DTC Dispatch #005

'Tis the Season for Increased Consumer Spending

🎄 Happy Holidays community of DTC Moguls!

This week in DTC Dispatch:

🕯️Bath & Body Works drops 10-foot candle to help holiday shoppers unwind.

👜 Fashion brand Coach lets holiday shoppers try on their holiday collection in AR.

🛍️ In-store shopping is higher at independent business than large retailers.

🚲️ Peloton CMO jumps to Verizon after less than a year in the role.

💲 Steve Rekuc of Common Thread Collective discusses future spending of consumers vs. present day spending.


Bath & Body Works drops 10-foot candle

In the heart of New York City’s Herald Square, retailer Bath & Body Works launched a creative platform that encourages consumers to take a moment to stop and reconnect with their senses amid daily stressors. The marketing push also includes video, out-of-home, radio and social media elements.

Our take: With the over-saturation of traditional advertising methods, Bath & Body Work’s creative instillation is a genius marketing move. Not only will a lot of people who are in New York City want to go and see the candle, they will be itching to share the candle on their social media, creating free publicity for the brand.

Coach Lets holiday shoppers try on new collection in AR

As part of it’s holiday campaign, Coach partnered with augmented reality tech company Zero10 to bring AR storefront technology to five stores in North America.

Our take: Seeing fashion brands use technology and innovation to entice their consumers and enhance the overall customer experience is reshaping the fashion industry as a whole. The AR experience is part of a test-and-learn strategy where Coach is focused on brand awareness and increasing brand engagement.

More holiday shoppers to buy with small businesses

According to a recent consumer survey conducted by Jungle Scout:

  • The percentage of consumers shopping for holiday gifts with small and local businesses as much as possible has doubled from 10% a year ago to 20% this year.

  • Large online retailers rank as following in popularity:

    • Amazon

    • Walmart

    • Target

    • eBay

    • Etsy

  • 85% of consumers report that their spending has been impacted by inflation in Q4 of this year.

Our take: While growing inflation is weighing on consumers’ budgets, increasingly they would rather give their money to local, independent retailers compared to large corporations. Amid the economic headwinds, it’s a comforting sign to see consumers showing an increased preference for small businesses.

Peloton CMO jumps to Verizon

Effective Jan. 9, Leslie Berland will take on the role as CMO at Verizon Communications. Berland is jumping to Verizon after a brief stint at Peloton, where she is credited with helping Peloton launch a refreshed brand identity earlier this year.

Our take: The marketing endeavors of Peloton have encountered challenges, particularly in contrast to the earlier stages of the pandemic when physical fitness facilities were compelled to shut down. Additionally, the brand needed to showcase they were more than just a bike company, and their new marketing efforts sought to appeal to people anywhere in their fitness journey. The company has undergone a series of trial-and-error marketing approaches and modifications to its brand identity, which have coincided with changes in its executive leadership.


Future vs. Present consumer spending habits…

Our take: Consumers' eagerly anticipated future spending is now being transformed into present-day expenditure, propelled by a surge in their confidence towards the future economic landscape. As Steve Rekuc, a voice of Common Thread Collective, asserts, "Consumers have unequivocally declared their intention to spend more in the days to come. And that future is upon us, here and now."


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