DEATH OF PUREPLAY RETAIL

TABLE OF CONTENTS

INTELLIGENCE REPORT DEATH OF PUREPLAY RETAIL

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6 METHODOLOGY

39 Financial Returns 4 0 FLASH OF GENIUS A Shift in Strategy: Blank Label 41 Stores in the Black 4 3 The New Path to Growth

25 FLASH OF GENIUS Offline Partnerships: BaubleBar 26 More Stores = More Sophisticated

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BRAND LIST

CONSUMER EXPERIENCE 27 Stores Provide An Elevated Experience 28 FLASH OF GENIUS Addressing Concerns About Fit: Rent the Runway 29 Next-Gen Service 30 FLASH OF GENIUS Unique Selling Environment: Trunk Club 31 FLASH OF GENIUS Differentiation Through Store Locations: Casper, Harry’s 32 Taking Back “Showrooming” 33 Digital Enhances Stores 34 FLASH OF GENIUS Organizing for Omnichannel Success: Birchbox, Warby Parker, Bonobos

CUSTOMER ACQUISITION 8 Traffic Must Be Bought 10 Casting a Wide Net Via Search 12 Further Down the Funnel 13 “Walk in Traffic” Doesn’t Exist Online 14 Compensating With Email 15 Stores Can Drive Organic Traffic 16 Store Expansion Builds Brand Equity 17 FLASH OF GENIUS Popup Shop Contest Drives Online Traffic: Frank & Oak 18 New Players Have Caught On Quickly

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CONCLUSIONS

46

THE TEAM

ABOUT L2

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LAST MILE 19 Free Shipping Pressures 20 Speed vs. Convenience

RETURN ON INVESTMENT 35 Reaching Scale 36 Pureplays: Losers in a Winner-Take-All E-Commerce Economy

21 Inventory Capabilities Still Lag 22 Unlocking Omnichannel Potential

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January 12, 2016