DBG Announces Successful Launch of its New DTC Strategy DSTLD Orders Rise 144% Since June Launch

Rhea-AI Summary

Digital Brands Group (NASDAQ: DBGI) has announced a successful launch of its new Direct-to-Consumer (DTC) strategy, focusing on a 'Build Your Own Bundle' (BYOB) approach. This strategy offers significant discounts to customers who purchase multiple units in one transaction. Since its mid-June launch, DSTLD, one of DBG's brands, has seen a 144% increase in orders. Moreover, when dedicated email campaigns feature the BYOB promotion, DSTLD orders have surged by over 400%.

CEO Hil Davis highlighted the strategy's success in the current inflationary environment and its potential application to other brands within the DBG portfolio. The company is even considering using this approach to launch new brands, demonstrating its confidence in the BYOB model's effectiveness for driving sales and customer value.

Positive

• DSTLD orders increased by 144% since launching the new BYOB strategy in mid-June
• Orders surge by over 400% when dedicated email campaigns feature the BYOB promotion
• New strategy shows potential for application to other DBG brands and possible use in launching new brands

Negative

• None.

Austin, TX, July 31, 2024 (GLOBE NEWSWIRE) -- Digital Brands Group, Inc. (“DBG”) (NASDAQ: DBGI), a curated collection of luxury lifestyle, digital-first brands, today announces a successful launch of its new DTC strategy. The new strategy focuses on driving significant customer value through discounts offered to customers who bundle multiple units in one purchase, which is referred to as “Build Your Own Bundle” or BYOB. Since launching this new BYOB strategy in mid-June, DSTLD has experienced a 144% increase in its orders. Additionally, DSTLD orders are up 400%+ when there are dedicated email campaigns featuring this BYOB promotion.

“Given the current inflationary environment, as well as the success of companies that have focused on creating discounted bundles, we tested this BYOB strategy with DSTLD. After seeing the terrific results, we believe this strategy can be applied to other brands, and even can be used to launch a new brand,” said Hil Davis, Chief Executive Officer of Digital Brands Group.

Forward-looking Statements

Certain statements included in this release are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting DBG and therefore involve several risks and uncertainties. You can identify these statements by the fact that they use words such as “will,” “anticipate,” “estimate,” “expect,” “should,” and “may” and other words and terms of similar meaning or use of future dates, however, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements regarding DBG’s plans, objectives, projections and expectations relating to DBG’s operations or financial performance, and assumptions related thereto are forward-looking statements. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. DBG undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Potential risks and uncertainties that could cause the actual results of operations or financial condition of DBG to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: risks arising from the widespread outbreak of an illness or any other communicable disease, or any other public health crisis, including the coronavirus (COVID-19) global pandemic; the level of consumer demand for apparel and accessories; disruption to DBGs distribution system; the financial strength of DBG’s customers; fluctuations in the price, availability and quality of raw materials and contracted products; disruption and volatility in the global capital and credit markets; DBG’s response to changing fashion trends, evolving consumer preferences and changing patterns of consumer behavior; intense competition from online retailers; manufacturing and product innovation; increasing pressure on margins; DBG’s ability to implement its business strategy; DBG’s ability to grow its wholesale and direct-to-consumer businesses; retail industry changes and challenges; DBG’s and its vendors’ ability to maintain the strength and security of information technology systems; the risk that DBG’s facilities and systems and those of our third-party service providers may be vulnerable to and unable to anticipate or detect data security breaches and data or financial loss; DBG’s ability to properly collect, use, manage and secure consumer and employee data; stability of DBG’s manufacturing facilities and foreign suppliers; continued use by DBG’s suppliers of ethical business practices; DBG’s ability to accurately forecast demand for products; continuity of members of DBG’s management; DBG’s ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; DBG’s ability to execute and integrate acquisitions; changes in tax laws and liabilities; legal, regulatory, political and economic risks; adverse or unexpected weather conditions; DBG's indebtedness and its ability to obtain financing on favorable terms, if needed, could prevent DBG from fulfilling its financial obligations; and climate change and increased focus on sustainability issues. More information on potential factors that could affect DBG’s financial results is included from time to time in DBG’s public reports filed with the SEC, including DBG’s Annual Report on Form 10-K, and Quarterly Reports on Form 10-Q, and Forms 8-K filed or furnished with the SEC.

About Digital Brands Group

We offer a wide variety of apparel through numerous brands on a both direct-to-consumer and wholesale basis. We have created a business model derived from our founding as a digitally native-first vertical brand. We focus on owning the customer's "closet share" by leveraging their data and purchase history to create personalized targeted content and looks for that specific customer cohort.

Digital Brands Group, Inc. Company Contact

Hil Davis, CEO
Email: invest@digitalbrandsgroup.co
Phone: (800) 593-1047
SOURCE Digital Brands Group, Inc.
Related Links
https://ir.digitalbrandsgroup.co

FAQ

What is the new DTC strategy implemented by Digital Brands Group (DBGI)?

Digital Brands Group's new DTC strategy is called 'Build Your Own Bundle' (BYOB), which offers significant discounts to customers who purchase multiple units in one transaction.

How has the new BYOB strategy affected DSTLD's order volume since its launch?

Since launching the BYOB strategy in mid-June, DSTLD has experienced a 144% increase in its orders.

What impact do dedicated email campaigns featuring the BYOB promotion have on DSTLD orders?

When dedicated email campaigns feature the BYOB promotion, DSTLD orders increase by over 400%.

How does Digital Brands Group (DBGI) plan to expand the use of the BYOB strategy?

DBG is considering applying the BYOB strategy to other brands within its portfolio and potentially using it to launch new brands.