MEMBER BRIEF: ALLBIRDS AND ADIDAS

There’s a lot going on here at once: The materials, their recyclability, the impact that has on design, aesthetics, and performance, the “circular” concept, the pricing, the idea of renting shoes vs. owning them, the direct consumer relationship vs. buying from a local store, and of course, the subscription business model.

There's the potential for a community-driven, media-savvy insurgent to build an iconic brand and business off of these changes. Phluid is an interesting player right now, as is Machine A. I think there's room for plenty of others.

Now-established players have learned that Instagram advertisements and influencer campaigns only scale to a point: they can net no more than a few hundred thousand of a brand’s “first best” customers. This has driven a shift toward physical retail and prompted founders to agonize over if and when to peddle their wares on Amazon, making direct to co... See more

“Amazon is designed to commoditize products to the lowest common denominator of what they stand for,” Joey Zwillinger, Allbirds’s co-founder

The optics of successful liquidity events for Blue Nile, Zullily, Chewy and Zappos, and the incredible traction in the 2000s of The GAP as a public vertical consumer brand established meaningful consumer business outcomes. These potential to repeat history through a new crop of Direct to Consumer upstarts paired well with the pent up venture capita... See more

New brands need ways to bootstrap early demand and build loyalty without spending all of their money on Facebook and Google ads. A new DTC sneaker brand might bundle NFTs with online sneaker purchases that are more rare the earlier you are, or even show off your customer number. The Allbirds #1 NFT would be a weird, cool status signifier among cert... See more

Rather than digitally native, our belief is that today’s customers demand that brands reach them where they are — whether it is a hunter buying a Yeti cooler at Cabela’s, an Allbirds customer shopping at an outdoor mall, a Dolls Kill customer going to Coachella, or a college student buying Kylie Cosmetics on her phone between classes.