PE DTC Data Rollups

A private equity strategy to acquire multiple direct-to-consumer (DTC) brands and create competitive advantage through shared customer acquisition and data. The strategy leverages overlapping customer bases between complementary DTC brands to reduce marketing costs.

Key Points:

• Acquisition Strategy:

  • Buy multiple complementary DTC brands
  • Focus on brands with overlapping customer demographics
  • Example brands mentioned: Native, Hint, Outdoor Voices

• Cost Reduction Opportunity:

  • Customer acquisition is top 2 expense for most DTC brands
  • Potential to reduce marketing costs by 35%
  • Share customer data and email lists between portfolio companies
  • Eliminate redundant Facebook ad spending targeting same customers

• Implementation Challenges:

  • Companies protective of email lists
  • Legal/privacy concerns from larger companies
  • Questions about customer ownership
  • Need clear data sharing protocols

• Proposed Solutions:

  • Create unified checkout system across brands
  • Share Facebook audience lookalike data
  • Develop Shopify app for cross-brand ordering
  • Single customer input pushing to multiple stores

• Competitive Advantage:

  • Lower customer acquisition costs versus standalone brands
  • Better resource utilization across portfolio
  • Shared learnings between brands
  • Companies mentioned trying this: Atomic, Kims, Hers