Press commentary on why specialized digital brands are expanding into new product categories. Read the full article here.

On Brooklinen’s decision to expand to loungewear:

Brooklinen follows in the footsteps of many direct-to-consumer brands that have expanded beyond their initial product category into new ones. Away expanded from suitcases to backpacks and bags, and has its eyes set on expanding into apparel. In January, bedding and home brand Parachute expanded into mattresses and robes. It’s a common move that specialized DTC brands make after a few years in business to add new revenue streams and acquire new customers.

“These brands are launching new products because they have to keep making money. Brands selling a lot of these products, they are one-time purchases. They have to expand product to expand revenue, because they likely won’t sell you more than one or two things,” said Richie Siegel, founder of Loose Threads.