
Is DTC Dead? Not To Emerging Beauty Brands
En route to Sephora, Hailey Bieber’s Peptide Lip Tint-powered brand Rhode generated $90 million in revenue from its website in the final two months of 2024, according to figures YipitData provided the publication Puck, which broke the news of the brand’s retail launch later this year.
While Rhode’s future at Sephora shows that even the hottest beauty company understands its growth will be hindered if it doesn’t enter brick-and-mortar retail, which commands nearly 60% share of beauty sales in the United States, per market research firm NielsenIQ, the brand also demonstrates just how meaningful direct-to-consumer distribution can be despite investors downgrading it and constant teeth gnashing over high digital customer acquisition costs.
Of course, for many emerging beauty brands, DTC distribution is their only possibility. Still, retail—and more specifically big chains like Sephora, Ulta Beauty, Target and Walmart—have long loomed large in the imaginations of their founders. Today, though, they’re coming to grips with the realities of what it takes to support retail rollouts.
To get a sense of emerging brand founders’ views on different distribution channels, for the latest edition of our ongoing series posing questions relevant to indie beauty, we asked 30 of them the following: What percentage of your business is wholesale versus DTC? Is that what you want it to be? If not, what strategies are you pursuing now to reach your ideal breakdown?
- Ayssa DiPietro Founder, Miami Beach Bum
Five years in, our mix of business has gone from being 100% DTC to today 40% DTC, 40% retail and 20% Amazon. With 400-plus new retail doors coming online in Q1 of 2025, we’re implementing strategies to keep retail at 60% or less of our business.
DTC is our data source, and it is becoming increasingly harder to keep Meta CPAs under $30, while Tik Tok is stealing the show on marketing efficiency and scale, but Tik Tok doesn’t share customer data, so we have to get creative with marketing inserts and offers that drive the TikTok customer to give us their email and phone number.
Ideally, we could scale DTC as quickly as our wholesale channel and let branded Amazon campaigns pick up the customer who wants that free next day delivery. To achieve this, our marketing is always DTC and digital first.
- Chrissy Cabrera Founder, Naturally London
Naturally London's sales are split 48%/52% between retail and DTC, which is a great improvement from the previous 75%/25% retail-heavy ratio. However, we're aiming to shift toward a more DTC-focused strategy, with a target of 65%/35%.
The reasons behind this goal are clear: better margins, faster cash flow and more control over customer interactions. Additionally, with the current economic slowdown affecting many indie beauty brands and retailers becoming more cautious with their spending, it makes strategic sense to prioritize growing our DTC channels through our website and local events.
- Holly Eve Founder and CEO, Madame Lemy
Currently, 90% of my business is DTC, selling primarily on our website and Amazon. We mainly acquire new customers through Meta, Google ads and PPC, and since our products are daily personal care items, we have a high repurchase rate from customers initially acquired through ads.
A smaller portion of our sales comes from high-end spas, including select Ritz-Carlton, Four Seasons and Waldorf Astoria locations, boutiques and high-end grocery stores like Central Market in Texas. Previously, we also sold with retailers like Macy's, Anthropologie and Urban Outfitters.
During COVID, we shifted mostly to DTC, which led to a 900% sales increase. However, this past year, we've seen a dip in online sales, which seems to be a trend across industries. While I initially believed DTC could sustain us long term, I now realize that having a strong omnichannel presence is crucial for beauty brands in 2025 and beyond.
My goal is to generate 30% to 40% of our revenue from retail as I now believe it’s risky to rely solely on DTC or B2B. A healthy mix of both will promote sustainable growth. We're launching a stick deodorant, and while our powder deodorant has done well, many customers prefer stick formats.
Our packaging is luxurious and gold-stamped, and the jar of powder comes in a beautiful secondary box package. With ads and online sales, we control the messaging, and our creative storytelling has helped show customers how to use the powder product.
However, a more novelty product like this, which isn’t in traditional stick deodorant packaging, doesn’t always translate well in retail environments. Launching a stick deodorant, along with other products, is part of our strategic plan to position ourselves better for retail while continuing to balance our DTC presence for long-term stability and growth.
- Anne Beal Founder, AbsoluteJOI
Right now, we are leaning into DTC. While customer acquisition is hard, the margins are much better, and we are able to cultivate a community and loyalty with our customers.
