Dive Brief:
- Italian intimates brand Intimissimi, luggage brand Monos, apparel brands Quince and Skims, and accessories brand Calpak made the list of the top-10 fastest growing apparel and accessories websites, according to Similarweb.
- Intimissini’s website traffic grew nearly 286% in 2022, while Monos grew about 182%, Quince (163%), Skims (157%) and Calpak (134%), according to the firm’s report.
- The report noted that the top digital brands got more than a quarter (26.5%) of traffic from organic searches, but they comprise nearly a fifth (18%) of their traffic from paid searches, a sign that their products are in genuine demand. By contrast, they only get 6.3% of their traffic from social media, per the report.
Dive Insight:
As the DTC space becomes increasingly crowded, breaking through the noise to have consumers discover brands’ websites has become more difficult.
Though digitally native brands have seen a sharp rise in online growth, it remains to be seen whether this traffic source will translate to sales. A PipeCandy report released last March said about three-quarters of U.S.-based brands generate under $1 million in online sales, and less than 1% of DTC brands in the U.S. have garnered over $500 million in e-commerce sales.
Whether brands surpass $1 million in revenue depends upon the recovery of apparel demand among U.S. consumers, research suggests. A UBS analysis found that consumer demand for apparel, footwear and accessories dropped 15.7% compared to 2019, a shift seen across all income levels.
Still, DTC brands are trying to become profitable this year. Some brands, for example, are expanding into new product areas or cutting back staff to turn a profit. The competition for venture capital funding may also heat up this year, which could complicate their ability to grow, sources told Retail Dive.
