Should Growing Retail Brands Double Down On Their In-Store Retail Outlets Or Diversify To DTC?

Summary

MarTech Podcast ™ // Marketing + Technology = Business Growth
Episode Title: Should Growing Retail Brands Double Down On Their In-Store Retail Outlets Or Diversify To DTC?
Release Date: January 21, 2025
Host: Benjamin Shapiro
Guest: Kelly Thornton, Founder and CEO of Tiege Hanley

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Introduction

In this insightful episode of the MarTech Podcast ™, host Benjamin Shapiro engages in a compelling discussion with Kelly Thornton, the visionary founder and CEO of Tiege Hanley. The episode delves into a critical strategic decision facing growing retail brands today: whether to double down on traditional in-store retail outlets or to diversify into Direct-to-Consumer (DTC) channels. This conversation is particularly relevant for marketers and business leaders navigating the evolving landscape of retail and consumer behavior.

Guest Introduction

Benjamin Shapiro introduces Kelly Thornton, emphasizing her role in leading Tiege Hanley—a company dedicated to providing uncomplicated, scalable skincare systems tailored for men. Kelly's expertise in blending marketing with technology to drive business growth sets the stage for a deeply informative discussion on DTC marketing strategies.

Main Discussion: Doubling Down vs. Diversifying into DTC

The Case for Diversification into DTC

Kelly Thornton advocates strongly for diversification into DTC channels. She articulates, “I think any brand that is out there that really wants to serve their customers well should try to meet the customer where the customer wants to buy. That's my philosophy as a DTC” (02:04). Kelly emphasizes the importance of aligning sales channels with consumer preferences, asserting that brands must be where their customers are, whether that’s online or in physical stores.

She further elaborates on the necessity of diversification: “Going into wholesale or retail, I think you diversify because you want to put your product in the hands of where the consumer is” (02:26). Kelly highlights how diversifying into DTC allows brands to reach a broader audience and cater to the modern consumer's desire for convenience and accessibility.

Counterarguments and Strategic Trade-offs

Benjamin Shapiro challenges Kelly by presenting a common scenario: an established retail presence that is thriving and can continue to be optimized. He asks, “Instead of expanding new retail outlets and running the existing business model, we're going to try to be a digital company. How do you make the trade-off from moving towards something that you know, works into something that is the great unknown for traditional retail brands?” (02:59).

Kelly responds succinctly, emphasizing the critical choice for businesses: “You ask yourself if you want to stay alive or not” (03:02). This stark perspective underscores the importance of adapting to changing market dynamics to ensure long-term viability.

Consumer Behavior Insights

Kelly provides a compelling analysis of contemporary consumer behavior, citing platforms like Amazon, TikTok, and Temu as benchmarks for DTC success. She shares personal anecdotes to illustrate how consumers prioritize convenience and speed: “It's like the demand that consumers will continue to have over the next 10 or 15 years is how do I purchase something at the comfort of my own home and have it delivered tomorrow” (04:15).

Kelly draws parallels between Amazon’s hybrid model and the necessary strategies for traditional retailers: “I look at Amazon as a hybrid between kind of a DTC and a bricks and mortar retail” (04:15). She advises that retailers should strive to offer similar conveniences, such as next-day delivery, to remain competitive.

Strategic Implementation of DTC

Kelly suggests that companies leverage their existing supply chains to create a DTC-like service: “If you have your product on shelf at that toy store, so in my mind, you should be able to try to leverage a supply organization within your company to have a similar competing service that allows your customer and you may be distributing your product through Amazon purchasing on your website to deliver it next day” (05:03). This approach ensures that brands can compete with the efficiency and convenience of major online retailers while maintaining their physical presence.

Conclusion

Concluding the episode, Benjamin Shapiro summarizes the key takeaway: for brick-and-mortar retailers, diversifying into DTC is not just an option but a necessity for survival and growth. Kelly Thornton’s insights provide a strategic blueprint for brands looking to balance traditional retail success with the burgeoning potential of DTC channels.

Notable Quotes

• Kelly Thornton (02:04): “I think any brand that is out there that really wants to serve their customers well should try to meet the customer where the customer wants to buy. That's my philosophy as a DTC.”

• Kelly Thornton (03:02): “You ask yourself if you want to stay alive or not.”

• Kelly Thornton (04:15): “It's like the demand that consumers will continue to have over the next 10 or 15 years is how do I purchase something at the comfort of my own home and have it delivered tomorrow.”

• Kelly Thornton (05:03): “If you have your product on shelf at that toy store... you should be able to try to leverage a supply organization within your company to have a similar competing service... to deliver it next day.”

Final Thoughts

This episode of the MarTech Podcast ™ offers valuable perspectives on the strategic decisions facing modern retail brands. Kelly Thornton effectively highlights the imperative for diversification into DTC channels, supported by consumer trends and practical implementation strategies. For marketers and business leaders, the insights shared provide a roadmap for leveraging technology and marketing to drive sustainable business growth.

For more information on Kelly Thornton and Tiege Hanley, listeners are encouraged to visit teege.com or connect with her on LinkedIn and Instagram as mentioned by Benjamin Shapiro.

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This summary was crafted to provide a comprehensive overview of the podcast episode for those who haven't listened, capturing all essential discussions, insights, and conclusions with appropriate attributions and timestamps.

