2019 ‘IAB 250’ Report Uncovers Most Important Disruptor Consumer Brands in U.S. Economy

IAB, the national trade association for the digital media and marketing industries, today released its second annual “IAB 250 Direct Brands to Watch” report identifying the direct-to-consumer brands that are driving positive change in the U.S. consumer economy. The companiesincluding both now-familiar brands, such as Glossier and Warby Parker, as well as newer upstarts such as Brandless and Oars & Alpsare the fast-growing consumer brands redefining the relationships between brands and customers.

We are in the midst of a seismic change in business practices, enabled by the growth of digital media and driven by a new generation of digitally native entrepreneurs said Randall Rothenberg, CEO, IAB. Collectively, the IAB 250 are models of the best practices and trends that are overturning and revolutionizing consumer markets in the U.S. They are setting the competitive standards by which the worlds largest incumbent brands are beginning to base their strategies and investments.

Disruptors brands are surfacing in all categories, from Stitch Fix and Allbirds in the apparel and fashion sector; Seesaw and The Honest Company in baby care and parenting; to Drizly and Winc in beer, wine, and alcohol. There are seven characteristics that remain similar no matter what category they compete in:

  • Direct brands are centered around individual consumer relationships and the data they provide
  • Direct brands are web-native
  • Direct brands are socially closer to the consumer
  • They are maniacally focused on consumer experience
  • Direct brands use content as a differentiator
  • They define content more broadly than incumbent brands and partners
  • Their mission is central to their story

Brands like Billie, in the personal care category, lead the way in social community building and storytelling. They are creating unique and individual relationships through, storytelling, customization, and a relentless attention to customer experience, according to the IAB. By creating buzz-worthy experiences, we see that these companies are not confined to the web; they are a bright spot in the dim outlook for retail. Creating physical experiences are a natural extension of these community-driven brands and are propelling new store growth with over 850 physical locations projected to be opened in the next 5 years.

The diversity among the 250 businesses listed in IABs report is notable. Nearly a quarter of the direct brands to watch are helmed by women. This trend is in sharp contrast to the Fortune 500, which can claim just 5 percent female leadership. In addition, while New York and California are known as the hubs of digital disruption, nearly 100 of the brands came from a broad range of other locations. Texas is the home of 8 direct brands to watch, with another 6 from Washington state, 6 from Massachusetts, 5 from Illinois and 4 from Chicago. Other states represented include: Idaho, Minnesota, Missouri, Nebraska, Utah, Wyoming and Wisconsin.

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The impact of the growth of these companies is rippling through their respective supply chains, and is seen across the entire country, said Sue Hogan, Senior Vice President, Research and Measurement, IAB. If you look at our online interactive headquarter location map, it is represented by brands with headquarter locations from coast to coast, and everywhere in between.

The report was released at the IAB Annual Leadership Meeting in Phoenix, Arizona to an audience of over 1,200 influential brand marketers, agencies, technology firms, and publishers.

The report features 10 distinct product categories. Apparel/fashion companies accounted for the vast majority of direct brands to watch, with 90 companies on the list.

New this year: the velocity of social media buzz and social footprint was factored, revealing that rapid increases in social attention are happening in virtually every category on the list. In addition, nearly one-third of the brands listed, with representation in each and every category within the IAB 250, are built on subscription models, demonstrating that a guaranteed, steady flow of revenue is possible across a range of sectors and products.

Below is the complete list of companies, ranked in each category:

Alcohol/Beer/Wine

1. Foot of the Bed Cellars 2. BREWPUBLIK 3. Splash Wines 4. Drizly 5. VINEBOX 6. Flaviar 7. Bright Cellars 8. Winc

Apparel/Fashion

1. Stitch Fix 2. Outdoor Voices 3. Huckberry 4. Taft Clothing 5. Dolls Kill 6. ThirdLove 7. Adore Me 8. Untuckit 9. Rent the Runway 10. Paul Evans 11. Stance 12. Tommy John 13. FabFitFun 14. Everlane 15. Knot Standard 16. Primary 17. Shinesty 18. Gwynnie Bee 19. The RealReal 20. Wantable 21. Foot Cardigan 22. MeUndies 23. Hickies 24. TrackSmith 25. Yellowberry 26. Ledbury 27. Poshmark 28. Bucketfeet 29. Bombfell 30. American Giant 31. Sole Society 32. Kidbox 33. Sock 101 34. Tomboy Exchange 35. Betabrand 36. Bombas 37. Plae 38. Tecovas 39. Cuyana 40. Pistol Lake 41. Ivory Clasp 42. Buck Mason 43. Tamara Mellon 44. Schoola 45. Nadine West 46. Mack Weldon 47. Cairn 48. FabKids 49. Trendy Butler 50. Allbirds 51. Draper James 52. AUrate 53. Dagne Dover 54. Rothy’s 55. AYR 56. Jack Erwin 57. Sweatbox 58. Ellie 59. Rockets of Awesome 60. Original Stitch 61. Cotopaxi 62. Lively 63. Koio Collective 64. Neighborhood Goods 65. Five Four Group 66. Nisolo 67. Richer Poorer 68. Reformation 69. Carbon38 70. Bow & Drape 71. Chubbies Shorts 72. M. Gemi 73. Monica and Andy 74. Ratio Clothing 75. Wear Pact 76. Boon & Gable 77. Dia&Co 78. BauBax 79. DSTLD 80. Fame and Partners 81. Harper Wilde 82. Ministry of Supply 83. Orchard Mile 84. M.M Lafleur 85. Mizzen Main 86. ADAY 87. Combatant Gentlemen 88. Hush 89. Thesis 90. Thursday Boot Co 91. True & Co

