Key Considerations for Retail Expansion

I have been in retail for 20+ years and ecommerce for 18. One of the biggest pitfalls I see brands run into as they scale: Clinging to what worked for them in a different stage of business. In any business you are going to hit specific stages that require you to throw out your old playbook so that you can run the new one. What works well at $1M is going to be detrimental at $10M This is scary because growing a business is hard and you know *this* “works” because you have been doing it. But as you outgrow strategies you need to be confident moving into new ones. $1M-$10M You need to do some extreme things for attention. -Give away product -Run deep initial promotions -Flashy thumb stopping ads -Lots of pressure for trial -Lots of brand awareness and “please look at me” marketing This is incredibly low trust behavior. It works because no one trusts you yet. You’re new, so it makes sense that you are taking most of the risk on their trial. Customers understand this. But as you scale.. $10-$20M You need to become trustworthy. -Your ads need to shift into benefits  -Marketing focus needs to be on proving your value -Focus on reviews and customer service logs -Keep your prices stable  -Run “standard” promotions (up to 30% off 4x a year) -Focus on retention by being a good partner. Customers here are going to think of themselves as early adopters, they need more hand holding as you take back your margin. Lots of leaning in. $20M-$50M you need to start becoming a household name -Focus on more upper funnel again but this time as a brand that is known for being the best x -Ads should be more segmented and complex.  -Acquisition at the top of the funnel should be feeding your retention tactics (read, not heavily discounted) -This can be time to expand the product lines into complementary products, increasing AOV, increasing your TAM $50M + you need to expand (if you’d like) -Focus on heavy data and reporting -Add channels (Amazon, wholesale, retail) -Marketing becomes experiential- co branded events, trips, private shopping -Tiered loyalty programs -Global expansion Each phase of business requires a shift in how you approach the market, your customers and your future plans. The more ready you are to grow with your brand the more success you’ll have #amazon #dtc #ecommerce #growth #mindset #topretailexperts

A post about retail expansion that I wish I'd read 2 years ago... In 2024, we learned that just because a major buyer wants your entire product line doesn't mean you should give it to them. Sounds counterintuitive, right? Let me explain... When we first launched in Walmart in 2023, we were giddy. Major retailer wants all our SKUs? Hell yes! Let's go! But here's the painful lesson we learned: DTC success ≠ Retail success. You can’t just copy/paste your digital catalog onto physical shelves and expect things to work. In DTC, you've got a forgiving testing ground. You can build and control the user experience. Your customers know you. You can educate them with PDP’s and email campaigns. You can craft the relationship over time. Retail? You get one shot at that shelf impression. If a customer doesn't immediately get what your product does and why they need it, game over. So in 2024, we had to get strategic. Really strategic. We studied our velocity data. Identified why certain SKUs were moving faster than others. Made changes to the callouts and info hierarchy on our packaging.  Adjusted price points. Now some of our previous slow-movers became top performers. But I think the bigger lesson was about strategic restraint. Now when retailers approach us, we actually guide them away from certain products. We'll straight up say "This SKU won't work for your customer base." Short term, we might lose some revenue because the stocking PO will be smaller.  But retail growth is about the long term. So we want to build reorder velocity that compounds... We also learned that different retail channels need different approaches: • What works in drug stores might fail in grocery • What flies in FDM might bomb in club stores • What succeeds in DTC might never work in retail This knowledge now influences everything - from product development to packaging design to price architecture. For the DTC brands eyeing retail expansion - start thinking about these channels now, even if you're years away. It'll change how you build.

Most founders grow their business backward. They pump money into marketing, chase new logos, and celebrate increasing revenue. A founder friend of mine learned this the hard way after he discovered this approach cost his company $11.8M in enterprise value at exit. The math is simple… There are only three ways to grow a business - acquire customers, keep them longer, or increase their value. But the sequence matters just as much as the strategy. Here's why. By the time a customer churns, you've already spent the acquisition costs, onboarding time, and support resources. Meaning each lost customer represents negative ROI on your growth spend. Picture building a house on a cracked foundation. More rooms won't fix the structural problems - they'll make them worse. The same applies to your business growth sequence: Fix retention first - Measure your current churn rate - Interview churned customers - Resolve the top 3 reasons they left Only scale acquisition once churn stabilizes - THEN optimize acquisition - Document what works with current customers - Build systematic outreach based on those patterns - Scale channels with proven retention Finally, increase customer value - Map upgrade paths that match customer success - Time expansion offers to usage milestones - Build processes to capture expansion revenue This sequence compounds results. Higher retention means better unit economics. Better unit economics enable more profitable customers. A more profitable customers creates resources for developing premium offerings. The opposite path bleeds money - like trying to fill a bucket with holes. Food for thought this beautiful Friday.

