DTC’s Daily Digest brings you the latest news on the world’s fastest growing direct-to-consumer brands. In today’s edition: Neighborhood Goods giving DTCs physical presence; Glossier makes foray into TV advertising; and Cutter’s Club funding on Seedrs
Neighborhood Goods giving DTCs physical presence
Neighborhood Goods, the direct to consumer department store hawking brands like Rothy’s, Dollar Shave Club, Buck Mason, Draper James and Stadium Goods, has new cash to expand its storefront for e-commerce juggernauts.
The company has raised USD$11m (£9m) in a new round of financing led by Global Founders Capital, with participation from previous investors Forerunner Ventures, Serena Ventures, NextGen Venture Partners, Allen Exploration, Capital Factory and others.
The Dallas-based startup has raised USD$25.5m (£20.7m) to date and is expanding into a new location in Austin to complement its stores in Plano, Texas and a location in New York, opening soon, according to the company’s chief executive and co-founder Matt Alexander.
As the company expands its geographic footprint, it’s also experimenting with different online features, like online browsing of in-store collections and the option for physical, in-store pickup of digital orders. Neighborhood Goods also said it will begin offering an analytics back-end for brand partners to provide data on activations and branded events at the company’s stores.
Glossier makes foray into TV advertising
Makeup brand Glossier is embarking on its most wide-ranging campaign to date – an initiative that will see it broadcast TV advertising for the first time.
In a continuation of the brand’s unfiltered and unscripted approach to beauty marketing, ‘Feeling Like Glossier’ stars seven real-life members of Glossier’s community.
Films exploring each subject’s make-up routine and beauty philosophy have been published on a campaign microsite, which allows customers to learn more about each cast member through long form copy while shopping their favourite products in an e-commerce integration.
The 30-second films will also be broadcast exclusively on ABC in Glossier’s TV advertising debut. The foray into traditional broadcasting forms part of a deal inked between the US network and the beauty brand. Glossier is also producing content to sit across ABC’s app and website.
A spokesperson for the brand said the leap into the far-reaching but less targeted medium of national TV came from a desire to create an emotional connection at scale. However, the campaign is still being described by the company as digital-first. Creative has been made in-house for Instagram, Snapchat and YouTube.
Cutter’s Club funding on Seedrs
The brand is pushing its product live in East London, and is looking to use the funding in order to drive customer acquisition for this launch. Currently, the brand charges £29.99 for a haircut and £7.49 for a beard trim. However, users can subscribe to save up to 25% each booking, reducing the price of a haircut to £22.49 (£20 goes to the barber, and we keep the rest, resulting in an 11%-47% margin).
Future monetisation strategies include the sale of products and expansion into other grooming related verticals. Almost two-thirds (60%) of this raise will be used to fund user acquisition for the launch of the second version of our product in East London. Specifically, we’ll be focusing on perfecting user experience, consistency of utilisation, efficient use of barber hours, and obtaining the right growth metrics. Nearly a third (30%) will be used on personnel, and the final 10% will be directed to other necessities such as space, software, and legal.
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