2PM - Commerce 2024

Sponsor: GenAI is taking over restaurants, DTC retail is next. There isn't a better time for you to demo Optiversal. Their team helps retailers generate landing pages, product copy, and evergreen marketing content to attract customers primed to buy. 

The Three Issues... (Read Here): A casual understanding of foreign policy would suggest that retail is facing a point of concurrency, where three influences intersect at once.

The intersection of commerce and national security has emerged as a complex and multifaceted challenge for retailers and marketplaces navigating the pressures of pricing, shipping, supply chain, and forecasting demand.

Delays, costly insurance may raise prices on consumer goods

The Three Issues / Bloomberg: The situation underscores the vulnerability of key global shipping routes to geopolitical conflicts and the cascading effects such disruptions can have on international supply chains, freight rates, and ultimately, consumer prices. This disruption also demonstrates the strategic importance of maritime security in safeguarding global trade flows.

Shein, Temu marketplaces with no US sellers

The Three Issues / Marketplace Pulse: The success of Shein and Temu, despite their lack of U.S. sellers, underscores a shift in consumer purchasing behavior and the increasing globalization of e-commerce. However, their heavy reliance on Chinese suppliers raises questions about their long-term sustainability and ability to diversify their market offerings.

How Taiwan became the indispensable economy

The Three Issues / Financial Times: Despite the efficiency and low costs achieved over a decade, the complexity and expense of replicating this system elsewhere, particularly at comparable costs, poses a major obstacle. This situation reflects a broader dilemma for global companies reliant on the intricate, cost-effective manufacturing networks established in these regions, highlighting the trade-offs between supply chain resilience and efficiency.

New Update to the DTC Power List, presented by Bold Metrics. All brands are updated with the secondary interest poll. The latest top 50 is dominated by durable brands to include: Skims, Liquid Death, Gymshark, Figs, Lovevery (up 26 positions), Vuori, Solo Brands (up 20 positions), and LMNT (up 22 positions).

800+ Brands Measured

The pandemic's eCommerce stars are coping

DTC (Peloton) / WSJ: The case of these companies raises questions about the nature of the demand they experienced. Was it merely a pull-forward of future demand or an artificial spike due to unique circumstances? This distinction is crucial for understanding the long-term sustainability of a business model. Companies that experienced a pull-forward in demand might face a more extended period of subdued growth as the market normalizes, while those with artificially inflated demand may need to fundamentally reassess their market position and strategy.

Liquid Death commits mountains of murder in Fortnite

DTC (Liquid Death) / Muse: Liquid Death's game, with its distinct and humorous take on marketing, exemplifies a shift from traditional advertising to more immersive and entertaining forms of brand promotion, capitalizing on the popularity of gaming culture to reach new audiences in a creative and memorable way.

How leggings became a multibillion-dollar industry

DTC (Vuori) / CNN: Valued at $32.89 billion in 2022 and expected to reach $57.97 billion by 2031, this growth signifies a cultural shift towards health, functionality, and sustainability. Brands like Vuori and Hey Honey Yoga are leading with high-tech, environmentally conscious materials, emphasizing functionality, quality, and size inclusivity.

Online returns outpace in-store in 2023, NRF report finds

The Returns Fiasco / D360: The fact that 14.5% of all retail sales in 2023 have been returned, amounting to $743 billion, with $101 billion lost to returns abuse and fraud, underscores the financial and operational impact of returns on the retail industry.

No more free returns: 81% of retailers charge fee

The Returns Fiasco / New York Post: This shift is driven by the substantial cost of handling returns, which significantly impacts retailers' margins. In 2022, nearly 17% of total merchandise purchased was returned, amounting to approximately $816 billion. Retailers are adjusting policies to mitigate these losses, reflecting a fundamental change in the traditional retail model where generous return policies were once seen as a key customer retention strategy.

Retailers are bracing for their postholiday returns hangover

The Returns Fiasco / WSJ: The process of handling these returns is costly and intricate, requiring detailed inspection and decision-making about whether to restock, donate, liquidate, or dispose of returned items. This reverse logistics process is becoming increasingly significant in the retail sector, affecting profit margins and operational efficiency.

Silicon Valley’s quest to live forever has many warring factions

Longevity / Businessweek 👇🏽: This movement, fueled by tech industry's wealth and a belief in technological solutions to biological challenges, reflects a paradigm shift from accepting aging and death as inevitable to actively seeking their defeat. While it garners significant resources and attention, it also raises profound ethical, societal, and scientific questions about the implications of potential life extension.

Huberman husbands and the rise of self-optimization

Longevity / Mashable 👇🏽: While techniques like exposure to morning sunlight and cold showers are backed by research, the broader movement reflects a societal shift towards self-improvement that often overlooks the importance of community and systemic issues.

Bryan Johnson shares his recipes for anti-aging lunch and dessert

Longevity / Business Insider 👇🏽: Articles about Bryan Johnson's Project Blueprint are gaining attention for his unique approach to anti-aging and health. The biotech entrepreneur, known for founding Braintree and selling it for $800 million, is spending $2 million annually on a regimen to reverse his biological age.

Longevity: If a burgeoning industry can boast investors like Kleiner Perkins, Founders Fund, Eric Schmidt, Garry Tan, Elad Gil, Jeff Bezos, and Elad Gil - it is likely an awakening business with a rising profile.

For health optimization, 2024 is poised to be a landmark one. The business of longevity is transcending the era of cosmetic anti-aging products to encompass a more holistic approach to aging - one that focuses on internal health as much as outward appearance. This shift represents a significant evolution in the industry, where the focus is increasingly on enhancing life from the inside out.

Leading influencers of the industry, such as Andrew Huberman, Dr. Rhonda Patrick, and Dr. Peter Attia, have been instrumental. Their collective research and advocacy have helped shift the conversation from merely delaying the visible signs of aging to improving overall health and extending life spans through scientific and medical advancements.

The impact of this shift is evident in academic and business circles. For instance, the Harvard Business School's Optimization Chat, a WhatApp-based group chat shares research, anecdotal evidence, and best practices to improve one's chance at achieving centenarian status. It's a gathering point for those interested in exploring and exchanging ideas on optimizing human health and longevity and it's just a small example of how this topic has inspired discussions among intellectuals and business leaders.

Entrepreneurs like Bryan Johnson epitomize the quirky yet forward-thinking approach to this field. Johnson's personal investment in his health and aging process, though unconventional, underscores a growing interest in proactive health management and the potential for significant advancements in this area.

The industry is seeing an influx of investment from tech titans, venture capitalists, and even crypto enthusiasts, turning longevity research into a blend of cutting-edge science and a pursuit that sometimes borders on the fantastical. This diverse investment landscape is propelling the industry forward at an unprecedented pace.

Moreover, the field of anti-aging is no longer limited to traditional pharma or health products. It now encompasses a range of technologies and methodologies, from AI and biotechnology to lifestyle changes and preventive medicine. This range of products and sources of information aims not only to slow down the aging process but also to tackle age-inducing disease. 

This upcoming year will mark a pivotal year in the business of longevity. The media attention, public enthusiasm, and venture investment in this field suggest a future where aging as we know it could be radically different, presenting both exciting possibilities and profound questions for society to answer.