The dawn of DTC 3.0

In 2026, the term direct-to-consumer, or DTC, has become somewhat of a pejorative within the retail startups ecosystem. Enter: “DTC 3.0,” or what’s dubbed as the most sustainable and profitable version of the model to date. The term was popularized last year after an X post by Cody Plofker, the CEO of Jones Road Beauty, though a debate has emerged on what the phrase entails. On this week's episode of the Modern Retail Podcast, senior reporter Gabriela Barkho is joined by two veterans of the DTC landscape who started their brands in the 2010s. Nate Checketts, co-founder and CEO of Rhone, and Melissa Mash, co-founder and CEO of Dagne Dover, argue that the term DTC, in and of itself, is antiquated. The two also weigh the pros and cons of being an early player in the "DTC boom," and their approaches to raising venture capital and building more sustainable brands. This week's episode discusses: How do founders characterize the different phases of DTC? A look back at being part of the DTC 1.0 wave, then navigating the next two phases amid increased challenges.  How events like the Covid-19 pandemic and tariffs helped shape the DTC channel. Building an enduring brand through a slower, more sustainable growth model.