Are Americans ready for a DTC shopping holiday?
On November 15, a new shopping holiday, DTC Friday, quietly launched with 120 direct-to-consumer brands and a give-back message. The day’s creator, Tim Armstrong, however, has big future plans for the day and the overall DTC opportunity.
Mr. Armstrong, the ex-CEO of AOL and Oath as well as Google’s former marketing chief, in February 2019 founded dtx company, which invests in and creates experiences and platforms in the DTC space.
When launching the business, he wrote that retail is still largely made up of analog-driven “one-way distribution and relationship systems” and that digital is helping DTC brands create a “two-way, relationship based system.”
When on CNBC last week announcing DTC Friday, Mr. Armstrong described DTC as a “another megatrend starting” and cited Nike’s decision to end selling to Amazon as the “tip of the iceberg” in a DTC shift. Said Mr. Armstrong, “If they have the option to go direct, they are going to go direct.”
Dtx company has so far made six DTC investments, including in beverage company Dirty Lemon and lingerie upstart Third Love. The company also creates experiences, such as product catalogs and events, designs platforms and invests in talent to support the DTC space.
DTC Friday, which promises to be held annually two weeks before Black Friday, offered some examples in how dtx company is helping DTC brands deliver experiences to directly engage consumers. Beyond any deals on the day, shoppers were given a chance to donate $5.00 to a charity of their choice through Givz, a platform that aggregates hundreds of charities.
Under dtx company’s guidance, DTC brands are also being encouraged to expand beyond platforms such as Facebook and Instagram that have driven much of their outreach to TV, branded videos and other media. The brands used QR codes and NFC tags during DTC Friday to track how ads drive sales.
“We want to essentially help these brands move from a platform-structured internet into an ecosystem-driven internet,” Mr. Armstrong told Business Insider. “Instead of the data and value being accrued at the center to these platforms, it moves toward the edges to benefit the brands and their consumers.”
- DTC Friday
- DTC Friday provides a chance to give back while shopping some of the coolest brands – New York Post
- Tim Armstrong is launching a new company to bring products and experiences directly to consumers, no retailer required – CNBC
- Former AOL and Google exec Tim Armstrong is pronouncing a day for direct-to-consumer brands to rival Black Friday and promising them an audience of at least 100 million – Business Insider
DISCUSSION QUESTIONS: Do you see an opportunity for DTC brands to have their own shopping holiday? Do you agree with Tim Armstrong that DTC is “another megatrend starting” as well as the need to diversify away from platforms such as Facebook and Instagram?