Warby Parker, an eyewear brand renowned for its direct-to-consumer (D2C) business model, and Allbirds, an eco-friendly shoe brand that went public on NASDAQ in 2021, exemplify innovation in connecting manufacturers directly with consumers without intermediaries. This model promotes a positive image by endorsing an eco-friendly business approach. However, the disclosure of the companies’ financial statements revealed that both had accumulated losses greater than anticipated. While it would have been ideal for manufacturers to supply products directly to consumers, the burden of inventory increased along with rising administrative and marketing costs. Distributors in the middle shared profits, but they also shouldered the financial burden. Choosing eco-friendly options often incurs higher costs due to the search for alternatives, which can lead to accumulating losses. Pollution negatively impacts both consumers and suppliers, and business deficits further inflict additional damage that c...
The term “pseudo-” means exquisitely similar, but the core differs. This small difference in the core has enormous consequences. When you see a pseudo-doctor, you lose your health or life. When you meet pseudo-religious leaders, you waste your life and ruin your future—this small difference in core changes in fate. So, when consulting, I emphasize the “essence of business” and “identity”. Entrepreneurs don't know the tragedy that occurred by ignoring the small core in peace due to similar reasons. - Joseph’s “just my thoughts”