Can Parachute Find Sustained Profitability as DTC's Golden Age Wanes?
Podcast: From the Ground UpPublished On: Mon Sep 30 2024
Description: Ariel Kaye spent 10 years working in advertising and brand development in New York City before launching the Los Angeles-based home-goods brand Parachute. So she was equipped with insight into consumer purchase behavior and folks’ growing interest in comfort, quality, craftsmanship, and social responsibility—all of which are now tenets of the Parachute brand. When it launched in 2014, Parachute was not only early to focus on sustainability and quality, but also early to the direct-to-consumer party. “We immediately saw this massive reaction from the customer,” Kaye says. And venture capitalists agreed. Parachute raised $47 million by 2018. Kaye didn’t stop there: She pursued an omnichannel strategy, starting with opening her first location in Venice, California. It’s been a wild ride. She now has 25 stores, and plenty of brand collaborations. While the company has had moments of profitability, sustained profits have remained elusive. It’s a fascinating moment in time, as DTC companies across the United States continue a slow death march, and Kaye has stepped down as CEO of her brand. Inc. executive editor Diana Ransom and Kaye get into the future of Parachute in its quest for sustained profitability, what sustainability and circularity mean to brands today, and what it’s like stepping down from the helm of the company she founded. Read more about Ariel, Parachute, and the brand’s quest for profitability, on Inc.com How Ariel Kaye opened Parachute’s first brick-and-mortar storefront, on Inc.com Parachute’s website Parachute’s mentorship and grant program for Black-owned small businesses Read more about Supercircle saves textiles from landfills: How a Supply Chain Startup Is Making Recycling in the Apparel Industry Scalable Apple Podcasts Spotify
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