The Weekly Roundup (Week of 3/6)
Silicon Valley Bank fails, Adidas' takes fat Ls, DTC brands are in trouble... yikes.
1. The 2nd biggest bank failure in US history…
This is clearly a developing story so I want to be up-front about the fact that we really don’t know what will happen. Lots of people are catastrophizing the potential consequences, saying that this could be another Lehman moment. There’s certainly reason for concern, but the fact is that there are so many takes about the situation that it’s hard to know what to take seriously. Here is a good explainer of what created the crisis:
For a more detailed and humorous overview of the situation, read more here.
2. Adidas is sitting on $1.3Bn worth of Yeezy Inventory
Oh to see your heroes fall from grace… Adidas is in a real pickle right now as they try to decide what to do with their inventory. Do they sell the remaining stock and take the imminent backlash from critics? Do they destroy it? Should they give it away? I do not envy their CEO. Read more here.
3. Allbirds is the latest DTC brand to Stumble…
Oof, a $101.4M loss last year. As a young brand marketing intern at Allbirds, I would always scream the same thing over and over again: the brand is not cool. The perpetual butt of the joke and preferred footwear choice for tech bros and senior citizens everywhere! Allbirds really came in hot initially, though they never really connected with a fashion-forward audience. It’s not too late! Hire me and I’ll turn you into the next New Balance. Read more here about Allbirds’ financial troubles and the seemingly common trend of once-hot DTC brands.
4. Envisioning a Post-Turnstile World.
This was a great read about the state of punk, and the music industry as a whole after witnessing the meteoric rise of hardcore band Turnstile. Record labels are foaming at the mouth to discover the next Turnstile and their success has driven a lot of conversation about how the future of music could be changing. Read more here.