Issue No. 176: Final email of 2016

Issue 175 featured a section devoted to CB Insights analyst and 2PML reader Zoe Levitt’s research on Amazon’s recent patents. Here’s where her work has since gone: TechCrunchUSA TodayNew York TimesPC MagCNBCGeekwire, and Good Morning America.

The Commoditization of American Manufacturing

Between bargain labor costs and the movement towards workplace robotics, American manufacturing isn’t as it was envisioned by the movement’s early adopters. For great American brands like Yeti, for instance, post private equitystrategy has driven many of their products to be made in China. While this shift is inevitable, the American market for their products have not flinched. The brand has only grown from a revenue of $10M at the time of investment to nearly $500M in annual revenue today. In July of 2016, the Austin brand filed for an IPO at a $5B market cap on the strength of their durable products and genius product market fit and associated strategies.

Last Word: The Shift To Casual Fashion’s Effects On Merchandising

As consumers seek to purchase experiences over goods, the successful fashion and luxury companies will be the ones that are best positioned to take advantage of the shift. North Americans are spending more time outdoors: snowboarding, hiking, and in fitness. And there is also a rise in leisure vacationing. To this effect, high end accessories will have slower growth and expensive clothing will see similar stagnation. Brands will need to focus on adjusting by merchandising their products around the paid experiences that illicit memories far more valuable to consumers than high fashion or cutting edge electronics. – @web

See more of the issue here.

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