you’re so right about the brand story getting away from them. I didn’t know anything about the founder being from New Zealand, I thought they literally came from San Francisco. Your post also made me realize something else. I think the blandness is also a problem, the shoes don’t have a stylistic point of view. Shoes are potent markers of identity. Besides watches they telegraph more about our personality, professions, and values than almost any other garment or accessory. If a shoe is really bland looking while also being associated with an industry that’s universally distrusted? Problem. Crocs are disgusting but they fit in the “main character energy” era where people care about their own comfort above all else or being an “individual” with the heinous little charms you stick in the holes. Thanks for the shoutout!
Ya their origin story was so much more interesting than i realized!
The mid 2010s were a weird time. Do you remember Brandless? Another VC-backed company whose whole thing was selling blank products. I am partial to minimalism but i agree with you that if you want to make a product big, it needs to have some compelling point of differentiation and for shoes that usually means a stylistic differentiation
GREAT added fodder for my upcoming IPO post--and looks like I actually have to write it soon, thanks to your mention and the flood of folks clicking over to my Substack from here today!
The wool material and simple design was what first attracted me to AllBirds! I've had gone through two pairs of wool runners, and currently have the dashers and the slippers. They're great shoes. It's all because of wool being a superior material though. I agree that the brand did not lean into its benefits near enough. They could of been the "cool wool" shoe. They becme the boring/nefarious tech bro shoe. I've personally moved on to Golas as my everyday shoe.
Comprehensive! Im personally rooting for an Allbirds comeback. Their shoes are comfy and washable, this is enough argument to keep them around in my book!
This is great! In my head I truly only ever associated these shoes with the male tech crowd and there’s nothing fashionable about them lol. “enterprise SaaS shoe” is hilarious.
Totally! You’re right the lack of better brand storytelling was a miss. Ppl into fashion would have been responsive to the usage of wool I think. Birkenstocks are ugly but so many stylish women wear them.
Great article. When it became the uniform of the tech bro, it was doomed. Now it looks dated-tech bro. But chin up, price up, reposition it as a status good and introduce new styles. Tell that story everywhere and introduce updated, funnier, quirkier, New Zealand-ish versions of it. Be distinctive!!! Please, please, no athletic footwear marketing. p.s. Merino wool is my go-to fabric for everything. I want to love allbirds and don't. I should be their customer, and I'm mot.
I was aware of the brand story; I live in New Zealand it was told a lot louder here I think, or perhaps we were tuned in due to patriotism and Kiwi Pride. We’re also more aware of the role wool played for the product, as the fibre is part of our national identity (lol). Their shoes are still quite popular here, with certain demographics.
Yeah it’s great! I feel like they should have kept the product range small and focused. They released a lot of SKUs (footwear and apparel) the past few years and the focus was diluted a bit, but that’s my take.
Thanks Katy! Totally agree. Maybe Levi’s counts because the gold rush was sort of cool (although that may be just in hindsight, they were probably pretty annoying back then)
i was put on Allbirds in 2018 by my sister, she is a conscious consumer, fuss-free dresser. of the few times we’ve visited a boutique, i’ve found myself struggling to find options as someone that works in a corporate environment. in my personal time, a casual dresser, i have found the loungers a good option. i go to the gym with the free dashers but otherwise, pretty limited options for those that aren’t their specific TA and does not need the functionality factor when not in a cold climate. however, i do think they have a good product on their hands and seeing their recent content with Stanley Tucci and the expansion of product offerings, i can see how there might be hope just yet. fingers crossed
i didn’t know the founder’s story, no - definitely only knew about the product benefits (how it’s lighter and the wicking technology). honestly some of the most comfortable shoes i own and also, other than Paire (an Aussie cotton brand), they’re my other favourite for airplane wear (i fly often)
Joe, really well done article. I hear a lot of anecdotes of companies cutting back their DTC advertising spend. I wonder when or if that will show up in the revenues of the platforms.
I looked briefly at their 10-K. they raised $600 mm of equity and have lost about $500 mm of it. You have me interested to see if they can survive.
It is too bad since they’re comfortable for me to wear to work and they regulate temp well in LA summers but I can’t argue any of your points. I’ve glanced at their stock (and operating losses) a couple times the past few years and thought “uh oh”. dTC is hard; don’t think warby has ever turned a profit either and now you can buy Harry’s from target, Amazon et al (after their sale to Schick was shot down). I can see why it did seem like a great strategy early on.
you’re so right about the brand story getting away from them. I didn’t know anything about the founder being from New Zealand, I thought they literally came from San Francisco. Your post also made me realize something else. I think the blandness is also a problem, the shoes don’t have a stylistic point of view. Shoes are potent markers of identity. Besides watches they telegraph more about our personality, professions, and values than almost any other garment or accessory. If a shoe is really bland looking while also being associated with an industry that’s universally distrusted? Problem. Crocs are disgusting but they fit in the “main character energy” era where people care about their own comfort above all else or being an “individual” with the heinous little charms you stick in the holes. Thanks for the shoutout!
