The word “recession” has been popping up in the news and on Twitter timelines. Some publicly traded retailers are cutting their sales forecasts for the second half of the year. And it’s hard to deny that the prices of basic necessities like gas and groceries are going up.
So what does that mean for your brand? The US hasn’t been through a major recession since 2008, nearly 15 years ago. And where was eCommerce in 2008? Amazon had been in business for 15 years at that point, and Net-A-Porter had been online for eight. The iPhone had been around for about a year. Facebook was still restricted to college students, and Instagram didn’t exist.
This is going to be the first “DTC recession”. There is no industry-specific playbook on how to survive a recession. But there are two critical mindset shifts you’ll need to make if you want to maintain cash flow and come out the other side in one piece.
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