#ThingsToDoToronto | Explore Tumblr posts and blogs

laurafaritos · 3 months ago

Text

HDMS010. DTC Brands: A Short-Lived Fad or a Permanent Shift in Marketing?

For the past few weeks, I’ve been deep-diving into Harvard’s Digital Marketing Strategy course and breaking down everything I’ve learned—from a comedian and creative producer’s perspective.

So far, we’ve covered:

Why I took this course (Spoiler: The business of creativity is brutal, and I needed a strategy.)

The rise of Direct-to-Consumer (DTC) brands and why they’ve completely changed marketing.

How DTC brands use customer insights, product design, manufacturing, and distribution to operate with agility.

The power of digital marketing and brand storytelling in growing an audience.

How comedians and creatives can steal these strategies to build sustainable careers.

Now that we’ve broken down each step of the DTC Value Chain, the big question remains:

🔥 Are DTC brands the future, or were they just a passing trend?

Some argue that DTC was a bubble—an experiment that worked well when digital ads were cheap but now struggles under rising costs and market saturation. Others believe that DTC brands permanently changed marketing and that companies must adapt or die.

This post is the conclusion of Module 1—where we reflect on whether DTC brands are a temporary trend or a long-term shift in how businesses operate.

And, of course, how comedians and creatives can apply these insights to their own careers.

I. The Case Against DTC: Was It Just a Fad?

While DTC brands shook up marketing, many argue that they were a short-lived trend rather than a sustainable business model. Here’s why:

1. Rising Customer Acquisition Costs (CAC)

When DTC brands first emerged, Facebook and Google ads were cheap. A brand could launch with a small budget and scale fast. But as more companies flooded digital advertising, costs skyrocketed. Today, CAC is so high that many DTC brands struggle to turn a profit.

Example: Casper (the mattress brand) went from an exciting DTC startup to struggling with profitability as digital ads became too expensive.

2. Easy to Copy, Hard to Defend

Most DTC brands don’t have proprietary technology or unique patents. Unlike legacy brands with years of R&D investment, many DTC brands just slap a logo on a generic product, market it well, and sell direct to consumers. The problem? Anyone can do the same thing.

Example: There are now hundreds of DTC razor brands, but none have been able to match Dollar Shave Club’s original success.

3. The Scaling Struggle

Starting a DTC brand is easy. Scaling it is hard. Many DTC companies hit a growth ceiling—they can reach $50-$100 million in revenue, but very few have grown into billion-dollar businesses like Nike or Apple.

Example: Warby Parker, Allbirds, and Glossier were once seen as the future of retail. But as they tried to scale, they struggled with profitability, forcing them to shift strategies.

4. The "Path to Profitability" Problem

Many DTC brands aren’t built to be profitable. They rely on venture capital funding to grow quickly, hoping to either:

Be acquired by a larger company (like Unilever buying Dollar Shave Club).

Go public and cash out before financial struggles catch up.

But for every success story, there are countless DTC brands that burned through millions in investor money and collapsed before turning a profit.

Example: Away Luggage was once the "future of travel," but behind the scenes, it struggled with mismanagement and unsustainable growth.

5. The DTC Bubble Burst?

A wave of DTC brand failures, layoffs, and acquisitions in recent years has led some experts to call the whole movement a bubble that has popped.

So… is that it? Was the DTC revolution just a temporary marketing trend that worked until digital ads got too expensive?

Not quite. Because while some DTC brands failed, others adapted and thrived.

Next, we look at the case for why DTC is here to stay—and how it has permanently changed marketing.

II. The Case for DTC: A Permanent Disruption in Marketing

Despite the struggles, DTC brands have changed the marketing landscape forever. Even if some fail, the principles behind them aren’t going anywhere. Here’s why:

1. Consumer Behavior Has Permanently Shifted

Customers are no longer brand-loyal in the way previous generations were. Instead, they seek out brands that feel: ✅ Authentic (not corporate giants pretending to care) ✅ Personalized (they want products made for them, not the masses) ✅ Community-Driven (they engage with brands like fandoms, not just buyers)

DTC brands understand this shift, while legacy brands are still playing catch-up.

