We describe these new businesses as ‘Digital Native Vertical Brands’ (or DNVB). They are created online to connect directly to customers, without going through distribution networks they cannot control. They embed social networks at their fingertips and include strong images in stores. They eliminate expensive intermediaries without operating within a low-cost model. In the fashion sector, examples are Boohoo and Mahabis (U.K.), Revolve, Toms, Bonobos, Everlane and Reformation in the US and Le Slip Francais and Sézane in France. For cosmetics, we see Glossier, Volition and Oh My Cream. For accessories, there are Warby Parker and Jimmy Fairly. The home equipment sector is covered by Casper and by Tediber among others.
Although many traditional retailers feel these smaller brands are insignificant due to limited sales and turnover, there are substantial reasons to carefully watch their competitive and disruptive progress.