Be a maker, not D2C

Maker businesses make money. Most D2C businesses lose money

Maker businesses make money. Most D2C businesses lose money

Most D2C businesses are incurring losses. They mess upfundamentals of marketing. Running a maker business is an antidote to running a loss making, growth focused business.

Jaime Schimdt founded Schmidt Naturals. She had developed a waterless deodorant, packaged in glass with her own hands. Customers loved the natural and affordable products. She grew it and sold it to Unilever. In 2017 it had sales of $45mn with 160 employees.

She writes: an opportunity is clearing for a new wave of consumer businesses founded by makers — those producing products born from a mastery of skill, creativity, and the genuine passion of the founders behind the business.

Indian VCs fund 800 businesses in a year. Maker businesses such as Chumbak started as a passion project. Unlike Man Co., it started without the VC funding and celebrity endorsements.