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Baby Care/Parenting

1. The Honest Company 2. Bluum 3. SeeSaw 4. Owlet Babycare

Beauty

1. BeautyCounter 2. Beautylish 3. Glossier 4. Scentbird 5. Memebox 6. Function of Beauty 7. Madison Reed 8. Pinrose 9. Ipsy 10. LOLI Beauty 11. Facetory 12. Curology 13. Glam Squad 14. Oars & Alps 15. Boxycharm 16. Stowaway 17. CodeCombat 18. littleBits 19. Surprise Ride 20. Educents 21. VersaMe

Food/Beverage/Household/Pet

1. Freshly 2. Plated 3. Thrive Market 4. Doggyloot 5. NatureBox 6. Munchery 7. UrthBox 8. Hungry Harvest 9. Candy Club 10. Blue Apron 11. Sun Basket 12. Doordash 13. BarkBox 14. Aloha 15. Craft Coffee 16. Daily Harvest 17. Home Chef 18. Soylent 19. Cleancult 20. blissmo 21. Trubrain 22. PrettyLitter 23. Postmates 24. LoveWithFood 25. Fuego Box 26. The Farmer’s Dog 27. Bean Box 28. Ripple Foods 29. Califia Farms 30. Sudden Coffee 31. Revere 32. Bulu Box 33. Crowd Cow 34. Gobble 35. Yumi 36. TryTheWorld 37. Desert Farms 38. Hungry Root 39. Bulletproof 40. Health-Ade Kombucha 41. NomNomNow 42. Ollie 43. Wag 44. Green Chef 45. Kettlebell Ktchen 46. PRE Brands 47. Dirty Lemon 48. Taste Guru 49. Halo Top 50. Boxtera

Hobbies/Lifestyle

1. Loot Crate 2. KuIU 3. Baublebar 4. Robb Vices 5. Tonal 6. Lugloc 7. Truefacet 8. KiwiCo 9. Rocksbox 10. Osmo 11. Alpha Outpost 12. Fanchest 13. Please And Carrots 14. Nomatic 15. Paravel 16. Moment 17. DateBox 18. Airside Mobile 19. Bouqs 20. Vapor Liq 21. Goldie Blox 22. Away

Home/Accessories

1. Grove Collaborative 2. Brooklinen 3. Snowe 4. Ugallery 5. Framebridge 6. Brandless 7. Boll & Branch 8. ArtLifting 9. Interior Define 10. Burrow 11. Helix Sleep 12. Dormify 13. Greetabl 14. Casper 15. Leesa 16. Parachute 17. Touch of Modern 18. Joybird

Personal Care

1. Dollar Shave Club 2. Warby Parker 3. Birchbox 4. Harry’s Razors Company 5. Eargo 6. Teadora Beauty 7. Hims 8. Quip 9. Thinx 10. Hubble Contacts 11. Simple Contacts 12. Lola 13. Billie 14. Goby 15. SmileDirectClub 16. Candid 17. Native Deodorant 18. Kopari

Wellness/Fitness

1. GoNoodle 2. AliveCor 3. Ritual 4. Green Gorilla 5. Elysium Health 6. Zeel 7. Buck Brush Company 8. Uplift Ventures 9. Care/Of 10. Monthly Gift 11. Capsule 12. One Drop 13. Vireo Health 14. Keeps 15. HVMN 16. vitafive 17. Peloton 18. HelloFlo

“The IAB 250 report shows how deeply direct-to-consumer brands have pervaded the national market, with thriving companies to watch in 21 states and D.C.,” said Rothenberg. “This is a movementnot just in advertising and marketing, not just in terms of the disruption of traditional sales models, but in the opportunity for Americans to shift perspective for more effective, efficient and collaborative brand/consumer relationships. The 250 brands to watch has evolved from a list of identified logos to a brand tracker indicating momentous change, made possible by the walls broken down by digital media, metrics, and ecommerce.”

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“This report illustrates the impressive diversity of the direct brand economy,” added Hogan. “With this, the influence of direct brands in the market is clearly evident. They are marketing in breakthrough ways. and driving traditional brands to rapid innovation. This roster of 250 disruptors, combined with the trends being revealed by Randall and our guest speakers at the conference, are a roadmap forward.”

The IAB 250 is sponsored by the Direct Brand Initiative Strategic Partners, Google, Hulu, Pinterest, and Spotify.

To see the complete report, please visit https://www.iab.com/iab250.

Methodology

All IAB 250 Brands to Watch in 2019 are founded no earlier than 2010. IAB provides a selection of direct brands across categories for Dun & Bradstreet to match against their SMB list, and using additional data collection from multiple sources, including Rival IQ for social footprint and velocity, IAB passes the data through an weighting formula for an overall Company Score: Economic Efficiency (e.g., Revenue; # Employees); Financial Confidence (e.g., Revenue; Funding; Partners; Max Valuation); and social metrics. Data collected also includes company name, URL, and CEO name. Companies are aggregated into 10 categories for presentation purposes.

About IAB

The Interactive Advertising Bureau (IAB) empowers the media and marketing industries to thrive in the digital economy. Its membership is comprised of more than 650 leading media and technology companies that are responsible for selling, delivering, and optimizing digital advertising or marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, it develops technical standards and best practices. IAB and the IAB Education Foundation are committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., IAB advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, the IAB is headquartered in New York City and has a San Francisco office.

IAB Media
Laura Goldberg
347.683.1859
[email protected]