Brands to watch out for in the direct-to-consumer (DTC) market in the year 2024
2023 witnessed some major shifts in the Direct-to-Consumer (DTC) landscape, with a mix of acquisitions, IPOs, and challenges for numerous original DTC heavyweights. While deal counts saw a dip from 2021 highs, brands like Merit, Rhode, True Classic, Quince, Studs, Aura Bora, Made In, and Droplette whipped up quite a storm, making them some promising names to keep an eye on in the DTC space as we usher in 2024.
1. Merit
Merit, founded by Katherine Power (who's behind Avaline, Versed, and Who What Wear too) promises a minimalist, clean luxury approach with products like complexion sticks, bronzers, eye shadow, and more. Launching an exclusive partnership with Sephora just a month after its inception, it garnered the attention of investors like L Catterton, Marcy Venture Partners, and Sonoma Brands, securing a Series A funding round of $20 million. The brand is working towards expanding its omnichannel presence.
2. Rhode
With a growth score of 88.9, Hailey Bieber's Rhode has gotten off to a flying start. Known for its dedication to making skincare accessible and effective, it got a significant boost from its variety of products, which includes the Peptide Glazing Fluid, Peptide Lip Treatment, and Barrier Restore Cream. With a strong presence on social media platforms like Instagram and a growing customer base, Rhode is poised to strengthen its footing.
3. True Classic
This DTC brand turns heads for its well-fitting T-shirts, activewear, and chino pants. Expanding its offline presence through pop-ups and owned and operated stores, True Classic aims to scale its brick-and-mortar presence to 50 to 100 stores over the next 2-4 years. Its commitment to giving back to the community makes it an endearing brand among consumers.
4. Quince
Offering a range of products like cashmere sweaters, leather handbags, and linens, Quince promises premium quality at affordable prices. By pioneering a manufacturer-to-consumer model, Quince manages to keep costs low and deliver quality items. With a focus on sustainability, the brand is working towards eliminating its use of virgin plastics and using compostable packaging and recyclable mailers.
5. Studs
Studs aims to redefine the piercing experience, offering personalized ear piercings using needles, rather than piercing guns. Assisting customers in creating custom looks through earscapes, Studs has managed to attract investors like Spark Capital, First Round Capital, Lerer Hippeau, and Thrive Capital. With its recent store opening in Georgetown, Washington D.C., it's gearing up to expand across the U.S.
6. Aura Bora
With an array of calorie-free, sugar-free, and sodium-free sparkling waters infused with herbs, fruits, and flowers, Aura Bora introduces a refreshing alternative to traditional soft drinks. Flavors like Cactus Rose, Lavender Cucumber, and Strawberry Basil make for a captivating selection. The brand's distinctive can designs, featuring owls, crocodiles, and other creatures, add a unique touch.
7. Made In
Armel observes two Austin stores opened by Made In, a brand focused on offering high-quality cookware in various materials, including stainless clad, nonstick, enameled cast iron, and copper. Its mission to combine professional-grade craftsmanship with modern design has made it popular among professional chefs and home cooks alike. Known for its physical presence in thousands of restaurants and hundreds of thousands of home kitchens, Made In continues to grow.
8. Droplette
Droplette is a skincare brand that leverages a device to deliver a micro-mist of products deep into the skin. Founded by MIT-trained scientists, Droplette's Velvet Cream and C-Rush Serum are notable solutions for common skin concerns. Recent updates to the mobile app and second generation device, Droplette 2, demonstrate the brand's commitment to continuous innovation. Although currently only available on its website, retail partnerships could be on the horizon.
9. Allbirds
Allbirds, a brand focused on sustainable materials and comfort, has gained popularity with its wool runners, tree runners, and loungers. Its commitment to reducing carbon emissions is evident in its transportation choices, using ships over air freight for 90% of its products. With a mission to promote clean energy, the brand purchased and retired carbon credits equivalent to planting over 1.1 million trees. Seeking consumer feedback, Allbirds strives to create products catering to specific needs, such as sports performance or health-conscious calorie tracking. With ventures into apparel and ever-increasing market shares, Allbirds shows no signs of slowing down, even amidst global uncertainties like wars and economic policies. In the competitive footwear market, Allbirds stands as a beacon for environmental and labor practices, setting trends for a greener and more ethical fashion industry.
