SmileDirectClub snags a spot at Walmart — but not with its core product
Prime real estate... Walmart is Earth's biggest retailer — Now SmileDirectClub will sell its mouth-flattering goods exclusively on Walmart's website and across its 3,800+ US stores. One of the worst IPOs of 2019, SDC shares popped 25% on news of the partnership. The awkward part? The partnership doesn't even include their core product.
- Before: SDC is a direct-to-consumer brand, selling its clear braces-replacing aligners from its own website (like DIY Invisalign).
- After: SDC-branded electric toothbrushes, tooth-whitening kits, dental device cleaners — they're all new, and will now be sold at Walmart.
- MIA: Its go-to clear aligners will stay exclusively on SDC's website and its SmileShop locations.
More like Smile InDirect... SDC's strategic move to go off its own website and into another retailer isn't totally fresh — its online-first, direct-to-consumer cousins made similar moves: Casper mattress, Harry's razors, and Quip toothbrush all now sell in Target stores. But SmileDirect's the only one to keep its core product to itself.
- Side note: Walmart will see how SDC's products do with its lower-income customers before possibly setting up full SDC shops within its stores.
This is SDC's top-of-funnel strategy... How do you warm people up for a bigger commitment, more expensive core product? Offer them gateway goods instead. SDC's main teeth-straightener costs nearly $2,000. An SDC electric toothbrush in color "blurple" costs just $25.
- First date: SDC earns your trust through its cheaper, low-commitment options at Walmart.
- Marriage: Then, after months of keeping your teeth white with SDC products, maybe you'll feel ready to put a ring (or an aligner) on it.