DTC’s Daily Digest brings you the latest news on the world’s fastest growing direct-to-consumer brands. In today’s edition: Nordstrom wants new store to host DTC brands; FT launches new consulting arm; and Patch more than triples funding target.
Nordstrom wants new store to host DTC brands
Nordstrom wants its new Manhattan store, which opens on 24 October, to be a place where women can discover new brands. As well as classic brands such as Chanel, Nordstrom will feature direct-to-consumer business including Everlane. Nordstrom hopes its approach will keep customers curious and coming to its stores at a time when department store chains are undoubtedly struggling.
Nordstrom is giving DTC brands, which are surging in popularity, thanks to their successful online businesses a new bricks-and-mortar home in New York City. There will be a pop-up space for Everlane, Birdies ballet flats, dresses from Reformation, jewellery pieces from Kendra Scott and Dirty Lemon’s collagen- and charcoal-infused beverages.
Direct-to-consumer brands place a great deal of emphasis on brand building, so partnering with an established, respected retailer like Nordstrom is an easy decision to make. This is also the latest in a trend of DTC brands selling in store, whether this is via owned brick-and-mortar locations, temporary stores offered by businesses like Appear Here, or connections with retailers like Nordstrom.
FT launches new consulting arm
The FT has launched a new consulting arm focused on helping businesses use consumer data, called FT Strategies.
Chief Data Officer Tom Betts told TechCrunch that The FT built a lot of the technology behind its subscription efforts. At first, the team assumed that it might be able to build a business selling that technology to other publishers.
However, he adds that FT Strategy is a pure consulting business. “Even if you go and buy best-of-breed technology, that doesn’t mean you can assembly it in the right way to make it useful and meaningful to scale and grow direct-to-consumer revenues. And most importantly it doesn’t mean that you know how to operate it with teams and how to actually use it to successfully scale and grow your business.”
That’s precisely what FT Strategies is trying to provide. In fact, Betts said the company has already been quietly testing out the idea in beta and built up a customer list that includes Bonnier, The Business of Fashion, Penguin Random House and the V&A.
Patch more than triples funding target
Patch, a UK-based modern plant shop for “modern plant people,” has successfully raised more than £1.8m through its Crowdcube campaign. The company launched the equity crowdfunding round earlier this month and quickly secured its £500,000 funding target. The initiative has so far attracted over 2,439 investors.
As previously reported, Patch has delivered more than 250,000 plants to over 82,000 customers in both Paris and London. The company also grew more than 124% within the last year and has raised £6 million to grow its operations and continue expansion throughout Europe.
Along with expansion and operation growth, Patch noted the funds from the Crowdcube round will be used to expand into the business-to-business market by building a convenient offering for businesses. Through the campaign Patch is offering 8.28% in equity at a £20,556,849 pre-money valuation. The funding round is set to close at the beginning of November.
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