Neil Blumenthal

The moment everyone has been waiting for is here…. Well maybe not everyone, but I do look forward to the annual ThredUp resale report, which just got released 🤩 Some stats I founded particularly interesting related to the rapidly growing resale space: The headline stat: 🌍 The global secondhand fashion market will reach £280+ billion within 4 years, growing 3X faster than overall global fashion market 📈 Resale grew 15X faster than the broader retail clothing sector last year. 🤯 An incredible 2 in 5 fashion items bought in the last 12-months were secondhand. 💸 Consumers spent nearly half of their fashion budget on secondhand in the last 12-months. 📱 Online resale is driving growth, growing 23% last year and will account for half of all secondhand spend by next year. See the report here: https://lnkd.in/eqrYtYuY Tomorrow I’ll share some stats on the growth of branded resale. Try to contain your excitement and sit tight!

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For some of our brands, over 40% of their customers have Treet accounts (i.e. nearly half of their community is participating in their resale program) 🤯 This bodes really well for the case toward circular business models. Brands that fully embrace resale and see this type of adoption have the best chance at reducing their footprint – they can depend more on resale revenue and less on new product production for growth. If brands can get resale-attributed revenue to 20% or more, suddenly the concept of degrowth becomes a lot more feasible.

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This is such an important observation about the current landscape of department store leadership. It’s encouraging to see women leading major fashion divisions at Amazon and Walmart, but it’s clear there’s still a significant gap in representation at the top levels of traditional department stores. Diversity in leadership not only reflects the customer base but also drives innovation and inclusivity within the industry. We have a tremendous opportunity to push for more representative leadership across all sectors. Let's continue the conversation and advocate for change. #DiversityInLeadership #RetailIndustry #WomenInBusiness

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Good article on Puma outlined by Ken Pucker on how they were able to decouple increased growth from lowering emissions. Impressive data that since 2017, Puma has doubled revenues to $9.3 billion, while cutting carbon emissions by 30%. On a per unit basis, that is a 66% reduction. At my last company, I created a model to show that the consolidation of markets, with a calendar adjustment could reduce emissions by 18% allowing a reduction in carbon emissions and creating a savings from air to sea freight alone. This is one of the highest impact adjustments companies can make to really lower emissions.

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Last week we had the pleasure of hosting a gathering of senior retail leaders in New York to discuss “How to Win with AI: The Human Factor”. The event included an expert panel moderated by our very own Charlie Stack and featured the perspectives of: • Jack Hanlon, AI Product Leader, Meta • Prakhar Mehrotra, Managing Director of AI, Blackstone • Laks Srinivasan, Co-Founder and Managing Director, Return on AI Institute So how should retailers successfully deploy AI? The first step is to clean up their existing data. They don’t need to embark on a complete technology overhaul but instead start with their most important business problems and commit to a few where AI can make a clear impact. Retail leaders also need to remember that successfully integrating AI is not a tech agenda, it’s a people agenda. Successful organizations appropriately prioritize AI, determine the best ownership structure for AI, and incentivize behavior that supports AI adoption. Integration does not start with, “Can AI replace human capital?”, but instead should be, “How can AI support my people to solve problems better?” But this all requires support from the top. Instigating change and successfully leveraging any technology, especially AI, needs to be supported by Board and C-suite leaders, and is best done by those who have invested in developing AI intuition. We would like to thank our panelists and guests for their fascinating contributions and also invite you to read our latest thinking around AI in retail by our London-based colleague Veena Marr:

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Everybody needs a place to put their love. - Karina Dresses tagline, circa 2012 In 2012 I made my first investment in a #femalefounder who also happened to be 50+. At the time I had no idea how unusual these founder traits were. I just knew the founder was passionate, authentic, experienced, perfectly aligned with both the product and the market. Most importantly there was a strong emotional bond between the product and the customers who bought it. 🤷🏾‍♂️- it just seemed like the smart thing to do. Not a lot of my investor buddies agreed at the time- probably not so surprising. Fast forward 10+ years and the value of my investment is ~20x & the amount of free cash flow distributed to equity holders is substantial & still increasing YOY. My takeaways: ✅Invest in authenticity, passion and intimacy (customer)- no matter what the founder profile looks like relative to others. ✅Follow your gut. ✅Not every deal is venture scale worthy. But there’s a potential investor for every deal. ✅Be the best version of you, not a lame version of someone else. Works for both investors & founders. :) Congratulations to Karina and the team at Karina Dresses! Proud as punch to be on this journey with you all🚀

