Want insights on the performance of D2C, eCommerce brands in the US & India during COVID lockdowns?
Visit Our Markets Data

Growth is so 2021

Ashwin Ramasamy
Ashwin Ramasamy
Nov 13, 2022
2
Min Read

Growth is so 2021. Profitability is the in-thing.


Some of the operators who are not from the world of brands asked this question – why is profitability fashionable again? Here is a primer.


The risk-free interest rate in the US is moving up and will be in the 5% territory in 2023. This makes risk investing and lending hard. 

  • B2B lenders have to make >10% for their investors to be attracted towards investing money in these loan products. A lot of lenders bundle their loans into asset-backed bonds and sell them to investors. The demand for such bonds dries up, cutting one more lucrative revenue stream for the lenders. Brands that take loans cannot stomach a high-interest loan in an environment where demand is likely to be weak.

 

  • Equity investors, be in PEs or VCs have an even more arduous task. They take higher risks with their investments, unlike debt investors. So the expectations are high and they are taking a risk with their investments at a time when their investors (LPs) demand returns that are better than corporate bonds. So, for the same money, risk investors are going to demand more ownership of the businesses they invest in (or they simply don't invest.)


There is a third source of money. It is the profit that you generate from selling to customers. 


When the macroeconomic climate makes it hard to raise risk capital or the cost of loans is high, the market will prefer brands that are profitable. The playbooks change.

  • Less or no budget for brand advertising and more focus on the best-converting ad campaigns
  • Price increases – not all categories can afford to increase prices in an already inflationary environment
  • Long-term lock-in on interest rates for borrowing
  • Cuts in discretionary budgets, experiments, new product development, and hiring


All of these unlock cash from the business and reduce the need for borrowing.


2019 is the last time businesses forecasted demand based on normal (albeit in a zero-interest rate environment) business conditions. It is time to revisit those spreadsheets and the assumptions there. A lot of our readers are software businesses. Here's what brands need:

  • Better returns on ad spend and so products and features that enable these returns
  • Better demand forecasting so that they don't rake up inventory carrying costs or suffer from stockouts
  • Better ability to manage the pricing of products because it is the most dynamic variable to adjust and see results quickly
  • Better control over returns and churn (for box subscriptions)
Trusted by world's leading eCommerce enablers to research eCommerce companies and reach out to them
Get 30 mins free consultation with our research analyst.
Book Consultation
company-logocompany-logocompany-logocompany-logocompany-logocompany-logo
company-logo
awards-img
Be a Segmentation Superpower
eCommerce-specfic lead qualification criteria
Freedom from non-Commerce databases.
Predictable demand generation. Very precise segmentation & messaging.
Free Trial
Slips poor jokes & gets away with a poker face. Carries a no BS attitude at getting things done. First to arrive at the office, Ashwin’s energy does not ebb through the day. Ashwin is one of the co-founders and he sets the tone for marketing, sales, design & culture.

Get PipeCandy essays straight to your inbox.

Every week we send out one deeply researched essay that captures the eCommerce industry and its evolution, right to your inbox. 50%+ open rates for a year now.
Trusted by 22,804 DTC & eCommerce industry insiders.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Prospector

The holy grail of predictable demand generation

Build surgically precise lead lists of your ideal eCommerce customers
Learn more
Firehose

Closed lost? Not really.

Enrich your leads & engage again. Generate demand from your ignored CRM leads with right segmentation and messaging.
Learn more
Researcher

The gold standard of eCommerce market size estimates

We hand-count & research every active eCommerce company. Know your true TAM.
Learn more

Get PipeCandy essays straight to your inbox.

Every week we send out one deeply researched essay that captures the eCommerce industry and its evolution, right to your inbox. 50%+ open rates for a year now.
Trusted by 22,804 DTC & eCommerce industry insiders.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get PipeCandy essays straight to your inbox.

