What: BOF lists pieces of advice to DTC brands to properly address their wholesale strategy in 2021.

Why it is important: Department stores tick all the boxes to be attractive to DTC brands and renew their portfolio, contributing to increasing their level of attractivity toward customers.

According to BOF, DTC brands should aim to directly operate 50 to 80% of their business, in order to maximize their margin, by using the proper online marketing tools. However, getting there is expensive, which makes wholesale partnerships more attractive than ever.

BOF reminds that, although online-only retailers have replaced department stores in brands’ minds, the latter still has an important part to play, due to their stores’ network, sales associates’ quality, customers base and relationship. The more outstanding experiences department stores will develop, the more qualitative their clientele will remain, and therefore, the more attractive they will be too hot DTC brands.

DTC vs Wholesale Striking the Right Balance