If you love outdoor activities, you should be pretty hyped about this one. Solo Brands, the maker of Solo Stove fire pits and Chubbies shorts, is filing to go public under the ticker “DTC.” The Southlake-based company is on a roll, having reported a 132% compounded annual growth rate from 2016 to June of this year. Solo Brands’ sales for the first half of 2021 totaled $225m, with $125m alone coming from its high-end product Solo Stove. The key behind the company’s impressive growth has been its digital marketing strategy. In 2020, Solo Brands saw 92% of its sales come from direct-to-consumer channels, with 85% of that coming from its website.
Solo Brands is eyeing a $1b valuation on the New York Stock Exchange. The funds raised will be utilized to expand the company’s outreach to the European and Australian markets. Currently, 95% of Solo Brands’ sales come from US-based customers.
why it matters
The digital world has given brands new incentives to adopt direct-to-consumer strategies. More brands are looking to reach out to consumers in ways that have never been done before, without the need to engage with third-party resellers.