Direct to Demand (D2D) is the way to go.
It was great to join #glossysummit (Glossy) to talk about Larroude Inc.’s Direct to Demand (“D2D”) business model. We've always prided ourselves on doing things differently. Transparency is at the core of our ethos, and we believe in being open about the true value our customers receive with every purchase. As we’ve grown and evolved over the past three years, we've learned invaluable lessons about the current state of the industry, particularly the online wholesale model. Committed to being industry challengers and disruptors, we’ve realized that the zig-zagging of products through multiple warehouses is inefficient and environmentally harmful. To combat this, and leveraging our own vertically integrated structure, we are committing to a one-way logistics model where products only move with true demand. This streamlined approach not only reduces our ecological footprint but also ensures that we maintain the highest level of service for our customers, offering them a deeper and wider assortment across all channels. By concentrating our inventory under our control and distributing it under a hub and spoke model, we can reduce costs and significantly lessen our environmental impact. Excess inventory at the edge of distribution is the key driver for the steep treadmill that fashion brands endure with quick and heavy discounting by distributors. By fully adopting our D2D model, we aim to eliminate this inefficiency and the associated markdowns. This is a pivotal moment for Larroude. It’s about clearing the remnants of an outdated industry model to make way for a more efficient and sustainable future. We invite everyone, including other brands, in joining us in our journey to reshape the industry. Together, we can set a new standard for how fashion is sold and experienced.
