7. The New Bargain: DTC Brands + Brick & Mortar Retail

Mark and Mike discuss the tumultuous history between Direct-to-Consumer mattress brands and Brick & Mortar stores, the factors that led to their ultimate reconciliation, and the intricate dynamics of these relationships today.▬ ABOUT THIS EPISODE ▬0:00 - Intro2:39 - Remembering when DTC brands were public enemy #16:43 - Why selling direct unlocks bigger, smarter ad spend9:05 - Growth limits for online-only DTC brands10:54 - Different paths to growth (Casper, Nectar, Purple, Tuft & Needle)16:32 - Consumer acceptance of mattress-in-a-box19:47 - Why successful DTC brands inevitably need brick & mortar (Tempur-Pedic)22:05 - Sponsor Break23:44 - The hidden advantage of selling direct26:20 - Do the benefits of direct selling extend to traditional brands too?29:40 - The New Bargain: What retailers expect from brands today33:41 - Who should control marketing dollars?37:43 - Converging cost structures for DTC vs incumbent brands41:05 - RSA incentives and the retailer end of the bargain43:21 - Who owns the customer?49:17 - What the new bargain really means for both sides50:48 - How does the DTC/Retail relationship evolve from here?54:58 Wrap-upTo access the Show Notes — including links to the companies, products, people, and other resources discussed in this episode — go to the EPISODE PAGE here: https://www.wakeupcallpod.com/episodes/7-new-bargain-dtc-brands-brick-mortar-retail