Example: Glossier didn’t just sell beauty products—it created an online beauty movement, where customers shaped the brand’s identity. Even after its struggles, Glossier still represents what modern branding looks like.

2. The Lower Barrier to Entry Is Here to Stay

Launching a business once required millions in capital for production, advertising, and distribution. Now?

Shopify lets anyone build an online store in a day.

Amazon FBA allows brands to sell globally with zero inventory.

Facebook & Google Ads help brands reach their exact audience.

This means entrepreneurs no longer need a massive budget to compete—they just need a smart brand, a niche audience, and the ability to pivot fast.

Example: Pattern Brands turned their creative agency into a DTC powerhouse by building multiple niche brands, proving you don’t need a billion-dollar business to succeed.

3. The Retail Gatekeepers Have Lost Power

For decades, retail chains controlled who got to sell products. If Walmart, Target, or Macy’s didn’t want your brand on shelves, your business was doomed.

DTC broke that system by making it possible to: ✅ Bypass retail entirely (sell straight to consumers online). ✅ Control the brand experience (no need to fit into a retailer’s standards). ✅ Own the customer relationship (instead of letting Target collect all the data).

Even big legacy brands have noticed this shift and started selling directly to consumers.

Example: Nike cut ties with many retail partners to focus on its own DTC e-commerce strategy, proving that even global giants see the writing on the wall.

4. The Future of Marketing Is Personalization

Traditional brands rely on mass marketing (TV commercials, billboards, print ads). But DTC brands built their success on hyper-targeted, digital-first marketing.

This level of personalization and direct engagement is now the industry standard.

Subscription models (FabFitFun, BarkBox, Empress Mimi) create recurring revenue and personalized experiences.

Influencer & UGC marketing (Glossier, Perfect Diary) makes advertising feel organic.

Community-driven branding (Warby Parker, Allbirds) turns customers into ambassadors.

Even big brands now try to mimic this—but DTC brands do it best because it’s built into their DNA.

5. Legacy Brands Are Being Forced to Adapt

DTC isn’t just a trend—it’s a wake-up call to legacy brands that their old playbooks no longer work.

✅ DTC brands forced traditional companies to rethink marketing. ✅ DTC brands changed how customers interact with brands. ✅ DTC brands proved that authenticity and direct engagement matter.

Even if some DTC brands fail, the industry has been permanently transformed. The question now is how brands—big and small—adapt to this new reality.

III. The Future of DTC: Smaller, Niche-Driven, and Community-Led

If the early 2010s were about building billion-dollar DTC unicorns, the future is looking more like a landscape of smaller, hyper-targeted brands that thrive on community and personal connection.

1. The Era of the "Mega-Brand" Is Fading

For decades, companies like Procter & Gamble and Unilever built massive, category-dominating brands—think Tide, Gillette, and Dove.

But in the DTC era, niche is the new scale. Instead of trying to appeal to everyone, brands now thrive by owning a specific identity and catering to a deeply engaged audience.

✅ Glossier built a minimalist beauty movement. ✅ Allbirds built a sneaker brand for eco-conscious millennials. ✅ BarkBox built an entire subscription economy around dog owners.

This shift isn’t just about product—it’s about culture. Consumers want brands that align with their values, aesthetics, and identity, not just solve a functional need.

This is a lesson for creators, too. You don’t need to go viral or appeal to millions—you just need to build a deeply engaged niche that feels seen by you.

2. The Rise of the Multi-Brand Portfolio

Instead of one company trying to dominate an industry, the next evolution of DTC looks more like a collection of smaller, targeted brands under one umbrella.

💡 Think of it as a “DTC House of Brands.”

Example: Pattern Brands didn’t just launch one DTC business—they built a portfolio of brands designed around “home enjoyment” (kitchenware, bath, home organization).

Why this works: ✅ Diversifies risk – If one brand slows down, others pick up the slack. ✅ Easier scaling – Smaller brands have lower overhead and can adapt faster. ✅ Built-in cross-selling – A customer who buys one product can easily be introduced to others.

For creatives, this model makes sense, too. Instead of focusing on one platform, one show, or one revenue stream, the goal is to build an ecosystem of creative products and offerings that serve a shared audience.

