Rage Against Channel Overlords

Recently, we shared some eats with one of our OG’s, Frank. As we sat down for lunch to share some authentic gimbap, bibimbap, kimchi, and soju we were struck by several known-knowns he surfaced that hit you like the hydroxy-alpha-sanshool tingle of Sichuan peppercorns. You know it’s coming but the sensations are pleasantly surprising. First, Houston, like many American cities, is filled with unique treasures built around special communities, including Houston’s two K-Towns within the loop. One key insight from Sola’s experiences at Uber and Nuro is that cities are living organisms whose cellular structure emanates from elements that cannot entirely be understood from the zip code or tile level alone. Communities’ idiosyncrasies breathe in ways that highlight the value of cultural competence. e.g. Houston has one of the most incredible Jewish communities in the country. If you find yourself doing Shabbat in the Meyerland area, you won’t be disappointed. Community transforms experiences.

The second point brings us back to Frank. The “store” has gone through many transformations, but the current consolidation is years in the making. Over the years Carlton has tried to share how formative his experiences working with Frank have been. He taught Carlton and derivatively the rest of us about variations in ‘hand’ from fabric gauges, why Loro Piana, Ralph Lauren, and Brooks Brothers appealed to different users, the alchemy of how sourcing affects end-user experiences, and the craftsmanship that is sewn into products that people cannot live without.

Carlton warned there are three things you should know before speaking to Frank: (1) don’t bring up eCommerce; (2) his bone-breaking handshake; and (3) he’s probably the best-dressed man you’ll encounter. In his late sixties, Frank was incredibly striking and sauntered into the restaurant like a Korean Sean Connery in his prime. He wore simple ash gray, gabardine, high-waisted trousers with a crisp white linen shirt with sleeves immaculately rolled to the elbows. No watch. Just a smile, and that bone-crushing handshake. Frank was a 6”3 Korean atelier who immigrated to the US with his family after the war and grew up in the Midwest before settling in TX. Frank founded a luxury apparel boutique ensconced in the heart of one of Houston’s wealthiest enclaves. He built his SMB as a Savile Row of the South providing custom alterations and wares that 30 years later customers still raved about. As early as 1976 he was the exclusive third-party seller for Ralph Lauren. Eventually, as Ralph Lauren expanded its distribution and wholesale operations, it bought Frank & Co to bring Frank’s special relationships in-house. At lunch, Frank regaled us on the early years of building his clientele and business. Clients scheduled time to meet with Frank for more than clothes. Cognac. Orchids and sunflowers. His shop was like a barbershop or spa, but with John Lobb shoes and Hermes scarves… They came for the experience. Mothers entrusted Frank with fashioning the armor their sons would wear across all the little moments in life. And he reminded us 옷이 날개다,clothes are your wings. Let’s just say, Frank did not approve of our Daraa hoodies…

Hands still sore, we made sure not to bring up eCommerce, but we did ask Frank about the state of the store and what he thought about brands like Nike and Ralph Lauren downsizing their wholesale partnerships. Frank has since retired, but shared that the Ralph Lauren store in Houston’s premier mall, the Galleria, has shrunk to about a third of the size it once was. While he has seen a number of shifts in shopping over the last 50 years, he said he’s never seen anything like the last 5 years. COVID definitely had a number of temporary themes, but Frank believes several permanent shifts have been cemented since 2018. When was the last time you needed to go into a mall? More importantly, when was the last time you wanted to? Frank shared that by the time he retired, he rarely met clients in store, and instead met on video and had garments sent directly to their homes. Consumers valued personalized experiences much more than palatial ambiance. The kids didn’t need discovery from him as much as their fathers did, but still appreciated curation and precision. At Ralph Lauren, a portal provided EDI level detail tracing each SKU from manufacturer to warehouse to store. But, Frank’s customers bought at the fabric level and never off the rack. Frank embodied a different kind of data enrichment. He knew their sizes, preferences, events, and the same for their neighbors. “Jim always wants to be better dressed than Max, and they can never own let alone wear the same thing.” Frank’s grandchildren converted his 7 leather bound client books into a spreadsheet that made it easier to manage the details. “I knew what they buy and why they buy it. That’s my inventory.” Frank shared many insights, but none struck us more than his adamancy that everything is different. If starting today he would not become an atelier. “Now, everything is Amazon...”

Prime is spectacular. By obsessing over the consumer experience, Prime serves as an incredible magnet for some sellers, but it’s a little dystopian, isn’t it? Everything is Amazon? Today, best-in-class non-Amazon third-party fulfillment is often slow, expensive, with more words, no insights, and often less fulfilling.

DTC 1.0 has matured; DTC2.0 expanded the universe but is struggling. What comes next? Capitulation? 백번 찍어 안 넘어가는 나무 없다 (There is no tree that does not fall over after taking a hundred shots). The rebels are armed, but they need more ammo.

Some might say fulfillment isn’t painting… Let’s just say we beg to differ. Daraa is fulfillment infrastructure for brands that maintain a non-commoditized relationship with their audience. We combine community with technology to provide shopping experiences that are aligned with audience-driven brands. Daraa unifies the digital storefront and offers better fulfillment from checkout to door. It is a direct response to brands and communities’ desire to participate and compete!

‍