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Showing posts with the label D2C

Just my thoughts #0797

Survival of the Fittest and Cooperation: Examining the world from the perspective of competition for survival reveals that only the strong and fittest survive, a concept often referred to as “Falling Prey to the Strong and Survival of the Fittest.” However, there are cases where this principle does not apply, when each entity cooperates with the others. Then, rather than surviving because they are strong and adaptable, it may be that they are strong and adaptable because they survived. Cooperation is an act of a very peculiar nature. The truth is, those who cooperate are the strongest. - Joseph’s “just my thoughts”

Just my thoughts #0608

Warby Parker , an eyewear brand renowned for its direct-to-consumer (D2C) business model , and Allbirds , an eco-friendly shoe brand that went public on NASDAQ in 2021, exemplify innovation in connecting manufacturers directly with consumers without intermediaries. This model promotes a positive image by endorsing an eco-friendly business approach. However, the disclosure of the companies’ financial statements revealed that both had accumulated losses greater than anticipated. While it would have been ideal for manufacturers to supply products directly to consumers, the burden of inventory increased along with rising administrative and marketing costs. Distributors in the middle shared profits, but they also shouldered the financial burden. Choosing eco-friendly options often incurs higher costs due to the search for alternatives, which can lead to accumulating losses. Pollution negatively impacts both consumers and suppliers, and business deficits further inflict additional damage t...