Expanding into new regions is an exciting step, but it demands careful evaluation of your company's foundation and objectives. At Devsinc, we started with a single location and successfully expanded to 28 countries. The noteworthy thing here being — we worked for 14 years, in the same region, only to build a strong foundation. If you've laid a strong groundwork and are ready to grow, follow these key steps to ensure your market expansion leads to lasting success. 1️⃣ Formulate a Clear Expansion Strategy - Identify target markets and growth goals - Create a detailed plan with timelines, resource allocation, and KPIs - Break down objectives into tasks, assign responsibilities, and set deadlines - Conduct a SWOT analysis and prepare contingency plans 2️⃣ Conduct Comprehensive Market Research - Analyze the competitive landscape - Understand customer needs and preferences - Review regulatory requirements and legal considerations 3️⃣ Forge Strategic Partnerships - Partner with local entities that understand the market and share your values - Enhance credibility and reputation through local endorsements 4️⃣ Adapt to Local Conditions - Customize products/services for local preferences and requirements - Tailor marketing strategies to cultural values and local practices - Use region-specific distribution channels 5️⃣ Build a Competent Team - Hire individuals with local market expertise and cultural knowledge - Invest in team development and align their goals with the company’s mission - Consider local experts and consultants for smoother integration 6️⃣ Monitor and Adjust Progress - Regularly review KPIs to assess progress - Identify areas for improvement and adjust strategies accordingly - Continuously optimize approaches based on feedback Looking to outsource your software development projects? 👉🏼 Get in touch with us: https://lnkd.in/djYKnfic #ExpansionStrategies #Entrepreneurship #Foundation

Expanding into new markets?! It’s exciting - but tricky. 🤯 Here are 3 key things to consider: ✨ Adapt to local tastes and needs. We are all a summation of our experiences and environment. That means customers have different tastes/needs in different regions. That means... ...if you are expanding into a new market, it's time to hit full-throttle on the customer discovery, and see where your existing product may be lacking. (And don't forget to actually pull those new insights into your strategy!) Some examples: + McDonalds in Paris carries macaroons + The iPhone in China was the first to have dual-SIM cards + Nike selects local celebrity and athletes for endorsements + Netflix and Spotify intentionally curated local content (simply translating was not enough) The main takeaway? Don’t assume your product will automatically appeal in every market, no matter how large of a company you are. ✨ Understand the rules on the playing field. Regulations are a pain, but ignoring them is way worse. Airbnb learned this the hard way in cities like New York, where strict rental laws almost derailed their growth. Always consult with local legal experts before going in. …and it’s not just to avoid fines. Regulatory compliance is a key sign of trustworthiness for users. More examples: + Stripe worked closely with local regulators in India to build trust with users + In 2017, Uber lost its London license over lacking criminal background checks + Samsung originally faced U.S. regulatory issues due to Apple patent disputes ✨ A one-size-fits-all growth approach doesn’t work. You may have crushed it in your home city, state, or country with a perfect digital marketing playbook… …but when you go to a new market, you might find it falls flat. Remember the first point of this post? You need to understand your target market deeply. 😎 Only then can you create a unique go-to-market approach that wins. Example: + Dyson distributed through major US retailers like Best Buy and Target + Nespresso partnered with high-end hotels, restaurants, and offices + Starbucks collaborated with Tata to navigate local regulations and distribution + McDonalds partnered with state-owned Cosco in China to open its first stores Did you notice a key word above…? “Partner”? 🕵 If you’re looking to expand/scale quickly, a local partnership (with major distribution channels) can be a big unlock! - The world is full of examples of startups who tried to expand (especially globally) without doing the homework. Don't be one of them. 🤯 Be smart, be adaptable, and remember - one market doesn’t guarantee success in another. What would you add to the list?! Drop it below in the comments. 👇 - I'm Katie Nowak, an innovation leader, new venture designer and investor sharing examples & lessons weekly. Follow me + hit 🔔 to stay tuned.

