The CQ: Faire + Shopify, an Unstoppable Duo For Retail Small Businesses
Plus the Forerunner Team's Must-Reads of the Week
The CQ is Forerunner’s weekly newsletter rounding up the most pressing consumer news and analysis, plus some bonus musings from our investment team. Subscribe now to get the latest edition in your inbox every Saturday.
By Kirsten Green, Founding Partner
In 2016, it seemed nearly impossible to be thinking about building infrastructure to help small, independent retailers compete for wallet share amid a time when Amazon and Walmart were dominating retail and ecommerce was becoming ubiquitous. But Max, Jeff, Marcelo, Danielle and the Faire team saw an opportunity on the far other end of the market, which (at the time) felt niche and fragmented to some. Ultimately, digitizing the wholesale process for independent retailers and boutiques was a lynchpin for these businesses to dramatically accelerate their core strength — curation — and provide community, personalization and a human touch when people arguably needed it most. When the pandemic threatened to halt in-person shopping and finalize the shift to ecommerce, the data proved the opposite: local retail is incredibly resilient and consumers crave it even under some of the most strained circumstances.
This past week, Faire announced a partnership with Shopify, which establishes Faire as the recommended wholesale marketplace for Shopify merchants across the world. It’s hard to think of a more powerful duo when it comes to driving economic growth for the small businesses and independent retailers worldwide, which now do more aggregate revenue than Walmart and Amazon combined.
Faire has served as an incredible feat in lifting up the underdog, and their Shopify partnership is a remarkable endorsement for their value. Read more about their partnership here.
What We’re Talking About on Slack:
The new status symbol is a full-body M.R.I. Despite being perfectly healthy, celebrities like Kim Kardashian, model Lily Aldridge, and fashion designer Zac Posen have been posting about their diagnostic scans, which search for signs of diseases like cancer, liver disease, aneurysms, or multiple sclerosis. It’s a pricey procedure that’s not specifically recommended by doctors nor is it covered by insurance. While it may give some peace of mind, medical professionals warn there can be a risk of false positives, which could lead to invasive interventions and unnecessary exposure to radiation through further testing. Either way, it underscores the rising sentiment that longevity and clinical-grade preventative health measures are now modern symbols of health — perhaps more so than any handbag or pair of shoes.
One sneaky negative impact of AI: the rise of dynamic surge pricing across products and services that never used to surge. We’ve seen how surge pricing can inflate the cost of an Uber during rush hour or flights during the holidays, but you can expect to see even more industries wielding AI to effortlessly change prices based on supply and demand. Amazon has already started using real-time data to change prices every 10 minutes or so, while Ticketmaster has been selling tickets at double their face value (naturally, with a big customer backlash). Up next: Walmart is introducing electronic price tags in 500 stores, making changing prices even easier.
Costco is the latest retailer to enter the telehealth space. Costco members will be able to book online health check-ups for $29 and online mental health visits for $79, with the launch of its new partnership with Sesame, a healthcare marketplace that connects consumers with medical pros nationwide. Sesame’s model is based on keeping prices low; it doesn’t accept insurance and mostly serves uninsured Americans or those with high-deductible plans.
America embraces the prenup. Nearly half are willing to sign one, up from 42% last year, says a new Harris poll. Only 1 in 5 married couples have a prenuptial agreement, but for young people who are engaged or have been married, the percentage is higher with 41% of Gen Z and 47% of Millennials. It’s no longer considered just for the wealthy nor an imminent sign of divorce, but just a practical part of the marriage process, especially with people getting married later in life. According to user data from HelloPrenup, an online platform that makes prenups more accessible and affordable, 65% of their users say they want to protect themselves against their partner's debt.
The male loneliness epidemic and how it affects fathers: many men — dads in particular — lack meaningful friendships beyond their significant other, leaving them feeling isolated. While most women tend to have support systems with whom they can discuss the ups and downs of life and parenting, few men have someone (or circles of people) to talk to. According to a 2021 survey, half as many men said they had received emotional support from a friend in the past week compared to women. Experts attribute the breakdown of male bonds in part to fewer traditional male-specific institutions, and unhelpful historical views that deeper relationships are not seen as masculine.
