The DTC revolution is well underway, and fashion brands with deep roots in wholesale are feeling the pressure. Retail partnerships with players like Nordstrom, Saks, and Bloomingdale’s have long been staples of the industry. But today’s consumer expects a direct, digital-first relationship. That shift has created a complex challenge: how can brands grow their DTC channel without compromising their wholesale strategy?

This isn’t just about channel conflict or margin math. It’s about identity, control, and long-term growth. The brands that succeed in this transition will be those that understand how to navigate it strategically rather than reactively.

Wholesale gives brands reach and shelf space. But it comes at a cost. Limited control over pricing, customer experience, and data access makes it difficult to build lasting loyalty or iterate quickly.

Direct-to-consumer models, on the other hand, offer better margins, deeper customer insights, and the freedom to control messaging and creative execution. They also unlock the ability to test and scale new collections with speed. As outlined in our blog on why CAC is rising in fashion, acquisition costs in DTC can be high. However, the brands that win are those that build lifetime value and reduce dependence on intermediaries.

Still, this shift is not a binary decision. Most modern fashion brands need to balance both wholesale and DTC. That’s where things get nuanced.

Power Digital’s work with fashion clients, many of whom are navigating this dual-channel model, has uncovered some recurring mistakes brands make when trying to scale DTC alongside wholesale.

As one client noted in our “Q1 Client Interview Analysis” [internal only]:

 “We came to Power because we didn’t just need more media buying. We needed a partner who could help us build the DTC infrastructure while still honoring our retail relationships.”

Transitioning into a high-performing DTC model requires more than a Shopify site and a retargeting campaign. It requires a connected, full-funnel strategy that is deeply aligned with brand values and tailored to modern consumer behavior.

Here are five foundational pillars to get right:

For most fashion brands, wholesale isn’t going away. In fact, a strong retail presence can reinforce brand credibility and create real-world touchpoints that complement digital growth. The key is to manage that relationship strategically.

Here’s how top brands are doing it:

Several Power fashion brand clients noted in our “Q1 Client Interview Analysis” [internal only] that our attribution modeling allowed them to connect the dots between paid digital campaigns and in-store sales, strengthening their negotiating position with retail partners.

“Power helped us justify media spend that was driving sell-through at retail. It changed how we talked to our wholesale buyers.”

The path forward isn’t wholesale or DTC. It’s both, executed with clarity and purpose. The most successful brands are those that embrace an integrated omnichannel model where digital campaigns, retail visibility, and customer experience are in sync.

This shift requires operational transformation, not just marketing tweaks. It means upgrading tech stacks, rethinking roles, and investing in strategy partners who can support both sides of the equation.

As Madison Sternberg, Account Director, Fashion at Power Digital puts it:

“This underscores the importance of taking a holistic view of your digital program—awareness advertising isn’t just a top-of-funnel tactic; it has the power to lift all sails across the business.”

Explore our full suite of Digital Marketing Services or learn how we help fashion brands grow smarter with tailored channel strategies that connect performance to profit.