Summer is here—and the season’s usual onslaught of swimwear marketing is heating up. But for many direct-to-consumer swim brands, it’s a tough summer to make a splash.
For one, the DTC swimwear market has become increasingly crowded. “Pre-pandemic there was already a lot of growth in new swimwear brands entering the market … and that trend has continued,” said Sky Canaves, senior analyst, retail and e-commerce at Insider Intelligence. Some of the new players are intimates and shapewear brands coming out with swimwear lines, such as Skims, Cuup and Parade.
“Many of these DTC brands are targeting the same Gen Z consumer that’s most likely to be shopping for trendy swimwear—and to stand out they need to find ways to engage them through content that resonates, rather than blanketing them with ads,” Canaves said.
Swimwear brands are also facing economic headwinds.
“Apparel overall is facing a very challenging year across the board since it’s such a highly discretionary category, and the digitally native DTC sector is also struggling due to the combination of softer consumer demand and high customer acquisition costs,” Canaves said, referring to new privacy regulations from Apple and their impact on the Meta advertising ecosystem—something DTC brands used to heavily rely on for sales.
And it seems less likely that some DTC swim brands will receive the large infusions of venture capital that were more common in years past. With capital infusions drying up, DTCs must figure out how to be more efficient with their marketing, said Nik Sharma, CEO of Sharma Brands, an investment and advisory firm specializing in DTC brands.
That’s a significant change from the past decade, when there was “so much venture capital pouring in” that for a lot of DTC companies, hitting profitability wasn’t the focus, according to Sharma.
Below, how some DTC swim brands are attempting to stand out this summer.