Transcript

[Podcast Announcer]

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[Benjamin Shapiro]

From advertising to software.

[Kelly Thornton]

As a service to data across all.

[Benjamin Shapiro]

Of our programs and clients, we've seen a 55 to 65% open rate.

[Kelly Thornton]

Getting brands authentically integrated into content performs better than TV advertising.

[Benjamin Shapiro]

Typical lifespan of an article is about.

[Kelly Thornton]

24 to 36 hours.

[Benjamin Shapiro]

If we're reaching out to the right person with the right message and a clear call to action, then it's just a matter of timing.

[Podcast Announcer]

Welcome to the Martech Podcast, a member of the I Hear Everything Podcast Network. In this podcast you'll hear the stories of world class marketers that you technology to drive business results and achieve career success. Here's the host of the Martech Podcast, Benjamin Shapiro.

[Benjamin Shapiro]

Welcome to the Martech Podcast. I'm your host Benjamin Shapiro and today we're going to discuss D2C marketing. Joining me is Kelly Thornton, who is the founder and CEO of Tiege Hanley, which is a provider of uncomplicated scale skin care systems designed specifically for men, equipping them with essential skin care tools to confidently tackle their day. All right, here's my conversation with Kelly Thornton, the founder and CEO of Tiege Hanley. Kelly, I want to move on to our lightning round where we quickly answer some Martech questions related to the topic of the week, which is DTC marketing. Are you ready?

[Kelly Thornton]

Let's do it.

[Benjamin Shapiro]

All right, we're going to start off with double down or diversify. Should growing retail brands double down on their in store retail outlets or start to think about diversifying into dtc, in your opinion?

[Kelly Thornton]

I think they should diversify into dtc. I think any brand that is out there that really wants to serve their customers well should try to meet the customer where the customer wants to buy. That's my philosophy as a dtc. Going into wholesale or retail, I think you diversify because you want to put your product in the hands of where the consumer is.

[Benjamin Shapiro]

Now let me play devil's advocate a little here. Where you've got an established retail presence, it's thriving, you know that you can continue to optimize. You've got a skill set to get people into a store and hopefully associates that can help sell your products. And now all of a sudden you're saying you know what we should do Instead of expanding new retail outlets and Run the existing business model. We're going to try to be a digital company. We're going to move entirely online. How do you make the trade off from moving towards something that you know, works into something that is the great unknown for traditional retail brands?

[Kelly Thornton]

You ask yourself if you want to stay alive or not.

[Benjamin Shapiro]

Okay, does everybody who goes into D2C thrive?

[Kelly Thornton]

Well, here's the thing. All you need to do is look at Amazon, TikTok and Temu. I can't tell you the last time that I needed to purchase something. Now this is me and the family dynamics and everything plays a big role in it. Where me personally did not just go onto Amazon to get that thing that I needed. I just. As a matter of fact, these headphones came yesterday and most all of us. I was talking to a guy yesterday, he needed band aids or bandages. I bought something for hang something on my wall. I went to Amazon. I knew what I wanted. I made the selection. It asked me, do you want it from 8:00am the next day, 8:00am to 10:00 for no additional cost or do you want it before 8am for like an additional $5? And I'm like thinking, this is bananas. Like before 8, are you going to drop it off?

[Benjamin Shapiro]

My kid for Christmas wanted a Pokemon mystery box and we confused mystery pack with mystery box. And he was all upset and it was like, what? He's like, this isn't a box, this is a pack. And I was like, all right, let's get Amazon. Show me what is a box. And then he found this $40 box that had like three packs in it. And it showed up the next morning like before he was awake. It's crazy.

[Kelly Thornton]

Yeah. I mean, just to put a point on this, it's like the demand that consumers will continue to have over the next 10 or 15 years is how do I purchase something at the comfort of my own home and have it delivered tomorrow? That is what if you're at fill in the blank. If you're selling it at Kroger, that's what you're going to be dealing with If I could get it in a few hours. And that's. I look at Amazon as a hybrid between kind of a DTC and a bricks and mortar retail. But that's what you're competing against if you have your product on shelf at that toy store. So in my mind, you should be able to try to leverage a supply organization within your company to have a similar competing service that allow your customer and you may be distributing your product through Amazon purchasing on your website to deliver it next day.

[Benjamin Shapiro]

All right, if you are running a brick and mortar retailer, you're diversifying towards dtc, no matter what the brand is. And that wraps up this episode of the Martech Podcast. Thanks for listening to my conversation with Kelly Thornton, the founder and CEO of Tiege Hanley. If you'd like to get in touch with Kelly, you can find a link to his LinkedIn profile in our show notes. You can DM him on Instagram. His company's handle is Tiege Hanley. That's T I e G E H a n L e Y. Or you can visit his company's website, which is just teege.com T-I-E g e.com if you'd like a summary of this podcast, or if you'd like to apply to be the next guest speaker on the Martech podcast, head over to martechpod.com you can also find our video clips for the martech podcast on YouTube, Instagram and on X. And if you'd like to contact me, let's connect on LinkedIn. My handle is Benjschapp. B E N J S H A P and if you haven't subscribed yet and you want a daily stream of marketing and technology knowledge in your podcast feed, hit the subscribe button in your podcast app and we'll be back in your feed tomorrow morning. All right, that's it for today, but until next time, my advice is to just focus on keeping your customers happy.

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