Mindy Grossman

Levi's just revealed what every fashion brand chasing DTC dreams needs to hear: 𝘄𝗵𝗼𝗹𝗲𝘀𝗮𝗹𝗲 𝘀𝘁𝗶𝗹𝗹 𝗱𝗿𝗶𝘃𝗲𝘀 𝟱𝟰% 𝗼𝗳 𝘁𝗵𝗲𝗶𝗿 $𝟲.𝟰 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀. While CEO Michelle Gass celebrates her "DTC First" strategy delivering 11% growth, here's what the numbers actually show: 𝘄𝗵𝗼𝗹𝗲𝘀𝗮𝗹𝗲 𝗱𝗿𝗼𝗽𝗽𝗲𝗱 𝟯.𝟰% 𝗮𝗻𝗱 𝘀𝘁𝗶𝗹𝗹 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗲𝘀 𝗺𝗼𝗿𝗲 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝘁𝗵𝗮𝗻 𝗗𝗧𝗖. The 2024 breakdown: ↳ Wholesale: $3.4 billion (54% of revenues, down 3.4%) ↳ DTC: $2.9 billion (46% of revenues, up 11.3%) ↳ Added 157 company-operated stores in one year Despite aggressive DTC expansion and double-digit growth, wholesale still generates $500 million more in annual revenue. 𝗧𝗵𝗲 𝗗𝗧𝗖-𝗙𝗶𝗿𝘀𝘁 𝗽𝗮𝗿𝗮𝗱𝗼𝘅 Levi's is pouring resources into DTC infrastructure: ↳ High fixed costs in retail real estate ↳ Significant ongoing investments in equipment, inventory, and personnel ↳ IT systems and omni-channel capabilities ↳ Rising labor costs at distribution centers Meanwhile, their wholesale channel declined 3.4% in 2024 (a warning signal they couldn't ignore). By Q4, management shifted focus to "stabilizing wholesale" for 2025. Translation: they realized the DTC-only path has limits. 𝗪𝗵𝘆 𝘄𝗵𝗼𝗹𝗲𝘀𝗮𝗹𝗲 𝘀𝘁𝗶𝗹𝗹 𝗺𝗮𝘁𝘁𝗲𝗿𝘀 Levi's sells through approximately 50,000 retail locations worldwide. Their products sit in department stores, specialty retailers, and mass channels where consumers already shop. That's reach DTC can't replicate (at least not profitably). The math is simple: ↳ DTC: Higher margins × limited reach × high fixed costs = growth ceiling ↳ Wholesale: Lower margins × massive distribution × lower fixed costs = sustainable scale 𝗧𝗵𝗲 𝗿𝗲𝗮𝗹 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 Levi's isn't choosing between channels (they're optimizing both): ↳ DTC gives them brand control and customer data ↳ Wholesale gives them market penetration and volume ↳ The combination creates brand omnipresence Their top 10 wholesale customers still represent 26% of total revenues. No amount of DTC growth can replace that overnight. 𝗧𝗵𝗲 𝗹𝗲𝘀𝘀𝗼𝗻 𝗳𝗼𝗿 𝗳𝗮𝘀𝗵𝗶𝗼𝗻 𝗯𝗿𝗮𝗻𝗱𝘀 Stop viewing wholesale as legacy distribution. It's a growth multiplier when executed strategically. The winning formula isn't DTC-first or wholesale-first. It's channel harmony. Nike already tried going all-in on DTC but backtracked because it didn't make sense in the long run, financially speaking. Now Levi's is pushing "DTC First" while quietly working to stabilize their wholesale decline. It will be interesting to see how fashion brands decide to play in the future and what distribution channels they choose to prioritize. The winners won't be the brands that choose one channel over the other. They'll be the ones that master both. ___ 🛍️ P.S. If you think we can help your #fashion brand achieve better results with paid advertising and economics optimisation, feel free to send me a message or visit Grapefox.