As a brand, the moment that HUGE purchase order from your dream retail partner arrives is one of the best feelings imaginable. But how you respond could be the difference between success or failure for your brand. If you're navigating the risk, reward, and complexity of channel expansion, thinking through how best to find profitable scale in the midst of rising digital customer acquisition costs, or trying to understand if or how brand investments will ever pay off, this post is for you. Here are my lessons around scaling Brand Strength and avoiding the biggest pitfall in retail expansion so you can capture the growth opportunity without getting yourself into the 9th circle of inventory, discounting, and cash-lockup hell. This is how I used to think: - "If we get a P.O., we find a way to make it happen, even if we don’t know exactly HOW” - "We are underdogs. If we don’t take the opportunity in front of us, somebody else will" “We don’t have the power the retailer does. After all, if we push back, they may never talk to us again” ⁃ “Knowingly turning down revenue is as blasphemous as saying “I actually think Nickleback is pretty good'” This is what I learned: - If you take down the whole PO, but cant’t drive full price sales velocity because of inadequate operational capabilities or Brand Stength, the elation turns to terror when those poor sell through reports start coming in ⁃ One of the owners of the most respected and successful retailers taught us, “If there’s one piece of advice I can give, it’s always make sure you have more demand than supply — even if it feels stupid to forego revenue in the short term” ⁃ I also learned that even though this advice is obvious, actually following the advice when growth is directly tied to my ego and net worth is a completely different story ⁃ If you can slow the rollout and break it down into store counts and volume you know you can deliver forecast-beating reg price sell-through on, even if you feel like an idiot for not taking all the revenue immediately, you’ll make more money ⁃ The negative impact on your Brand Strength from having your product heavily discounted by the retailer to move through the inventory, and the crippling impact of having your precious cash locked up in that inventory is far greater than the lost revenue from taking a more methodical rollout approach. Not to mention the hell on earth of potentially having to take the stale inventory back Ultimately, however, inventory mistakes are inevitable: Every brand has done it at some point Therefore, every brand who has survived went through the pain and found their way back If we can heed the advice and prioritize building Brand Strength well beyond your ability to monetize that Strength, AND resist the urge to capture every single last scrap of perceived demand, we will slightly increase the probability we'll start to witness the beauty that is compounding demand from compounding Brand Strength hope this helps ✌️❤️🤘

I’m headed down to visit Walmart’s headquarters in Arkansas this week. In honor of that, I want to share what we’ve learned about selling into mass retail so far. Because most of us in DTC don't have the background or experience to do it right out of the gate. Retail can be a major unlock for DTC brands. But it's a completely different beast than eCom. Obvi has learned some hard lessons by selling into Walmart, Sprouts, and GNC that we want to share with ambitious founders looking to take the retail plunge. Because in today’s DTC world →  - Costs have gone up - Competition has matured - Brands are realizing DTC is just a sales channel A lot of founders are able to make DTC-only work, but if your brand is growing and you want to keep your foot on the gas you’ll have to consider dipping your toes into retail at SOME point. With that in mind, here’s a quick retail masterclass for you - 1. Before you take the first step -  - Does your brand have the required level of maturity and status to make this leap?   - Can your finances handle 60-90 day payment terms?  - Can your supply chain support the volume? 2. What to focus on: There are 3 main priorities when you do make it into retail: → Pricing and channel plans → Packaging and merchandising → Trade spend Your channel plan for retail = SKUs, prices, and seasonal/inventory cycle per retailer.  → Packaging and merchandising In retail you need clear, accessible callouts about what your product is, what it does, and what’s in the box. You have a few seconds to catch their eye. And few more seconds to make your pitch.  → Trade spend You could have the best packaging in the world, but it won’t matter if your product is stuffed away in the back corner of the store. 3. Retail KPI’s: Everyone knows it - If you can’t measure, you can’t improve. And something that comes with retail expansion is an entirely new set of KPI’s you’ll have to manage.  Here are the metrics we currently track: → Revenue Week-Over-Week (is your revenue growing?) → Units Per Store Per Week (are you selling enough units?) → Store Sell-Through Rates (which stores are performing?) → Store Compliance Audit (are products being placed in the right spots?) → Category Performance (performance compared to the broader market?) Takeaway here - Sliding your brand into retail is no joke. And it isn’t for everyone. It really needs to be at the right time. There are: 1. Internal and external brand factors to consider 2. Important needle movers to focus on that will affect performance in-store 3. How to measure your product's performance If you think your brand is up for the challenge… go read our Obvi Guide for Breaking Into Retail over at Chewonthis DTC for even more detail on what we’ve learned.

