Digital Native Brand: connecting with the customer in a more intimate and solid way

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DNVBs have grown exponentially in recent years, driven by the demands of a consumer who increasingly values ​​a real purpose behind a brand, a more conscious and sustainable consumption. These brands have managed to capture the attention of this segment, knowing how to create a differential and long-term relationship with the consumer. By having a 100% digital interaction with its customers, the Digital Native Brand has the ability to map in depth the entire online customer journey, capturing a lot of information at every point of contact that will then be capitalized on in later phases.

DNVBs initially ventured into the world of fashion and accessories (Bonobos, Warby Parker, Native-BrandChubbies, etc.) but have quickly moved into other segments, some examples

Brilliant Bicycle - Determined to modernize the touring bike industry, they deliver high quality bikes to your doorstep at great prices. Company valuation: USD50M
Pact Coffee : Their mission is to bring the best coffee in the uae whatsapp lead world to the table of a demanding consumer from independent farms, guaranteeing a fair price with the local producer. Delivery worldwide from the UK. Company valuation: USD20M
Quip : Oral Care, the first quarterly subscription service through which customized oral care kits are delivered to customers' homes. Company valuation: USD240M
Parachute : Bedding and bath accessories. Company valuation: USD350M
Noble Brewer : A new club for beer lovers with exclusive memberships that allows its members to taste limited edition craft beers from around the world. The service is complemented by training, events, experiences, etc.
Peloton : One of the most established brands within the DNVB , focused on providing training plans and fitness equipment. It has had its greatest growth during the pandemic, reaching the point of being listed on the stock exchange.
Floyd : Company that is modernizing the home furniture industry, with high quality, well designed and easy to assemble products. Company valuation: USD5.6M
Another key factor in the rapid growth of the Digital Native Brand is the financing rounds, which have been the fuel for numerous companies, allowing them to achieve great scalability in a short time and expand regionally.

Some of the main characteristics of Digital Native Vertical Brands are:

Direct to Consumer Brands . These are brands that connect directly with the consumer in a completely digital environment and manage to develop a special connection with the customer. In some way, they know their customer better, manage to be 'closer' and tend to position themselves very well in the consumer's perception.

They manage the value chain from start to finish. By not having intermediaries in their value chain, they have greater flexibility, autonomy, and, of course, better business margins, giving them an important competitive advantage over other brands.

Focus on loyalty . The goal is not only to boost sales of a product but also to achieve an experience aligned with the values ​​and lifestyle of the consumer. The ultimate goal is to build a close and long-term relationship with a specific consumer segment.

100% digital brands . These are brands that are born and establish their connection with the customer in an online environment and then in later phases land in the physical channel, with their own stores , flagships , or simply showrooms. It has been proven that the opening of physical stores does not cannibalize sales in the online channel, but on the contrary, it strengthens them. Having the opportunity to try the product, experience it, encourages sales that perhaps would have been breaks in the digital sales process , complementing the online experience in a world of omnichannel .

Frictionless processes : They take care of the customer experience and quality of service throughout the purchasing process, product delivery, and after-sales relationship. They work in an integrated process, reducing friction points.

The characteristics and advantages of the Digital Native Brand are even more numerous, given that they take and enhance the best of the online and offline world, but always maintaining the clear conviction that the customer must be at the centre of the strategy.