Awesome new brands pop up online every day. It's hard to keep track. Nexttbrand keeps a close eye on brand engagement metrics and lets you know what's taking off.
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Remove the guesswork from cooking with MEATER, the smartest cooking thermometer for your BBQ and Kitchen. The MEATER app will notify you when your food is ready.
See more brands under cookware.
Zip Top containers are made with 100% platinum silicone. Our reusable containers zip shut and do not require lids. One Zip Top can replace 5000+ plastic bags.
See more brands under eco home essentials.
Tesalate is the original sand free beach towel company from Australia.
See more brands under miscellaneous.
Outdoor cooking without the compromise. Tackle any great outdoor event with the Blackstone family of griddles & cookware.
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Everyone deserves to feel amazing in their skin. That’s why we make customizable acne toolkits to handle any pimple challenge.
See more brands under skin care.
Trending category: Coffee
Cometeer: Using science to brew incredible coffee from the world’s best beans.
Jot: Pure coffee that transforms into anything you desire – latte, americano, cappuccino, you name it – in seconds.
Copper Cow Coffee: All-natural specialty portable pour over Vietnamese coffee sweetened with California condensed milk and sugar.
BALMUDA: Compact & Easy-To-Use. Transform your mornings with BALMUDA's toaster+oven combo & beautifully-designed kettle!
Atlas Coffee Club: Coffee of the month club featuring amazing coffee from around the world.
Notes from business school: Sustainable competitive advantage✏️
The beauty of the direct-to-consumer space is that it’s relatively easy to launch a new business because you don’t need to win over retail partners to get distribution. On the flip side, that means that the threat of new entrants can be extremely high. If your product resonates with customers, a player will try to replicate your model. We’ve seen it happen over and over again — BirchBox and Ipsy, Casper and Purple, DollarShaveClub and Harry’s… the list goes on. New entrants stymie growth and create fierce price competition, hurting margins.
So how does a company achieve sustainable competitive advantage? Particularly in the direct-to-consumer space, the key to sustainable competitive advantage is to have an offering that competitors and entrants cannot replicate. Offerings that are difficult to replicate tend to have one or more of the following characteristics:
Learning or experience effects (costs of production fall as the cumulative production experience grows)
Network effects (the value to an individual customer increases with the number of customers who use the same product; customers want to buy what other customers already have)
Reputation (when buyers are uncertain about product quality — i.e., it is an experience good — they may rely on reputation)
Buyer switching costs (once customers have purchased a product, other products are imperfect substitutes)
A great example of a DTC player with all of these attributes is Peloton. It can charge a premium and will be able to continue doing so. On the other hand, the price competition in the meals kits space is fierce. It’s relatively easy for new players to offer customers comparable meal kit options so sustainable competitive advantage is illusive.
What I’m following in the news: Upcoming IPOs! 📰
In just the last two months, Allbirds, Warby Parker, Rent The Runway, and Fabletics all confidentially filed for IPO. By my count, if they all IPO, that will almost double the number of publicly-traded DTC brands. As I’ve shared before, FIGs is really the only publicly-traded profitable DTC brand currently. I’m super interested to see if the IPOing companies have found ways to make DTC profitable. Hopefully we’ll see the financial statements soon!
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