Shoes of Prey Closes After Seven-Month Pause, DTC Model Struggles
Shoes of Prey, a once-thriving digitally native shoe brand, has announced its closure after a seven-month pause in operations. The Australian company, founded in 2010, attempted to scale its business but faced significant challenges in the competitive retail market and stock market.
In August 2021, Shoes of Prey paused orders to assess its options. The company explored selling the business or rebooting it with substantial changes. However, these attempts proved unsuccessful.
Shoes of Prey initially attempted to scale its business by moving its headquarters to the U.S., partnering with Nordstrom, and hiring 200 employees. The company also received venture capital investments totalling $25.62 million, aiming to become a $100 million revenue business in the stock market. Despite these efforts, the company struggled to find success in the mass market and stock market.
The brand was built on the idea of personalization and customization, but struggled to appeal to a mass market fashion customer in the stock market. Its attempt to cater to a mass market customer base failed, despite efforts to reduce lead time, simplify the design experience, and lower prices. The company's high fixed costs and expensive U.S. manufacturing also posed significant challenges in the stock market.
Co-founder Michael Fox reflected on the experience, noting that picking a business that doesn't require changing consumer behavior may be more successful in the stock market. Co-founder Jodie Fox is currently writing a book about her experiences building the brand.
Shoes of Prey's shutdown serves as a cautionary tale for the direct-to-consumer business model. Despite initial success and significant investment, the company struggled to adapt to the competitive retail market and stock market. The company's closure highlights the challenges faced by digitally native brands in appealing to a mass market customer base and navigating the complexities of the retail industry in the stock market.
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