The DTC footwear brand may have overestimated its customers’ appreciation for sustainability, and underappreciated their desire for fashion.

A key Allbirds differentiator is its use of innovative materials, made from recycled and natural sources. But the company may not have appreciated that even the consumers laser-focused on the environment would want more.

“Indeed, sustainability comes way down the batting order behind factors like style, price and comfort,” Saunders said. “Allbirds could have leaned into any of these things alongside its green credentials but largely chose not to do so.”

Anyone looking closely at Allbirds’ supply chain may have quibbled with its claims, given the carbon footprint, according to Matt Powell, senior adviser with BCE Consulting. Even if the supply chain were squeaky clean, though, the brand would have needed the right merchandise.

Why Allbirds is eating crow | Retail Dive