Welcome to Community Cafe!

Our newsletter where we discuss all things community and D2C. This is our first edition :)

Happy New Year 2023! 🥳🥳🥳

Wow, I still can’t believe that it’s 2023 - the last year has gone by in a flash…

And the last few weeks of the year brought about a few surprises as well :)

MAMAEARTH IPO

Mamaearth’s parent company filed for an IPO

And people raised a LOTTTT of questions…

Deedy @debarghya_das

Mamaearth, a Sequoia-backed Indian D2C skincare brand, is looking to IPO in 2023 at $3B with $130m rev FY22 and $3m profit at “10-12x forward rev”. Warby Parker, a D2C US eyewear brand has ~$550m rev at $1.56B, a 3x multiple. D2C business with a SaaS multiple. Not great. 1/2

SHOPIFY GOES ENTERPRISE

Shopify is targeting the enterprise market with its new offering - Commerce Components.

Commerce Components allow large retailers to use Shopify’s technical components like payment gateway etc. in an “a-la-carte” format, so they can experiment with individual components and develop complex enterprise software quickly.

Large e-commerce enterprise brands like Mattel, Steve Madden, JB Hi-FI, and Staples will be using Shopify soon.

You can read more about it here

HOW D2C BRANDS CAN BUILD COMMUNITY

Paid ads on Facebook and Google are getting very expensive, and as a direct-to-consumer (D2C) brand, it is not prudent to rely solely on paid advertising as the primary marketing strategy. Moreover, the customers acquired through paid advertising rarely stick for a long period of time. D2C brands should explore organic and more long-lasting ways of reaching their audience and building a loyal community.

D2C brands can build a community in several ways:

1. Branded hashtag for UGC
   The "Show Us Your Roots" contest by Lush Cosmetics: In this contest, Lush asked customers to share photos and stories about their cultural heritage using the hashtag #LushShowUsYourRoots. The brand used the UGC to create a series of social media posts and in-store displays celebrating diversity.
   

2. Brand ambassador program
   ThirdLove, a lingerie company, partners with brand ambassadors to promote their products. These nano-influencers often post pictures of themselves wearing ThirdLove lingerie and include a discount code for their followers to use when making a purchase.
   

3. Q&As and feedback
   Glossier, a beauty and skincare brand, has a program called "Glossier Squad" that allows members to test and review new products before they are released to the general public. They also have a strong presence on social media, where they engage with and listen to their community's feedback and ideas.
   

4. Live Stream

5. Facebook Groups
   
   …and many more
   
   Read more on our blog here
   
   

That’s it for this week! Let us know what you thought of our newsletter and we hope to catch you next week with more from the world of D2C community building!