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Two years after rebranding from DTC agency to DTC incubator, Pattern is once again hitting refresh on its strategy. The vibe this time? Millennial-centric Williams-Sonoma.
Betting on the great indoors, Pattern is now a DTC holding company for home goods brands. The move is backed by $60 million in debt and equity capital from existing and new investors, including Kleiner Perkins, RRE Ventures, and Primary Venture Partners.
- The funding follows Pattern’s $14 million Series A in 2019. Pattern is not yet profitable.
Roll-up roll call: Pattern plans to acquire between 10 and 15 DTC home goods brands “over the next few years,” Chief Business Officer and cofounder Suze Dowling told Retail Brew.
- Pattern already purchased one to make the move official: GIR, short for “Get It Right,” a profitable kitchen line with ~50 products.
Small businesses hunting for experienced management and better branding chops started reaching out to Pattern last year,cofounder and Executive Creative Director Emmett Shine told us.
It benefits Pattern, too. Acquisitions mean the company can leverage existing supply chains to enter new categories, Dowling said—which is a lot speedier than building a house of 10+ brands from scratch. Pattern has released two in under two years so far: Equal Parts (cookware) and Open Spaces (organization goods).
- Very Great and Win Brands are also building DTC hubs to sidestep product development challenges.
Looking ahead...reopening efforts won’t diminish the home goods world’s recent winning streak—an encouraging sign for Pattern’s new layout. “People are going to think more about their relationship with the items they have,” Shine said. “I don't think that changes if people go to the gym or office more.”—HL