DNVB: Definition, challenges, and explanations

A DNVB, or Digital Native Vertical Brand, is a brand that was created directly for online commerce, without going through traditional distribution channels. It belongs to the e-commerce and digital retail sector.

This brand stands out for its complete control over the process, from product design and manufacturing to marketing, customer relationship management, and digital marketing. This vertical integration gives it total control over quality, pricing, and user experience.

Unlike traditional brands, DNVBs were born on the internet and target end consumers directly via digital platforms, particularly their own websites.

The DNVB model is establishing itself as a modern alternative to traditional businesses, offering an integrated and personalized customer experience. It allows brands to create a direct link with their consumers, without going through intermediaries such as distributors or wholesalers.

This model optimizes transparency in the supply chain, which increases customer confidence in the brand. Complete control over production and distribution also reduces costs and allows for more competitive pricing.

Finally, DNVBs take full advantage of the power of digital marketing and social media to build engaged communities, fostering loyalty and virality around the brand.

The operation of a DNVB is based on several essential pillars. First, it vertically controls all stages of its business, from product design to sales to customers.

Next, marketing is mainly carried out via the company's own e-commerce site, which allows it to manage customer relations, personalize offers, and collect data to optimize the user experience.

In addition, DNVBs make extensive use of digital tools such as social media platforms, content marketing, and targeted advertising campaigns to attract and engage customers. This digitally native model gives them great agility and the ability to adapt quickly to market trends.

The main advantages of a DNVB include complete control over the value chain, which guarantees product quality and brand image consistency.

This model also reduces costs associated with intermediaries, often resulting in more competitive prices for consumers. The direct relationship with customers promotes a better understanding of their needs and greater personalization of offers.

On the other hand, DNVBs can face several challenges, including a significant initial investment to develop production and digital platforms. Heavy reliance on digital technology also exposes these companies to technical risks and cyberattacks.

Furthermore, gaining market share against well-established players may require intensive and costly marketing strategies.

Several well-known brands perfectly illustrate the DNVB model. For example, Glossier in cosmetics, which built its reputation thanks to an engaged community on Instagram and highly targeted digital marketing.

In fashion, Allbirds offers eco-friendly shoes sold directly through its website, thereby controlling quality and customer experience.

Other DNVBs specializing in different sectors, such as Warby Parker for eyewear and Casper for bedding, demonstrate the range of possibilities offered by this vertical, digitally native model.

• Shopify - Guide to DNVBs
• SaaStr - Understanding DNVBs
• McKinsey - The future of DNVBs in retail
• MDN Web Docs - Tools for testing the digital user experience