10 Ways To Move Your Fashion Brand from DTC to Retail Stores

According to a McKinsey report, 60% of fashion brands adopt a hybrid model to balance DTC and wholesale channels, ensuring resilience in a competitive market. Here’s a detailed step-by-step guide to help your fashion brand make this pivotal shift seamlessly. 1.

Evaluate and Understand Your Brand’s Readiness Before diving into wholesale, assess your brand’s current market performance. Understanding unit economics, having a solid grasp on your customer acquisition costs (CAC), and ensuring a loyal customer base are crucial.

Ask yourself if your brand has achieved a steady growth rate and is sustainable in the long run. Key Metrics to Evaluate: CAC vs. Customer Lifetime Value (CLV): Aim for a CLV:CAC ratio of at least 3:1. Gross Margin: Ensure your gross margin is above 50% to sustain wholesale discounts.

Sell-Through Rate: A healthy sell-through rate (70% or higher) indicates strong demand. Key Metrics for Retail Readiness Metric Target Value Tools to Measure Customer Acquisition Cost (CAC) 50% Financial Statements Sell-Through Rate > 70% Retail Analytics Software CLV:CAC Ratio 3:1 or Higher CRM, Financial Analysis 2…