Made.com bursts apart at the seams
News
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Oct 2022
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Financial Times
What: Made.com falls victim to post-pandemic optimism.
Why it is important: Made.com’s DTC and digital native advantages were short-lived as consumer habits changed post-covid leading to the brand about to go bankrupt after only going public in June of 2021.
The recent macroeconomic environment has caused freight costs to rise roughly fivefold between 2019 and 2022. Being digitally native at a time when consumers are returning to brick-and-mortar stores has counteracted their initial asset-light, vertically integrated business model.
Its decline is a reminder of the dangers of assuming both that Made.com’s millennial market was exceptional and that high demand during the pandemic was not.
