This week, Fast Company broke the story that Great Jones, a popular DTC cookware maker for the millennial set, had been acquired by cookware giant Meyer. In Meyer, Great Jones joins a portfolio of brands that includes Farberware, Anolon, Hestan (including the tech-powered products under Hestan Cue), Circulon, and Rachael Ray. According to Fast Company, Great Jones’s six employees will join Meyer, and cofounder and CEO Sierra Tishgart will become Meyer’s executive creative director.
Meyer is an interesting destination for Great Jones, a startup that experienced rocketship growth early on through viral social marketing through Instagram for products such as its “The Dutchess” Dutch oven. From there, the company rode a bit of a roller coaster through the pandemic, some internal strife, and ultimately ran into an icy fundraising environment as investors cooled on DTC startups in recent years.
The DTC cool-off struck across all consumer goods categories as it became clear, particularly after pandemic restrictions lifted, that growth would ultimately be limited unless brands established some brick-and-mortar channel strategy. DTC OG Warby Parker realized this fairly early, opening its first retail storefronts over a decade ago, which management has admitted have been so successful they have plans to open 900 of them.
But glasses aren’t cookware – you don’t need to try a pan on to see how it looks, after all – so why would the company need to show up on retail storefronts? Part of the reason is rising digital marketing costs, which have increased by 20% since 2021, and growing costs of direct shipping goods to consumers.
But perhaps the biggest reason is customer conversion in-store is often much higher than online, particularly as more and more brands have popped up across the cookware category in recent years. While Great Jones had already entered retail in places like Nordstrom, Meyer’s access to a vast array of brick-and-mortar retailers will no doubt accelerate the brand’s growth as it gets significantly more exposure to customers who primarily buy things through retail.
Still, even as one of the early success stories for DTC home goods gets scooped by a legacy home goods brand like Meyer, other DTC cookware startups like Caraway and Misen continue on. But word that Misen had a significant layoff last year shows that the high-flying DTC cookware brands of the past decade may continue to struggle unless they combine forces with a big, established retail-oriented brand or invest in building their own retail channels.
With the acquisition of Great Jones, Meyer – an admittedly staid brand outside of its venture into connected cooking with Hestan Cue – hopes to inject the DNA of an online native brand across the company, signaled by making Great Jones’ Tishgart the company’s new executive creative director. Smart move because, in the future, the companies that succeed will likely be those that have strength at retail and can also navigate social media and online channels.
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