In addition, our customer is a busy woman over the age of 35, who really values the convenience of shopping on her phone and not having to run to the store. Retail is in the long-term plan, but for the immediate future, our push is DTC.
- Connie Lo Co-Founder, Three Ships
Currently, our sales split at Three Ships is 70% DTC and 30% wholesale, which aligns with where we want to be at this stage in our business. This balance allows us to maintain greater control over customer data, enabling direct marketing efforts, achieve higher margins and adapt more quickly compared to working through retailers, which often involves more red tape.
Our strategy has been to focus on select retail partners and drive strong sell-through as their go-to accessible prestige brand rather than taking a broad "spray-and-pray" approach. Looking ahead, we anticipate shifting to a 50%/50% split as we secure partnerships with larger beauty retailers.
Based on insights from investors and other beauty founders, we have a clear understanding of the projected one- to three-year sales volumes that partnerships at this level can deliver, which would bring us closer to that 50%/50% breakdown.
- Erica Choi Founder, Superegg
Currently, our business is split 50%/50% between wholesale and DTC, and this balance is ideal for us. We value the reach and visibility that wholesale partnerships provide as they allow us to connect with new audiences through trusted retailers. At the same time, maintaining a strong DTC presence enables us to foster direct relationships with our customers, gather real-time feedback and create a more personalized brand experience.
Looking ahead, we see this 50%/50% split as a sustainable strategy. For our wholesale efforts, we are focusing on building relationships with like-minded retailers who share our values. This approach allows us to meet customers where they shop and create a seamless experience that resonates with their preferences.
On the DTC side, we are enhancing our offerings by providing a more personalized service such as our loyalty program, which rewards customers for their engagement and purchases. This program not only incentivizes repeat business but also fosters a deeper connection with our brand.
Additionally, DTC allows customers to shop comfortably from home, allowing them to choose how and when they interact with us. By nurturing both channels, we can ensure our brand remains accessible and engaging for all our customers.
- Samantha Denis Founder, Allyoos
At this particular phase of my business, we are only sold on Allyoos.com and on Amazon. We are hyper-focused on building an extremely loyal customer base. Our repeat rate is over 40%; our thumb stop rate is almost 50%; our conversion rate on any given day is nearly 8%, 10%, 12%; and our Instagram engagement is impressive.
We have a signature brand awareness event that we book weekly in order to get our brand out there, meet new customers IRL, and where we also create meaningful content in order to meet new customers on social. We are in nurture mode. We test messaging with our customers; we make content together at events; we are close to them.
I want to be in a number of retailers, big ones. I'm building a mass, commercial brand. But, either way, I have to create awareness, prove that people come back time after time to buy my products and build a community in the deepest most authentic way I know how, so I am doing that first.
When we do launch in my dream retailers, I want us to fly off the shelves. That's the work I'm putting in now.
- Alexis Whitaker Founder, Pinkaya Beauty
While we tried both DTC and wholesale, we discontinued our wholesale channel. We entered the wholesale channel unaware of the true cost and limited brand awareness that could be leveraged to make sales. Essentially, if we could mitigate expenses, we would reconsider. Today, we are focused on perfecting one revenue stream at a time to ensure success.
- Rhoda Wasswas Founder and CEO, Manjeri Skincare
I currently allocate 10% of my business to wholesale, while the remaining 90% is dedicated to DTC sales. My goal is to transition to a more balanced 50/50 model. Although I see significant potential in wholesale, the time investment needed to develop a robust strategy simply doesn’t exist today, especially since the DTC segment has accelerated quickly over the past few quarters.
One self-inflicted challenge is that I have over 10 product SKUs, seven of which are fairly uncommon in the body care market. These unique offerings require a significant amount of education when marketing them to potential customers since they are not familiar with their benefits or how to incorporate them into their routines.
I've found success with product bundles, which have helped to introduce these products to my customers in a more accessible way. By packaging them with more popular products, I can effectively showcase their value and encourage trial to hesitant customers.
To achieve my goal of a balanced model, I plan to focus on building stronger relationships with existing retail partners while actively seeking new wholesale opportunities. This includes enhancing product visibility in stores and participating in more trade shows and expos to connect with potential buyers.