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We've figured out the secret sauce that can take brands from zero to viral sensations, seemingly overnight. So, what's the formula? Our latest mini-book gives you insider info on what the world's most successful brands like Brandy Melville, SKIMS, and Autry are doing. Here are a few key takeaways: ✅Understanding the Market: Brands must grasp the complexities of the Chinese market rather than applying a one-size-fits-all approach. This involves leveraging cultural insights and adapting strategies to meet the unique needs of Chinese consumers. ✅Successful brands often combine several psychological triggers and strategic elements: - Wow Factor: Creating extraordinary or surprising products or campaigns to grab attention. - Authenticity: Building trust through genuine storytelling and relatable content. - FOMO (Fear of Missing Out): Utilizing limited-time offers and exclusivity to enhance desirability. - Emotional Connection: Evoking strong emotions to ensure memorability. - Relevance: Staying aligned with cultural trends and societal conversation. - Shareability: Designing experiences or visuals that audiences want to share. ✅Thriving in Tough Conditions: Some brands manage to thrive even during economic downturns by carving out niches and building loyal customer bases, often without a physical presence in China. ✅Cultural Sensitivity: Brands must be aware of cultural nuances to avoid backlash, as demonstrated by the public reaction to Nike's controversial ad (check out the mini-book to get the full scoop.) Want to learn more? Check out the mini-book for the full story... #Retail #China #Viral #Marketing #ChinaBusiness #Ecommerce

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Retailers are overlooking the most valuable billboard they already own. Every month, retailers pour tens of thousands of dollars into above-the-line and out-of-home advertising all to capture fleeting attention on highways, bus stops, and buildings. But there’s one high-impact, high-intent OOH channel that’s already in your control - your store windows. Let’s put it in perspective: • A standard billboard in LA? Thousands of dollars per month for just 672 square feet of passive exposure with ROI that’s nearly impossible to track. • A flagship store in a high-footfall mall like Westfield Century City? The rent per month might be high, but the visual real estate, branding potential, and walk-in conversion opportunity is exponentially higher. Here’s the difference: • Billboard viewers can’t act in the moment. • Storefront viewers can. BUT, only if your windows are optimized. Outdated displays, poor visibility and campaigns that aren’t tailored to local audiences = silent conversion killers. Your storefronts aren’t just aesthetic assets, they’re performance media channels. And most retailers aren’t treating them that way. Every fixture, mannequin, and display should work as hard as your digital ads and be measured just as rigorously. But most retailers aren't tracking window performance and in 2025, that's a missed opportunity no brand can afford. That’s why we built Flagship - to help leading retailers transform every store into a high-performing media asset that drives measurable ROI. If you want to unlock the true performance of your retail stores, I’d love to hear from you.

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ZARA’s Playbook: Still Writing the Rules While others downsize and retreat, Zara is about to open a new flagship in San Francisco’s Union Square—a space most brands have abandoned. It’s not just a store. It’s a clear message: They still believe in physical retail, and they know exactly how to make it work. Here’s the Zara playbook in action: Speed like no one else. From sketch to shop floor in as little as 3 weeks. Fast fashion, yes, but underpinned by fast data. Every store, every sale, every scan feeds the machine. Built-in flexibility. They produce more than 50% of their range in nearshore markets (Spain, Portugal, Morocco, Turkey), cutting lead times and reacting to demand in real time. Technology that serves the shop floor. RFID tagging. Auto checkouts. Smart changing room mirrors. Zara doesn’t just use tech for headlines, it uses it to move stock, personalise journeys, and stay lean. Curated Local store inventory means local relevance. Zara doesn’t roll out cookie-cutter formats. Stores flex by city, by region, even by demographic. In San Francisco, they’ll bring in the right product, not just all the products. They are connected from front to back. Try in-store, buy online. Buy online, pick up in-store. Returns, stock, and styling are all integrated. While others struggle to connect the dots, Zara makes it look effortless. And behind all this? A business with real results. San Francisco isn’t just another store. It’s proof that Zara doesn’t follow trends. It sets the pace, then keeps outpacing everyone else. Because while others redraw the rulebook Zara still writes the rules. #Zara #RetailPlaybook #GlobalRetail #RetailInnovation #RetailVoices #FastFashion #RFID #FlagshipStrategy #RetailMomentum

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