Millennial Startups Are Forced To Grow Up

Many of the brands that rose to prominence during the millennial heyday are now facing growing pains — forced to either go mainstream or close shop.

Why It Hits: Millennial-era startups thrived on putting a trendy spin on everyday items, often wrapped in social justice branding — and if they could be delivered direct-to-consumer, all the better. But culture and e-commerce have evolved since then, prompting a potential crisis of relevance.

Behind The Brands: The pastel-hued, quirky-copy, DTC era of the millennial startup is officially “over,” according to Insider.

• Teledentistry startup SmileDirectClub shut down and left people on the hook for bills, Jet.com was acquired by Walmart and then shuttered, wine club Winc faced bankruptcy, and Midea had to recall all of its ACs for having mold.
• Others have had to shed the quirks that once made them stand out: Warby Parker will end free at-home try-ons by year’s end, while sneaker startup Allbirds has revamped its manufacturing and implemented a turnaround strategy.
• The ones that have thrived did so by pivoting: makeup brand Glossier is now mostly known for its presence at Sephora, while sustainable clothing brand Reformation is now carried by retailers like Nordstrom and Saks Fifth Avenue.

Last Order: These startups have had to change because… well… so have millennials. The generation is no longer the youthful culture driver clustered in urban areas and willing to spend to stay on trend. Now, they have families, live in the suburbs, and want things that simply work — not a mission to change the world (case study: WeWork). Startups that couldn’t make the generational leap became cultural footnotes, like tired memes, Facebook statuses, or even the idea of being — or calling someone — a “hipster.”

Prediction: So, what’s the cool marketing angle these days? The brands and agencies soaring right now are pulling off truly creative stunts that cut through the digital noise — welcome to the era of originality.