It Was Gen Z's Favourite E-tailer-until It Wasn't. Inside the Ssense Fiasco | The Walrus

""I wouldn't put any money on [Ssense] being around over the next ten years as it is," Jules (not his real name), a sales agent who works with fashion brands on the site, said when I spoke to him about the company in January. "I don't think it's sustainable right now." His prediction came as something of a surprise: for over a decade, the Canadian multi-brand e-tailer was a fashion mainstay, infamous for an ironic and meme-centric advertising tone used to court Gen Z consumers who spend their lives online."

"If luxury retail traditionally concentrated on older consumers who have more disposable income, Ssense built its business courting the kids. According to their website, approximately 80 percent of their customers are between eighteen and forty. It's a strategy that worked-in 2021, the company was valued at around $4.1 billion and gained minority investment from Sequoia Capital-until it didn't."

"At the end of August, it was revealed that Ssense was preparing to file for bankruptcy protection after a creditor moved to sell the company without its consent, triggering what the firm described as an "immediate liquidity crisis." By September, the company was granted a reprieve-the Superior Court of Quebec ruled Ssense could maintain operations while it restructures. This provides some hope for the company-meaning they are able to consider investment opportunities to ensure the future of the site."

Ssense built a distinct brand by courting Gen Z with ironic, meme-centric advertising and casual product presentation, differentiating itself from traditional luxury retailers. Approximately 80 percent of customers are between eighteen and forty. The strategy supported rapid growth and a 2021 valuation near $4.1 billion with minority investment from Sequoia Capital. Financial distress followed after a creditor attempted to sell the company, prompting preparations to seek bankruptcy protection and creating an "immediate liquidity crisis." A Quebec court allowed operations to continue during restructuring, enabling pursuit of investment while CEO Rami Atallah stated the company has time, resources, and structure to rebuild.

Read at The Walrus