15 Fastest Growing DTC Companies in 2023
In this article, we take a look at the 15 fastest growing DTC Companies in 2023. You can skip our detailed analysis of the DTC industry and go directly to the 5 Fastest Growing DTC Companies in 2023.
The fastest growing DTC Companies in 2023 are using resources like social media analytics, advanced customer service tools, and influencer marketing to stay on top of the market.
Latest Developments in the DTC Industry
The DTC e-commerce business model first gained traction during the 2020 Covid-19 pandemic, when retail stores were closing down all over the world. This remarkable growth of 45.5% brought in a total revenue of $111.5 billion for businesses. The rise of DTC companies during the last 4 years has convinced 40% of US manufacturers to invest in their product branding and sell directly through their websites to amplify the revenues. While the pandemic shifted consumer behavior in favor of DTC companies, experts say that brick-and-mortar stores have also been working tirelessly to retain their pre-pandemic sales revenue figures. As a result, physical retail stores are projected to make up approximately 72% of all retail sales in the United States in 2024.
Direct-to-Consumer brands capitalize on their unique brand identity to sell their niche products to a target group of consumers through their own e-commerce websites. While there are many entrepreneurs who have solely relied on the Direct-to-Consumer model to launch and grow their brands, this business practice is now also gaining popularity among well-established brands who have previously used third-party retailers for selling their products. NIKE, Inc. (NYSE:NKE) for example, is expecting to make 60% of its revenue using DTC by 2025.
Role of Social Media in DTC Branding
The consumer experience for DTC brands revolves mostly around the use of social media. Platforms like Meta Platforms, Inc. (NASDAQ:META)’s Facebook and Instagram, and Twitter provide them with data insights regarding their target customers, while also increasing the visibility of these brands in front of potential consumers. These brands also receive constant customer feedback in the form of likes, comments, tags, and shares, and use them to refine their products and keep up with consumer demand.
Meta Platforms, Inc. (NASDAQ:META) dominates the market for social media marketing. Meta Platforms, Inc. (NASDAQ:META) has been able to achieve this owing to its huge user-base of roughly 3 billion people worldwide. Twitter also offers easy digital marketing solutions for businesses, which include Twitter lists, Twitter blue, and TweetDeck for social media management.
One of the most successful marketing hacks used by DTC brands is to hire Instagram and TikTok influencers to build their brand image and market their product among their followers, which eventually increases their website visits and boosts their sales. Crispy Fantasy is a junk-free cereal company which used this strategy to convert 70,000 followers into quadrupled sales growth within 3 days, less than 6 months after the brand was launched.
Outlook of the DTC Industry
In 2022, the total sales generated from DTC business amounted to $155.7 billion, and the figure is expected to increase to $212.9 billion in 2024. The industry has been making linear progress from 2021 onwards, after it experienced a sudden boost, with a 21% increase in sales in 2020. DTC business is a part of the B2C e-commerce market, which is expected to cross $7.5 trillion in market size by 2030, with a CAGR of 7.6%. This growth is likely to be aided by the increasing number of internet users in all parts of the world, especially developing countries, where new infrastructure is being built to improve internet access.
The DTC model is also likely to expand the sales revenue by 2030 because the Alpha generation, that grew up entirely around modern smartphones and prefers to shop for products online, will form a huge part of the economically active population by then. Some of the most profitable categories for DTC e-commerce in the coming years include homeware, pet products, health technology, skincare, and home fitness.
Photo by Campaign Creators on Unsplash
Our Methodology
For our list of the 15 fastest growing DTC Companies in 2023, we analyzed the revenue growth for the top firms from The Lead, Influencer Marketing Hub, and Exploding Topics’ lists of the top Direct-to-Consumer businesses of 2023. To list the 15 fastest-growing firms among these, we calculated the percentage growth in revenue between the years 2019 and 2022. The data for these figures was acquired from Financial Times, Rocket Reach, and Kona Equity among others.
Here are the 15 fastest growing DTC companies in 2023 in ascending order:
15. Stitch Fix, Inc. (NASDAQ:SFIX)
4-year Revenue Growth: 35.4%
Stitch Fix, Inc. (NASDAQ:SFIX) is a personal styling fashion brand which offers products to customers of all ages and genders according to their styling preferences and respective budgets. Stitch Fix, Inc. (NASDAQ:SFIX) recently garnered a lot of support from critics when it introduced an expert styling service, targeted at pregnant women, known as M.O.M. Stylists. The brand was valued at $1.8 billion in 2022.