3. Marketplaces & Community-Driven Commerce

Another shift? Some DTC brands are no longer just selling their own products—they’re curating entire marketplaces.

💡 Instead of being just a brand, they’re becoming a platform.

✅ Amazon FBA → Brands use Amazon’s infrastructure for logistics. ✅ The Drop (Amazon) → Limited-edition fashion launches based on customer demand. ✅ Instagram Shops & TikTok Shopping → Social commerce blends content + buying in real time.

For independent creators and comedians, this shift is huge. It means you don’t just have to sell yourself—you can build a platform where your audience interacts, contributes, and even sells their own stuff.

4. The Future Is Omni-Channel

DTC brands started as digital-only businesses, but the ones that survive long-term are the ones expanding beyond digital.

✅ Warby Parker opened stores. ✅ Casper went into Target. ✅ Glossier (before its struggles) launched pop-ups and retail spaces.

💡 The best strategy is not just “DTC vs. Retail.” It’s BOTH.

For comedians and creatives, this is a lesson: It’s not just about being online or IRL—it’s about using both to fuel each other.

📍Your audience finds you online → but deepens their relationship with you through real-life experiences. 📍Your online content builds a following → but in-person experiences make people lifelong fans.

5. The Real Takeaway: DTC = The Creator Economy’s Playbook

The rise of DTC brands isn’t just about products—it’s about what the internet has made possible for small, independent businesses.

And that includes creators, comedians, and independent artists.

✅ Build direct relationships with your audience. ✅ Focus on authenticity & storytelling, not just sales. ✅ Create community-driven experiences that make people feel part of something. ✅ Monetize multiple revenue streams, not just one. ✅ Use digital-first marketing but don’t forget the power of in-person connection.

DTC brands proved that you don’t need a massive corporation behind you to build a business. The same is true for creative careers.

You are the brand. Your audience is your community. Your creative work is the product.

And the way you engage, build trust, and grow? That’s your marketing strategy.

IV. How I’m Making This Work Even with AuDHD

Let’s be real: this course is intense. The modules are dense, the case studies are complex, and Harvard doesn’t care that my AuDHD brain needs to take the scenic route through every concept before I fully absorb it.

So how am I making this work? By working with my brain, not against it.

1. My Study System: Structured Chaos 📚

Most people can read the material, take notes, and move on. I, however, need five tabs open, two highlighters in hand, and a YouTube video playing in the background just to get started.

Here’s how I’ve structured my study process to actually retain the information:

✅ Layered Learning – Instead of reading everything in one go, I skim first, then deep dive in multiple rounds. ✅ Pattern Recognition – I highlight themes across different lessons to connect the dots rather than memorizing isolated facts. ✅ Multi-Modal Input – I watch lectures, read case studies, and rewrite key concepts in my own words so my brain absorbs the material in different formats. ✅ Intentional Breaks – My brain does not do uninterrupted work marathons. So I batch my study sessions in 30-45 minute sprints to avoid burnout.

I’ve learned the hard way that forcing myself into “traditional” study methods is a disaster. The more I adapt the material to fit my learning style, the better I retain it.

2. Keeping My Dopamine Tank Full

AuDHD means if I’m not engaged, I’m not learning—it’s that simple. If the information isn’t interesting, urgent, or novel, my brain will not hold onto it.

So instead of fighting my need for novelty, I make the course as engaging as possible:

✅ Gamification – I turn modules into challenges, checklists, and milestones so I get small dopamine hits when I complete them. ✅ Storytelling Over Studying – Instead of rote memorization, I reframe everything as a narrative. Who are the key players? What were the stakes? How did they adapt? ✅ Sensory Stimulation – I study with music, fidget tools, and color-coded notes to make learning more immersive. ✅ Externalized Processing – I use voice notes and writing (like these posts!) to talk through concepts rather than just passively consuming them.

This isn’t just about making learning more fun—it’s about tricking my brain into retention.

3. Why I’m Taking My Time (and Not Feeling Guilty About It)

Harvard estimates 10 hours per module. I’ve spent 35+ hours on a single module so far.

Old me would’ve panicked, called myself slow, and spiraled into self-doubt. But I know now: that’s just not how my brain works.

