Oliver Cabell CEO on D2C-to-Wholesale Pivot

Founder Scott Gabrielson, with a background in finance, launched Oliver Cabell in 2017 with a D2C model focused on price transparency, a direct response to observing luxury goods with over 10x markups being produced in Asia while claiming Italian origin. The brand initially gained traction with a "drop of the week" model for its Italian-made leather sneakers, which helped manage inventory and create hype without significant paid advertising spend. In fact, the company reached approximately $1 million in sales before spending any money on paid ads. The pivot away from a pure D2C strategy is a reaction to significant increases in customer acquisition costs (CAC). For fashion and apparel brands, CAC can range from approximately $90 to $120, a substantial increase from an average of $9 just a decade ago. This is compounded by rising ad costs on major platforms; the average cost-per-click on Google Ads for retail has seen increases of around 20%, with some reports indicating a 10% year-over-year increase across industries. Oliver Cabell's move into wholesale includes a partnership with Nordstrom, a retailer known for creating in-store boutique experiences for D2C brands like Everlane, Reformation, and Glossier. This strategy allows D2C brands to leverage the retailer's established customer base and physical footprint to build brand awareness and scale more quickly than with an online-only model. For example, footwear brand Allbirds found that its omnichannel customers spent 1.5 times more than single-channel shoppers after partnering with retailers like Nordstrom. The strategic shift to frame footwear as a health and wellness product taps into a growing market. The global medical footwear market was valued at nearly $10 billion in 2024 and is projected to grow, driven by an aging population and increased awareness of foot-related health issues. Oliver Cabell has directly entered this space with its Low 1 Orthopedic line, featuring a C–Sole™ system for orthotic support and shock absorption to address conditions like plantar fasciitis. This health focus is part of a larger trend in "recovery footwear," a market seeing growth from consumers prioritizing post-activity wellness. The wellness economy in North America, a key market, represented 22.5% of the global total in 2022, with high per-capita spending on wellness-related products. By targeting consumers with foot pain, Oliver Cabell is positioning itself within this lucrative and expanding segment of the footwear industry. Financially, Oliver Cabell's growth has been supported by a $1.2 million angel investment early on to launch its footwear line and a more recent recapitalization transaction with an undisclosed family office in late 2023. The company generated an estimated $33 million in e-commerce sales over a recent six-month period, with casual shoes being its top-selling category. The brand emphasizes its use of ethically sourced Italian leathers and has introduced products made from sustainable materials like vegan corn-based leather and recycled water bottles. While the company promotes ethical production in Europe, sustainability rating organization Good On You gives it a "Not Good Enough" overall score, citing a lack of evidence for minimizing packaging waste and ensuring living wages in its supply chain.