The rise and expansion of DNVBs

The rise of the Digitally Native Vertical Brands (DNVBs) has been catastrophic for many traditional industries.

From retail to mattresses to razors to eyeglasses, DNVBs have created end-to-end supply models that allow them to control every aspect of the consumer experience. Companies like Warby Parker have even gone as far as perfecting manufacturing for their products to ensure a tight, end to end brand experience.

Consumers are flocking to these brands for many reasons.

The brand itself

A commonality across all successful DNVBs are the elements of the brand. They are extremely simple, clean and playful with an extremely focused brand promise - which allows them to fulfill that promise easier than their more traditional competitors. The brand is able to take many forms from internal communications to marketing to service. Its simplicity creates focus and scalability.

The experience

The DNVBs competitive advantage in today’s economy is, really, the experience. Being digitally native gives them the strategic and technological advantages to more readily connect with their consumers. This creates an experience that consumers can’t get anywhere else in the marketplace. Combine this with the focus of their brand promise, they are able to “fulfill” their promise at every touchpoint for the consumer. Think about Uber. They’re brand promise is a simple “Where to?” And each time someone uses their product, they fulfill that promise - millions of times every day. Like them or not, Uber is leading the industry in their experience.

The value proposition

Having a great brand promise that is fulfilled across the experience is a great start, but the thing that makes DNVBs so successful is the value proposition they provide their consumers. Having a simple brand promise gives DNVBs a simple way to create value. These companies are extremely rigid in what they provide their consumer. Casper doesn’t make the best mattress in the world. Actually, when they started, they only offered two mattresses - soft and hard. But their value proposition wasn’t having the best mattress, it was to make it super easy for a consumer to shop for, purchase and have their mattress delivered - without going to the awkward showroom.

Now that we know what DNVBs are and how they’re built, let’s dive into why they matter to you. Some might call it digital disruption, but DNVBs are shifting many things. There has yet to be a case where a DNVB completely upends at traditional industry in terms of market share (the key word there is yet). What they are changing is the expectations and behaviors of consumers. By creating new, simple experiences, DNVBs are offering new ways consumers are shopping, buying and engaging with brands. And in today’s day-in-age, one behavior shift in one industry trickles into others. Casper changed the way consumers buy bulky items. Dollar Shave Club transformed the idea of purchasing (and repurchasing) razors.

How are DNVBs effecting your company?
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