Consider this essay a scaffolding for future writings, discussions, and forecasts on pre-DTC and post. Eras are determined by the methods upon which the majority of brands begin, scale, and – if successful – become durable.
The three pillars of a durable brand are a superior management team, sustainable acquisition and distribution models, and proper unit economics
The retail landscape has been a canvas of continuous change, reflecting the evolving needs, technologies, and cultural shifts of society. Each era represents modernity vis a vis a brand’s path to durability.
Through research, I identified seven distinct eras, each marked by its unique approach to selling and customer engagement. From the early days of production-centric strategies to the modern era of personality-driven branding, these phases collectively narrate the story of how retail has become an integral part of our daily lives and cultural fabric.
At the 2023 Cannes Lions International Festival of Creativity, NYU Professor Scott Galloway presented a provocative view that the “era of brand is over,” challenging long-standing retail and marketing paradigms. According to Galloway, the resurgence of product-focused advertisements and changing consumer habits signify a fundamental shift in the branding landscape. This shift is attributed partly to the increasing use of ad-free streaming platforms and ad-blocking tools, altering the way consumers engage with brand messaging.
Galloway’s observations pointed to a pivotal transformation where traditional long-term brand-building strategies through advertising are under pressure. He cited Apple’s recent approach as emblematic of this change, noting a significant pivot from brand-based to predominantly product-focused advertising. This transition suggests a new phase in retail and marketing where tangible product attributes are gaining precedence over the intangible associations of brand advertising. But I believe that this is an incomplete view.
The implications of these trends extend to the future of creatives and marketers. Galloway posits that the next generation of marketing professionals must adapt, evolving from crafting intangible brand associations to becoming coaches, advisors, and strategists who can help companies scale operationally. This perspective adds a critical dimension to our exploration of the seven eras of retail. Each era produced durable brands. And these brands last, regardless of the era.
The Production Concept Era
From the beginning of American capitalism until the early-20th century, the production concept era reigned supreme. This era was characterized by the belief that quality products would naturally attract buyers, negating the need for elaborate marketing strategies. Henry Ford’s Model T is a quintessential example of this mindset, where product availability and functionality were paramount, and consumer choice was minimal. During this period, the market dynamics were skewed towards the sellers due to the high demand for goods and limited supply, creating a straightforward yet robust retail environment.
A great example of a durable brand: Caswell-Massey soap. Caswell-Massey is one of America’s oldest continuously operating companies, a storied beauty and fragrance brand with roots dating back to 1752. How it isn’t one of the most well-marketed and most relevant brands today is beyond my understanding.
The Sales Concept Era
Transitioning into the 1920s, technological advancements ushered in an era where production capabilities outpaced consumer demand, especially during the Great Depression. The sales concept era emerged as a response to this imbalance. Companies now faced the challenge of convincing customers to purchase their surplus goods. This era was marked by aggressive sales tactics and an increased emphasis on advertising. Retailers and manufacturers began to heavily invest in all forms of media to push their products to consumers, fundamentally changing the nature of retail from product-centric to sales-centric.
A great example of a durable brand built in this era is Proctor & Gamble. In 1933, Procter & Gamble (P&G) launched its initial radio serial, “Oxydol’s Own Ma Perkins.” This radio show quickly gained popularity among women across the United States. Its success led P&G to produce additional radio programs to promote its various brands. By 1939, the company had expanded its portfolio to 21 radio shows, effectively pioneering the genre known as the “soap opera.” Moving forward with this concept, P&G introduced “The First Hundred Years” in 1950, marking it as the first ongoing soap opera on television.
The Marketing Concept Era
By the 1950s, a shift towards a buyer’s market initiated the marketing concept era. Companies realized that success no longer hinged on just producing quality products or aggressive selling, but on understanding and fulfilling customer needs. This era was defined by a more nuanced approach to marketing, where consumer preferences drove product development and marketing strategies. Companies like General Electric pioneered this approach, integrating market research into product planning and positioning. This era laid the foundation for modern marketing, emphasizing customer satisfaction and long-term business relationships.
In 1950, Fred Borch, GE’s Vice President of Marketing Services, became a well-known figure in the marketing world. Borch was instrumental in developing the ‘marketing concept’, a strategy that emphasized the integration of marketing at every step of a company’s process. This approach involved engaging marketing professionals early in the product development cycle, allowing them to guide engineers, designers, and manufacturers based on consumer preferences, price points, and market demand identified through research and studies.
The marketing team’s influence extended beyond traditional roles, encompassing product planning, manufacturing schedules, inventory control, and market segmentation techniques. This broader scope of responsibilities included not just sales, distribution, and service, but also significant input in long-term company planning. Once GE adopted and publicized this concept, the marketing services department gained substantial influence and became a key provider of data and analysis for the company.
The Societal Marketing Era
The societal marketing era, emerging in the late 1960s, introduced a new dimension to retail: corporate social responsibility. This era was a response to growing public awareness of environmental and social issues. Companies began to realize that long-term success depended not only on meeting customer needs but also on operating ethically and sustainably. Brands like The Body Shop were trailblazers in this era, promoting natural ingredients and ethical sourcing, and demonstrating that profitability and social responsibility could coexist.
