Loose Threads: Creation Over Commodities
Joe Ferrara of Resonance waxes lyrical about the fact that 100's of budding D2C fashion brands have the sexy digital first branding covered, but struggle to have a defensible plan re: their supply chain. He emphasises that great ideas are a dime-a-dozen, and in a world whereby Zara dominates supply chain, and Amazon dominates data, the ability to create and be unique will define your brands trajectory more than you may initially think.
POINT OF THE POD.
In a world where Zara dominates supply chain, Amazon dominates data and data aggregation, new brands need to leverage the power of creation. Zara copies. Amazon commoditises. You need to 'create'.
MY INCOHERENT SCRIBBLES
- Operationalising the business is difficult, but you cannot execute half the plan. D2C brands have the sexy branding covered. But the analog - the supply chain lets them down. How much inventory is enough how much is too little, etc etc, is vital, yet ignored.
- You need marriage of demand activation and supply gratification through physical delivery of product.
- Great ideas are a dime a dozen. Operationalise. Need expertise on the operational side.
- Culture of "I’ll have one of those. No. 1 please." Fashion is not McDonald’s. Convenience doesn’t apply to the supply chain.
- VC wants business to spend the money on special things and not basic things. Not office building and HR building. What is special is 20% of what you do. Commoditise and automate the other 80%.
- If you get to 1000 customers, you can get to 10,000.
- Zara dominates supply chain, Amazon dominates data and data aggregation. Zara copies. Amazon commoditises.
- Become as large as you should be in order to retain the meaningful quotient. As you grow you switch out people who love your brand for people who like it.