
Is DTC Dead? Not To Emerging Beauty Brands
While Rhode’s future at Sephora shows that even the hottest beauty company understands its growth will be hindered if it doesn’t enter brick-and-mortar retail, which commands nearly 60% share of beauty sales in the United States, per market research firm NielsenIQ, the brand also demonstrates just how meaningful direct-to-consumer distribution can be despite investors downgrading it and constant teeth gnashing over high digital customer acquisition costs.
Of course, for many emerging beauty brands, DTC distribution is their only possibility. Still, retail—and more specifically big chains like Sephora, Ulta Beauty, Target and Walmart—have long loomed large in the imaginations of their founders. Today, though, they’re coming to grips with the realities of what it takes to support retail rollouts.
To get a sense of emerging brand founders’ views on different distribution channels, for the latest edition of our ongoing series posing questions relevant to indie beauty, we asked 30 of them the following: What percentage of your business is wholesale versus DTC? Is that what you want it to be? If not, what strategies are you pursuing now to reach your ideal breakdown?
The players
5 mentionedRhode

AS Beauty

Walmart

Walmart

Ulta Beauty



