Victoria’s Secret acquired e-commerce brand Adore Me this week, in what’s likely to be the first of many deals between strategics and fast-growing start-ups. But if history is any guide, there’s no guarantee that Adore Me will help usher Victoria’s Secret into the future.
In a conservative investment environment, the few start-ups that can access traditional venture capital are opting to take out loans, and battle higher interest rates, to fund business essentials like marketing and inventory.
The underwear start-up was once pegged as Gen-Z’s answer to Victoria’s Secret. But investors, executives and founder Cami Téllez couldn’t agree on whether to prioritise growth or profitability. They ended up with the worst of both worlds.
Timepiece start-ups like Baltic, which went from Kickstarter campaign to producing $50K collector grade watches, and Christopher Ward, who is on track to reach $40 million in sales this year, are leveraging collector communities and innovation to take on high luxury watchmaking.