Listen, when it comes to growing a business, you've got to understand the three components of growth that are the secret sauce  —powerful, tasty, and maybe even a little addictive. Let's dive in and stir the pot! 🐶 Jacco van der Kooij breaks this down into three main parts: getting new customers (Acquisition), keeping those customers (Retention), and getting them to buy more (Expansion). Each of these is important, but making small improvements in all three can lead to really big growth over time. Recurring revenue is very sensitive to small changes. Even a small increase in how many customers stay with you, or how much they buy, can make a big difference because these effects add up. That's why some companies can grow from $1 million to $100 million in yearly revenue in just a few years. As a business grows, Retention and Expansion become the main ways to make money. When you're just starting, getting new customers (Acquisition) is really important, but eventually, keeping and expanding your relationship with existing customers becomes the best way to grow. Knowing when to make this shift is key to long-term success. It's important to know where to focus your time, money, and product development—moving from just trying to get new customers to keeping and growing with your current ones at the right time. The problem is that many leaders don't realize how much these small improvements matter in the long run. But those who use the power of Acquisition, Retention, and Expansion together are able to achieve amazing growth—turning what was once just a dream into something real and predictable. Are you making the most of these growth opportunities in your strategy? Actions you can take: ▶️ Track Customer Groups Over Time: Look at groups of customers over time to see how well you're keeping them and getting them to buy more. This helps you see where you need to improve and whether you're shifting focus from getting new customers to keeping them. ▶️ Watch Customer Lifetime Value (CLV) vs. Customer Acquisition Cost (CAC): Make sure your CLV is getting bigger compared to how much it costs to get a customer (CAC). As your business grows, a higher CLV to CAC ratio means you're doing well with keeping and expanding your customers. ▶️ Use Customer Health Scores: Create a score that shows how happy and engaged your customers are. This can help you predict which customers might leave, which might grow, and where you need to take action. ▶️ Set Growth Milestones: Define clear goals that show when to shift focus from getting new customers to keeping and growing with them. These could be revenue targets, customer numbers, or signs that your product is well-matched to the market. ▶️ Do Regular Growth Check-Ups: Regularly check your growth by looking at your Acquisition, Retention, and Expansion numbers. This will help you see where small improvements can be made and make sure you're using all three parts effectively.

Brands who check the "core" boxes are growing marketing penetration, driving velocity, raising capital, and exiting—even in our industry's cash crunch. My team at Vdriven Consulting often works with venture capital and private equity firms in conducting market and brand due diligence—as part of their investment process. We use a model we created—called "the core"—to analyze whether a brand's products are well positioned for current and future success. I've noticed that brands that showed up better than their competitors in the following areas are likelier to succeed. ✅ R&D: did the company develop the product at the right time relative to consumer tastes? Does the product have broad taste and appearance appeal? I've seen many brands that have brought products to market without testing to see if broad-based consumer demand and white space needed to be filled. Doing a "me-too" product is rarely successful without deep pockets. ✅ COGS: product development without keeping the cost of goods in mind is a recipe for disaster. COGS will determine our gross and net margins and/or retail at shelves. Yes, as volume grows, it is usually possible to reduce costs. The challenge is funding the company's growth while it is bleeding out cash due to low margins or compensating for high retail with lots of marketing. ✅ Optimized Retails: velocity at the shelf means so much! Assuming I have the right product at the right time for the market, the correct retail could tremendously affect velocity. For a plant-based milk brand that we worked with, the difference between a $6.99 and $8.99 retail was over a 50% difference in velocity. I encourage much testing at various price points until velocity and margin are optimized. ✅ Branding and Packaging: we work with many DTC (direct-to-consumer brands) coming to retail for the first time. Online packaging can sometimes be ignored and given to aesthetics that look good on the shelf at the consumer's home. At retail, the packaging has to do so much. The package, especially for emerging brands, has to do nearly everything! This includes getting the consumer to stop, look, and interact with the product—while it sits on the shelf with dozens of competitors. The better the packaging, the less the brand needs to spend on promotions and other marketing levers to get people to look and touch. There are certainly other factors in determining the prospects for a product line's success on the shelf. Feel free to share in the comments section below. Alexandra Bauerova Brandon Mahin Brandon Fishman

I believe that launching your CPG brand in a single region with key regional grocers is the smartest strategic and financial move you can make. Here’s why I stand by this approach: 1. Distribution – Partnering with UNFI or KeHE in a focused region unlocks all the retailers there. Expanding across multiple DCs at once is expensive. Concentrating on one region lets you maximize your marketing ROI, show strong velocities in the distributor's DC, and build momentum. Launching in Gelson’s (SoCal), Central Market (Texas), and Wegman’s (NY) at the same time means juggling two distributors, three DCs, and marketing in three distinct regions—each with its own customer base. Instead, focus on three retailers using just one UNFI DC for the best results. 2. Diversification – Getting discontinued happens. By securing multiple points of distribution within a single region, you protect yourself from the risk of losing your distributor entirely if one retailer drops your product. 3. Funding – You can launch in one region with a few hundred thousand dollars. But every time you add another region, you're stacking on similar costs. 4. Product-Market Fit – Some chains will perform well with your product, and others won’t. But if they’re all in the same region, you’re dealing with a more similar customer base. 5. Supply Chain – Managing ingredients, materials, and logistics for one region is far simpler than trying to scale across multiple areas, even if the store count is the same. #CPGStrategy #ProductLaunch #RegionalGrowth #DistributionSuccess #UNFI #KeHE #RetailExpansion #SupplyChainEfficiency #BrandBuilding #ProductMarketFit #CPGMarketing #Entrepreneurship #GrocerLaunch #FoodAndBeverage #StartupGrowth #cpg