‘Zombie brands’, like Feat Clothing, are gaining traction in the direct-to-consumer market. Despite setbacks in traditional markets, these brands find a new lease of life online, attracting a dedicated consumer base.
Feat Clothing’s revival has been sparked by a robust social media strategy and targeted consumer interactions. Their success highlights the potential for similar brands to turn their fortunes around. Nevertheless, there still exist several grey areas concerning Feat’s recent acquisition by 2.0 Ventures, a private equity firm.
Whilst the equity firm has praised Feat’s impressive valuation and success, it has been stingy with details about growth trends, revenue figures, or the scope of the purchase. This lack of transparency has caused uncertainty and speculation within industry circles.
Although Feat reported increased online sales in 2021, an interest decline led to the acquisition, which left investors apprehensive about the brand’s future. This combined with dissatisfied customers and unexpected operational costs has led many people to question the viability of Feat’s current business model.
Recent investigations further validated rumors about Feat’s dwindling success.
Online resurgence of ‘zombie brands’
Signs included their new retail store in Santa Monica shutting down, a decrease in staff numbers, and a spike in customer complaints. Negative reviews and accusations of “hollow promises” in advertisement campaigns are also a cause for concern.
The term ‘zombie brand’ pertains to a brand that has either lost its original identity post-acquisition or is financially stagnant. But these brands can manage to stay afloat by exploiting unique niches in the market. Nevertheless, the waning brand loyalty, market saturation, and robust competition can further hamper their progress.
With the increase in ‘zombie brands’, new businesses like Outdoor Voices, Foxtrot, and Boisson face a tough climb. Market giants like Amazon and Walmart benefit from this scenario by acquiring these struggling brands, further solidifying their market position.
Thus, the need of the hour for smaller startups is the development of innovative strategies to stay relevant. The future holds interesting possibilities, and only time will tell if these new brands can navigate these challenges and reclaim their relevance, or if market giants will become the new standard.