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And here we go again, another #retailer announces the opening of its marketplace. I do not have access to this #WWD article, but from what I heard, they are taking it slow and onboard a small number of sellers. The platform they use is most likely Mirakl, and I could not find any signup form to join if you are planning to. I am not sure we need yet another marketplace. 😑 Also framing it as Spotify for #Fashion (is it Nordstrom or WWD way to put it?), what does that really mean? Spotify primarily makes money through subscriptions. So, can I subscribe to #nordstrom for monthly payments and get any clothing I want? That would be actually cool, but this model was already kind of explored by companies like Stitch Fix. #nordstrom #marketplace #ecommerce #Mirakl

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I have suggestions to help fashion ecommerce: The demand for functional fashion is on the rise, and pockets are leading the charge. The Wall Street Journal's article, "Women’s Clothes Finally Have Pockets. What Took So Long," highlights the evolution of women's garments, now featuring pockets that offer both utility and style. This shift reflects broader societal changes, promoting equality and recognizing women's active roles in public and professional spheres. As an avid supporter of pockets, I appreciate how they can be designed to either stand out with a cargo style or blend seamlessly into the garment's design. For e-commerce retailers, this trend presents a significant opportunity to enhance the online shopping experience. Here are some actionable insights: 1. Add a "Pockets" Filter: Introduce a filter option specifically for pockets, allowing customers to easily find clothing items that meet their functional needs would improve navigation and discoverability. 2. Detailed Product Descriptions: Clearly indicate the presence and type of pockets in product descriptions. Don't rely solely on images; specify the functionality and design of the pockets. Added benefit of improving SEO. 3. Highlight Functional Fashion: In your marketing and product listings, emphasize the practical benefits of pockets, supporting the growing trend towards functional equality in fashion. By integrating these features, retailers can cater to the increasing demand for practical and stylish clothing, ensuring a better shopping experience for their customers. If you make these updates please let me know any data insights.

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🤯 5% of Ministry of Supply's annual revenue is attributed to resale 🤯 Branded resale has been a game-changer for Ministry of Supply. Since launching with Treet, they've leveraged our peer-to-peer and off-price solutions to see these impressive gains: ♻️ 4X increase in resale sales (compared to previous resale efforts) ♻️ Thousands of units of "otherwise unsellable" inventory sold ♻️ 62% of sellers choose credit, then spend 196% of their credit when redeeming ♻️ 70% sell-through rate on resale listings Read more about MoS's partnership with Treet here: https://hubs.la/Q02y0S7n0

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At Costanoa Ventures, we pride ourselves on identifying and supporting exceptional founders poised to create impactful, lasting change. Hona is a shining example, driven by a trio of extremely talented founders: Manny Griffiths, Joshua Christensen, and Matt McClellan. They each bring unique, differentiated expertise to the table, and Amy Cheetham and I are extremely excited to partner with them. There are approximately 450,000 law firms in the United States, with half of those firms being B2C - think personal injury, mass tort, or immigration law as opposed to BigLaw. One of the reasons we love how Hona is tackling this market is their focus on B2C law firms and product excellence - B2B firms are historically difficult to sell brand new software products into, but B2C firms are completely different buyers. Oftentimes there's just a handful of lawyers and paralegals in a partnership, and any piece of technology they can use to give them an edge would be valuable. 44% of negative Google reviews on law firms directly reference poor communication as the reason for a negative experience, and the number 1 reason for Attorney Bar complaints in the U.S. is "lack of communication". On the lawyer's side, attorneys, paralegals and legal assistants spend an average of 7.4 hours per week on unnecessary updates, redundant communication, and activities that aren't directly contributing towards getting a client's case solved. Manny and the team at Hona are working to change all of that. Hona delivers a tightly-integrated communications platform to help facilitate better communication between law firms and their clients. During legal proceedings, client communications tend to be a large resource-stressor for law firms. Clients will frequently call firms for case updates, legal explanations, or general administrative questions that tend to eat away at firm resources without providing any additional progress toward case resolution. Hona exists to ease that burden - it’s a platform that allows law firms to efficiently communicate with their clients over text, easily build customizable web pages and embed videos, and share information on case status and basic legal process education. This crucial communication processes allow attorneys to focus on their job – moving cases forward, while keeping their clients informed and educated. If you're a lawyer dealing with these problems - don't hesitate to reach out to us or the Hona team! It's a privilege to work with Hona on this journey. The company has been growing at a rapid pace, and they're delivering meaningful technology to help people get through legal proceedings in a much more fluid, transparent, and easy process. Manny, Joshua, and Matt are exceptional founders whose combined skills and dedication to continuous learning position them perfectly to lead Hona to success. They're just getting started, and we can't wait to see what they'll achieve.

