Digitally native vertical brands (DNVBs) are becoming a trend. Why? To offer demanding consumers the shopping experience they deserve. New technologies, competition, retail and e-commerce innovation are all a good thing. At Panaprium, we strive to one day become a top digitally native vertical brand. And it is so exciting!


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What is a Digitally Native Vertical Brand?

Global internet users are growing and internet sales are increasing as well. More and more people spend time on social media. Mobile phones and the internet are the new norms for communication. The digital commerce market is exploding and with it, so many digitally native vertical brands on the rise.

In the fashion industry, the entire supply chain is changing. Sourcing products is easier than ever. And any new brand can start selling on the internet in a matter of days. These new brands are born on the Internet. They are a strong focus to deliver stellar customer experience.

Products go directly from manufacturers to the end consumer. Digitally native vertical brands control their distribution. This allows for cutting costs and unnecessary markups. That is why these brands are so popular.

It is easier than ever to access consumers across the world, be profitable, and create a massive impact. There is little need for physical stores anymore. The key to success is focusing on the customer. Any new brand has to differentiate itself and delight its customers.

The Rise of Digitally Native Vertical Brands

Growing online sales is indeed a reason for the massive growth of many digitally native vertical brands, such as:

It is easier to build an efficient company on the internet. E-commerce software is readily available and cheap. Labor costs can be kept to a minimum. With the rise of social media and influencers, new marketing strategies are very effective.

Technology and innovation drive massive growth in the retail industry as well. Everything runs smoother, faster, easier including browsing, shopping, shipping, managing returns and customer service.

These digitally native vertical brands offer unique customer experience impossible to find anywhere else, in brick and mortar stores. At Panaprium, we aim to represent inspirational lifestyles and inspire consumers.

The following makes digitally native vertical brands special:

  • direct sourcing of materials,
  • direct to consumers online sales,
  • quick iteration on product design based on customer feedback,
  • highly efficient and resource-saving supply chain,
  • very low labor costs and markups,
  • high transparency for consumers on the product costs,
  • alternate distribution methods,
  • stellar customer experience,
  • very targeted customer base,
  • strong branding and lifestyle representation,
  • consistent and compelling social media strategy,
  • high engagement on multiple social media channels.

What Makes the Top Digitally Native Vertical Brands so Special?

Community! Building a community around the brand is key. The design of the products is very important as well. The packaging is branded and designed to be shared on social media. Sharing and selling operate in a multitude of online marketing channels.

Often digitally native vertical brands rely on user-generated content (UGC) for content creation in order to scale and meet their content needs. Paid marketing is only a last resort. Most customers act as influencers and ambassadors for the brands, growing mostly on word-of-mouth.

Relying on customer photos and videos makes brands marketing efforts succeed. User-generated content is authentic and increases reach, builds trust and inspires. This allows digitally native vertical brands to control their voice, stories, and message. An effective marketing method goes through influencers, planing strategic content and promotions.

The vertical integration of design and production serves the customer's specific needs better. Social media is king to build long-lasting relationships that distinguish these brands from other businesses.

It is ultimately the considerable amount of content published that make digitally native vertical brands compete and succeed. But selling more and more should not be the goal for this new generation of businesses. The important question is why does each brand exist? Do they have a positive impact and support a good cause? Do they leave the people, planet, and animals better than they found it?



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About the Author: Alex Assoune


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