In 2024, I made progress toward this goal by attending several conferences and events such as Cosmoprof in Las Vegas, Beauty Independent’s Uplink Expo in Los Angeles, my first brand activation at Miami Swim Week and the Sip, Shop, Eat pop-up event in Atlanta. These events were my inaugural exposure and introduction to the industry, providing me with valuable insights and helping to strengthen my network.
Unfortunately, the time needed to fully dedicate to this area is limited, so I’ve been strategic in my approach to wholesale growth. By pursuing a more diversified revenue stream through wholesale, my goal is to enhance my brand visibility and contribute to the long-term success of Manjeri Skincare.
- Forty Amsel Founder and CEO, Beyou
Currently, 70% of our business is wholesale and 30% is DTC. While wholesale has been a major driver, we want to grow DTC to 40% by 2026 to foster direct consumer relationships and improve margins.
We’re achieving this by investing in digital marketing, launching website-exclusive products and piloting a subscription model for our bestsellers. These efforts will help us strengthen our online presence and community.
- Ashley Plummer Founder and CEO, Botanical Cabana
Currently, my business operates 100% through direct-to-consumer (DTC) channels, and this is exactly where I want it to be. Focusing on DTC gives me greater control over operational overhead costs and, most importantly, allows me to maintain full control of the customer experience, from marketing and storytelling to product delivery.
This direct model also provides invaluable access to consumer data, which helps refine products, understand preferences and develop highly personalized marketing strategies. By handling all aspects of the business in-house, I can build deeper relationships with my customers, which is crucial for early-stage founders aiming to cultivate brand loyalty and community engagement.
Looking ahead, as my brand continues to grow, I plan to explore selective wholesale partnerships with local retailers and salons that align closely with my brand values. This strategy will be focused on partnerships that can help expand reach while preserving the integrity of the brand’s mission. For now, the DTC model allows me to streamline operations, test new products faster and stay agile in a competitive market, all while scaling the business efficiently.
To support sustained growth and prepare the brand to be retail-ready, I’m investing in strengthening my DTC presence. This includes expanding my email and SMS marketing lists, enhancing the website to provide a seamless shopping experience, and leveraging AI tools for personalized content.
Insights I’ve gained from industry experts indicate that having an established customer base, strong brand recognition and access to capital are essential for success when entering the wholesale market, particularly with larger brick-and-mortar retailers. Until the brand reaches that stage, my primary focus remains on building a loyal, engaged customer base through direct-to-consumer and other strategic channels.
- Allison Shimamoto Founder, Haiama Beauty
We’re operating at about 20% wholesale and 80% DTC. I think for the stage we’re in, this balance works well. As an indie haircare brand, we are focused on building a strong community of DTC consumers to build Haiama with us, many of whom we meet online. That way, as we grow, scale and consider larger wholesale retailers, we’re coming in with brand recognition.
Today, our wholesale partners (local salons and boutique retailers) help people meet us in person and present an opportunity to try and test our products. Candidly, we’re in the fence whether we’d consider wholesale beyond the 30% level in the future. What’s nice about DTC is you have a direct line to your audience for feedback and engagement, and I’d like to continue to offer customers a more personalized experience.
- EMILY KLEIN Co-Founder, Murmure Paris
Right now, over 85% of our business comes from DTC, with the rest split between physical and online retailers. While we’re proud of the traction we’ve gained through DTC, we’re working to gradually shift that balance.
As we expand our product range and invest in brand awareness, we plan to grow our wholesale segment by partnering with the right retail stores.
- MONA EBRAHIMI Founder, Mimar
42% of Mimar is DTC versus 58% wholesale. In an industry where you lose out on a minimum of 50% from a wholesale model, I prefer a higher DTC percentage. In 2025, we will allocate a bigger budget to scale our DTC sales. We will get more targeted with our Meta ads in hopes of reaching new clients.
A DTC model is where brands make most of their profit. Having said that, we will continue nurturing our current retailer partnerships and invest in bringing on new retail partners who align with our brand ethos and have an appreciation for premium high-performance natural skincare. It's become common practice for brands to have a healthy percentage of both DTC and wholesale models to drive more brand awareness and sales.