Hidden fees are the worst part of online shopping. They're about to get even worse. Recently President Biden launched an initiative to put an end to hidden fees, urging companies to shift to all-in pricing with fees baked into the up-front price. Business Insider traces the timeline of how fees have gotten so out of hand, and why a solution is actually pretty complicated. Take Stubhub, for example, which pivoted to a fee-free pricing model and saw a decrease in revenue. "StubHub's all-in pricing confused buyers who assumed our prices were exclusive of fees and therefore more expensive relative to our competitors."
The way young adults work is driving their older adults crazy. The Wall Street Journal shows family portraits of two rather distinct models: older generations that have found success by paying their dues through dedicated 40 hours in the office, and younger people who are forging a different path in response to the rise of the freelance work and a pandemic that led to millions being out of work or working from home. That path includes more flexibility and a stronger focus on work-life balance, which to some parents is seen as a weak work ethic. But according to a survey of nearly 7,000 workers, three-quarters say their 20-something co-workers have influenced their attitudes on work-life boundaries, fair pay, and self-advocacy.
Gen Z’ers are three times more likely to fall for an online scam than boomers are, and twice as likely to have a social media account hacked. A 2023 report on online scams found that victims under 20 years old lost $210 million in 2022. Experts chalk it up to Gen Z growing up with technology and spending more time on devices, so they’re inherently more comfortable with it, and have more opportunities to come across a sketchy online shop, phishing email, or even personal scam via DM (and scammers have gotten extra crafty).
More new moms are in the workforce than ever before. The percentage of American mothers who gave birth within the last 12 months and remained employed reached an all-time peak of 66.6% last year. This is significant because motherhood has historically pushed many women to either quit their jobs or hit the brakes on their career and/or earnings, but the prevalence of remote and flexible work is making it easier for moms to juggle their work and home lives. With the end of pandemic-era federal funding for childcare centers on the horizon, which experts project may lead to more than 3 million children losing access to childcare, it remains to be seen how this will ultimately affect working mothers in the long run.
Are running clubs the new bars — or church? The New York Times looks inside how running has become a thriving social scene. Once considered a solo sport, many people are now joining running clubs to meet others and build a sense of community, particularly in cities that can feel big and alienating. “Religion gives you a group of people who are willing to take action and help you at any time, be there in your corner and support you and celebrate you. The run club gives you that, too.”
Portfolio Highlights:
Conde Nast Traveler reports on the career that’s on the rise, a travel agent, and outlines several ways how to become one, including joining Fora, “one of the buzziest start-ups in the travel industry.”
ModernRetail and Axios announce the global partnership of Faire and Shopify which establishes Faire as the recommended wholesale marketplace for Shopify merchants around the world.
Oura CEO Tom Hale visits the Stairway to CEO podcast to talk about how he joined the company, his leadership style, and more.
Sunday (#23) made LinkedIn’s list of top startups of 2023: the 50 U.S. companies on the rise.
Crains New York promotes ShopShops as a QVC-style startup for the livestream age, featuring co-founder and CEO Liyia Wu.
VP Product & Design at Ampla, Tui Allen, is quoted in Fintech Finance News on how digital lenders are resilient in a tumultuous economy.
In a Vogue article, the writer says, “Sofia Richie personally convinced me to get an Oura ring.”
Work at a Portfolio Company:
Head of Data and Insights | Fora: Fora is reimagining the travel advisor industry with fresh eyes, and building a travel agency that is modern tech-enabled, and empowering hundreds of thousands of entrepreneurs to transform their passion for travel into revenue. This role will outline, build, and deliver a data governance and permissioning strategies using either business intelligence tools.
Senior Growth Product Manager | Curology: Curology is creating the next generation of skincare through customized treatment plans and formulas with powerful prescription ingredients for acne and anti-aging. This role will lead data-informed decision making and experimentation to grow the company’s subscriber base efficiently and predictably though a deep understanding of customers, growth funnels, and product intuition.
Director, International Accounts | Glossier: Glossier is a digital-first beauty company on a mission to inspire everyone to find joy and confidence in their personal beauty style. This role will lead and shape the strategic and integrated planning for International Expansion and have key responsibilities of sell-in and sell-through, managing relationships with international partners.
There are ~484 other openings on our jobs site. Check ‘em out.