Musings From Deepak @ DSG Consumer Partners #99

Author

Deepak Shahdadpuri
February 03, 2023

Happy lunar new year as we start the year of the rabbit.

All things consumer & insurgent brands. What I am currently reading, thinking about, and reflecting upon. You can follow me on Twitter at @dishahdadpuri or follow DSGCP at @dsgcp.

Who says consumers are not spending

The latest results from LVMH continue to show that consumers, at least at the luxury end, still are spending. As we enter 2023, we will be watching how consumers recalibrate their spending in a period of high inflation, high-interest rates, and announcements of job cuts.

Luxury group LVMH's sales defy downturn as shoppers splurge

But the sector is likely to still see a slowdown overall after two years of stellar growth, with demand easing in the United States and Europe.

Who Gives a Crap is moving offline to the grocery to have an omni-channel presence

Verlinvest-backed Australian DTC brand Who Gives A Crap is pushing hard into offline channels to complement its online playbook. Given that the majority of consumers do not buy toilet rolls online, this is a shrewd move to get in front of consumers where they are.

DTC brands like Who Gives a Crap can benefit from bricks-and-mortar moves

A retail presence can build brands, protect in the event of digital decline and even attract new subscribers

Forerunner wants to back companies that focus on core life fundamentals for an increasingly complicated world

I am a huge fan of Kirsten Green at Forerunner Ventures who have been pioneers in identifying emerging consumer themes and backing start-ups addressing those consumer wants. Her latest think piece focuses on how you address the core needs of an ever-diversifying consumer.

The Next Wave of Game-Changing Companies Will be Life-Changing Companies

Forerunner is dedicating $250 million to addressing the traditional needs of a non-traditional society

India’s CPG companies expect growth to resume as margins improve

Consumer companies start spending more on ads as margins ease

Senior executives of several companies in their latest earnings calls shared bullish growth plans for this calendar year that would require them to expand marketing and advertising expenses.

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