There's this little publication called Women's Wear Daily (and the loveliest editor called Rachel Strugatz). Rachel landed the WWD cover story on August 6th and took on the topic of e-commerce, buzz and profitability - questioning the path to growth, the role of venture capital, and the road ahead for retail companies in a digital age.
Among a critical examination into these unknown ecomm companies like Amazon, Asos, Nasty Gal, ModCloth, Rent the Runway, Bonobos, Warby Parker, BaubleBar and Everlane, Rachel ended her story with.. Negative (cue us freaking out and using far too many exclamation points - !!!!!!!!!!!!!!!!!)
We're just going to copy that text here for you.
And yes, we're still pinching ourselves.
The Road to Black: How E-commerce Companies Get From Buzzy to Profitable
by Rachel Strugatz, WWD
...Then there are those e-commerce entrepreneurs who don't want any money at all, such as six-month-old start-up Negative Underwear, an innerwear company launched by two University of Pennsylvania graduates.
'It seems like there is a big trend in the world of start-ups - and that is success measured by how much money you've raised versus how profitable your business is,' said cofounder Marissa Vosper. 'We have a hard time getting comfortable with that trend, which is why we've been adamant about staying self-funded, even though we have a lot of conversations about it.'
The company turned a profit within two weeks and has been keeping costs low, with almost no overhead. The majority of the cost went into product — luxurious innerwear that rivals the likes of high-end lingerie brands, but with prices not much higher than Victoria’s Secret. Bras start at $65 and go up to $85, and underwear tops out at $40.
'There’s the camp of raise money fast, scale fast and sell fast,” she said. “I don’t think that’s the approach we’re taking with our business.'...