Ya their origin story was so much more interesting than i realized!
The mid 2010s were a weird time. Do you remember Brandless? Another VC-backed company whose whole thing was selling blank products. I am partial to minimalism but i agree with you that if you want to make a product big, it needs to have some compelling point of differentiation and for shoes that usually means a stylistic differentiation
"jargon is a mechanism for coping with insecurity"
nicely put 👏
feels like that probably came out of one of our Quonversations
GREAT added fodder for my upcoming IPO post--and looks like I actually have to write it soon, thanks to your mention and the flood of folks clicking over to my Substack from here today!
Yes you have to!! Looking forward to it
The wool material and simple design was what first attracted me to AllBirds! I've had gone through two pairs of wool runners, and currently have the dashers and the slippers. They're great shoes. It's all because of wool being a superior material though. I agree that the brand did not lean into its benefits near enough. They could of been the "cool wool" shoe. They becme the boring/nefarious tech bro shoe. I've personally moved on to Golas as my everyday shoe.
Ooh I had never heard of golas! Which is probably a good sign for the coolness of the brand
Comprehensive! Im personally rooting for an Allbirds comeback. Their shoes are comfy and washable, this is enough argument to keep them around in my book!
I hope so too! After learning about the wool and the story i was like yeah these should be a product
Great post! Love the point about consumer brands needing time for popular taste to catch up.
This is great! In my head I truly only ever associated these shoes with the male tech crowd and there’s nothing fashionable about them lol. “enterprise SaaS shoe” is hilarious.
Thank you! It's honestly too bad, when i learned more about the company it was a more interesting idea than i'd thought. Good cautionary tale
Totally! You’re right the lack of better brand storytelling was a miss. Ppl into fashion would have been responsive to the usage of wool I think. Birkenstocks are ugly but so many stylish women wear them.
Great article. When it became the uniform of the tech bro, it was doomed. Now it looks dated-tech bro. But chin up, price up, reposition it as a status good and introduce new styles. Tell that story everywhere and introduce updated, funnier, quirkier, New Zealand-ish versions of it. Be distinctive!!! Please, please, no athletic footwear marketing. p.s. Merino wool is my go-to fabric for everything. I want to love allbirds and don't. I should be their customer, and I'm mot.
Thank you!! I feel exactly the same way -- I really should love this product
I was aware of the brand story; I live in New Zealand it was told a lot louder here I think, or perhaps we were tuned in due to patriotism and Kiwi Pride. We’re also more aware of the role wool played for the product, as the fibre is part of our national identity (lol). Their shoes are still quite popular here, with certain demographics.
Makes sense! The wool seems great
Yeah it’s great! I feel like they should have kept the product range small and focused. They released a lot of SKUs (footwear and apparel) the past few years and the focus was diluted a bit, but that’s my take.
That jargon comment - oof! Lots of company’s need that statement slapped on their desk. Great read per usual!
I wish i had known that when i was younger, i think i was intimidated by jargon at one point
I have more recently stopped being intimidated by it tbh. I’ve got big respect for someone who can communicate with simplicity instead of complication
Excellent Post. There are indeed many reasons that businesses can fail. Looks like these guys hit on several of them.
banger post
Thank you Mr. Attack!!!
great article. i think that it is very hard to build a “cool” apparel/shoe company from SF (sorry gap, levi’s, everlane)
Thanks Katy! Totally agree. Maybe Levi’s counts because the gold rush was sort of cool (although that may be just in hindsight, they were probably pretty annoying back then)
i was put on Allbirds in 2018 by my sister, she is a conscious consumer, fuss-free dresser. of the few times we’ve visited a boutique, i’ve found myself struggling to find options as someone that works in a corporate environment. in my personal time, a casual dresser, i have found the loungers a good option. i go to the gym with the free dashers but otherwise, pretty limited options for those that aren’t their specific TA and does not need the functionality factor when not in a cold climate. however, i do think they have a good product on their hands and seeing their recent content with Stanley Tucci and the expansion of product offerings, i can see how there might be hope just yet. fingers crossed
Hope so! Or that at least someone buys them and continues it
Were you aware of the brand story / does it resonate with you?
i didn’t know the founder’s story, no - definitely only knew about the product benefits (how it’s lighter and the wicking technology). honestly some of the most comfortable shoes i own and also, other than Paire (an Aussie cotton brand), they’re my other favourite for airplane wear (i fly often)
Joe, really well done article. I hear a lot of anecdotes of companies cutting back their DTC advertising spend. I wonder when or if that will show up in the revenues of the platforms.
I looked briefly at their 10-K. they raised $600 mm of equity and have lost about $500 mm of it. You have me interested to see if they can survive.
It is too bad since they’re comfortable for me to wear to work and they regulate temp well in LA summers but I can’t argue any of your points. I’ve glanced at their stock (and operating losses) a couple times the past few years and thought “uh oh”. dTC is hard; don’t think warby has ever turned a profit either and now you can buy Harry’s from target, Amazon et al (after their sale to Schick was shot down). I can see why it did seem like a great strategy early on.