- Iva Bravic Millereau Co-Founder, Re.Vityl
In navigating the complex landscape of ecommerce, our business primarily operates within the wholesale/B2B domain. This 100% is dictated by the high costs associated with customer acquisition in the DTC sector. Our strategic vision aspires to achieve an optimal balance of 60% wholesale and 40% DTC. However, we acknowledge that reaching this goal demands both time and significant investment beyond one that is self-funded or bootstrapped.
Opting for a more deliberate and measured approach, we have consciously chosen to abstain from engaging in intensive social media advertising. This decision stems from observing numerous brands that have ceased operations, often attributing their downfall to an unsustainable business model heavily reliant on such advertising practices.
Our commitment to a gradual, organic growth strategy is continuously underscored by our efforts to bootstrap through this phase. We are dedicated to ensuring that this long-term approach yields sustainable success, facilitating a resilient business model that capitalizes on enduring value rather than fleeting trends or the ability to scale at the too often rapid pace that is detrimental to the business itself.
- Anisha Vinjamuri Founder, UMM Skincare
Currently, we are primarily a DTC brand. Our goal is to achieve an equal split between DTC and professional spa accounts by the end of 2025. We are investing time and education into building unique, one-of-a-kind luxury treatment protocols for premium wellness destinations and spas.
- Ada Hsieh Founder, Fluency
We're still mostly DTC—95%. I'm working on growing out our wholesale. I definitely want it to be 60% DTC/40% or even 50%/50% one day. The only strategy I have is to pound the e-pavement and shoot emails/get on the phone. I'm focused on indie stockists for the time being. Chain retail will be the goal in one to two years.
- Halima Hubbard Founder and CEO, Bath Notes
As an early-stage indie beauty brand, Bath Notes is currently 100% direct-to-consumer (DTC), but we're intentionally expanding into strategic wholesale partnerships. Our goal is to strike a balance between 70% DTC and 30% wholesale. We want to maintain a strong online presence, nurturing our loyal customer base and gathering valuable data, while leveraging retail partnerships to increase brand visibility and customer discovery.
For us, DTC offers higher margins, direct customer relationships, and flexibility in pricing and promotions. Wholesale partnerships, on the other hand, bring credibility, broader customer reach and partner marketing efforts. As we scale, we're focused on finding the sweet spot where our online and offline channels complement each other seamlessly.
We're excited to launch our first two retail partnerships by early 2025, and our strategy is to continue expanding wholesale partnerships while keeping our DTC channel engaged with online exclusives. This balanced approach will allow us to meet customers where they are, drive growth, and build a loyal community.
- SUSAN COOLEY Founder, Finny Rute
Currently, the majority of my business is DTC. I love having that direct connection with our customers because it allows us to deliver an elevated, personalized experience. However, I’m actively working to grow our wholesale partnerships.
I believe a balanced mix of both channels is ideal. For wholesale, we're focusing on partnerships with like-minded retailers that align with Finny Rute's values of self-care and wellness.
- KARISHMA PRANJIVAN Founder and Creative Director, Manjula
Currently, our business is 20% wholesale and 80% DTC. We’re very intentional about the partnerships we pursue, carefully seeking out retailers who truly align with our values and vision for our products.
While we love nurturing our DTC community and will continue to do so as much as possible, we see wholesale as a powerful opportunity to raise awareness of our brand and make our products more accessible.
One of our goals over the coming years is to grow our wholesale presence to 40%, building thoughtful relationships with retailers and wellness clinics who share our commitment to quality and purpose.
- Julia Kahlig-Garuba Co-Founder, Herb&Root
80% of our business is DTC. We would like to open more wholesale accounts and are doubling down on TikTok marketing and PR to generate awareness and demand from customers in the hopes that that will generate interest from retailers.
We are also developing products in a more channel-specific way, so we can fill voids in our target retailer categories rather than promoting our DTC hero products, which may not fit the retailer's existing product mix.
- TITILOLAMI BELLO Founder, Ori Lifestyle
At the moment we are fully DTC, but the plan is to go into retail spaces with a clear plan backed by funding. The funding piece is essential for my next move into retail, unless we partner with an extremely supportive retailer.
We did enjoy early retail exposure with Harrods and Selfridges, but lack of funding for marketing, sampling and travel sizes meant we had to exit.
