Daily Archives: November 29, 2021

How Product Drops Keep D2C Brands Profitable

For decades, fashion followed a wholesale model, with brands serving as the creative houses and the retailers holding most of the power in the customer relationship, marketing and selling products and collecting data on consumer preferences.

As customer loyalty to individual brands plummets, though, companies’ focus has shifted to trying to be “the next Supreme,” said Matt Falcinelli, CEO of TheDrop.com, a marketplace platform that aggregates and curates streetwear for millennials and Generation Z.

“The consumer is a multibrand consumer, they’re shopping different brands, they want different brands, they want to match different brands,” Falcinelli said in an interview with PYMNTS’ Karen Webster. “But the brands want to be direct to consumer. They want to be mono brands, and the consumer is multibrand, and this is a huge issue in a $200 billion market.”

TheDrop, he said, can help bridge this divide, providing direct-to-consumer (D2C) margins for the

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