Digitally native vertical brands are all about pushing the ecommerce innovation to the next level. They are also called DNVBs by individuals. It is an innovative approach to the digital commerce work.

The global online sales have been growing every year by at least 18% and are predicted to take over all types of sales in a short period of time which is why businesses need to develop digitally native vertical brands from the beginning or to start developing a DNVB immediately to take part in the revolution of commerce.


So Why Should Businesses Actually Develop A DNVB?

DNVBs are the future of brands and are set to take over the world of brands. As the number of internet users increases and steadily grows, businesses have a huge opportunity to tap the market of these new users. It had been estimated in 2017 that the daily social media usage of internet users around the word amounted to about 135 minutes a day which is a lot of time.

With people spending most of their time online, businesses need to develop a DNVB which reacts to these changes and makes use of this huge opportunity. People spend most of their time online checking social media and no other medium is as effective as social media for businesses. The consumer behavior has started to evolve and, more and more people prefer using online services as they are cheaper and easier to use. This has ultimately disrupted the entire supply chain of retail.

Businesses can easily source their products from countries such as Pakistan, China or Bangladesh to take advantage of the cheap labor and the cheap resources. For example, it has recently become very easy for businesses to set up their business in Pakistan due to the country’s relaxed policies towards foreign companies.


So what are DNVBs exactly?

DNVBs or Digitally Native Vertical Brands are those which are created on the internet. They have a different focus when it comes to customer experience as they control their own distribution. The products which they sell are directly sourced from a manufacturer and then sold directly to the customer without any middle man. This results in double gross margins as compared to the regular retail businesses.


Benefits of DNVBs

Due to the distribution control which DNVBs have, they are able to be more profitable as compared to regular retail businesses. These increased profits also mean that the business can spend much more on marketing and this helps generate new customers and is the reason why DNVBs have become such a huge thing with some even developing into Unicorns organically.

DNVBs allow you to take benefit of the digital landscape demographic barriers which do not even exist in this line of business. A DNVB has the ability to grow much faster than a regular retail business without having to spend on external capital needs.

It is one of the hottest and most profitable forms of businesses at the moment and everyone wants a piece of the pie. If you want to create a massive impact and reach a huge amount of audience without any barriers then a DNVB is all you need.


Case Study: Daniel Wellington

Let’s have a look at the company which has benefited the most from operating as a DNVB. Daniel Wellington is the watch company which has significantly benefited from this model as it’s’ revenues grew from nothing in 2012 to about EUR 200,000 in 2016. That is a huge jump in profits in such a short period of time. Most companies benefitted from DNVB by generating net profits of 48% in 2016. Therefore, Digitally Native Vertical Brands have huge potential and your business should be using the model too.


What you can do?

Since a Digitally Native Retailer can immediately start to sell online, they can take advantage of the access they have to customers from each and every part of the globe or just their own country. Geographical boundaries have become non-existent and your business can sell just about anyone in the world. Your business needs to create a Digitally Native Vertical Brand to have a piece of the pie.

Normally retailers had to have a physical store to showcase their products and spend on all the costs related to running the store but with a DNVB, all these costs immediately get eliminated and you can use these resources for setting up your online store and for creating an experience for your customers.

DNVBs get to control their product throughout the process starting from the factory to the doorsteps of their customer. It is difficult for retailers to own a factory but with a DNVB, the retailers could place orders in large quantities so as to directly influence the factories to produce products as per their requirements.


Customizable Products

Having such a huge influence on factories allows the DNVBs to allow from customers to directly order the type of products they would like and place customized orders which are rare when it comes to regular retail businesses which do not have such an influence. Customizable products help attract new customers to your online store and to buy more products from your business.


Focused on Customer Experience

One of the greatest reasons why DNVBs have become so popular is because DNVBs can focus on customer experience. With controlling the customer experience and the customization of products, DNVs can easily adapt to market changes which give them a huge advantage and a competitive edge over regular retail businesses.


The Future

As the world becomes more and more technologically driven, it is believed that the brands of the future would be the ones which would be built online. These types of businesses have the ability to influence the market. The future of retail is global, digital, mobile and social.

The world is evolving and the internet as well as technology is influencing every industry which is why you need to use the services of the best DNVB Company out there to set up your own Digitally Native Vertical Brand.