💡 Depth over speed. If it takes me 3x longer to truly absorb the material, that’s fine. 💡 Sustainability over burnout. If I cram, I won’t retain anything. If I pace myself, I’ll actually use this knowledge long-term. 💡 Efficiency in my own way. Some people can memorize concepts fast, but I rebuild them from the ground up in my mind so I can apply them later.

I’d rather take my time and absorb the material fully than rush through it and remember nothing.

4. Translating This Into My Own Business & Creative Work

Studying this course through an AuDHD lens has made me hyper-aware of how I structure my own creative business.

✅ I design my marketing & content workflows to be dopamine-friendly. ✅ I create systems that work with my brain, not against it. ✅ I build flexibility into my schedules so I don’t set myself up for failure.

And most importantly? I’m learning to trust my own way of processing information. Just because my learning pace looks different from others doesn’t mean it’s wrong—it just means I’m building a stronger, deeper foundation.

This course is forcing me to rewire how I think about learning, productivity, and business strategy—and that’s a lesson I’ll carry with me long after I’ve finished these modules.

V. What I’ve Learned & How It’s Changing Me

If you had told me a year ago that I’d be taking a Harvard digital marketing course, breaking down business models, and applying these lessons to comedy, I would have laughed. Loudly.

Yet here I am, not only surviving but thriving in this intense course—despite every AuDHD struggle, every late-night deep dive, and every overcomplicated note-taking method.

This isn’t just about learning marketing. It’s about redefining how I approach my work, my business, and my creative life.

🔹 What I’ve Learned from This Module

✅ DTC brands have permanently changed marketing by cutting out middlemen and building direct customer relationships. ✅ Traditional brands still hold power, but they’re struggling to adapt to digital-first strategies. ✅ The DTC model is scalable, but only when done right—too many brands fail because they don’t know how to grow beyond the startup phase. ✅ Brand-building is about connection. Whether you’re selling razors, running a comedy show, or marketing yourself as an artist, your audience relationships are everything.

🔹 How This Has Changed Me as a Comedian & Creative

💡 I no longer see marketing as a “business thing” that’s separate from creativity. Marketing is storytelling. Marketing is connection. Marketing is art. 💡 I’ve started thinking like a DTC brand. I’m building my audience the way a startup would—directly, personally, with full ownership of my brand. 💡 I’ve restructured my business approach to work with my AuDHD brain, not against it. The strategies I’m learning aren’t just business hacks—they’re helping me build sustainable creative workflows.

I’m not just learning from this course—I’m actively applying it to my career in real time. And that? That’s pretty damn exciting.

🔹 Catch Up on the Full Series

In case you missed my previous posts, here’s what I’ve covered so far in this Harvard deep dive:

📌 Why I Signed Up for a Harvard Digital Marketing Course as a Comedian 📌 The Rise of DTC Brands: What Harvard Taught Me About Selling Directly to Audiences 📌 DTC Brands: A Trend or the Future? Harvard’s Take on Business Longevity 📌 Customer Insights: How the Best Brands REALLY Know Their Audience 📌 R&D & Product Design: What Comedians & Creators Can Learn from DTC Brands 📌 Manufacturing & Production: Why Comedians Should Think Like a Startup 📌 Marketing 101: Performance Marketing vs. Brand Building 📌 Distribution Strategies: What Comedy & DTC Brands Have in Common 📌 Customer Experience: Selling an Emotion, Not Just a Product 📌 You’re here! 🎉

🔹 What’s Next?

Next up, I’ll be diving into how traditional brands are adapting (or failing to adapt) to this DTC disruption—and what lessons creatives and comedians can take from it.

If you’ve been enjoying these breakdowns, follow me for more insights on business, comedy, and the wild intersection of the two. And if you’re in Toronto, come see me LIVE at one of my upcoming shows!

🎟️ Haunted Comedians – Spooky comedy, ghost stories & hilarious hauntings 🎟️ Failed by Sex Ed – Comedy meets relationships, dating fails & what we should have learned in school 🎟️ Foreigner Diaries – Comedy about immigration, culture clashes & the joys of being “the foreigner”

Let’s keep learning, laughing, and figuring this all out together. 🚀

Tchau, tchau!!

0 notes