Direct-to-Consumer

Under new leadership, the denim pioneer will be tested to see if it can become a global DTC brand that’s known for more than its historic jeans.

While the DTC landscape’s turbulence isn’t completely over for brands, the prospect of a better economy in 2024 is encouraging profitable brands that shied away from M&A last year to start preparing for an exit.

Stòffa’s made-to-measure menswear has cultivated a devoted, influential following. Now, the brand is betting that its forthcoming flagship retail store is its next step on the long path to building a legacy luxury label.

In a conservative investment environment, the few start-ups that can access traditional venture capital are opting to take out loans, and battle higher interest rates, to fund business essentials like marketing and inventory.

All that cash might be tempting, but the motivations of founders and venture investors are rarely aligned, writes Imran Amed.

The underwear start-up was once pegged as Gen-Z’s answer to Victoria’s Secret. But investors, executives and founder Cami Téllez couldn’t agree on whether to prioritise growth or profitability. They ended up with the worst of both worlds.

Timepiece start-ups like Baltic, which went from Kickstarter campaign to producing $50K collector grade watches, and Christopher Ward, who is on track to reach $40 million in sales this year, are leveraging collector communities and innovation to take on high luxury watchmaking.

Warby Parker’s continued brick-and-mortar expansion has given two of its less recognisable digitally-native peers — Zenni Optical and Eyebuydirect — a chance to raise their profiles among online shoppers.

Cautious investors are finding safer bets in tech-focused platforms that create products for digitally-native brands over traditional DTC start-ups.

The Gen-Z intimates brand’s sale to a little-known strategic is the latest in an ongoing series of less than desirable exits for unprofitable digitally-native start-ups.

Brands like Warby Parker, Allbirds and Olaplex have successfully slashed digital advertising costs. Now they need to figure out new ways to find customers.

True Classic has emerged from a sea of men’s brands promising the perfect t-shirt, managing to build a big audience without bleeding cash.