scale that they don\u2019t know exactly who their consumers are anymore.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cA lot of these incumbent brands are building products for a huge audience that they don\u2019t quite understand. New brands can focus on one specific customer, drill down on that customer, and build one-on-one relationships in ways that major companies can\u2019t.\u201d<\/em><\/p>\n\n\n\n<p>Web Smith, Founder of 2PM<\/p>\n<\/blockquote>\n\n\n\n<p>There are plenty of examples of this, Web noted: \u201cWhether it\u2019s Andie or Summersalt for swimwear, Third Love or Adore Me for lingerie, or Rhone for athletic wear, these brands are segmenting away the existing retail structure.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-provide-the-customer-experience-to-match-expectations\">Provide the customer experience to match expectations<\/h2>\n\n\n\n<p>In addition to knowing who their customers are, up-and-coming DNVBs must understand how logistics plays into their success.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cI think shipping is the most important part of the direct-to-consumer process. Brands tend to frontload on design, brand messaging, and other pretty things that help you grow attached to a company in the first place, but then they fail to deliver on the back end.\u201d<\/em><\/p>\n\n\n\n<p>Web Smith, Founder of 2PM<\/p>\n<\/blockquote>\n\n\n\n<p>He added, \u201cYou want to know where your product is at all times so you know when it\u2019s going to arrive to your house and you can account for that despite your crazy schedule. I think it\u2019s really important to consider how much the typical consumer has going on and what they\u2019re juggling.\u201d<\/p>\n\n\n\n<p>Web believes orders should be shipped within 24 hours. He was one of the very first customers of ShipBob client <a href=\"https:\/\/www.shipbob.com\/blog\/doris-sleep\/\">Doris Sleep<\/a>, and posted about his post-checkout experience in his newsletter.<\/p>\n\n\n\n<p><img decoding=\"async\" class=\"aligncenter wp-image-4847 size-full\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2019\/12\/Screen-Shot-2019-05-28-at-9.50.13-AM.png?w=1280px\" alt=\"Doris Sleep shipping mentioned in 2PM newsletter | ShipBob\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2019\/12\/Screen-Shot-2019-05-28-at-9.50.13-AM.png?w=700px 650w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2019\/12\/Screen-Shot-2019-05-28-at-9.50.13-AM.png?w=860px 768w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2019\/12\/Screen-Shot-2019-05-28-at-9.50.13-AM.png?w=1180px 1080w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2019\/12\/Screen-Shot-2019-05-28-at-9.50.13-AM.png?w=1400px 1280w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2019\/12\/Screen-Shot-2019-05-28-at-9.50.13-AM.png?w=1600px 1440w\" fetchpriority=\"low\" \/><\/p>\n\n\n\n<p>Like many consumers, Web prefers to have the products he ordered delivered realistically within two to five days \u2014 if not faster \u2014 and wants some accountability.<\/p>\n\n\n\n<p>\u201cWhen a product arrives at your door within three to four days the first time you buy from that brand, you\u2019re more likely to buy that product more often and you\u2019re also more likely to tell your friends to buy that product more often,\u201d he said.<\/p>\n\n\n\n<p>It\u2019s a form of customer acquisition and it should be invested in as such. For brands unable to execute this on their own, they can turn to third-party logistics (<a href=\"https:\/\/www.shipbob.com\/3pl\/\">3PL<\/a>) providers.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWhen outsourcing fulfilment, some brands typically find the cheapest route to go when they consider 3PLs without understanding that process could also be a customer acquisition form in some ways. Brands are only shooting themselves in the foot by not investing heavily in partnerships like ShipBob.\u201d<\/em><\/p>\n\n\n\n<p>Web Smith, Founder of 2PM<\/p>\n<\/blockquote>\n\n\n\n<p>If your brand can provide the delivery experience to match both the expectations set by Amazon and the connection that they have with your brand, you will drive <a href=\"https:\/\/www.liveagent.com\/blog\/customer-lifetime-value-model-maximising-the-math-that-matters-in-ecommerce\/\" target=\"_blank\" rel=\"noopener noreferrer\">more lifelong customers<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-learn-more-offer-best-in-class-shipping\">Learn more: Offer best-in-class shipping<\/h2>\n\n\n\n<p>If you want your brand to provide the shipping experience today expected by consumers, then check out ShipBob. ShipBob provides the fulfilment services, technology, and scalability needed to thrive today and tomorrow. Request pricing below.<\/p>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote\/\"><strong>Request Shipping &amp; Fulfilment Pricing<\/strong><\/a><\/div>\n\n\n\n<p>Want more insight into DTC success? Read the rest of the series here:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.shipbob.com\/blog\/brand-lifetime-value-customer-taylor-holiday\/\">Brand is the Lifetime Value of Your Customer [With Taylor Holiday]<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.shipbob.com\/blog\/vcs-invest-dtc-brands-kate-mcandrew\/\">What VCs Look for in DTC Brands When They Invest [With Kate McAndrew]<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.shipbob.com\/blog\/social-proof-levers-dtc-brands-neel-grover\/\">The New Social Proof Levers for DTC Brands [With Neel Grover]<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Web Smith discusses how to cultivate a brand that really connects with people, how to coexist with Amazon, and how to provide the best customer 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