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Parade, the four-year-old DTC brand that bills itself as “the internet’s favorite underwear,” was acquired by clothing manufacturer Ariela & Associates International this week.
Moving forward, Parade will retain its “unique identity and creative vision,” according to AAI, which will offer the brand its sourcing and design resources to help it scale domestically and abroad. Parade joins AAI’s portfolio of clothing brands, such as Fruit of the Loom and Curvy Couture.
Parade, which emphasizes body inclusivity as well as sustainable manufacturing, was valued at $200 million last August. Its growth has been partly fueled by its influencer marketing strategy: Instead of leveraging big-name celebrities or influencers, Parade has largely turned to micro-influencers, sending its products to people with small followings who then post about their gifts.
As The Cut wrote earlier this year, “Parade has dominated many of our feeds. If you’re under 30 and the algorithm deems you demographically appropriate, you’ve likely scrolled past someone you know posting selfies in their Parade underwear.”
However, Parade has faced some criticism for this strategy; in 2020, comedian and writer Dana Donnelly “questioned if the entire Parade marketing campaign foundation was founded on stoking feelings of exclusion,” according to the New York Times. “I can’t tell what their objective is besides making the girls they’re sending it to feel cool and the girls they’re not sending it to feel uncool,” she told the publication.
Beyond influencer marketing, the brand has also experimented with other types of advertising, like pop-ups and video ads. Earlier this year, it started selling some of its items in Target.
Amid higher interest rates and lower venture capital funding, many DTC brands are being acquired. In 2023 alone, brand management firm Bluestar Alliance acquired lifestyle brand Scotch & Soda, financial firms Cerberus Capital Management and Jefferies Finance nabbed makeup brand Morphe, and FullBeauty Brands bought intimates brand Cuup.
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