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A Digitally Native Vertical Brand (DNVB) is a specialized type of DTC company that originates online and controls its entire value chain. The ‘vertical’ aspect refers to their integration of design, fabrication, commercialisation, and distribution. Unlike traditional brands that may adopt a DTC channel, a DNVB’s primary mode of customer interaction, transaction, and brand-building is digital from its inception.
The term DNVB was coined by Andy Dunn, the founder of menswear retailer Bonobos, to describe a new wave of e-commerce companies that were fundamentally different from both traditional retailers and earlier internet marketplaces. The core distinction of a DNVB lies in its vertical integration. By controlling the entire stack from the factory floor to the customer’s front door, DNVBs can maintain high standards of quality and deliver a cohesive, end-to-end brand experience. This control is a key differentiator from companies that simply sell existing products online.
Furthermore, being ‘digitally native’ means the brand’s DNA is rooted in technology and data. They leverage digital channels not just for sales, but for every aspect of the business: customer acquisition through targeted social media ads, community building on platforms like Instagram, and gathering product feedback through reviews and surveys. While many DNVBs eventually open physical retail locations (often called ‘guideshops’ or showrooms), these spaces serve more as marketing channels and experience centers rather than primary points of sale, driving traffic back to the core digital platform.
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