Thread by @digitallynativ

If I'm founding a DTC brand today there's only one choice for market positioning:

Luxury

We are undergoing the largest wealth consolidation event in our nation's history, and a continuation of what the digital era had already catalyzed

2/ The pandemic and remote work financially favors those with discrete income/wealth and those who sit behind screens for a living

This divide has been deepening since 1989, coinciding with the digitalization of commerce, a force which has now exploded in velocity

NASDAQ 📈

3/ It is for this reason, that the best place for a new DTC brand to be positioned is at the top of the market

Find the highest priced brand/product in the market. Build a great product with an authentic story and price it 20%-25% higher than the highest competitor

Luxury💎

4/ It's not a competition for more customers, it's a competition for the top 10% income earners and wealth holders

The competition for the bottom 90% is now a battle between Amazon, Walmart, Target and Costo (and their competitors)

There's no reason to enter into that fray

5/ Fewer, better customers allows the brand to remain focused in terms of go to market strategy, and execution

It allows the brand to maintain tight relationships with these customers

And that tight relationship helps drive the organic flywheel for new customer acquisition

6/ The outcome of success in luxury:

1/ High Margins afford both profit taking and re-investment

2/ Limitless BD/partnership opportunities and optionality both online and off

3/ Option to strategically move down market at any point in the future