The childrenswear industry is booming and is set to hit nearly $340 billion by 2024, according to Global Industry Analysts.
And it's not just the big name retailers like Target (TGT), Gap GPS) and Walmart (WMT) that have the edge in the market. A new crop of companies are taking a big slice of the pie.
One such name is Rockets Of Awesome, a direct-to-consumer brand that has caught the attention of celebrity backers like Serena Williams, Gwyneth Paltrow and Kirsten Green of Forerunner Ventures. It most recently received capital from Foot Locker (FL).
Over the past decade retail has seen a surge in direct-to-consumer companies as companies like Rent The Runway and Stitch Fix (SFIX) gain in popularity. Rockets of Awesome Founder and CEO Rachel Blumenthal says that’s in part due to the lower barrier of entry.
“I think the beauty of direct-to-consumer is that brands and entrepreneurs have the ability to open and present their product to customers easier than ever before,” Blumenthal said in an interview on Yahoo Finance’s On The Move.
Direct-to-consumer companies have increasingly been eyeing physical locations, in effort to give customers a more tangible experience. It’s something that Blumenthal says is way to help clear the “noise for the consumer.”
“If you do have the ability to put your product in front of the customer and let them touch and feel it, there is more of a connection with the consumer,” she said.
“They really understand who you are and decide if they want to be a part of your business or not.”
Bridgette Webb is a producer at Yahoo Finance. Follow her on Twitter @bridgetteAwebb.
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