Built with intentionality – A straightforward value proposition that consumers can latch onto combined with a clear relatable message has helped these brands resonate with early consumers. But as they expanded outwards from the core, these businesses have been very intentional about launching new products or markets. They have had the advantage of learning from the mistakes of those that have come before. And a lack of easy money and operating in an uncertain market has also helped them take a very considered approach to growth.
Marketing Savvy – Having grown up for the most part in the post IOS-14 world has meant that these brands had to rely on word-of-mouth, Tik Tok virality and customer communities to raise brand awareness. Many of these brands still use paid social to acquire customers but many have a reduced reliance on the channel and are constantly testing creative and messaging on these platforms to maximize ROI.
Focused on Profitable Growth – Many brands on our list have raised very little to no outside capital. Even those who have raised venture dollars, face a very different set of expectations from the investors than their predecessors. Positive unit economics and profitability are big imperatives for young brands which has forced them to grow slower than a previous generation of D2C brands. Many have spent the last year or two focused on profitability over growth and those that are profitable are extremely proud of this accomplishment.
Pragmatic Approach to Channel Expansion – Many of the brands on the list have realized early in their growth journeys that wholesale can be a profitable way to expand. A few have a significant presence in large-scale retailers like Target, Walmart, Amazon, and Ulta, while others have partnered with specialty retailers like Container Store or URBN. Large retailers also know that they need young brands to attract a younger set of customers. However, the brand-retailer relationship still tilts a bit towards large retailers that are often the ones initiating these partnerships.
Stores and pop-ups are also part of the expansion plans for brands on the list. “As brands look to grow their business, they recognize that stores and pop-ups play a crucial role in consumers’ lives. Consumers are looking for physical experiences to delight them, help them discover something new and give them a reason to look up from their screens. For young brands physical retail is a way to make the brand more real and create memorable moments with the customers” according to Erin McCarthy, Vice President and Head of National Retail Development for Brookfield Properties and a Foremost 50 2024 selection committee member. Having their own stores is a critical milestone for many brands on the list, and while a few of the brands are there today many others are hoping to get there soon.
Foremost 50 of 2024 Deliver on New Consumer Preferences