In July 2016, Unilever announced the takeover of US razor maker Dollar Shave Club for approximately $ 1 billion. Such an operation is obviously not the result of chance. As Kees Kruythoff, President of Unilever North America explained:
” Dollar Shave Club is an innovative breakthrough brand that has managed to forge close ties with its diverse and loyal consumers .”
Kees Kruythoff
What are DNVBs?
DNVBs stands for Digitally Native Vertical Brand. “Digitally Native” means all your business setup started on the Internet. You didn’t involve any wholesalers, retailers, and other middlemen to run your business or grow your business. It means eCommerce was the first channel of your business.
And the second part, “Vertical Brand” is all about direct sourcing of your material, control the overall experience with the customers, control the distribution methods, and dealing with overall increased engagement.
Proximity and data: the keys to success
The American company is a web pure-player, also called Digital Native Vertical Brands (DNVB). Over time, these internet-born startups have been able to create very effective models that even attract the interest of very large companies. Their secret? Perfectly oiled communication focused on storytelling and optimal data processing.
The DNVBs are above all companies born on the web and which master their value chain. They make full use of the strengths of the net and benefit from being able to sell directly to consumers without having to deal with a distributor. The price of entry into a market is therefore considerably reduced; all you need is a site to market the products. Advertising can be done directly on social networks.
The success of the DNVBs is also based on the relevance of their communication according to the economic daily. Thus, the consumer is involved in the various choices of the startup, which creates a real feeling of belonging. The idea is also to give an impression of proximity to customers.
Finally, the DNVBs rely heavily on the information collected on their visitors. In just a few days, they are thus able to assess the satisfaction of their customers on a new product.
Emma Matelas: an emblematic DNVB success
France is also not left out and six French startups have even launched an association aimed at bringing together the major DNVB players. Among them are Bergamotte, Tiptoe, Jimmy Fairly, Ullys, Tediber and Le Slip Français.
Another emblematic example is German startup Emma Matelas . The German company has succeeded in establishing itself as a reliable brand in a very competitive market. Launched in 2015, it is already one of the leaders in the online mattress sales sector in Europe. It has already sold more than 300,000.
The pandemic is also an asset for the company. So, while it was common to go to a store to get bedding, buying online has become a reality for many consumers. Emma allows you to test her mattress for 100 days in order to get a final opinion. Aware of the reluctance of some, the startup also allows a full refund, without proof on the principle of satisfied or refunded.
Finally, Emma offers free delivery and a ten-year warranty, which are significant advantages in the face of the competition. Note that it is far from being the only one on this market and that we also find among its main rivals, the British company Eve Sleep.
Intelvue is the eCommerce Development Agency
We can help you by creating an astonishing eCommerce store for your startup. Intelvue is the top-notch eCommerce development agency ready to cut your business problems with its eCommerce expertise. Our eCommerce website developers and designers have years of experience, and we know how to come up with unique eCommerce solutions for the company having very unique business requirements and business models.
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