The strongest omnichannel brands do more than add another sales channel. They use each channel to reinforce the others, diversify how customers discover the brand, and build a more resilient commercial model.
Ana Luisa in Jewelry
Ana Luisa, a brand known for its sustainable and chic jewelry, has navigated the competitive environment of online jewelry and fashion to achieve higher profit margins. With the jewelry category capable of reaching 50-70% of sales through non-DTC channels, Ana Luisa's journey underscores the importance of diversifying sales channels beyond high online CPA. This brand's success story serves as a beacon for others in similar competitive categories, demonstrating the viability of achieving substantial profit gains through omnichannel expansion.
Harry's in Shaving
Harry's expansion into nationwide retailers like Target and Walmart showcases the potential for FMCG (fast moving consumer goods) and shaving products brands to substantially grow their non-DTC sales. A brand like Harry's, now omnipresent across various retail outlets, illustrates that it's feasible for certain categories to attribute over 50% of their sales to wholesale, retail partnerships, and B2B channels. Their strategy and execution provide a roadmap for similar brands aiming to penetrate the retail market effectively.
Brooklinen in Bedding
Brooklinen's presence across a spectrum of sales channels -- from its own brick-and-mortar stores to online giants like Amazon and traditional retailers such as Macy's and Walmart.com -- highlights the importance of omnichannel distribution in standing out within the competitive home goods sector. For brands like Brooklinen, targeting 20-30% of sales through non-DTC channels is a strategic goal that aligns with achieving sustainable growth and market differentiation.
Strategic Insights for Expansion
Through conversations with over 100 brand CEOs and founders, it's clear that finding the right mix of wholesale and ecommerce is crucial for achieving desired profit gains. Omniscale.io advises brands to target 10% non-DTC sales in the first year, with a long-term goal of reaching 30-50%, depending on the product category. This range is supported by our founders' backgrounds as both retail buyers and brand operators with experience scaling into omnichannel.
Tangible Next Steps
1. Assess Your Category's Retail Potential: Understand the retail environment and how your products fit into physical retail and online marketplaces.
2. Set Realistic Goals: Aim for gradual expansion into non-DTC channels, starting with a modest percentage and scaling up based on category norms.
3. use Omnichannel Expertise: use platforms like Omniscale.io to develop a comprehensive strategy for entering wholesale, retail, and B2B channels.
4. Build Retail Partnerships: Seek out partnerships with retailers that align with your brand identity and can provide meaningful exposure to new customer segments.
5. Monitor and Adapt: Continuously evaluate the performance of your omnichannel strategy and be prepared to adapt based on consumer feedback and market trends.
Conclusion
In conclusion, the transition to omnichannel commerce is not just a trend but a necessary evolution for DTC brands aiming for sustainable growth and profitability. By highlighting the successful paths of Ana Luisa and Harry's, this article aims to inspire and guide other brands considering this pivotal shift. With strategic planning and the right partnerships, brands can navigate the complexities of omnichannel expansion and open new opportunities for success.
About Omniscale
Omniscale helps leading consumer brands win the right retailers, reach the right buyers, and build a repeatable sales process that turns buyer conversations into retail accounts.