Comparing gross margin targets and achievements between ecommerce and bricks 'n mortar channels can be a frustrating and futile exercise. Focus on Dollar Sales Contribution per unit instead!

Misconceptions on how gross margins and sales contribution margins are calculated are quite prevalent and can lead to poor and sub-optimal, marketing, operational and financial decisions.

Distribution is about selling “the something” on to that shelf and velocity is about selling “the something” off that shelf. And, the two are not mutually exclusive. You need velocity growth to entice buyers to expand and sustainably retain distribution. You need distribution to give you scale.

More important than the absolute value of velocity itself, is whether velocity is increasing or decreasing. A velocity that is increasing is one of the strongest signals of brand strength and equity.

No marketing or startup team sets out to build an emerging CPG brand that will fail. No CEO starts off with muted expectations and aspirations. Yet, many emerging CPG brands never get to fulfill their very ambitious goals. They wither and die on the vine. They fail.

The core lessons, in this series of articles, centers around Five Growth Imperatives. These imperatives underpin many emerging brands that have achieved sustainable and profitable scaling success.