Kristen Schwab

Direct-to-consumer businesses weren't a newfangled idea when they took off a decade or so ago.

Remember, mail order catalogs came first.

But Mark Cohen, former director of retail studies at Columbia, says the Internet refreshed the strategy.

In a lot of ways, that evened the playing field.

Retail has traditionally been about who you know and what stores you can get your products into.

All direct-to-consumer requires is an idea and an internet connection, at least at the beginning.

Brands like Glossier and Casper quickly attracted attention from venture capital and private equity.

Kevin Mullaney, CEO of the Grayson Company, a retail consulting group, says these investors usually push for fast growth.

Allbirds opened dozens of stores in just a couple of years.

Mullaney says most brands do need physical retail to grow their customer base.

Warby Parker is one company he says has done this successfully.

The problem is a lot of brands were trying to do everything, everywhere, all at once.

Meanwhile, the direct-to-consumer space was getting more competitive.

There was the pandemic-driven online shopping boom and the rise of TikTok.

Allbirds moved into apparel and accessories and tried to become known for more than its washable wool shoes.

Jessica Ramirez is co-founder of the advisory firm, The Consumer Collective.

A super specific product, it helps a company get noticed.

But becoming more than that product is hard.

Ramirez says some direct-to-consumer companies get lost in the expansion and lose sight of their core customer.

Allbirds, once a tech bro staple, lost its cool.