Dive Brief:
- Urban Outfitters and Parade have struck a deal to bring the DTC underwear brand’s merchandise into a major chain for the first time, according to an emailed press release.
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As of Aug. 1, Parade items will be sold at 25 Urban Outfitters stores as well as via the retailer’s website, priced from $9 to $36.
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On Wednesday, an 18-piece collection, including four exclusive bralette and underwear designs, will debut at Urban Outfitters’ Herald Square location in New York City; 1% of sales from this Parade x UO capsule will be donated to the Trans Law Center.
Dive Insight:
Most DTC brands have come to realize that operating exclusively online won’t garner the scale they were hoping to achieve when they set out to disrupt traditional retail. Three-quarters of such brands have yet to reach $1 million in sales.
For many, including Warby Parker, Brooklinen and, late last year, Parade itself, that has meant opening their own brick-and-mortar stores. For others, including Casper, Harry’s and Parachute, it has meant turning to traditional retailers.
“At Parade, we've been incredibly selective in identifying a retail partner to expand our footprint into the offline underwear category that holds 80% market share,” Cami Tellez, Parade’s founder, creative director and chief executive, said in a statement. “We want to tell a category-defining story at every consumer touchpoint, not just online.”
The brand is taking full advantage of the ability to connect with customers in real life with a launch party in New York on Wednesday evening at 6 p.m., per the release. Parade has staked out a reputation for inclusivity and sustainability, with a goal of “becoming an entirely climate positive business by the end of 2025,” per its release.
However, the brick-and-mortar channel is important not just for marketing, but also for the bottom line, according to research last year from BMO Capital Markets. Wholesale margins are turning out to be bigger than direct-sales margins, those analysts found. And that is as true for established brands attempting to grow their own DTC revenue as it is for upstart brands like Parade, they said.
