Monica + Andy's journey reveals that prioritizing profitability over growth at all costs, coupled with an omnichannel strategy that leverages both digital and brick-and-mortar for community building, can drive sustainable success. This episode offers valuable lessons for DTC brands looking to expand strategically into mass retail while maintaining strong customer relationships.
Key takeaways
Early investment in brick-and-mortar stores, even for digitally-native brands, can serve as a powerful, cost-effective customer acquisition and community-building tool, deferring the need for paid online acquisition.
Shifting focus to profitability early on, especially in uncertain economic climates, creates a more resilient business model capable of strategic expansion rather than relying solely on venture capital-fueled growth.
Strategic expansion into mass retailers like Walmart and Target can significantly extend brand reach and sales channels, provided the brand maintains its unique identity and customer connection strategies.
Utilize in-store and virtual events not just for engagement, but as potent, often overlooked, customer acquisition and loyalty-building tools, integrating them formally into your growth strategy.
Authentic community building, driven by direct interaction and understanding customer needs, is critical for fostering brand loyalty and can become a foundational element of a brand's long-term growth.
At first glance, children's apparel brand Monica + Andy looks like many other digitally-native businesses. It launched during the DTC heyday, in 2014, most of its sales are online and it's been growing and expanding sales channels every year.
But the company has had an interesting trajectory that bucks many of the trends. For one, while it is a digital brand, one of the first things it did was open a store. And for the first few years, its Chicago store was the brunt of its business.
"We didn't pay for a single online acquisition maybe until almost 2018," said Monica Royer, co-founder and CEO of Monica + Andy. It was there that Royer learned how to connect directly with shoppers and build a community.
Another difference is that while other brands focused on growth at all costs, Monica + Andy has spent years focusing on its bottom line. "The moment that Covid started… our board was like, profitability -- that is going to be the most important thing in the future."
These two things have helped the company grow. Today, Monica + Andy has expanded its presence into stores like Walmart and Target, and has continued to grow its online sales. It's also fostered a community of parents via in-store and virtual events, which remain core to its growth strategy. Royer joined this week's Modern Retail Podcast and spoke about her brand's trajectory.
One of the early trends that Monica + Andy tapped into -- without even really knowing it -- was that people are looking for ways to connect with brands beyond buying things. The company has held events for years and has taken great pains to make sure it was speaking directly with its shoppers, but Royer said it wasn't considered a way to achieve growth. "We didn't realize we were onto something -- we didn't realize that was an acquisition tool at the time," she said.
Similarly, Monica + Andy has been honing how it uses events for the past few years. While it held many virtual events during the early days of the pandemic, it's now been
Frequently asked about this episode
What does this episode say about dtc strategy?
Early investment in brick-and-mortar stores, even for digitally-native brands, can serve as a powerful, cost-effective customer acquisition and community-building tool, deferring the need for paid online acquisition.
What does this episode say about retail & omnichannel?
Shifting focus to profitability early on, especially in uncertain economic climates, creates a more resilient business model capable of strategic expansion rather than relying solely on venture capital-fueled growth.
What does this episode say about founder & leadership?
Strategic expansion into mass retailers like Walmart and Target can significantly extend brand reach and sales channels, provided the brand maintains its unique identity and customer connection strategies.
What does this episode say about brand & content?
Utilize in-store and virtual events not just for engagement, but as potent, often overlooked, customer acquisition and loyalty-building tools, integrating them formally into your growth strategy.
What does this episode say about dtc strategy?
Authentic community building, driven by direct interaction and understanding customer needs, is critical for fostering brand loyalty and can become a foundational element of a brand's long-term growth.
