The Lead has identified 50 of the most promising online DTC brands for 2023. New companies were selected from the fashion, beauty and lifestyle categories. They were evaluated based on multiple factors, including the company’s efficiency in using the capital raised. Loading Something is loading.
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Early-stage direct-to-consumer brands today are forced to follow a very different playbook compared to Casper, Away, and other industry pioneers of the last decade.
Sure, having a great product and building a community of loyal fans is still crucial. But in 2023, there isn’t an army of investors willing to back consumer brands. CEOs are also spending less money on Google or Facebook ads for rapid growth and are more concerned with profitability.
The Lead, a research and events company, has released the fifth edition of its “Foremost 50” list, which highlights DTC’s fashion, beauty and lifestyle startups circumventing these obstacles and disrupting the way businesses operate. legacy brands.
Most of the companies on the list are funded. But raising capital isn’t as big a factor in making the list as it has been in the past, Sonal Gandhi, chief product officer at The Lead, told Insider.
“Many of the brands introduced this year raised little or no money in the first few years,” he said. “And then somehow, once they hit that profitability number that they were looking for, they managed to grow without having to raise additional funds.”
More important is “how efficient are they with the money they have,” Gandhi added. The way startups acquire customers outside of Facebook and Instagram, how they set up supply chain networks, and the rate of repeat purchases from customers are other key factors.
As examples, Gandhi singled out Athletic Brewing and jewelry brand Dorsey, both on this year’s list. The latter owns its own breweries, which Gandhi says shows a unique way to use capital and attract customers outside of online advertisements, while Dorsey adapts to environmental-improvement trends by selling farmed diamonds. in laboratory.
“Product is a big part of what these brands do, but you can’t just win with a great product,” he said. “So, we’re seeing creative approaches to customer acquisition. We’re seeing creative approaches to building communities and then using influencers or other ways to build your brand.”
While higher borrowing rates and the macroeconomic environment are top of mind for DTC CEOs this year, hiring should be a lot easier in 2023.
“Just in terms of growing their teams and getting the experience, it’s certainly going to be easier for them to move on,” Gandhi said. “They’re in that phase where they need to add more members to their teams to grow faster.”
Below are the brands in The Lead’s “Foremost 50” for 2022, listed in alphabetical order. Funding numbers, when known, are also provided by The Lead.
1. Athletic Brewing Company.
What it is: non-alcoholic craft brewer
Total capital raised: $173.5 million
2. bear
What it is: sustainable weighted blankets
Total capital raised: not revealed
3. BEISE travel
What it is: luggage and travel accessories
Total capital raised: not revealed
4. Elegant flower
What it is: women’s fashion brand in size 10-30
Total capital raised: not revealed
5.bobbie
What it is: organic baby formula
Total capital raised: $72 million
6. Born Primitive
What it is: Fitness and outdoor clothing brand started by military veterans
Total capital raised: Neither
7. Boy smells
What it is: genderless candles, fragrances and intimate apparel
Total capital raised: not revealed
8.Brandon Blackwood
What it is: designer bags and accessories
Total capital raised: not revealed
9. Bubble Skin Care
What it is: skin care products for men and women
Total capital raised: not revealed
10. Can
What it is: Cannabis-infused drinks with tetrahydrocannabinol and cannabidiol
Total capital raised: $27 million
11. Caraway
What it is: colorful non-toxic ceramic coated housewares
Total capital raised: $40 million
12. Care + Wear
What it is: medical focused fashion clothing
Total capital raised: $5 million
13. Clique
What it is: premium diapers available by subscription
Total capital raised: $34.1 million
14. lady
What it is: sexual wellness brand that sells sexual toys, wipes and supplements
Total capital raised: $13 million
15.dorsey
What it is: jewelry with lab-grown diamonds and other minerals
Total capital raised: $1 million
16. Figure 1
What it is: refillable skin care products
Total capital raised: $11.5 million
17. Flag and Anthem
What it is: casual clothing for men and women sold at an average price
Total capital raised: $19.9 million
18.Harper Wilde
What it is: affordable bras and underwear for women
Total capital raised: not revealed
19. Hello cake
What it is: sexual wellness brand for couples
Total capital raised: $18.6 million
20. fire hydrant
What it is: hydration packs packed with vital electrolytes
Total capital raised: $20 million
21. Water
What it is: indoor rowing machine
Total capital raised: $255 million
22.ipsa
What it is: fine frozen dinners prepared to be heated on stovetops or in ovens
Total capital raised: not revealed
23. cursive
What it is: no-margin online luxury goods retailer
Total capital raised: $25 million
24.K18 Hair
What it is: treatment for damaged hair
Total capital raised: $44 million
25.Kosterina
What it is: extra virgin olive oil and vinegar infused with olive oil, desserts and skin care
Total capital raised: $6 million
26. Lalo
What it is: baby furniture including high chairs and play tables.
Total capital raised: $5.6 million
27. Madly happy
What it is: fashion and lifestyle brand focused on creating conversation around mental health
Total capital raised: $1.8 million
28.Manscaped
What it is: grooming accessories for men
Total capital raised: $500,000
29. Daisy
What it is: women’s shoes handmade in Spain
Total capital raised: not revealed
30. monkeys
What it is: luggage and travel accessories
Total capital raised: $40 million
31.Mugsy
What it is: online retailer best known for its jeans
Total capital raised: Neither
32.Oliver Cabell
What it is: luxury footwear minus margins
Total capital raised: Neither
33. Pangaya
What it is: a sustainable streetwear brand
Total capital raised: not revealed
34. Pattern Marks
What it is: holding company with multiple brands that sell household items
Total capital raised: $99 million
35. Petlab Co.
What it is: treats, supplements and chews for dogs and cats
Total capital raised: Neither
36. Public Rec
What it is: clothing retailer that focuses on casual and sportswear
Total capital raised: $500,000
37. rowan
What it is: ear piercings with accessories for sale
Total capital raised: $34.3 million
38. Splendid Spoon
What it is: plant-based smoothies, soups, cereal bowls and noodles
Total capital raised: $20 million
39. Spot & Tango
What it is: dog food delivery service
Total capital raised: $57 million
40. State and freedom
What it is: athletic formal wear for men
Total capital raised: Neither
41.stix
What it is: products for fertility, pregnancy, urinary tract infections and candidiasis
Total capital raised: $6.4 million
42.Toggles
What it is: prescription safety glasses
Total capital raised: $40 million
43. Supergut
What it is: shakes that improve metabolic health, mood, sleep and energy
Total capital raised: $8.2 million
44. The Honey Pot Company
What it is: plant-based feminine care products
Total capital raised: not revealed
45. The Normal Brand
What it is: lifestyle brand selling rugged Midwestern-inspired men’s and women’s clothing
Total capital raised: Neither
46. Three Wishes Cereal
What it is: cereals high in protein and low in sugar
Total capital raised: not revealed
47. Real work
What it is: professional and commercial workwear
Total capital raised: not revealed
48. Wandering Bear Cafe
What it is: cold beer in box
Total capital raised: not revealed
49. Win Brand Group
What it is: holding company with brands selling outerwear, housewares and candles
Total capital raised: $90 million
50. Wolf and Shepherd
What it is: men’s dress shoes made with technology found in running shoes
Total capital raised: not revealed
Source: news.google.com