CEOs from direct-to-consumer brands explain how they thrive during a pandemic - Business Insider

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10 CEOs from thriving DTC brands like Thinx and Magic Spoon reveal their playbooks for how companies can succeed amid a global pandemic

Ten Thousand; Anomalie; Peace Out; Thinx; Olivia Reaney/Business InsiderSome digitally native direct-to-consumer companies are avoiding the pitfalls of major retailers.

"The number one factor for a business to be doing well during the pandemic is that the value of their service or product can be provided digitally or through home delivery," said Alex Song, the CEO ofSong added that price point is also an important element that can determine which brands will succeed in the pandemic.

Year-over-year sales for March were up a full 100% and the company has not seen a downturn in conversion rates or business; revenue was up 130% year-over-year, and 20% month-over-month in April. Despite the currently unpredictable state of retail, Nowak believes a return to normalcy is possible. According to Means, almost nothing on the client-facing side of the business changed as a result of the pandemic. With no physical stores, Anomalie was already used to connecting to clients through technology.

In addition to desirable product, Berger said that his company's customer loyalty and marketing expertise mixed with an efficient and nimble team was all a part of helping Mack Weldon get through this turbulent time with grace. Frezza said that the company started working on contingency plans in early March. Peace Out worked with Sephora, its exclusive retailer, to fully shift sales to online, shifted to work from home for employees, and expanded its marketing efforts and even started exploring TikTok.

According to Magic Spoon cofounder Gabi Lewis, the company's "agile" supply chain has allowed it to keep up with this increased demand during the pandemic. Cofounder Greg Sewitz added that the company's production and distribution wasn't dramatically affected by the pandemic, despite the influx in orders.

But Lewis said transparency and honesty with consumers is probably the most important element for a DTC company to have in this uncertain time. Kudla said his company recognized early on that a creative strategy that aligned with a new reality was necessary to keep business going during a lockdown. "Periods don't stop for pandemics," Maria Molland, CEO of Thinx, told Business Insider's Bethany Biron in a previousAccording to Molland, sales at Thinx are up 40% from the same time last year, and business has grown week-over-week since shelter-in-place orders went into effect.

"As with many other brands, we have learned that we can fully operate from home as a company," Molland told Biron. "Prior to the pandemic, we didn't have a work-from-home policy for employees, but I've watched our team come together and bring out some of their best and most creative work. I expect we will have more work-from-home opportunities for the team.

"We don't let a day go by without taking time to examine the details since things are changing so quickly," Borrelli said, adding that he believes direct-to-consumer will be an even more significant area of the marketplace of the future in a post-pandemic world.Hydrant For Hydrant, a wellness company focused on hydration, things have been pretty much business as usual since the start of the pandemic.

When it comes to long-term success coming out of this pandemic, Sherwin said DTC companies should focus on having diversified acquisition channels for winning over loyal customers.

 

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