Patagonia’s operational philosophy from its founding in 1973 is an exemplary illustration of the Societal Marketing Concept, which emphasizes Consumer Welfare, Social Welfare, and Environmental Welfare. Focusing on Consumer Welfare, Patagonia has been committed to meeting consumer needs by offering high-quality, durable outdoor apparel and promoting sustainable consumption. In terms of Social Welfare, the company stands out for its corporate social responsibility, actively supporting environmental causes and community initiatives, thus reflecting a dedication to enhancing the well-being of society. The most significant aspect of Patagonia’s approach is its commitment to Environmental Welfare.
The Customer Relationship Era
As the new millennium approached, the customer relationship era took center stage, focusing on creating and maintaining long-term relationships with customers. This era saw the advent of Customer Relationship Management (CRM) systems, which enabled companies to personalize customer interactions and foster loyalty. Retailers such as Gap and Old Navy utilized these systems to offer tailored promotions and keep customers engaged with their brand over time. This era marked a shift from transactional to relational retail, where customer loyalty and repeat business became crucial for success.
Tesla’s foundation in 2003 exemplifies the Customer Relationship Era, a period marked by a heightened focus on CRM. The brand’s long-standing use of Salesforce CRM, followed by the development of its proprietary CRM system, underscored Tesla’s commitment to vertical integration and control over its data. This move mirrored the strategies of Apple and Amazon, who prioritized custom-built CRM systems for enhanced sales and customer engagement. Tesla’s CRM strategy is multi-faceted: it includes a user-centric design philosophy, personalized driver profiles, direct engagement with customers, and dynamic personalization.
The DTC Brand Era
The Direct-to-Consumer Brand era brought about a significant change in retail dynamics. Brands like Figs and Warby Parker exemplified this era by cutting out intermediaries and connecting directly with consumers. This model, highlighted by the rise of Shopify, allowed for greater control over brand messaging, customer experience, and product quality. The DTC era highlighted the importance of eCommerce, digital marketing, and consumer data analytics, making it a pivotal period in the evolution of modern retail. But few retailers mastered the economics required to become a durable brand.
The pandemic further exposed the vulnerabilities of the DTC model. Many DTC brands, with high operational costs and low savings, struggled with diminished consumer demand and supply chain disruptions. This led to significant downsizing of companies such as Away, Everlane, Casper, and others. Post-pandemic, we’re witnessing a shift in the DTC landscape. Entrepreneurs and investors are reevaluating the model, seeking a balance between the aspects that worked and those that didn’t. The focus is now on sustainable growth, effective customer engagement, and prudent financial management.
Solo Brands, owner of Solo Stove and Chubbies, serves as an example of a DTC brand learning from the past experiences of other DTCs to build a durable business. By leveraging customer data and direct communication, they fine-tuned their approach to ensure profitability and sustainability. This includes optimizing marketing strategies, focusing on customer loyalty, and managing operational costs more effectively. Solo Brands’ strategy reflects a more nuanced understanding of the DTC model and how it works with wholesale distributors to achieve meaningful growth atop of a profitable foundation.
The Personality Brand Era
My first essay on MrBeast began: “Every industry is overdue for a digital-first reset.” In the context of this journey through eras, it could not be more true. In the current Personality Brand era, as illuminated by the examples of MrBeast’s Feastables and burgers or Logan Paul’s Prime energy drinks, retail has seen the rise of influencer and celebrity-led branding. This era, as articulated most recently by Marc Andreessen, represents a paradigm shift where individual personalities drive brand value and consumer engagement. Brands are increasingly leveraging the emotional connection and trust that influencers and celebrities have with their audiences to build a more personal and relatable consumer-product relationship.
The rise of personality-driven brands indicates a significant shift in consumer-product relationships. He argues that classic brands like Coca-Cola or Kraft Mac & Cheese emerged due to the media landscape of their time. In further review, these brands were products of their eras: sales marketing concept and societal marketing eras. Other examples of the above include George Clooney’s Casamigos Tequila and Kim Kardashian’s Skims shapewear, which is now a $4 billion business. Andreessen suggested that while some might view these as temporary gimmicks, they represent a deeper change. And I agree.
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The journey through these seven eras encapsulates the dynamic and multifaceted nature of retail. Each era has contributed to the evolving landscape of consumer engagement, marketing strategies, and brand development. As we continue to track the emergence of new trends and technologies, the story of retail remains an ongoing narrative, rich with lessons from the past and possibilities for the future. This historical perspective not only highlights the adaptability and resilience of the retail sector but also serves as a guide for navigating the ever-changing terrain of consumer preferences and market demands.
One thing is certain: DTC wasn’t a class of brands or a distribution model; it was just an era. Building durable brands has been done across each of the seven eras, but it is important to understand how to best use the time that you’re in to concept a product, launch it, scale it, and then make it durable.
By Web Smith | Editor: Hilary Milnes