2PM - No. 384: A Supreme Analysis

Primer: VF Corporation is the owner of: Dickies, Eastpak. Eaglecreek, JanSport, The North Face, Timberland, and Vans. The distribution strategy is heavily reliant on physical stores. A veblen brand s a class of luxury good that achieves a demand increase as the price increases. The parent company and their new acquisition may be at odds unless the partnership is properly cared for. The above depiction is of a potential Supreme store in 2023. 

It’s a huge win for VF Corp, which has partnered with Supreme in the past on collaborations with its house brands. But Supreme’s status hangs more in the balance. The streetwear giant has begun to defy the laws of gravity of its own category as it’s grown. Streetwear hinges on exclusivity, and is based in underground culture, defining what’s cool and existing just out of reach of the masses. Supreme is the closest to mainstream streetwear as we can define it, but streetwear will always realign itself. For every Supreme drop there are brands on the up and up waiting to be discovered by those invested in putting in the time.

Supreme has been acquired by VF Corp for over $2.1 billion

Brands / Highsnobiety: Supreme’s acquisition is a hefty one — higher than $2 billion. The move gives VF Corp leverage over a cult-like customer base, and a stronghold in the apparel and streetwear industry. For Supreme, an unlocking of global supply chain and business operation capabilities can take them to an even greater level.

On the Supreme Acquisition 
By Clayton Chambers, 2PM Executive Member
Editor: Web Smith, Founder 

The Supreme that we know - one that pioneered an entire menswear genre - is fading. This should surprise no one. You don't sell a brand like Supreme to a Private Equity Firm (or a parent company like VF Corporation) and expect a different outcome. The moment that Supreme sold a majority stake of their brand to The Carlyle Group, the cult-like aura began to lose its luster. 

I wonder how founder James Jebbia feels about this development. He spent decades building the Supreme empire on the principles of exclusivity, industry rebellion, community, and unpredictability. None of those elements can be purchased. They take time and extraordinary amounts of energy to develop. To imagine that Supreme may be bastardized by mass distribution has to sting Jebbia, a bit. The Supreme that the early team built will forever remain an anomaly. They didn't follow playbooks, they designed their own. One of the values of a veblen brand is its scarcity and independence. Mass distribution may change that, after all. 

Are we nearing the end of an era? We’ll see.

Clayton writes about menswear here. Additional reading: Gilded Age 2.0 

2PM Data: The VF Corp Retail Footprint 

How Peloton could beat Nike and Lululemon at apparel

DNVB / Wall Street Journal: In-line with their vertically-integrated spirit, Peloton is getting more serious about perfecting an in-house apparel line that could, and should, rival the likes of Nike, Lululemon, and others. The fitness world is signaling their love and lust for the company and its affinity. Acting on this demand, apparel is the next move en route to becoming a prominent lifestyle brand.

How the Nugget couch became Supreme drops for moms

DNVB / BuzzFeed News: Web Smith, founder of 2PM, a direct-to-consumer and eCommerce newsletter, believes Nugget isn’t just the latest Furby. “Nugget is past the point of probably going to fizzle out,” he told BuzzFeed News. “They are far too big for it to be COVID-caused.”

Venmo is trying to dominate retail contactless payments

Fintech / Modern Retail: For those of us that have issues forgetting our wallets, or who seek the ease of combining purchases and paybacks with friends, Venmo has been a game-changer. It’s as much a social network as a fintech enhancer — garnished with a public memo forum, if you’re so inclined. Now, the company is looking to further embed themselves in the retail transactional landscape, by way of contactless payments. They’re signing on new merchants as we speak.

Why resale eCommerce is growing in the face of wider retail challenges

eCommerce / Econsultancy: Since the pandemic, online resale sites and apps (also known as ‘recommerce’ sites) have seen a surge in usage and overall sales. This is in contrast to many other retailers — particularly those with brick-and-mortar stores — who are facing the sustained negative financial impact. According to Three Up’s ‘Resale Growth’ report, the online second-hand market is predicted to grow 69% between 2019 and 2021, while the broader retail sector is projected to shrink 15%.

People spent the summer freaking out and subscribing to the New York Times

Media / Recode: That’s what happened this summer and fall when the country was consumed with a pandemic, a presidential race, and a reckoning over racial injustice: Through July, August, and September of this year, the Times added close to 400,000 subscribers; it has added 2 million over the last year.

Fashion's US election elation on Biden

Retail / Vogue Business: Gucci designer Alessandro Michele posted a photo of a youthful Kamala Harris on his Instagram account. Stylist and editor Carine Roitfeld, designers Peter Dundas, Marc Jacobs, Prabal Gurung and Pieter Mulier were among many to celebrate on their social platforms with photographs of Harris and Biden, often in his signature aviator sunglasses. Harris, who would be the first female, first Black and first Asian US vice-president, was particularly celebrated by fashion personalities.

Quote tweets have turned us all into jerks

New Media / OneZero: Some tweets decontextualize, but memes and quote tweets recontextualize — they draw attention to different media. They take a visual and say, “Hey, you scrolling down your timeline, you need to stop and see this.” When used for political purposes, quote tweets seek to provide the essential takeaway or “correct” context from the words they reframe. Like a description in the frame of a painting in an art museum, they tell viewers how they should interpret what they are seeing.

A pandemic winner, Tupperware may add services, industrial products

Trends / CFO Dive: Starting early last year, the company revamped its websites into eCommerce platforms and launched a suite of tools its salesforce members could use to host virtual parties and showcase products across social media networks. "Instead of having a party at your house where eight to 10 people would come, they were hosting parties on Zoom or Facebook Live and guests could invite whomever they wanted. So, a party of eight to ten turned into 16 to 20 and continued from there," she said. Timing of the digital transformation was fortuitous; the pandemic hit a year later.

On Tuesday at 8 am EST, 2PM will publish a special report on a culmination of trends that will impact our industries and our politics. The digital electorate is a second-order effect of: COVID's havoc, the shift towards digital goods and services, and where we choose to live as a result. With the recent news that Pfizer is in the later stages of making a vaccine available, it begs the questions: which behaviors are temporary? And which behaviors will out-live the pandemic? This report will feature 2PM's original artwork. 

Check back on the homepage (2pm.inc) for access.