NOVEMBER 2024retailtechinsights.com8In my opInIonThe industry is abuzz with claims that the heyday of Direct-to-Consumer (DTC) brands is over, with some even declaring DTC dead. Terms like omnichannel presence and retail footprint are resurfacing, suggesting a return to pre-pandemic norms. This may seem like a regression, but it's more a recalibration from an unsustainable peak. As markets naturally rise and fall, the level at which you normalize is within your control, especially if you adapted before the pandemic.The Initial Impact of the Pandemic The pandemic drastically shifted consumer behaviors, driving rapid adaptations like `Buy Online Pick-Up In Store' (BOPIS), while those unable to adapt faced bankruptcy. Brands that gained relevance during this time enjoyed a substantial lift in demand and were able to ride that high for quite some time. However, four years after the world shut down, only some have emerged in a genuinely sustainable position. Let's examine what was done post-pandemic to sustain a profitable business and what pre-pandemic actions afforded us that outcome. Key Strategies for Building Resilience Pre-Pandemic PositioningBefore the pandemic, I worked in digital marketing within the collectibles industry, advancing through the ranks in a primarily outbound sales-driven business. When tasked with scaling two DTC brands at the end of 2017, I saw their potential if we built a solid foundation. Over three years, we turned around the declining e-commerce business by transforming our key digital channels: email marketing, paid social, paid search and organic search. Despite challenges like 80% of emails landing in spam, misaligned CAC and unstable customer acquisition, we achieved success through clear objectives and continuous re-evaluation.The results took time to materialize, but persistence paid off. By 2020, not only was the business stable, but it was also beginning to grow. We boldly chose `growth' as our word of the year for 2020, unaware of the pandemic's role in accelerating that growth.Capitalizing On Increased DemandNo brand-building efforts could match the surge in demand driven by the pandemic. While times of uncertainty typically impact precious metals, the spike in gold and silver prices was unprecedented. The U.S. Mint produced emergency coinage, and new products quickly emerged. The groundwork we laid before the pandemic proved crucial. We not only enhanced our marketing channels but also optimized product forecasting, inventory, pricing and internal processes. This preparation enabled us to respond swiftly to market shifts, leading to an 85 percent increase in top-line revenue and a 10-point margin improvement. Our EBITDA tripled from 2019 to 2020, highlighting the success of both our pre-pandemic strategies and our ability to seize new opportunities.We maintained our guardrails, adjusting spending and staffing judiciously while focusing on rewarding our team and investing in new customers. Motivation from our agency partners, our internal team and our leadership were high because we didn't completely shake up the business in response to the heightened demand--instead, we doubled down.By Kelsey Knight, VP of Global E-commerce, SlumberkinsBUILDING A RESILIENT E-COMMERCE BUSINESS: LESSONS FROM THE PANDEMICKelsey Knight has a passion for e-commerce and puts her skills to the test daily as the VP of Global E-commerce of Slumberkins, a children's brand on a mission to raise the next generation of caring, confident and resilient kids. She leads the charge in any professional setting with her experience analyzing business strategies, building and leading teams and working collaboratively to get things done while reaching financial goals. Kelsey has full P&L ownership of distribution channels, including DTC websites, Amazon and other marketplaces. Through this article, Kelsey Knight explores how e-commerce businesses can thrive in a post-pandemic world by focusing on long-term sustainability. Knight shares key strategies, including prioritizing profitability over vanity metrics, optimizing customer retention channels and maintaining internal alignment.
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