Traditional DTC is dead, but private equity pour money into one category that thrives in DTC...
That category is CPG - Consumer Packaged Goods.
Let me explain:
DTC was the favorite business model of the 2020s.
Then the funding dried up.
The problem was not DTC itself...
1. Acquire CPG brand with a traction, validated idea, clear postioning.
2. Pour money into customer acquisition, scale aggressively even at a loss.
3. Acquire a large dedicated customer base, with active subscriptions. Dominate the market segment.
@mannybarbas_ I'm working on a CPG brand in a oversaturated, trending niche but we found a market gap with a strong differentiation. What country would you enter if you were me? Our target demography mainly lives in the U.S., Australia, UK, Spain. The U.S. market is difficult, CAC is too high.
@EricLDaugh NATO is a defense alliance, dummy. Article 5 was invoked once after 9/11, and every NATO ally including EU countries sent troops to Afghanistan. This war on Iran is completely unprovoked and it's going to hurt us economically.
@mannybarbas_ How would you position a watch brand that expands to the U.S. that sells well in other countries but doesn't have any USPs or unique value propositions?
@EYakoby You don’t know anything about history you two dummies. In 711 the moorish empire overran the Iberian peninsula by that killing forcing out the members of the catholic kingdoms. Then the reconquista started, backed by the Roman Catholic pope and they regained power over Spain…
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I think he was elected because of the inflation and the soaring food prices. But what he does now is screwing up the global economy with the tariffs, driving us to massive bull market, like the Great Depression. This is a lose-lose situation.
And what he does with kissing up to Putin and bullying America’s very own NATO allies, Canada and Denmark is just straight up idiotic. We had 80 years of world dominance through military and economic alliance, 80 years of peace on the northern hemisphere and he eliminates all this in 3 months.