Why Brandless Failed When Aldi Succeeded

Conversely, as Casper discovered, there is no particular reason why a company selling consumer products ‘but on the internet’ should have any higher margins than anyone else. It seems quite likely that the great consumer reset underway now will see the creation of all sorts of new retailers, brands and products, but it doesn't follow that they will... See more

Nike is down 30%+ YTD (wiping $60B+). A former Nike branding exec wrote a viral post and blames it on three decisions Nike made in 2020 under incoming CEO John Donahue. The plan prioritized the direct-to-consumer (DTC) business but backfired: ▫️ELIMINATE CATEGORIES: Mckinsey advised Nike to get rid of categories (running, basketball, soccer) and... See more

Brands playing the long game go to great lengths to become vertically integrated. That is, they own and control their production and supply chains. This requires plenty of upfront capital, to be sure, but the move plumps up a company’s margins and allows for quick product development and iteration.