Highsnobiety Ends E-Commerce Operations, Shifts Focus to Core Business

What's Happening?

Highsnobiety has announced the closure of its e-commerce division by the end of the year, marking a strategic shift towards its core operations. The company, known for its influence in sneakers and streetwear, will focus on its publishing arm and creative advisory services. This decision comes as part of a restructuring plan that includes laying off approximately 50 employees from its workforce of 275, particularly in finance and technology roles related to retail operations. Highsnobiety launched its e-commerce platform in 2019, aiming to leverage its cultural authority for product sales. However, the e-commerce segment has been challenging, contributing less than 10% to the company's revenue. The closure will allow Highsnobiety to redirect resources to its B2B business, acting as a cultural agency and creative partner for brands.

Why It's Important?

The decision to wind down e-commerce operations highlights the difficulties faced by companies in the online retail sector, even those with significant cultural influence. Highsnobiety's move reflects broader industry challenges, as seen with larger players like Farfetch and Ssense, which have also struggled financially. By refocusing on its B2B services and editorial platform, Highsnobiety aims to strengthen its position as a cultural and creative partner, potentially offering more sustainable revenue streams. This shift may influence other companies in the fashion and retail sectors to reconsider their e-commerce strategies and prioritize areas where they hold competitive advantages.

What's Next?

Highsnobiety plans to transform its Berlin flagship into an activation hub, continuing to host events and collaborations with brands such as Acne Studios, Nike, and New Balance. The company will maintain occasional collaborations, leveraging its established relationships and cultural clout. As Highsnobiety transitions away from e-commerce, it will likely focus on expanding its advisory services and enhancing its editorial content, aiming to solidify its role as a key player in the cultural and creative industries.