What is a Digital Native Vertical Brand (DNVB)?

Digital Native Vertical Brands, better known by theiracronym DNVB, are new brands born online. They are obsessed with the user experience and, unlike traditional commercial brands, they literally dictate their distribution. Instead of using multiple distribution channels, they source directly from the manufacturer and sell directly to end-users, who are therefore their direct customers. They don't need a physical store, and sometimes they don't even need a super e-commerce site. Some of them simply have an affiliate marketing program, which enables them to monetize every sale made via your website.

How does a Digital Native Vertical Brand differ from traditional e-businesses?

For one thing, the entireDNVB customer experience has been personalized around the product being sold. This means you'll never see an annoying contextual ad interrupting the online experience on this type of website. 

A Digital Native Vertical Brand understands how important it is for a product or service to emphasize a good user experience. Indeed, the entire brand must be developed with the user in mind. Users appreciate the fact that the site is not pushy, but offers an easy-to-use shopping cart and a secure ordering system.

DNVBs are pureplayers specializing in a niche market

Although the concept sounds simple, it's important to understand how these types of companies operate. A DNVB employs the V of vertical, which means it has total control of its market, from design to sales. 

Mastering your product from A to Z

DNVB doesn't go through distributors who would tend to standardize its product and put it in competition on the shelves with other types of product. A Digital Native Vertical Brand relies heavily on UX design so that consumers who visit its website can quickly become customers. The path to purchase is thus reduced to the essentials. UXdesign investments may seem colossal, but that's put into perspective when you realize that this is the brand's only point of sale. The high margins generated by DNVBs make it possible to invest in this type of state-of-the-art tool to stand out from the competition. 

DNVBs and storytelling

Storytelling is an excellent means of communication for these rather mysterious companies, who present themselves as mastering their product from A to Z. Telling the story of the product's design and manufacture, and talking about the team, are important steps in attracting and retaining customers who want more than just a useful product. They want to live a real experience, to know the story behind their purchase, and the values it conveys. 

Compared to other types of business, storytelling is also a necessity, since the company only sells online. You can't meet employees when you go to the store, as is the case with traditional companies. 

Investing in a DNVB

In a typical venture capital investment scenario, venture capitalists will look at the overall business model and financial results provided by the company to determine whether they are making a good investment. Increasingly, however, DNVBs are being targeted because they offer a level of margin that is hard to match.

With digital-native vertical brands, these companies can gain ground in the market in two ways. Either the company offers a superior experience to that offered by its competitors, or it provides enough unique content that consumers don't mind promoting the brand on their own personal spaces (via word-of-mouth in their circle, or social networks). Both approaches have the potential to generate a substantial amount of traffic to the company's website.

DNVB apprentice mistakes

Unfortunately, many companies looking to capitalize on the direct-to-consumer niche make mistakes. Launching with YouTube as the primary medium is one of them. While YouTube is a great way for people to get information about a product, it's not a sales platform. 

For this reason, companies seeking to capitalize on a DNVB should invest in the production of their own content for distribution on their platform, with an expertly managed SEO strategy (natural or paid). Influencer marketing can also prove useful in such circumstances. If you want to become a leader in your niche, you need to reach out to existing communities in search of easily accessible prospects. 

When it comes to a successful business, every entrepreneur needs to understand that customer service is an essential part of his or her business plan. It's this element that will ensure DNVB's long-term success.