100% digital brand: how to get started in physical retail?

For various reasons, many brands are starting their business 100% digital. Indeed, in addition to an advantageous economic model, the digital adventure allows brands to demonstrate great flexibility while having the possibility of reaching an audience on a large scale, sometimes internationally. It is therefore not surprising that between 2019 and 2022, the number of 100% digital brands has doubled in France.

For these brands, which are commonly called “DNVBs” , what is the point of launching into physical retail in parallel with their digital activity? What strategy should you adopt? And above all, what is the procedure to follow to extend your activity to physical stores? To answer this, we met Malo Bourdet and Pierre Greilsamer, Co-founders of the WRKS agency, and Jonathan Weaver, CMO at DB JOURNEY.

Written By: Edwige Brelier

Meet the WRKS team

JUPDLC: First of all, can you explain to us what a DNVB is?

WRKS: It’s the acronym for “Digital Native Vertical Brand”. Behind this very “start-up” term , we are talking about companies that sell their products directly to consumers online. They generally control the entire value chain, from design to sale.

JUPDLC: For a brand, what is the point of launching into 100% digital in its infancy?

WRKS: It's a more agile and less expensive way to test your product and build an audience without incurring physical development costs.

This model also allows rapid growth by limiting operating costs which can increase when switching to a physical model. 100% digital also allows the brand to build a real online community before meeting it in person.

JUPDLC: Can you explain the concept of “phygital” to us ?

WRKS: It's a concept that merges the physical and digital worlds, creating an integrated experience where online and offline interactions complement each other. This concept aims to offer a more impactful customer experience.

JUPDLC: Can you explain to us your role in supporting brands in this strategy of opening up to physical retail?

WRKS: As a design agency, our role is to create unique experiences for brands in physical retail. We shape innovative concepts that captivate consumers, strengthen brand identity and optimize visual impact, fostering a memorable connection between brands and their customers in the physical retail space.

Our strategic and creative expertise aims to transform these spaces into engaging and differentiated environments, without losing sight of the commercial objective of the point of sale. We thus provide real expertise to the client with our field experience, processes, mechanics, logic and implementation logistics.

Photo credit: WRKS Agency

JUPDLC: How do you ensure this transition from digital to physical stores? How long does this process take?

WRKS: Every case is different. We have nevertheless developed an “ideal” process and work flow in order to allow the best execution and to have sufficient time for in-depth reflection, thus guaranteeing a successful and well-designed result.

The most important phase is, in this case, the initial brief phase. In general, we do not count the time spent on this stage, which we co-construct with the client. During this exchange, we review the creative brief (DA, materials, visuals, image) but also the commercial one (commercial objectives, release rate, assortment, depth of range, etc.)

Then, it is estimated that there are four stages which can each take at least two or even several weeks: the initial ideation and development of the concept, the application of the concept with 3D rendering, the detailed design and technical plans, and finally questions of production and logistics.

JUPDLC: Why can we say that this strategy relies on complementarity?

WRKS: A transition from digital to physical stores can be considered as a strategy focused on complementarity. By seamlessly integrating online and offline channels, brands can leverage the respective benefits of each environment to deliver a holistic, cohesive customer experience . This allows for seamless interaction between the two worlds, thereby strengthening the brand presence while meeting diverse consumer expectations.

JUPDLC: In your opinion, is this strategy a real choice or is it more a question of survival for the brand?

WRKS: This question is for the customer to answer. But in reality, you have to meet your audience in real life as they say, it is then a question of strategy, desire, and means!

Photo credit: WRKS Agency

JUPDLC: From a strategic point of view, how do you imagine the future of retail?

WRKS: Retail is transforming and adapting. Our vision is a “bespoke” retail combining architecture and design, a high-end service linked to a strong brand experience (marketing). The aim is to create a destination for the end consumer and a communication platform for the brand .

Retail is also a multitude of formats, from the 12m2 corner to the 300m2 flagship. Each format therefore has its different challenges, strategies and objectives. This is why we see the benefit for brands in working hand in hand with retail design agencies who will provide them with bespoke solutions to meet their strategies and development plans.

Interview with Jonathan Weaver of DB JOURNEY

JUPDLC: For a brand, what is the point of launching into 100% digital in its infancy?

Jonathan Weaver: Well, by focusing on D2C (Direct-to-consumer), you can evaluate the customer experience in real time. Are they happy, are they spreading the story? This allows you to see peaks and troughs in demand, ensuring you identify your own growth model to grow the business.

JUPDLC: What are the weak points of an online-only activity?

Jonathan Weaver: Despite the many advantages, there are also disadvantages. Expansion and new customer acquisition should be achieved either through brand strength or marketing funnel optimization. This means you are likely to experience fluctuating costs related to platforms and also related to last mile delivery to the customer. Taking all these elements into account has therefore led to a significant evolution of the online model.

JUPDLC: How many points of sale do you currently have in France and around the world? For the customer, what are the advantages of a physical store?

Jonathan Weaver: We have a few hundred points of sale around the world and around 50 in France. There are many advantages: firstly, the experience you get when talking to a store staff member. You can touch the products, what its material is made of, but also test it on site. And above all, the community that a store can create!

In addition, when you are used to going to a store, you know that they will offer the right brands adapted to both the store and the consumer. For example, if you go to GoodHood in London or to Merci in Paris, you can be sure that these brands are the ones you are looking for or want to acquire!

Photo credit: WRKS Agency

JUPDLC: Why decide to open physical stores when you are a digital brand? What are the short and long term goals?

Jonathan Weaver: We don't have our own stores, but we do pop-ups with Le Printemps, Wasted Talent, Harrods and many other brands. For us, having a physical B2B presence helps build brand awareness in addition to generating in-store revenue. We also note the halo effect (how the presence of the brand in renowned pop-ups has a positive influence on the reputation of the brand and therefore its sales, Editor's note) on our D2C activity.

JUPDLC: Is the average basket higher in store or online? From a purely economic point of view, which model offers the most profitability?

Jonathan Weaver: Online, we are totally focused on building shopping carts. The DTC model certainly offers better margin, which improves as you grow your business thanks to economies of scale. However, that being said, the role of B2B and DTC, in my opinion, is to work in tandem. For example, an excellent B2B partner creates a halo effect in the market and is therefore crucial for the long-term growth of both channels.

Photo credits: WRKS AGency