The Medium Is Still the Message: How Distribution Shapes Modern Retail
How distribution shapes the winners and losers in modern retail—and why it’s the ultimate determinant of success.
“Are you not entertained?” - Maximus, The Gladiator
In retail, as in life, the paths we take determine where we end up. The $240 million acquisition of Olive & June by Helen of Troy is a landmark moment that underscores the critical importance of distribution. Marshall McLuhan’s famous dictum, “the medium is the message,” reverberates through modern commerce. It’s not enough to build a better mousetrap; you must ensure it is sold in the right places and in the right way.
The divergence between the trajectories of consumer packaged goods (CPG) and apparel over the past decade tells the story. CPG brands thrive in ecosystems where distribution is not only expansive but diverse—Walmart, CVS, Target, Sephora, and 7-Eleven are just the beginning. This ubiquity allows these products to reach customers wherever they are, turning convenience into compulsion and habit into loyalty. Beauty brands, with their high margins and repeat-purchase nature, are particularly well-suited to this structure. Olive & June, a case study in multi-channel mastery, leveraged its online roots and placements in major retailers to create a scalable and accessible proposition, turning the seemingly mundane act of at-home nail care into a $240 million triumph. (Disclosure: I was an investor in Olive & June.)
Apparel, by contrast, faces an uphill battle. The decline of department stores has left the industry adrift, with no equivalent of Erewhon—a retail stage where curated exclusivity meets aspirational discovery. Unlike beauty and CPG, which thrive in structured, expansive ecosystems, apparel is fractured, relying on inconsistent channels that fail to replicate the allure and reach of mass-market and premium platforms. The void is glaring, but so are the barriers to filling it: rapid inventory turnover, high operational costs, and the capital intensity of physical retail make the idea of an Erewhon for apparel elusive—if not impossible.
The erosion of malls has further exposed apparel’s foundational weakness: its reliance on physical stores. Legacy brands face a Catch-22—storefronts remain vital for discovery, but the capital required to sustain and scale them is increasingly unsustainable. This contrast with CPG, which benefits from diversified, low-cost networks, underscores the structural imbalance that continues to challenge apparel’s long-term viability.
For basics and staples, eCommerce offers a viable alternative, providing scalability and clarity in messaging. However, for trend-driven apparel, the loss of tactile discovery and the operational risks of constant inventory turnover leave brands at a structural disadvantage. The future of apparel lies not in replicating the past but in reimagining how discovery, engagement, and distribution can work together in the digital-first era.
Some legacy brands have weathered the storm by evolving with the times. Abercrombie & Fitch embraced inclusivity and a digital-first approach while maintaining a physical presence. Aritzia has combined premium basics with high-touch retail environments. Levi’s has deftly blended its heritage with sustainability and eCommerce. J.Crew, a staple of classic American style, has sought to reclaim relevance by simplifying its product offerings and focusing on elevated essentials. Through collaborations and refined omnichannel strategies, J.Crew has stabilized after a turbulent period, proving that even legacy brands can adapt by focusing on their core strengths while recalibrating to meet modern retail demands.
In the digital-first realm, the picture is more nuanced. Brands like Everlane, Alo, Quince, True Classic, Skims, and Gymshark have capitalized on the strengths of eCommerce, building businesses around essentials and staples that transcend the fleeting nature of fashion trends. Everlane has carved out a leadership position through its unflinching commitment to transparency, offering ethically sourced, high-quality basics at prices that resonate with consumers increasingly attuned to sustainability. (Disclosure: I am an investor and board member of Everlane.)
Quince offers a masterclass in the discipline required to thrive in today’s direct-to-consumer landscape. Its strategy hinges on simplicity—streamlining supply chains to eliminate waste and deliver exceptional quality at accessible prices. This operational focus, paired with a relentless commitment to precise and effective performance marketing, allows Quince to engage consumers who demand both value and quality without compromise. It demonstrates that success in modern retail comes not from chasing trends but from perfecting the fundamentals and executing them flawlessly.
True Classic applies similar precision to the basics category, focusing on well-fitting T-shirts and deploying sharp performance marketing campaigns. By maintaining a laser focus on a single core product category, it avoids unnecessary complexity and delivers a reliable offering, earning the loyalty of a wide audience. The brand’s growth proves that disciplined execution can transform even the simplest product into a scalable and enduring business.
Shein exemplifies the relentless efficiency that defines the modern digital-first brand. Its ultra-fast production cycles and precise algorithmic targeting create a seamless loop of discovery, engagement, and purchase, captivating Gen Z consumers with viral precision. Yet this model comes at a cost—labor practices, environmental impact, and questions of sustainability remain the unspoken price of its scale. Shein’s success is a masterclass in operational ruthlessness, but it also serves as a cautionary tale for what happens when growth outpaces responsibility.
The apparel and CPG industries represent two sides of the same coin. For CPG, distribution networks are the bedrock of success. For apparel, the lack of such networks is a stumbling block. But the lesson is universal: the medium is still the message. Products succeed or fail not in isolation but in context—defined by the channels through which they are sold.
Modern retail is no less an arena than the Colosseum, and distribution is the sword that separates the victors from the fallen. Those who master the art of aligning their products with the right channels will endure, staking their claim in the next chapter of retail. For everyone else, the crowd’s verdict will be swift: irrelevance.