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by dfcagency
2405 days ago
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The bigger problem here is that Allbirds ISNT a luxury brand. They've drank the Silicon Valley cool-aid of growth above all else, the "reforge" growth-hack school of tips and tricks to optimize conversion rates and customer retention, without actually building a storied brand - which is what a real luxury brand is (see: LVMH's holdings, Hermes, or more recently Aesop). There's no storied history, hell - their LOGO isn't on their products. They're PERFECTLY ripe for generic disruption. If they had hired real brand marketers, not growth addicts over-analyzing CAC/LTV/AOV formulas all day, they'd have a more defensible position in the marketplace. By the way, your analogy of sunglasses is flawed - those cheap sunglasses look, feel, and function cheaply. |
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Sure, perhaps I should have said they price themselves like a luxury brand (or something above commodity pricing but below luxury? I'm not an expert on this stuff)
From their marketing on sustainability, and their prices, it seems to follow to me that they probably have a high markup and don't ruthlessly cut corners to survive on a tiny margin at brutally low prices.
> By the way, your analogy of sunglasses is flawed - those cheap sunglasses look, feel, and function cheaply.
Admittedly I wrote my post under the assumption that Amazon's generic wool runners probably feel cheap in one way or another from having cut some corners to lower production costs. I wouldn't know, though.