The Drop

curated insights: fashion, tech, beauty, wellness and biz

Nov 17, 2024

🌟 fashion🌟

What was one thing that stood out to me from Business of Fashion’s - State of Fashion 2025 report?

💚 For the first time, climate urgency made it into the top 10 key themes for the year, shaping consumer behavior and disrupting supply chains.

It’s a sign that sustainability is no longer optional; it’s the new baseline.

CHANEL: Going the Sustainable Route

Chanel has taken note, recently launching a new Circularity Entity to lead the charge.

This move aligns with Chanel's broader sustainability goals, including its ambitious "Chanel Mission 1.5" initiative to achieve net-zero emissions by 2040.

What else?

Obviously AI - particularly Generative AI (GenAI).

It has become a top priority for luxury brands as they navigate the industry's evolving landscape.

The biggest hurdle?

AI has massive potential in luxury fashion, but it has hurdles. From the need for organizational transformation to challenges like data privacy, resource constraints, and sky-high implementation costs, the path to adoption is anything but seamless.

Next week, we will dive deeper into some of the key issues that AI could potentially address.

🪷beauty🪷

The Silver Economy: Redefining Growth in Beauty

The State of Fashion 2025 report also highlights a seismic shift in the beauty and fashion industries: the rise of the "Silver Spenders."

Once overshadowed by the pursuit of youth-focused trends, consumers over 50 are now front and center.

And here’s why: this demographic commands 28% of Europe’s $13 trillion in total spending, estimated to reach $16 trillion by 2030.

The Silver Economy is a game-changer, driving innovation across the beauty and food industries.

(I’d say Loewe was undoubtedly targeting this audience - RIP Maggie Smith).

Maggie Smith Stars in New LOEWE Campaign | Hypebae

But let’s zoom in on beauty.

Age-positive brands are leading the change, demonstrating that mature consumers crave and command a significant market for products meticulously crafted to address their evolving needs, especially as the beauty and personal care segments are experiencing double-digit growth.

Below, you’ll find a list of trailblazer brands making a dent in the industry:

These brands aren’t just filling a market gap.

They’re rewriting beauty standards and tapping into a powerful demographic that traditional cosmetic giants have overlooked for too long.

🤖tech🤖

Cult Mia: Redefining E-Commerce

A UK-based luxury retail platform founded in 2019 by Nina Brener-Hellmund is redefining the future of fashion.

It’s a treasure trove of exclusive, authentic pieces for shoppers, especially as traditional luxury fashion has become lost in the sea of sameness.

Leveraging her background in private equity and luxury retail, Nina identified a gap in the market: independent designers struggling to gain global visibility.

The New Face Of Luxury: How Cult Mia Is Redefining Fashion By Empowering Independent Designers

Today, Cult Mia features original designs from over 350 independent creators spanning 42 countries.

H&M Adds to Cult Mia's $5 Million Seed Funding

What makes Cult Mia so groundbreaking?

1️⃣ A Fresh Business Model
Cult Mia isn’t just another luxury e-commerce site; it’s an ecosystem.

Blending curated fashion with data-driven insights has built a win-win platform for shoppers and emerging designers.

They've overcome initial inventory challenges by adopting a drop-ship model, keeping operations lean and agile.

2️⃣ Spotlight on Independent Designers
People are tired of cookie-cutter luxury.

So, Cult Mia is championing undiscovered talent.

It offers shoppers exclusive, authentic pieces while giving emerging designers global exposure and direct-to-consumer opportunities they often lack.

Their AI-powered platform helps match designers with the right customers, boosting conversion rates to an impressive 3.5%.

3️⃣ Shopping with Purpose
Every brand on Cult Mia meets at least one of these four core values:

🌱 Environmental Sustainability

🌍 Minority Empowerment

🤝 Social Consciousness

🧵 Heritage Craftmanship

Today’s consumers care about the why behind their purchases, and Cult Mia makes purposeful shopping easy.

4️⃣ Growth That Speaks for Itself
Cult Mia is proving its ability to thrive in high-growth markets, with an insane 413% growth in the Middle East and a solid 109% growth in the US.

Their customer acquisition cost is 30% lower than industry averages, thanks to a strong focus on influencer partnerships and content marketing.

5️⃣ Strong Financial Backers
With investors like H&M Group Ventures, Morgan Stanley, Fuel Ventures, and David Wertheimer (of the Chanel family).

Cult Mia raised $5M in seed funding to fuel its rapid expansion, focusing strategically on the US and Middle Eastern markets.

6️⃣ Impact at the Core
Their latest initiative is to donate £2 to charity for every item sold because luxury can drive a positive impact.

Soon, Cult Mia plans to launch a mobile app and expand its sustainable packaging.

✨ The Takeaway
In a luxury e-commerce landscape riddled with challenges, Cult Mia is a masterclass in spotting market gaps and building a brand driven by purpose.

🤑 venture capital 🤑

The Ultimate Guide to Consumer-Focused VC Funds in Pre-Seed and Seed by Headline

Why is this guide so invaluable?

Understanding the core motivations of the funds’ founders ’ approach can make all the difference when navigating the VC landscape.

Each VC fund has a specific investment thesis, a defined focus on industries, categories, and growth stages where its team has built deep expertise and a successful track record.

If you're building in a particular industry, the smartest move is to identify funds that align with your space, research their past investments, and, when possible, secure a warm introduction.

Targeting VCs whose markets match your focus significantly boosts your odds of resonating with potential investors.

While some funds occasionally “break” their investment rules, that exception is not the norm.

Most VCs seek startups that align closely with their strategic direction and core values.

As an entrepreneur, you must tailor your pitch to the fund’s specific philosophy, showing you understand its criteria and vision.

“The ability to see the future is one thing, but convincing others to follow you there is the art of entrepreneurship.”
Vinod Khosla, Founder Khosla Ventures

By aligning your vision with that of the VC and preparing with insight into what resonates with them, you’re not only pitching for funding; you’re positioning yourself as the founder who can lead them into the future they’re invested in building.