DTC shoe brands with big second quarter traffic gains, Vivaia, Drew’s Boots, Beek – Footwear News
Every shoe brand wants to nail it straight to the consumer.
In general, higher profit margins and better control over brand distribution make DTC important for brands of all sizes. This is part of the reason why brands like Nike, Adidas and Crocs are forgoing partnerships with various wholesalers to focus on large accounts and direct-to-consumer channels.
As e-commerce continues to grow, digitally driven shoe brands are seeing returns in web traffic. Similarweb, which analyzes web traffic data, highlighted the 25 fastest growing DTC shoe brands, according to web traffic. The list ranks brands based on quarter-over-quarter website traffic growth and is limited to websites with 10,000 or more monthly visitors.
The shoe brands and retailers on the list included Vivaia, Gaziano & Girling, Grenson, Grant Stone, Groundies and Drew’s Boots and more. In total, the summit The 25 fastest growing DTC shoe sites saw a 64% increase in total traffic in the third quarter of 2021 compared to the same period last year.
Data has shown that small, digitally-driven shoe brands appeal to consumers, even as traditional brands adapt to changing trends. While the big brands grew in the quarter, they didn’t show the same percentage of growth due to their size. For example, nike.com had 51 million monthly visitors in the third quarter, but traffic grew only 9.2% from the second quarter.
Sustainable footwear brand Vivaia was the fastest growing brand on the list, with a 138.7% increase in traffic since the second quarter, with 30,000 additional computer visits. The traffic channels that saw the strongest growth in traffic to the site were paid search, organic search, referrals, email, and display ads.
“In this quarter’s fastest growing report, it’s exciting to see a sustainability-focused brand leading the list in both growth and size,” said Jamie Drayton, senior director of industry at Similarweb. “Vivaia promotes comfortable and stylish women’s shoes which have the added benefit of sustainable production. We are also seeing the ever-present impact of seasonality as consumers shop for boots in anticipation of colder weather. “
As DTC channels become increasingly important for all footwear brands, a recent report by BMO Capital Markets analyst Simeon Siegel claimed that DTC channels would often offer retailers lower profit margins than channels wholesale before taxes and interest. The report pointed to an inverse relationship between DTC penetration and reported revenue at the retail companies surveyed over the past five years. In other words, companies that experienced a decline in DTC penetration also experienced significant sales growth. The reverse was also true.
Nonetheless, DTC channels still give businesses a higher level of control over branding, distribution, and pricing. According to Siegel, these advantages are “perhaps reason enough to switch from wholesale to DTC”, margins aside.