💡Disrupting DTC: Luggage Industry’s Major Shift


        
    
      
      
        
        
          
            
              
                
    
      
      
        
        
          
            
              
                
            
      
        
      
        
          
            
              
      
        
          
              
                
                  
      October 3, 2024
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      
        
          
            
              
      
    
            
          
        
      
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      Hello - in today’s edition, we’re zooming in on the DTC luggage market. Brands like Away, Monos, and Beis are shaking up an industry long dominated by traditional players. We’ll take a closer look at how these new challengers are leveraging e-commerce and innovative designs to disrupt the market—and what that means for consumers and competitors alike.
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      We’re also bringing you an update on the current port strikes and their potential impact on DTC brands, particularly as the holiday season approaches. Plus, don’t miss our latest video on upgrading your ads and taking full advantage of competitor data to enhance your campaigns.
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      -John Fisher, Ben Chapdelaine, Josh Wilson
    
                
              
            
              
                
                  
      
      
      
      
    
    
                
              
            
              
                
                  
      RETAIL DEEP-DIVE
    
                
              
            
              
                
                  
      MAIN STORY: DTC Luggage Disruption
    
                
              
            
              
                
                  
      
        
          
            
              
      
    
            
          
        
      
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      The luggage industry has seen a significant shift in recent years, as direct-to-consumer (DTC) brands have emerged to challenge traditional players like Samsonite, Tumi, and Briggs & Riley. 
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      Brands like Away, Beis, and Monos have capitalized on the surge in travel demand, offering stylish, functional luggage at competitive prices, and tapping into the growing preference for online shopping. This disruption has forced long-established brands to adapt to a rapidly changing market where convenience, innovation, and price transparency are key drivers.
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      One of the most notable trends is the accelerated growth of the DTC luggage segment. DTC brands are growing at an average rate of 20% annually, outpacing the overall market growth of 10% as more consumers shift toward online purchasing. 
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      
        
          
            
              
      
    
            
          
        
      
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      Brands like Monos have shown remarkable expansion, with nearly 300% year-over-year growth observed in 2023 alone. In contrast, traditional retail brands are struggling to keep up with this digital shift, even as some, like Briggs & Riley, report increased online sales.
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      
        
          
            
              
      
    
            
          
        
      
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      However, success in the DTC luggage space isn’t guaranteed. While some brands have experienced explosive growth, others have faced challenges scaling profitability. The competition is fierce, and sustaining long-term growth requires a keen understanding of consumer needs and innovative product offerings.
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      See the full report. -JF
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      
      
      
      
    
    
                
              
            
              
                
                  
      SHIPPING
    
                
              
            
              
                
                  
      Port Strike threatens e-commerce supply chains
    
                
              
            
              
                
                  
      
        
          
            
              
      
    
            
          
        
      
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      A massive dockworker strike has begun at major ports along the U.S. East and Gulf coasts, potentially causing significant disruptions to e-commerce supply chains. This labor action, involving around 45,000 port workers, is the first of its kind in nearly 50 years and could have far-reaching consequences for online retailers and consumers alike.
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      Key impacts on e-commerce:
    
                
              
            
              
                
                  
      
  
    
    Product availability: The strike affects 60% of goods entering the U.S., which may lead to shortages of popular items, especially as we approach the holiday season.
    
  
  
    
                
              
            
              
                
                  
      
  
    
    Shipping delays: Experts warn that even a one-week shutdown could take 4-6 weeks to recover from, causing significant backlogs and delays.
    
  
  
    
                
              
            
              
                
                  
      
  
    
    Price increases: As supply chains strain, consumers may face higher prices on in-demand goods that become scarce.
    
  
  
    
                
              
            
              
                
                  
      
  
    
    Holiday shopping disruption: The timing of the strike could severely impact holiday inventory, potentially leading to extended wait times for online orders.
    
  
  
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
       Read more here. -BC
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      
      
      
      
    
    
                
              
            
              
                
                  
      MARKETING 
    
                
              
            
              
                
                  
      VIDEO: How to use Competitor Data in Ads
    
                
              
            
              
                
                  
      
        
          
            
              
      
    
            
          
        
      
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      We recently partnered up with Dara Denney to help you level up your marketing game heading into Q4.
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      Some key points:
    
                
              
            
              
                
                  
      
  
    
    Know your data: The first tip emphasizes the importance of being well-versed in your data. Understanding your metrics is crucial for making informed decisions and presenting compelling arguments.
    
  
  
    
                
              
            
              
                
                  
      
  
    
    Beyond the Ads Library: While the Facebook Ads Library is a useful tool, it's not sufficient on its own. The video discusses how to go deeper into competitor analysis for a more comprehensive understanding of the advertising landscape.
    
  
  
    
                
              
            
              
                
                  
      
  
    
    Leveraging competitor insights: Create effective hero campaigns leveraging the trends from your market. Identify the messages and campaigns that work for others and capture this value for yourself.
    
  
  
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      See YouTube video. -JW
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      
      
      
      
    
    
                
              
            
              
                
                  
      
     
              
                
                  
      
        
          
            
              
                
                  
                    
                  
                
              
            
          
        
        
      
    
                
              
            
              
                
                  
      
        
          
            
              
                
                  
                    
                  
                
              
            
          
        
        
      
    
                
              
            
              
                
                  
      
        
          
            
              
                
                  
                    
                  
                
              
            
          
        
        
      
    
                
              
            
    
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      If you have any feedback on today's style of newsletter, please respond to this email; we read each reply individually.
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
      Written by John Fisher, Ben Chapdelaine, and Josh Wilson
    
                
              
            
              
                
                  
       
    
                
              
            
              
                
                  
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💡Disrupting DTC: Luggage Industry’s Major Shift

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