Electric toothbrush purveyor Quip is not the first DTC brand to enter brick-and-mortar retail. Harry’s razors, Casper mattresses, and Native deodorant have all expanded offline with Target. The difference is Quip's business terms, which could be the way of the future.

Quip has full distribution in all 1,800 Target stores and Target.com, selling their $25 starter kits, but if clients want refills they need to be purchased on the brand's website.

Win-win—perhaps? The arrangement allows Target to appeal to a younger consumer by retailing the millennial darling brand. Quip gets the growth from full Target distribution and new customer acquisition, all while owning the customer relationship once they come to the brand's website for refills.

This relationship is a lesson in the bargaining power a business can have when they have created a brand with massive consumer demand.

Read more in Digiday.