Read on Twitter
6. cont’d
Look at Away.
Away raised $181 million, most recently at a $1.4 billion valuation and has 481 employees.
Companies like Monos, July, Arlo Skye, Roam Luggage, and Paravel all built knockoffs and force Away to compete for customers in AdWords battles.
Look at Away.
Away raised $181 million, most recently at a $1.4 billion valuation and has 481 employees.
Companies like Monos, July, Arlo Skye, Roam Luggage, and Paravel all built knockoffs and force Away to compete for customers in AdWords battles.
So what is a DTC brand to do?
7. Go Bootstrapped
Focus on high AOV products in a niche and avoid competing on paid acq. as much as possible.
OR
BYOA - Bring Your Own Audience
Kylie Cosmetics, JoJo Siwa, & @chipgaines & @joannagaines are great examples of @web linear commerce, but non-celebs can do it too.
Focus on high AOV products in a niche and avoid competing on paid acq. as much as possible.
OR
BYOA - Bring Your Own Audience
Kylie Cosmetics, JoJo Siwa, & @chipgaines & @joannagaines are great examples of @web linear commerce, but non-celebs can do it too.
IF you still want to go venture-backed, you need one of two things:
1. Differentiated product, tech, or IP.
2. A brand that captures a very particular and valuable audience.
1. Differentiated product, tech, or IP.
2. A brand that captures a very particular and valuable audience.
8. Differentiated Product, Tech, or IP
Look at Casper v. @eightsleep. 8 is differentiated enough via product, tech, and patents that they don’t need to compete as aggressively for keywords. Casper does, and it loses money on every mattress because of marketing.
Look at Casper v. @eightsleep. 8 is differentiated enough via product, tech, and patents that they don’t need to compete as aggressively for keywords. Casper does, and it loses money on every mattress because of marketing.
8. Cont’d
@profgalloway says they’d be better off if they sent you a free mattress stuffed with $300 in cash.
I think the math is wrong - $761 COGS + $300 cash = $1,061 loss per mattress; Casper only lost $349 per mattress at IPO time (what am I missing Prof?) but point stands.
@profgalloway says they’d be better off if they sent you a free mattress stuffed with $300 in cash.
I think the math is wrong - $761 COGS + $300 cash = $1,061 loss per mattress; Casper only lost $349 per mattress at IPO time (what am I missing Prof?) but point stands.
9. Brand That Captures a Particular Audience
Gather a passionate audience an incumbent can’t, then sell it to them. This is what @bevel did with P&G.
Acquiring and retaining customers is more important than margin in this route.
There will be some big exits for Gen Z brands.
Gather a passionate audience an incumbent can’t, then sell it to them. This is what @bevel did with P&G.
Acquiring and retaining customers is more important than margin in this route.
There will be some big exits for Gen Z brands.
10. You’re Not Alone.
This cycle is happening across industries, from media to neobanks.
Someone innovates, and then someone else builds tools for others to use that innovation.
At this point in the cycle, curation is king. That’s why @tiktok_us is winning.
This cycle is happening across industries, from media to neobanks.
Someone innovates, and then someone else builds tools for others to use that innovation.
At this point in the cycle, curation is king. That’s why @tiktok_us is winning.
Ultimately, the best way to make money in a war is to sell weapons to everyone. It creates its own demand. If the enemy has the best weapons, you’d better have them too. Once everyone is armed, the next opportunity to make money is to bring order to the chaos.
Fin.
Fin.
This was just a small taste of my most popular essay yet, check the full thing out here for more details, lessons, and examples: https://notboring.substack.com/p/shopify-and-the-hard-thing-about-a05
Or listen on *Spotify* and make sure to follow Not Boring there! We just added our podcasts to $SPOT tonight 
https://open.spotify.com/episode/0HTuB28eEVT6k8y1UZWpDl?si=UI3NCHEMQrqn8D8JP6SeFA
https://open.spotify.com/episode/0HTuB28eEVT6k8y1UZWpDl?si=UI3NCHEMQrqn8D8JP6SeFA
