Changing men's fashion trends, Decline in Ecommerce Investments, Longer IG Reels | D2C Digest

Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing.

Hope everyone had a great Christmas with their friends, families, and loved ones! 🎄

Now take a 5 mins break and dive into D2C Digest for a quick overview of what’s happening in the D2C market!

👕 Marketplace is changing for men’s fashion

According to a recent article by Fashion United, the landscape of men’s fashion is evolving: It is shifting away from fast-paced trends and viral fashion towards a more sustainable and timeless approach.

The year 2023 is described as a time when consumers seek refuge from a chaotic world through clothing, leading to a fashion reset characterized by an effortless, easygoing style that prioritizes classicism and comfort. Designers like Damir Doma, with his label DIOMENE, reject the constant demand for newness in favor of timeless design, purity, quality, comfort, and sustainability.

The traditional fashion cycle is said to have imploded, and consumers, now more critical of fast fashion, are leaning towards a more authentic and enduring conversation on personal style. Niche streetwear brands are becoming mainstream, aligning with established classics in terms of taste.

This new aesthetic is described as a blend of modern and traditional elements, curated yet tender, appreciating cozy fineries with a rich history.

Menswear is predicted to embrace softness, sensuality, and fluidity, moving away from the previous version of "stealth wealth." The focus is on season-less, era-agnostic styles that prioritize classicism and good taste, featuring dramatic outerwear, appealing colors, textured surfaces, and relaxed silhouettes.

What are your thoughts on the direction of the future?

📱 Longer IG Reels Works Better

Emplifi, a prominent customer engagement platform, has released video performance data for branded content on Instagram Reels, Facebook Reels and videos, and TikTok.

The analysis of 2023 video performance reveals that Instagram Reels are surpassing other video content, including branded TikTok videos and Facebook video content.

Notably, longer Instagram Reels (over 90 seconds) generated more than double the median video views compared to TikTok videos. This shift towards longer run times suggests a change in user behavior, with audiences favoring extended videos.

Emplifi's data aligns with industry trends showing that people spend more time watching social videos than other social media content formats.

But despite Instagram Reels delivering six times the reach of Instagram Stories, brands are posting more Stories than Reels.

So brand owners who are reading this, invest in your Reels game!

💵 Decline in Ecommerce Investments

In his recent LinkedIn post, Ben Cogan, co-founder of Agora ecom aggregator, discusses the challenges faced by venture capital-backed e-commerce and proposes a shift to a new model, labeled Ecom 3.0.

He outlines the evolution of e-commerce investment, from the success of Ecom 1.0 (2010-2018) exemplified by companies like Warby Parker to the rise of Ecom 2.0 (2018 onwards) represented by Amazon aggregators like Thrasio.

However, both models have faced significant setbacks, with stock prices plummeting for Ecom 1.0 brands and Amazon aggregators facing financial difficulties (check out more here).

Ben notes a substantial decline in ecommerce investments, with a 97% drop in 2023 compared to 2021 and an 85% decrease from 2018.

The proposed solution, Ecom 3.0, emphasizes a return to venture capital's original purpose: funding upfront fixed costs that create a competitive moat for long-term profitability.

Unlike previous e-commerce cycles, Ecom 3.0 suggests using VC funds for product development and manufacturing capabilities, making it challenging for competitors to replicate. The focus is on building differentiated products that can sustain long-term profitability without relying on multiple rounds of capital.

Ecom 3.0 brands are expected to raise less capital compared to their predecessors, emphasizing a more capital-efficient approach.

Additionally, Ben suggests a shift from an exclusive online presence to a strategy that includes physical retail stores or wholesale channels to avoid excessive reliance on online platforms like Facebook, Google, or Amazon.

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