Table of Contents
- Introduction
- A Rocky Path to Acquisition
- The Challenges Faced by Outdoor Voices
- The Future Under New Ownership
- The Role of Wholesale and DTC Channels
- Learning from Draper James
- Conclusion
- FAQs
Introduction
Imagine a brand that seemed to have everything going for it - a cult following, innovative products, and a vision to revolutionize its industry. Yet, it suddenly shutters its doors, leaving customers in dismay and employees in uncertainty. That's the case with Outdoor Voices, a brand once celebrated for redefining activewear with a focus on everyday athletes. Following its sudden closure, Outdoor Voices has now been acquired by Consortium Brand Partners, ushering in a potential revival. This blog post will delve into the specifics of the acquisition, explore the challenges and future opportunities for Outdoor Voices, and provide a comprehensive overview of the brand's journey. Whether you are a retail enthusiast, a fan of Outdoor Voices, or interested in business turnarounds, this post aims to provide you with in-depth insights and a clearer understanding of the current situation and future prospects.
A Rocky Path to Acquisition
The Sudden Closure
In March of last year, the abrupt closure of all 15 Outdoor Voices stores was a shocking turn of events. The closure was handled swiftly, with major layoffs affecting headquarters staff, bringing the numbers down to just about 10 employees. The discussion around its potential bankruptcy ignited conversations about where the brand went wrong and what the future holds.
Emergence of Consortium Brand Partners
Enter Consortium Brand Partners, a company that had already made waves by acquiring a majority stake in Reese Witherspoon’s Draper James. The acquisition was seen as a substantial opportunity to breathe new life into Outdoor Voices. According to Cory Baker, co-founder, and managing partner at Consortium Brand Partners, Outdoor Voices is now positioned in its best financial shape ever, aiming for international expansion and new store openings as early as next year.
The Challenges Faced by Outdoor Voices
Mismanagement and Financial Struggles
Outdoor Voices experienced a series of managerial changes that significantly affected its course. Founder Tyler Haney resigned in 2020, amid internal clashes and a failing financial strategy, leading to a rocky four-year period that culminated in the dramatic closure of its stores. The brand struggled with high customer acquisition costs, expensive leases, and mounting debt, issues often exacerbated by mismanagement.
Shuttering of Stores
The closure of its retail stores was a drastic yet necessary step to manage financial difficulties. As Baker points out, smaller brands can't afford loss-leading flagship stores, unlike conglomerates such as LVMH or Kering. Each store needed to be a profit center, a goal that Outdoor Voices struggled to achieve.
The Future Under New Ownership
Leadership and Rehiring
Katie Siano, the president of Outdoor Voices, will remain in her role under the new ownership. Notably, some furloughed employees have been rehired, indicating an effort to restore normalcy and regain lost talent. While the previously closed stores will remain shut, new stores are on the horizon, expected by 2025, showing a long-term commitment to brick-and-mortar retail.
Expansion Plans and Strategic Vision
Consortium Brand Partners sees tremendous potential in Outdoor Voices, aiming for growth in adjacent product categories such as swimwear, outerwear, fitness equipment, children’s apparel, and accessories. This strategic diversification could commence as early as the holiday season of this year, with major rollouts expected next year.
International Expansion
International markets, particularly in South America and Asia, present lucrative opportunities for the brand. Plans to collaborate with local retailers and distributors could facilitate this global reach, although details are yet to be finalized. Nonetheless, the vision for overseas expansion could substantially boost the brand's footprint beyond the U.S.
The Role of Wholesale and DTC Channels
Embracing Wholesale
One significant shift in strategy is the emphasis on wholesale partnerships. While DTC (Direct-To-Consumer) brands often hesitate to sell through other accounts, Consortium Brand Partners is keen on making Outdoor Voices products more accessible. This move aims to distribute the brand's offerings through specialty stores and robust wholesale channels, increasing market penetration and brand visibility.
Reconnecting with the Customer Base
A crucial part of this revival strategy involves re-engaging with Outdoor Voices’ customer base. Cory Baker highlights the importance of ensuring that the brand maintains a lively conversation with its customers. The focus will be on delivering high-quality products and compelling content that resonates with the audience.
Learning from Draper James
A Blueprint for Success
Consortium Brand Partners' work with Draper James offers a promising blueprint for Outdoor Voices. After acquiring Draper James, they focused on understanding the core DNA of the brand and what the customers wanted, allowing for strategic expansions into adjacent categories like home decor, crafts, and swimwear. This meticulous approach ensures that any category extension remains true to the brand's identity.
Tactical Extensions
Similar to Draper James, the plan for Outdoor Voices involves thoughtful category extensions, ensuring that every new product or category stays aligned with the brand’s ethos. This methodical process helps in avoiding pitfalls that come with over-diversification and strengthens brand continuity.
Conclusion
Consortium Brand Partners’ acquisition of Outdoor Voices marks a hopeful new chapter for the brand. After years of turbulence and financial difficulties, this strategic partnership paves the way for revitalization, growth, and expansion. With plans for new store openings, international reach, and category diversifications, Outdoor Voices is poised to reclaim its position in the activewear market. As the brand reconnects with its customer base and embraces a multi-channel approach, the future indeed looks promising.
FAQs
Q: What led to the sudden closure of Outdoor Voices stores?
A: The closure was due to high customer acquisition costs, expensive leases, and mounting debt, coupled with a series of mismanagement issues.
Q: Who is leading Outdoor Voices under the new ownership?
A: Katie Siano continues to serve as the president of Outdoor Voices under the ownership of Consortium Brand Partners.
Q: What are the key future plans for Outdoor Voices?
A: The plans include opening new stores by 2025, expanding into adjacent product categories such as swimwear and outerwear, and pursuing international growth in markets like South America and Asia.
Q: How does Consortium Brand Partners plan to engage with the Outdoor Voices customer base?
A: The strategy involves reconnecting with customers through high-quality products, compelling content, and maintaining an active conversation with the brand's audience.
Q: What other brands has Consortium Brand Partners invested in?
A: Before acquiring Outdoor Voices, Consortium Brand Partners acquired a majority stake in Draper James, a women’s apparel brand founded by Reese Witherspoon.
Q: Will Outdoor Voices continue to focus on DTC channels?
A: While DTC channels remain critical, the brand will also focus on wholesale partnerships to make their products more accessible through various retail outlets.
By carefully navigating through these new strategies and expansion plans, Outdoor Voices, under Consortium Brand Partners, looks set to embark on a journey of renewed vigor and substantial growth.
