Try This D2C Business Model On For Size
The Hustle

Try This D2C Business Model On For Size

Italic wants to bring the membership model that makes Costco famous to the D2C space.

Photo via: Italic

By Trung Phan (@TrungTPhan)

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If there’s one thing that gets our team fired up, it’s innovative business models.

Enter Italic.

This ecommerce brand spent 3 years partnering with manufacturers of the world’s top brands on a product line that sells at cost.

Translation: The company offers 1k+ items, from kitchenware to clothing, but it makes zero profit on each sale. To get the deals, consumers pay an annual membership of $100.

Sound familiar?

The $143B retail giant Costco is famous for charging membership fees and selling products at ultra-low markups. But the membership model isn’t as common among D2C brands.

Italic’s CEO, Jeremy Cai, thinks of his company as “a premium consumer brand running a marketplace that connects consumers directly with manufacturers.”

Cai is inspired by 2 other businesses that have mastered subscriptions: 

Italic is seeing bold demand

Italic has a waitlist for new members in the thousands (you can sign up here). With 93% of members breaking even on the first order, it’s probably worth the wait.

We asked Cai if he had any requests for startups that might interest The Hustle’s community.

Here are 2:

If you’re working on either of these, reach out to Cai here.

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