I haven't seen as many where discounting is the lead in. Maybe Shein and Temu, but that is their whole concept. The thing with flash was that it was never about cheap goods, but it was always about deals. Whereas, I think the key for Temu and Shein is the ability to produce these products incredibly quickly and own the entire supply chain, which was harder for flash since we weren't producing most of the products. Owning the supply chain I think is a big deal.
I do think that over time it will be interesting to see if DTC for smaller brands is venture backed or more of a business that is bootstrapped. I think those companies can get large, but I'm not sure if they are venture large.
Great writeup and thoughts here, thank you for sharing.
Curious - any current businesses models / venture backed ecosystems have similar structure today?
I haven't seen as many where discounting is the lead in. Maybe Shein and Temu, but that is their whole concept. The thing with flash was that it was never about cheap goods, but it was always about deals. Whereas, I think the key for Temu and Shein is the ability to produce these products incredibly quickly and own the entire supply chain, which was harder for flash since we weren't producing most of the products. Owning the supply chain I think is a big deal.
I do think that over time it will be interesting to see if DTC for smaller brands is venture backed or more of a business that is bootstrapped. I think those companies can get large, but I'm not sure if they are venture large.