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The online apparel industry is grappling with a high return rate of 24.4%, a figure that has risen by over 50% since 2020. A significant portion of this returned inventory becomes unsellable and is often destined for landfills. Revive is a data-driven platform designed to convert this excess inventory into sellable assets. The company will undertake the necessary adjustments—be it repairs, cleaning, or repackaging—to restore the distressed inventory to a sellable condition, enabling it to be listed and sold through any channel preferred by the brand. This approach spares brands and retailers the hassle of processing, storing, and disposing of these items, allowing them to recover a portion of the original value that would otherwise be completely written off, thereby directly enhancing their profit margins and bottom line It is estimated that the total value of inventory poised for discard is nearly $1T. To date, Revive has processed merchandise with a total value of $23M. AlleyWatch caught up with Revive Founder and CEO Allison Lee to learn more about the business, the company's strategic plans, recent round of funding, and much, much more...

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Thank you Rachel Erickson, PMP for having me on your podcast. I am excited to share this feature on the latest episode of the Unmarked Street Podcast. 🎧✨ In this special episode, Rachel and I dive deep into fashion entrepreneurship, sharing a fresh perspective on building successful brands from scratch. Whether you're a start-up apparel brand or looking to scale, this discussion will shed light on fashion business management. We talk about: 🚀 Effective strategies to navigate challenges in the fashion industry. 🔥 Practical advice on tackling immediate problems ("putting out fires") with a series of "whys" to find the root cause. 🌐 Insights into enhancing operational efficiency. 🛠️ An introduction to the YAY Method, an end-to-end roadmap to Build a Fashion Business that converts on a lean budget. This conversation has actionable steps that can drastically reduce procurement times and keep you competitive. 📉➡️📈 Don’t Miss Out: Towards the end of the podcast, we get an in-depth look at our exclusive Self-Starter Online Program for fashion entrepreneurs. This program is meticulously designed to empower you with the knowledge to survive and thrive in the competitive fashion world. 🌍📊 Listen to the full episode to gain invaluable insights, and don’t forget to check out the Self-Starter course. I have shared the link in the comments. https://lnkd.in/g2HyK2uk #fashionentrepreneur #yushkovadesign #yaydesigns #selfstarter #fashionbusiness #podcast #yaymethod

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Thrilled to have attended the panelist conference at Uplink Expo NYC on June 20th! Here are some crucial insights from beauty brand founders that are reshaping my approach in the industry: Exit Strategies: Learned that most beauty brand acquisitions happen without active pursuit from founders – truly organic growth can lead to organic acquisition opportunities. 🌱 Product Development Insights: Retailers' push for frequent product launches is intense, but it's vital to focus on quality over quantity – too many launches can overwhelm your brand and oversaturate the market. 🚫📈 Marketing Mastery: As a veteran in advertising, I understand the gravity of budgeting for CPG brands. The conference reiterated the importance of clever cash flow management for emerging brands to sustain and grow market presence. 💸📊 Capital and Retail Synergy: The financial bar to enter large retailers is high. Raising capital early is key, and a significant purchase order can be a powerful tool to fuel your funding round. 💡🔑 This conference has not only provided me with critical knowledge but also reaffirmed the importance of strategic thinking in the journey of a beauty brand. Let's connect and discuss the future of beauty! #UplinkExpo #BeautyIndustry #ProductDevelopment #MarketingStrategy #Retail #CapitalRaising

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"It’s about extending our ability to find incredible brands we believe our customers will love and introducing them to those brands at a bigger scale, without the cost of a #wholesale model.” A lot to applaud in Nordstrom's #marketplace launch (#TLDR their vision is to become "The Spotify of #Fashion") ... enabling broader, deeper assortments; building out extended sizes; making marketplace items accessible to in-store #stylists; offering tailoring and alterations; and perhaps most importantly, allowing in-store #returns for marketplace purchases. In addition, I think they should use this as an opportunity to extend beyond "#gifting, #home, and #outdoor" and build share of wallet across a broader range of products and services. For some retailers, a marketplace is a chance to try and become #TheEverythingStore. For most, however, it's an opportunity to curate a range of goods and services that are tailored to your target customer(s), without the requisite costs of setting up #fullstack teams., processes, and #OTB to support. https://lnkd.in/g9aR6sjE

