The Continued Rise of Digital-First Disruptor Brands in 2020
Sarah Baird, Outbrain’s U.S. general manager, discusses game-changing brands.
In 2018, the industry saw the largest number of retail store closures in U.S. history while 2019 will be noted as the year of the “everyday consumer,” and by 2022, one out of every four
U.S. shopping centers could be out of business. All the while, digital shopping shares have grown and introduced a new type of “direct brand” competitor that is stealing market share from incumbents.
In an effort to increase foot traffic, traditional retailers have been using digital-first brands to bring consumers into stores. Nordstrom partnered with Allbirds to create five exclusive colors only available at nine locations, while J. Crew features Summersalt as one of the “Brands We Love” campaigns.
Digital-first disruptors are seeing success because they are marketing-led and are highly responsive to consumer needs, obsessing over every touchpoint with their target audience and are masters at storytelling-putting the story ahead of the product. But how can these disruptors keep disrupting? And what will prove their success? That’s what we’re going to look at today.
Taking a step back, we have to first understand what a disruptor brand is. They’re the brands who are gamechangers in their industry. They’ve spotted a challenge in the market and created a better way to deliver what the customer needs. Think Everlane, Uber, Airbnb, Patagonia and Purple. While these brands might not be the first to do something, they’re the best at it. Which has traditional brands and marketers scratching their heads wondering why this works so well?