2 quarters in: How has DTC done this summer?

By
Daniel Conn
,
CRO @ ThoughtLeaders
September 24, 2020


Earlier this year we looked at how DTC (direct to consumer) brands had been effected in Q2 2020 due to the impact of Covid. We saw that there had been a decline particularly in new tests tried in the quarter as marketers were dealing with near daily shifts in risk assessment.

The question posed then and one that we return to now is whether there would be a bounce back in Q3 2020.


A reminder of the dataset

In the previous study, we have analyzed 50 DTC brands covering a number of different segments, we’ll return to that same data set.


For the purpose of the analysis we will be focussing on the clothing segment, (e.g. Bombas, Everlane, Fabfitfun) accessories segment (e.g. Felix Gray, Vincero, The Ridge) and the home segment (e.g. Brooklinen, Casper, Simplisafe). 


The media under review, as always with ThoughtLeaders, is Podcast, YouTube, Newsletter and Blog sponsorship. 


A reminder of the results

Overall creators engaged in Q2 2020 was around 10% down on Q1 2020 but higher than the previous years Q1, so perhaps not the apocalypse some were predicting.


When we broke down into the different categories we saw that there was a dip of 25% in clothing, a 7.5% increase in Accessories and a 10% decrease in home.


What happened in Q3?

The big bounce back looks very much on. After a significant decline in Q2, Q3 creators engaged shot back up to above Q1 levels showing that after the initial covid shock, DTC marketers realised that the ground wasn’t disappearing from underneath their feet.


When we breakdown into the segments we can see that two of the three categories in focus have had increases from Q2 with clothing jumping up by almost 20%.


The overall picture points to a stabilisation and just in time with the biggest Q4 in recent times looming on the horizon.