DTC Dispatch #054

LATEST NEWS

DoorDash is zeroing in on this ‘overlooked’ retail segment

While it’s common to shop at major grocery chains, many consumers are also loyal to their local and regional stores (any New England Market Basket fans here?).

Fuad Hannon, VP of New Verticals at DoorDash, believes local grocers have been “overlooked” by other delivery services—a gap DoorDash aims to fill.

Recently, DoorDash expanded its local grocery partnerships, adding Kowalski’s in Minneapolis-St. Paul, Mar-Val Food Stores in California, Geissler’s in Connecticut and Massachusetts, and Milam’s Markets in Miami-Dade, along with Wegmans locations across five states. This follows eight similar partnerships established late last year, enhancing a network that already includes 500,000 local merchants.

With its roots in local restaurant delivery since 2013, DoorDash has broadened its focus to include grocery delivery. Now, with 7 million customers buying groceries on its platform and partnerships with both national and regional grocers, DoorDash is solidifying its role as a versatile retail delivery service.

Our take: DoorDash’s expansion into partnerships with regional and local grocery chains is a smart strategy that taps into consumers' loyalty to neighborhood stores and sets it apart from other delivery services. Local grocers like Kowalski’s, Mar-Val Food Stores, Geissler’s, and Milam’s Markets offer a unique community connection, which DoorDash is embracing to meet consumer demand for convenience with a local touch.

By broadening its focus beyond restaurant delivery, DoorDash is positioning itself as a versatile delivery service, balancing ease with the personal appeal of regional markets. This integration with local grocers can strengthen consumer loyalty, making DoorDash a distinctive player in retail delivery.

DTC is dead. Long live DTC.

In 2019, DTC brands like Casper, Away, and Glossier each hit billion-dollar valuations within just five years, fueled by cheap capital, a strong economy, and the direct-to-consumer (DTC) model's appeal.

A few years later, as Casper, Warby Parker, and Allbirds went public, they promoted big plans for retail expansion and new products. But soon, the momentum faded. Casper was sold to private equity just two years after going public, Allbirds closed stores and shifted to a distributor model, and Outdoor Voices shut down stores before being acquired.

“Everyone thought DTC was the future,” said Simeon Siegel of BMO Capital Markets. “But they realized that being the middleman came with costs, and many lost focus on their product.”

Sales declines became common among former disruptors like Peloton, which began partnering with Amazon and other traditional retailers. Even established brands that embraced DTC pulled back, signaling a cooling off for the pure DTC model.

Our take: The rise and recent struggles of DTC brands like Casper, Away, and Glossier highlight both the appeal and limitations of this model. Initially, DTC was celebrated for bypassing traditional retailers, reaching billion-dollar valuations during a strong economy. But as brands grew, they discovered that handling all sales processes themselves wasn’t as cost-effective as it seemed, with high operational costs similar to those of traditional retailers.

With sales declines and rising costs, brands like Peloton and Allbirds began partnering with traditional retailers, signaling a shift toward hybrid models that combine DTC and retail partnerships. This evolution reflects a balanced approach, showing that blending direct and traditional sales methods could be a more sustainable path for future growth.

Fashion for Good launches global textile waste mapping tool

Fashion for Good has introduced World of Waste, a digital tool designed to pinpoint textile waste hotspots worldwide, helping transform waste into resources for a more circular, sustainable fashion industry. This platform provides recyclers and innovators with valuable data on global textile waste, including its volume, composition, and types.

Developed in partnership with Reverse Resources, Global Fashion Agenda, Circle Economy, and Accelerating Circularity, with funding from Laudes Foundation and IDH, World of Waste consolidates fragmented data to make waste management in the textile sector more efficient. The tool aims to address the substantial waste generated by the industry, offering insights into quantities and types of waste, data collection methods, and upcoming studies, enabling a coordinated approach to circularity and transparency.

Our take: Fashion for Good's World of Waste tool is a major step in tackling textile waste. By identifying global waste hotspots, it helps recyclers and brands turn waste into resources, supporting a more circular, sustainable model.

This platform consolidates scattered data, simplifying waste management and fostering supply chain transparency through partnerships with key organizations. World of Waste reflects a needed shift in the industry, focusing on waste as a resource rather than just new materials. As fashion faces scrutiny over its environmental impact, this tool highlights both the challenges and the potential for positive change.

Adidas Drops a Vibey Fragrance Collection

When it comes to fragrance, sometimes the appeal lies in the specific notes, but other times, it’s all about the vibe. If you're looking to match your scent with your mood, Adidas' new Vibes fragrance collection is the perfect choice.

With six mood-boosting Eau de Parfums, including “Full Recharge,” “Spark Up,” “Get Comfy,” and “Happy Feels,” this collection is designed to enhance your energy and emotions. Crafted with upcycled alcohol and housed in sustainable packaging, these fragrances offer a feel-good experience for both you and the planet.

Our take: Adidas’ new Vibes fragrance collection offers a refreshing take on scent by aligning it with our emotions and energy levels. In a world where we often choose fragrances based on their notes or occasion, the idea of pairing a scent with a specific mood is both unique and intuitive. Whether you need a burst of energy with "Spark Up" or a moment of relaxation with "Get Comfy," this collection provides something for every vibe.

What’s especially commendable is Adidas' commitment to sustainability. By using upcycled alcohol and eco-friendly packaging, the Vibes collection aligns with growing consumer demand for products that are both enjoyable and environmentally responsible. It’s a clever way to cater to the modern consumer who wants to feel good about what they wear, both in terms of scent and impact on the planet. This collection not only promises to elevate your mood but also adds a layer of conscious consumerism to your fragrance routine.

Prada Family Has a Plan in Place to Avoid Succession Drama

Miuccia Prada and Patrizio Bertelli are securing the future of their $19 billion luxury empire by preparing for succession. Their son, Lorenzo Bertelli, has taken key ownership roles and is gaining experience overseeing marketing and sustainability.

At 76 and 78, the couple is determined to pass the reins while preserving Prada's independence in a luxury sector dominated by conglomerates like LVMH and Kering. As these giants acquire more Italian brands, Prada risks being sidelined.

To ensure control stays within the family, Miuccia has transferred nearly all her shares to Lorenzo, giving him 50.5% of Ludo SpA, with his brother Giulio receiving the rest. This move aims to protect Prada’s autonomy in a competitive market.

Our take: Miuccia Prada and Patrizio Bertelli’s succession plan is a smart move to preserve Prada's $19 billion empire and its independence in a luxury market dominated by conglomerates like LVMH and Kering. By positioning their son, Lorenzo Bertelli, to take over key roles, they ensure the brand stays within the family.

In transferring nearly all her shares to Lorenzo, Miuccia is safeguarding Prada’s future amid rising pressure from global competitors. This strategic move highlights the importance of succession planning for family-run businesses, ensuring they retain control and identity in a competitive, globalized market. The Bertellis set a strong example for others, proving that family businesses can thrive with careful planning and long-term vision.