Direct-to-consumer (or DTC) brands have disrupted both the traditional brick-and-mortar and online markets. These brands are actively transforming the way customers shop, and much of this can be attributed to their simplicity. These brands thrive because they stand out by simplifying choices for customers. Offering fewer products is easier for their managers, too. Making changes to their strategy is easy, and their ability to adjust quickly puts them ahead of the pack.
In the days before the internet, the options retailers were able to offer were limited by shelf space. Items had to be popular in order to survive. Underperforming items were cut. This all changed during the internet age. Today, retailers can offer a plethora of products, regardless of how popular they are. This proved to be more profitable than a traditional brick-and-mortar store.
DTC brands are transforming this mentality. Many DTC brands began with selling only one product, and still only offer a handful of options. In a market flooded with sub-par products, this is one way brands can stand out. By only offering one product, it is easy for these DTCs to label their brand as “the best.”
Making Adjustments is Easy
Sticking to one or limited products is not only beneficial to marketing, but it is often more cost-effective for DTC brands in the long run. No brand is perfect, and it is important to be able to receive and implement feedback from early users and funders. Going back to the drawing board and making adjustments is far easier to do when you only have limited products. Otherwise, founders will have to burn through their inventory, which can be costly. With only one or a few limited products, they will be able to create new versions and get them on the market quickly.
Speed is Important
The very nature of DTC brands demands that they move quickly. Speed is one of their many advantages. They can get off the ground in a very short period of time. They are risky. Founders need to be comfortable with potential failure, which means they will have to change their entire direction and course of action. This is only possible if a company sells just one or very few products.