14. Allbirds, Inc. (NASDAQ:BIRD)
4-year Revenue Growth: 56.7%
Allbirds, Inc. (NASDAQ:BIRD) is a digitally-native footwear brand which focuses on incorporating sustainability, affordability, and comfort within its products. Allbirds, Inc. (NASDAQ:BIRD) uses materials like merino wool fibers and recycled polyester to manufacture shoes. While the brand originally built its identity as a niche-shoe manufacturer, it recently expanded its product line by adding t-shirts, jackets, sweaters, socks, and undergarments.
In 2020, this DTC brand used Meta Platforms, Inc. (NASDAQ:META)’s Facebook and Instagram ads to market their products, which caused their sales to increase by 48%.
13. Elvie
4-year Revenue Growth: 74.5%
Elvie is a leading DTC brand in the FemTech industry, which creates women's health products, and specifically caters to pregnant women and new mothers. Its first product was a pelvic floor trainer which grew immensely popular among women, followed by a collection of breast pumps which further increased the popularity of Elvie among its niche consumers. Because of a sudden increase in sales, Elvie decided to supplement its DTC business by also launching its products on Amazon.com, Inc. (NASDAQ:AMZN) in 2018.
12. Bloom & Wild
4-year Revenue Growth: 147.6%
Bloom & Wild is a UK-based flower delivery service which allows its customers to order trendy bouquets for themselves or send them for their loved ones all over the UK, France, Germany, Austria, and the Netherlands. The company first saw a revenue boom during the pandemic when it expanded to France and Netherlands, and bought its competitors. The brand continues to leverage its 2020 boost, and has earned almost thrice the profits than it did before the pandemic.
11. Chewy, Inc. (NYSE:CHWY)
4-year Revenue Growth: 157.5%
Chewy, Inc. (NYSE:CHWY) is a Florida-based firm which is regarded as one of the world’s top retailers of pet food and other pet products with an annual revenue of more than $9 billion. In 2021, Chewy, Inc. (NYSE:CHWY) along with Amazon.com, Inc. (NASDAQ:AMZN), dominated 90% of the pet food market online, according to one source. Some of its most popular products include medication, toys, bowls, and feeders for dogs, cats, rabbits, turtles, and fish among others.
10. Oura
4-year Revenue Growth: 219.5%
Oura is a Finnish company which combines fashion jewelry with health and fitness, and that is what makes it one of the most sought-after DTC brands among athletes and celebrities. Its sleep-tracking ring keeps track of wearer’s heart rate, body temperature, sleep cycle, and other physical activities. In 2021, Oura Ring saw an overnight increase in popularity when Kim Kardashian and Gwyneth Paltrow took part in an online challenge on Meta Platforms, Inc. (NASDAQ:META)’s Instagram, where they competed for their sleep quality scores given by the Oura Ring app.
9. Lovevery
4-year Revenue Growth: 304.5%
Lovevery is one of the top 50 fastest growing companies in America according to Financial Times’ 2023 report. This DTC company also targets new parents as its niche customers and offers toys, educational games, and play-kits which are developed by child therapists and pediatricians for a healthy physical and mental growth of toddlers. Parents feel comfortable using Lovevery products for their kids because they are manufactured using materials that are non-toxic and safe for children.
8. Peloton Interactive, Inc. (NASDAQ:PTON)
4-year Revenue Growth: 340.9%
This publicly traded exercise equipment company grew quite popular during the Covid-19 pandemic when gyms were closed and the global population was shifting towards home gyms to stay fit. To keep up with the rising demand, this DTC brand collaborated with Amazon.com, Inc. (NASDAQ:AMZN) in 2022 to help supply products to Peloton customers in UK and Germany. Peloton Interactive also offers the membership of an online community which allows members to train with a personal fitness trainer.
7. Béis Travel
4-year Revenue Growth: 500.0%
Béis Travel is a vacationer’s best friend, as it offers all-under-one-roof solutions for travel luggage and accessories. Some of their most critically-acclaimed products include a suitcase with a weight-limit indicator, a handbag with a detachable compartment, and an expandable duffel bag with a padded laptop pocket.
6. Hims & Hers Health, Inc. (NYSE:HIMS)
4-year Revenue Growth: 530.7%
Hims & Hers Health, Inc. (NYSE:HIMS) is a telehealth company which brings prescription medication, OTC drugs, and personal care products to the comfort of people’s homes. Hims & Hers Health, Inc. (NYSE:HIMS) aims to make healthcare more accessible to people by eliminating commutes and long queues from the process of acquiring medicine. It also provides its customers online access to licensed doctors and physicians without the restriction of office hours.
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Disclosure: none. 15 Fastest Growing DTC Companies in 2023 is originally published on Insider Monkey.