The news: A number of direct-to-consumer (D2C) retailers are struggling to make the shift from rapid growth to profitability.
More on this: Soaring digital ad costs, rising shipping costs, Apple’s iOS privacy changes, and smaller-than-anticipated customer bases (helped in part by a pandemic-related shift in consumer purchase behaviors) are converging to create a challenging environment for many D2C brands.
Not every D2C brand is bearish: Conservative-leaning coffee brand Black Rifle Coffee, which went public via a SPAC merger in February, said the IPO is enabling it to place $150 million on the balance sheet to execute its strategy.
Why it matters: The days of nearly any upstart D2C retailer turning to inexpensive digital ads to drive rapid growth are over. That means D2C retailers need to find new ways to tell consumers about their brands.
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