Digital Native Vertical Brands are words used to express a new concept based on four fundamental and inseparable pillars :
- It is a vertical business model that cuts out the middleman from upstream to downstream, from manufacturing to distribution.
- At the intersection of innovation, technology and commerce, these are start-ups with high growth potential, whose entire activity is driven by data. They often benefit from private fundraising.
- Born on the internet, they develop their brand, interact with their community and sell their products or services, mainly on the internet. They focus on the quality of the customer experience and the creation of a strong bond with their community.
- Even if they decide to move from digital to brick & mortar, they still continue to offer a personalised experience to their customers on their own network.
This phenomenon started ten years ago thanks to the reign of social networks and the mobile phone, the Silicon Valley unicorn models, a well-established financing dynamic and, above all, a mature market for online purchases.
Today, we are already in the third generation of direct-to-consumer and the model has spread throughout the world. And their original strategy is relatively simple because it consists of :
- Either to seize markets neglected by the historical players and to build an adapted niche offer
- Or to propose, on a quasi-monopolistic market, an offer of equivalent or superior quality for a lower price.
The latter take up the ideas of old brands that are struggling to reinvent themselves and adapt to change. Thus, they will create niche brands, which will evolve thanks to entrepreneurs who advocate innovation, who respect societal values, who have a “people first” perspective and who seek first to create an emotional link rather than a transactional one.
And this is how these direct-to-consumer brands have succeeded in redefining the codes: by opting for digital but also by rethinking the entire value chain and targeting in a “surgical” manner.
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