DNVB and Influencer Marketing: the combo that works!

[Dimaeiya333]

Digital Native Vertical Brands (DNVBs) have been on the rise in recent years. These digital brands are very popular with consumers, especially among Generation Z and Millennials. DNVBs rely on social media to assert their status and continue to grow worldwide. Influencer Marketing is also a key factor for these internet-based companies. We explain everything!


What are the characteristics of DNVB?
Before we start, let's take a little time to understand the main characteristics of the so-called DNVB (Digital Native Vertical Brand) .

There are a number of specific characteristics that distinguish the so-called “classic” brands from the DNVBs. Firstly, born on the Internet, DNVBs often have a strong identity , often niche. They offer products “at the right price” thanks in particular to the reduction of intermediaries and the fact that they do not have stock or have very little.

This optimises logistics costs, as production is carried out exclusively on order. DNVBs make extensive use of data and digital technology to manage their orders efficiently. Thanks to the information collected, they can adjust their production volumes based on sales. Finally, their communication is 100% online and they are often closer to their customers and communities than more traditional brands.

In summary, DNVBs have two essential characteristics:

Digital Native Brands: These are “digital” brands, meaning they were born in the digital age. All of these brands started online and generate most of their sales through e-commerce,
Vertical Brands : The notion of verticality is also very important. These digital brands sell their products directly through their e-commerce sites without going through a third party. Their goal is to limit as much as possible the number of intermediaries for the manufacture and distribution of their products.
The rise of DNVBs worldwide
Although the term “DNVB” only appeared in 2015, DNVBs are now present all over the world . In the United States with Glossier or Kylie Cosmetics, in France with brands such as Joone or Sézane, but also in Germany with H it directors managers mailing lists elloBody or Purelei, for example. In France alone, 145 Vertical Digital Native Brands were created in 2021, representing an increase of +32.4% over the year. This growth is therefore confirmed and even accelerated, as the growth of these companies was already +23.2% in 2020.

Its rapid growth (almost three times that of other online retailers, according to Digital Commerce 360 ) has been accelerated by the health crisis. The Covid-19 pandemic is estimated to have accelerated the shift from brick-and-mortar to online retail by five years . Another colossal fact is that almost 20% of global retail sales are now made online . No less!

In 2021, more than half of young adults – 30% of Gen Z and 36% of Millennials – indicated they planned to shop less in brick-and-mortar stores than before. Additionally, 28% of Gen Zers and 24% of Millennials said they were likely to shop online more than before. Therefore, by design, DNVBs are the ideal answer for these young consumers who prefer to shop online over in-store. Additionally, 88% of consumers say they prefer to buy directly from a brand if they have the opportunity to do so.