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I've noticed a recurring trend in the fashion industry: a shift towards business models focused on thrifting, pre-owned, or recycled goods, and it’s bigger than we think. Year over year, the U.S. secondhand market grew 11% in 2023, seven times faster than the broader U.S. clothing market. Major online marketplaces are recognising the huge potential of pre-owned fashion. eBay recently removed all selling fees for used clothing items, making reselling more accessible. They also hosted a live shopping event where comedian Katherine Ryan sold pieces from her personal wardrobe with proceeds going to charity. Brands are also exploring more sustainable options. Urban Outfitters launched a clothing rental subscription service. Everlane introduced an in-store drop-off program for used clothing credits. Even brands like Patagonia, Levi's and Nike now offer national buyback programs, offering store credit in exchange for pre-owned clothes. TikTok Shop UK has launched a preowned luxury fashion category where shoppers can browse through big brands added to the platform.  Is this shift towards pre-owned fashion a viable business vertical for brands, or are they primarily adopting it to cultivate an image of promoting conscious consumerism, which may ultimately lead to consumers trusting the brand more? Picture - Statista #ecommerce #thrifting #retail #fashion #ecommerceusa

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��If you look at consumer purchasing decisions, people choose the lowest price for the best perceived quality and style,” said Elena Bridgers, who launched her slow fashion line Hera California. “That’s rational. It’s a really small segment of people who live their values when it comes to sustainable fashion.” Is there room in the market for brands that put sustainability first? Is there a market space for truly sustainable fashion or is it just a dream of a few? Who can change this industry to be more sustainable for all the consumers? Will only the rules imposed by legislators be able to do it? What will be the role of the DPP in the evolution of a more sustainable fashion industry? #Sustainablefashion #sustainability #traceability #circularity Arcangelo D'Onofrio Natasha Franck Laure Betsch Martina Schiuma Romain Carrere Francesco Pieri Guido Mengoni Alois Bertona Gianpaolo Azzini Veronica Monni Amit Gautam Matthieu Hug Shameek Ghosh Jason McIntosh Piero Puttini Carlo Giardinetti, MBA giorgio macor

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✨ NYC! It's been a while! I am excited to join fellow founders at Alternew, The PS Collective, and Recurate at the Future of Fashion forum for #NYTechWeek. I will be speaking on the Post Purchase Panel. ✨ Post-purchase is the most ignored stage of Fashion, but it is also arguably the most important. This is where a customer gets to experience and judge a product after the sparkle of newness wears off. This is where the "rubber hits the road," when you figure out how a new purchase fits into your life: how to wear it, how to care for it, and how to trade/rent/resell it. Post-purchase is where brand love is built, customer loyalty is gained, and sustainable fashion practices are tested. There is a massive technology gap to fill here, and I can't wait to share what we are building at Indyx! Also, I can't wait to catch up with fellow #hoyas innovating Fashion - Danielle L. Vermeer, Kotryna Jukneviciute, Yanpei Cassie Huang, and Leslie Harwell.

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Friday Thread is back! 👇 Navigating MOQ's and other common challenges when building a sportswear collection. This week on my Substack I explore the challenges associated with start-up apparel brands including MOQ's, streamlining a products components, and how to manage the tricky process of colour. Topics include; • Breaking down an apparel product and its components 🎽 • The art of fabric consolidation 🪡 • Understanding the importance of trims and decisions surrounding them 🧶 • Why colour cards are integral for a start-up 🎨 • How navigating the toughest challenges starts with design ✏️ Please share any thoughts or questions in the comments section. Share, subscribe and enjoy 🙂 https://lnkd.in/gZhjD2iQ #activewear #appareldesign #startup #sportswear #startuplife #sourcing #startupjourney #manufacturing #logistics #trims #apparel #productdesign #newsletter

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I was quoted in this article on the FTC trying to block the merger between Tapestry and Capri. What I find interesting is that, like me, most of the other people quoted find the ruling incredulous. This includes an executive from a competitor brand, who admitted that while they should be happy about the attempt to block, they actually think the FTC is anachronistic and has no understanding of how the market works. I go further. I think the FTC has become a menace. It is attacking the companies that generate wealth and make the country stronger. It does so under the camouflage of 'protecting consumers' but, in reality, the only thing it's protecting in this instance is its own warped worldview. Thanks to WWD for including my thoughts alongside many other interesting musings... https://lnkd.in/e-qqm_z6 #retail #retailnews #luxury #handbags #FTC #competition

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