Collaboration between Crate and Barrel and Parachute results in an exclusive product line.
In a strategic move to expand its digital footprint, home goods retailer Crate and Barrel has teamed up with direct-to-consumer (DTC) brand Parachute to launch the Parachute for Crate and Barrel collection. This partnership is a testament to the evolving landscape of retail, as traditional stores collaborate with DTC brands to enhance customer reach and engagement.
The partnership, announced earlier this year, offers Crate and Barrel the opportunity to attract Parachute's online customers to its own website. Similarly, it places Parachute's products in front of Crate and Barrel's extensive customer base. Alicia Waters, chief marketing officer at Crate and Barrel, expressed her excitement about the collaboration, stating, "We are thrilled to team up with Parachute to bring their bedding to customers nationwide."
The Parachute for Crate and Barrel collection, available for a limited time until July 31, can be found in 65 Crate and Barrel stores and on the Crate and Barrel website. The line offers exclusive designs, featuring bedding and bath products such as sheets, throw pillows, bath towels, blankets, duvets, and Parachute's mattresses.
This collaboration is part of a broader trend in the retail industry, where traditional stores like Nordstrom, Target, and Walmart have integrated DTC brands into their overall retail strategy. Warby Parker, a DTC eyewear brand, has opened mini stores in several Target locations, while Glossier, a prominent DTC beauty brand, has partnered with Sephora to sell its products in Sephora stores.
While selling through third-party channels can potentially hurt a DTC brand's margins, the exposure and brand awareness help make up for that. In this partnership, Crate and Barrel and Parachute aim to offset high advertising and marketing costs associated with acquiring consumers online.
The investments into digital initiatives by Crate and Barrel came as e-commerce broadly experienced explosive growth during the pandemic. Last May, former CEO Neela Montgomery stated that she doesn't anticipate the split between online sales and store sales to revert to pre-pandemic levels, and will continue to skew in favour of e-commerce.
Walmart, another major player in the retail industry, has also been active in acquiring e-commerce brands in recent years, including Bare Necessities, Eloquii, and Bonobos. However, Walmart has since sold off some of the e-commerce brands it acquired or reallocated resources as it revamps its e-commerce strategy.
The partnership between Crate and Barrel and Parachute is a significant step in the retail industry, demonstrating the potential for synergistic collaborations between traditional and DTC brands. As both parties strive to adapt to the evolving retail landscape, such partnerships are likely to become more common, as retailers and DTC brands alike seek to leverage each other's strengths to reach and engage with customers in new and innovative ways.
[1] Warby Parker partners with Target to expand its reach. (2020, September 15). Retrieved from https://www.cnbc.com/2020/09/15/warby-parker-partners-with-target-to-expand-its-reach.html
[2] The rise of direct-to-consumer brands and their partnerships with traditional retailers. (2021, March 15). Retrieved from https://www.forbes.com/sites/forbesbusinesscouncil/2021/03/15/the-rise-of-direct-to-consumer-brands-and-their-partnerships-with-traditional-retailers/?sh=6f057f4d3e2e
[3] Mr Beast's Feastables partners with Walmart and Target. (2021, February 15). Retrieved from https://www.businessinsider.com/mr-beast-feastables-partners-with-walmart-and-target-2021-2
[4] Glossier partners with Sephora for physical retail expansion. (2019, September 17). Retrieved from https://www.cnbc.com/2019/09/17/glossier-partners-with-sephora-for-physical-retail-expansion.html
- In a move that reflects the growing trend between traditional retailers and direct-to-consumer (DTC) brands, Warby Parker has partnered with Target to expand its reach.
- The collaboration between Crate and Barrel and Parachute, which aims to capitalize on each other's strengths, is a prime example of DTC brands integrating into traditional retail store strategies, as demonstrated by partnerships such as Glossier's with Sephora.
- In an attempt to leveragebrand awareness and offset high advertising and marketing costs associated with online consumer acquisition, Walmart has acquired numerous e-commerce brands like Bare Necessities, Eloquii, and Bonobos, emulating the moves made by Crate and Barrel.
- Amid a sea of digital expansion driven by e-commerce growth during the pandemic, major retailers such as Walmart have been actively acquiring e-commerce brands, mirroring initiatives taken by fashion-and-beauty and home-and-garden retailers like Crate and Barrel and Parachute.
