Funding

Explore strategies for growing a profitable business.

With the direct-to-consumer funding heyday now over, DTC brands need to turn a profit. Unlike their revenue-obsessed counterparts, DTC pioneers Marine Layer, Meundies and Trinny London offer a blueprint for achieving both top- and bottom-line growth.

Mounting digital marketing costs and e-commerce readjustments have put the viability of pure direct-to-consumer business models into question. The State of Fashion 2023 reveals that most brands will need to diversify their channel mix beyond DTC to generate growth.

Start-ups under pressure to operate in the black have logistics and marketing expenses in their sights.

As the economy weakens and funding dries up, digital brands may face pressure to sell from investors. To do so, they’ll need to prove they’re more than just another money-losing start-up.

As the economy weakens and funding dries up, more digital upstarts will face pressure to sell. They’ll have no trouble finding buyers – if they can prove they’re more than just another money-losing start-up.

Mounting customer acquisition costs and a pressure to grow fast have made it hard to build a profitable DTC business. BoF deputy editor Brian Baskin and retail correspondent Cathaleen Chen join Lauren Sherman to analyse the past, present and future of the market.

E-commerce valuations have reached dizzying heights in recent months, dispelling doubts over the fashion start-up boom and its growth-above-profits approach. But will it last?

For founders of undercapitalised, unprofitable DTC brands, partnering with a strategic player earlier than anticipated is a success, not a failing, argues Matt Kaden.