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Business Model

A digitally native vertical brand (DNVB) is a brand that was born online — but it doesn’t stop there.

DNVBs sell their own products on their own website, and claim full control over their customer experience, from factory to consumer.

“The digitally native vertical brand (DNVB) is maniacally focused on the customer experience. Its primary means of interacting, transacting, and story-telling to consumers is via the web.” — Andy Dunn, Bonobos Founder + CEO

A digitally native brand is a business that originated online. Think direct-to-consumer like Casper and Harry’s, and even marketplace retailers like eBay and Amazon. Contrast to beginning as brick-and-mortar businesses, these brands started online and grew their brand through their online store experience.

A vertical brand is a brand that oversees every step of their product and brand experience, from factory to consumer. If a brand sells their product through a retailer like Macy’s or a marketplace like Amazon, it would no longer be classified as a vertical brand.

The DNVB model marries the two.

DNVB benefits

Similar to selling DTC, selling as a DNVB has many benefits.

Because the brand controls the entire customer experience, they’re able to typically provide much better service and support to their customers.

By cutting out the middleman, they’re able to keep costs down for their consumers and learn much more about their behavior when they order to provide a more tailored service and product.

DNVBs are also able to effectively communicate with their customers in a personalized way through owned and organic channels such as email, SMS, and social media.