7. The New Bargain: DTC Brands + Brick & Mortar Retail | Wake-Up Call

Mark and Mike discuss the tumultuous history between Direct-to-Consumer mattress brands and Brick & Mortar stores, the factors that led to their ultimate reconciliation, and the intricate dynamics of these relationships today. ▬ ABOUT THIS EPISODE ▬ 0:00 Intro 2:39 Remembering when DTC brands were public enemy #1 6:43 Why selling direct unlocks bigger, smarter ad spend 9:05 Growth limits for online-only DTC brands 10:54 Different paths to growth (Casper, Nectar, Purple, Tuft & Needle) 16:32 Consumer acceptance of mattress-in-a-box 19:47 Why successful DTC brands inevitably need brick & mortar (Tempur-Pedic) 22:05 Sponsor Break 23:44 The hidden advantage of selling direct 26:20 Do the benefits of direct selling extend to traditional brands too? 29:40 The New Bargain: What retailers expect from brands today 33:41 Who should control marketing dollars? 37:43 Converging cost structures for DTC vs incumbent brands 41:05 RSA incentives and the retailer end of the bargain 43:21 Who owns the customer? 49:17 What the new bargain really means for both sides 50:48 How does the DTC/Retail relationship evolve from here? 54:58 Wrap-up To access the Show Notes — including links to the companies, products, people, and other resources discussed in this episode — go to the EPISODE PAGE here: https://www.wakeupcallpod.com/episode... ▬ ABOUT THE WAKE-UP CALL PODCAST ▬ Hosted by Mark Quinn and Mike Magnuson, Wake-Up Call fosters conversation around the trends, threats, opportunities, and ideas that are shaping the future of the mattress and sleep products industry. Frequent topics include retail, consumer behavior, emerging technologies, marketing, business strategy, artificial intelligence, manufacturing, e-commerce, merchandising, sleep innovations, and major industry events. More details here: https://www.wakeupcallpod.com SUBSCRIBE TO WAKE-UP CALL through your preferred podcast platform so you don't miss an episode: 🔔 *Subscribe on YouTube*:    / @wake-upcallpod   🔔 *Subscribe on Spotify*: https://open.spotify.com/show/033MnKb... 🔔 *Subscribe on Apple Podcasts*: https://podcasts.apple.com/us/podcast... Follow Wake-Up Call on LinkedIn for more discussion of this content, or to leave questions or suggestions for future episodes, by going HERE:   / wakeupcallpod