- Rishea Casselle Co-Founder, Añuli
Currently, 100% of our business is DTC, which isn’t our ideal breakdown. Over the next 18 months, we aim to expand into wholesale by entering select retailers. We plan to start with bespoke and specialty stores that align with Añuli’s luxury positioning, then grow into larger brick-and-mortar retailers like Bergdorf Goodman, Saks Fifth Avenue and Bloomingdale's as well as online retailers like Net-a-Porter.
To achieve this, we're focusing on building relationships with boutique retailers that share our values of inclusivity and luxury. We’re also refining our brand story and visual identity to appeal to these upscale markets. Expanding into wholesale will increase Añuli’s visibility, provide more access points for customers and strengthen our position in the luxury skincare market.
- Whitney Swales Owner and Perfumer, Wit & West Perfumes
Currently, about 90% of our business is DTC, which has always been the primary focus for Wit & West Perfumes. Our DTC model allows us to maintain a close connection with our customers and offer a highly curated experience that aligns with our niche in indie artisan perfumery, and our specific focus on natural perfumery. Since some of our product lines are limited edition, this direct relationship works well for us as it gives us the flexibility to offer unique fragrances with in-house extracted ingredients that wouldn’t necessarily fit into a wholesale model.
That said, we are interested in expanding our wholesale business, but in a very intentional way. We’re focused on partnering with retailers who have a deep understanding of perfume, especially indie and niche fragrance, as well as boutiques that curate unique, high-quality and artisan handcrafted products. Our goal is to find partners who appreciate the craftsmanship behind Wit & West Perfumes and who can tell our story as thoughtfully as we do through DTC.
As we explore wholesale expansion, we’re committed to maintaining the same level of integrity and personal touch that our customers have come to expect from us.
- Adeline Koh Founder and Formulator, Sabbatical Beauty
Currently our wholesale/DTC breakdown is 5%/95% of our business. We would like to increase the wholesale breakdown to 10% in the next year. Strategies we’re employing over the next year are upgrading our packaging improve retail readiness as well as doing more outreach to spas and aestheticians.
- Jenna Satell Founder, Shirley Jane
We are entirely DTC at the moment. In 2025, wholesale partnerships will be a focus of ours with the ideal split being 20%/80% wholesale to DTC. As this is our first year in business, getting to know the consumer and building an online presence has been our main priority.
I plan to contact and build relationships with local retailers in Philly first, ideally expanding to other regions later in 2025 and into 2026.
We are currently producing in small batches, so large wholesale orders aren't something that we can accommodate. Because of that, tailored, personal relationships with retailers are our main focus, with the hopes of larger production runs in years to come.
- Tiffany Ju Founder, Chunks
For 2024 overall, wholesale is 35% and e-comm is 65%. [In 2025], we expect wholesale to creep up to 40% due to our Sephora partnership, but we're also strategizing to keep our e-comm strong at 60%.
- Jessica Lee Lafleur Founder and CEO, Stark
Since 2014 Stark has been 100% direct-to-consumer, from our website only. I didn’t know any other indie beauty brand doing it at the time, and although I was terrified it felt like the right decision for me then and still does 10 years later.
- Lisa Hillyard Co-Founder and CEO, MILO Multifunctional
At present, we are 100% DTC. As an emerging brand, we need as much control and margin as possible. Our brand and our system are rooted in fighting overconsumption, and we fear that placement in any kind of big-box retail risks diminishing our brand promise.
That said, we have ensured our margins can handle a few intentional wholesale relationships. There are some smaller retailers we have in mind whose ethos matches ours. Strong retail partners can be an incredibly valuable asset when it comes to brand awareness and distribution, so we won’t count it out entirely.
- Todd Thurman Co-Founder, Free Yourself
While we cherish our direct-to-consumer relationships, we recognize the importance of expanding our reach through wholesale and distribution channels. Our goal is to share our transformative fragrances and positive psychology principles with a global audience.
Our brand launched only a few months ago, so we are just beginning to work toward this goal. We’re collaborating with U.S. and international consultants to navigate this expansion thoughtfully. The overwhelmingly positive response we’ve received at national and international shows affirms that our message resonates across cultures.
As we grow, we remain committed to maintaining the personal connection and authenticity that defines Free Yourself. Our expansion is not just about reaching more people, but about creating a wider community of individuals empowered to flourish through fragrance.
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