Every week we send out tidbits that capture the eCommerce industry and its evolution, right to your inbox. It's free. No spam. Choose to opt-out whenever.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
eCommerce-specfic lead qualification criteria
Freedom from non-Commerce databases.
Predictable demand generation. Very precise segmentation & messaging.
Free Trial
Be a Segmentation Superpower
eCommerce-specfic lead qualification criteria
Freedom from non-Commerce databases.
Predictable demand generation. Very precise segmentation & messaging.
Free Trial
Slips poor jokes & gets away with a poker face. Carries a no BS attitude at getting things done. First to arrive at the office, Ashwin’s energy does not ebb through the day. Ashwin is one of the co-founders and he sets the tone for marketing, sales, design & culture.
Slips poor jokes & gets away with a poker face. Carries a no BS attitude at getting things done. First to arrive at the office, Ashwin’s energy does not ebb through the day. Ashwin is one of the co-founders and he sets the tone for marketing, sales, design & culture.
hm.com
HQ Location: Beaverton, Oregon, United States Of America, 97005
hm.com, operated by H & M Hennes & Mauritz AB, is an internationally-focused online store that generates eCommerce net sales primarily in Germany as well as in the United States and the United Kingdom. With regards to the product range, hm.com achieves the greatest part of its eCommerce net sales in the “Fashion” category.
Web Sales
Order Volume
Commercepedia Maturity Score
Record Coverage
High
Category
Arts and Entertainment, Business and Consumer Services, Business and Industrial, Consumer Electronics, Health and Fitness
Sub Category
Arts and Entertainment, Business and Industrial, Office Supplies and Stationery, Technology and Computing
hm.com funding details
Total venture and debt funding raised by hm.com from accredited investors.
View full report
The most accurate online retailers dataset curated by algorithms & analysts
The most accurate online retailers dataset curated by algorithms & analysts
Slips poor jokes & gets away with a poker face. Carries a no BS attitude at getting things done. First to arrive at the office, Ashwin’s energy does not ebb through the day. Ashwin is one of the co-founders and he sets the tone for marketing, sales, design & culture.
Slips poor jokes & gets away with a poker face. Carries a no BS attitude at getting things done. First to arrive at the office, Ashwin’s energy does not ebb through the day. Ashwin is one of the co-founders and he sets the tone for marketing, sales, design & culture.
Trusted by world's leading eCommerce enablers to research eCommerce companies and reach out to them
Get 30 mins free consultation with our research analyst.
Book Consultation
company-logocompany-logocompany-logocompany-logocompany-logocompany-logo
company-logo
awards-img
Trusted by world's leading eCommerce enablers to research eCommerce companies and reach out to them
Get 30 mins free consultation with our research analyst.
Book Consultation
company-logocompany-logocompany-logocompany-logocompany-logocompany-logo
company-logo
awards-img
Prospector
The holy grail of predictable demand generation
Build surgically precise lead lists of your ideal eCommerce customers
prospector-img
sm-logo
Firehose
Closed lost? Not really.
Enrich your leads & engage again. Generate demand from your ignored CRM leads with right segmentation and messaging.
firehose-img
sm-logo
Researcher
The gold standard of eCommerce market size estimates
We hand-count & research every active eCommerce company. Know your true TAM.
Researcher-img
State of the Direct-to-Consumer Industry in 2022
New
State of the Direct-to-Consumer Industry in 2022
The direct-to-consumer sector as we see today is far different from what it started off as about a decade ago. What we see about the DTC space today with data-driven research insights?
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
COVID Impact on US D2C brands
New
COVID Impact on US D2C brands
Which D2C categories thrive & which ones struggle due to COVID? – A data-driven report.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
DTC Playbooks
New
DTC Playbooks
How do D2C brands think about growth? A perspective from early days of DTC.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Global eCommerce market size
New
Global eCommerce market size
Total addressable market size of eCommerce companies in the US and other major markets
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Subscription eCommerce industry report
New
Subscription eCommerce industry report
Total addressable market of subscription eCommerce companies
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Fashion industry & D2C fashion brands
New
Fashion industry & D2C fashion brands
How big is the fashion industry and how are the brands distributed by revenue?
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
More Reports
New
More Reports
Country-specific eCommerce TAM reports & white papers
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
State of the Direct-to-Consumer Industry in 2022
New
State of the Direct-to-Consumer Industry in 2022
The direct-to-consumer sector as we see today is far different from what it started off as about a decade ago. What we see about the DTC space today with data-driven research insights?
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
COVID Impact on US D2C brands
New
COVID Impact on US D2C brands
Which D2C categories thrive & which ones struggle due to COVID? – A data-driven report.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
DTC Playbooks
New
DTC Playbooks
How do D2C brands think about growth? A perspective from early days of DTC.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Global eCommerce market size
New
Global eCommerce market size
Total addressable market size of eCommerce companies in the US and other major markets
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Subscription eCommerce industry report
New
Subscription eCommerce industry report
Total addressable market of subscription eCommerce companies
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Fashion industry & D2C fashion brands
New
Fashion industry & D2C fashion brands
How big is the fashion industry and how are the brands distributed by revenue?
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
More Reports
New
More Reports
Country-specific eCommerce TAM reports & white papers
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Prospector
The holy grail of predictable demand generation
Build surgically precise lead lists of your ideal eCommerce customers
Qualification Criteria
Technology Catogories
30 of 30 Catogories Selected
Website Technologies
6 of 1.5K Web Tech Selected
Product Category
Fashion & Apparel & 1K more
Product Sub Categories
Accessories, Babywear & 1k more
Web Traffic Rank
<1M, 1M-5M, 10M-25M & 9 more
Web Sales
<$1M, $1M-$5M, $10M... & 9 more
Countries
USA, Canada, UK & 192 more
States
California, Florida & 748 more
Customer Type
B2B, B2C, B2G, C2C
Physical Store
Choose Option
Own Brand
Choose Option
Business Tags
Subscription, DTC & & 500 more
Monthly Unique Visitors
$0 - $10B
Monthly Shipping Volume
<100, 100-500 & 5 more
Payment Partnerships
Alipay, Vantiv CNP & 2k more
Logistics Partnerships
UPS, FedEx, DHL & 2k more
Technology Catogories
Content Delivery
or
Content Management
or
CRM
or
Website Technologies
Azure Edge
or
CloudFront
or
Turn
or
DemDex
Apply Criteria
Let's Get Started!
Narrow down your keyword search using 'Commercepedia Keyword Search' on Top
Find a comprehensive list of eCommerce companies & DTC brands using 'Filters'
Powered by PipeCandy's Proprietary Online Merchant Graph!
Slice & Dice
D2C companies based on attributes made possible for the first time with Commercepedia
Advanced Search
This is some text inside of a div block.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Filter by Sub-categories
Reset All
314
314
314
314
314
Filter by Annual Revenue (USD)
110
410
124
45
15
HQ Location
15
15
15
15