ariety of brightly colored and boldly patterned intimates and other apparel, and a marketing strategy centred on micro-influencers and user-generated content.  While numbers for the deal were not disclosed, according to data from PitchBook, Parade was last valued at $316 million (US$203 million) in September 2022, after having raised $87 million (US$56 million) in venture funding from firms such as Maveron, Vice Ventures, and Lerer Hippeau. The acquisition makes a lot of sense for AAI, which already has a number of intimates brands in its portfolio, including Smart & Sexy, Curvy Couture, and Fruit of the Loom. But whether the company will be able to maintain Parade’s cult status and loyal fanbase remains to be seen. Why Parade is so popular Parade has reached its current cult status by appealing to a younger, largely Gen Z, customer base through its focus on inclusivity, sustainability, and social media.  When Parade launched in 2019, legacy intimates brand Victoria’s Secret had just taken a major reputational hit, following years of criticism over its lack of size, race, and gender inclusivity, both in its merchandise and marketing campaigns, such as the Victoria’s Secret Fashion Show.  Whereas Victoria’s Secret’s choice of models at the time promoted a very narrow definition of beauty, Parade offered consumers a colourful selection of products to choose from in sizes that went up to 3XL. Its campaigns featured a wide range of models across the gender spectrum with different skin tones, body types, and aesthetics.  Parade also crafted an environmentally conscious image, shipping its products in biodegradable packaging and working with Worldwide Responsible Accredited Production (WRAP), Fair Trade, and SA8000-certified factories. Additionally, instead of leveraging big-name celebrities or influencers, Parade built brand awareness by sending products to micro-influencers, along with digital mood boards and creative direction suggestions via Google Drive. With smaller but more responsive followings, these micro-influencers helped build an organic and socially engaged audience base. Since its start as a solely direct-to-consumer operation, Parade now works with a number of retailers to sell its products online and in stores, including Target and Urban Outfitters. It has also released several high-profile collaborations with companies like Coca-Cola, Juicy Couture, and Ganni.  The risk of acquisition It’s not uncommon for founder-led brands to lose some of their lustre after being acquired by a corporation. Larger companies can struggle to maintain a brand’s original messaging, and in some cases, by using their wide array of resources to make a product less exclusive and more accessible, they can also diminish its popularity with its core audience. In January, P&G Beauty acquired Mielle Organics, a textured haircare brand founded by husband and wife team Melvin and Monique Rodriguez in 2014. The acquisition was met with mixed responses from the brand’s fanbase, many of whom were concerned that P&G would no longer prioritise the needs of its primary audience, women of colour. This was exacerbated after TikTok influencer Alix Earle started promoting Mielle Organics’ Rosemary Mint Hair Growth Oil, causing the product to sell out several times online and in-store, and seeming to confirm their fears that women of colour would no longer be able to access the brand’s products, or that the product formulations would be adjusted for more non-textured hair type, as some believe has occurred with other Black-founded brands, such as SheaMoisture and Carol’s Daughter. But there are also examples of successful acquisitions by corporations, such as L’Oréal’s purchase of skincare brand Thayers Natural Remedies in 2020 for a reported US$400 million. Since the brand’s acquisition, several products, especially the original witch hazel toner, have gained massive popularity on TikTok, with #thayers at 1.1 billion views and counting. The brand has also hosted multiple pop-up events, and it was recently announced as the official beauty and skincare sponsor of the X Games, the first in the competition’s history.   Can Parade avoid the pitfalls? Marie Driscoll, an expert on luxury retail and founder and chief analyst at Driscoll Advisors, told Inside Retail that “for the acquisition of Parade to be successful, Ariela & Associates International must protect, enhance, and develop the original Parade brand DNA — its colorful genderless inclusivity expressed through comfortable, colorful and fun/playful intimate wear leveraging a likeminded community of brand ambassadors.” She pointed to Lively, a digitally native brand founded by ex-Victoria’s Secret executive Michelle Grant and acquired by Wacoal in 2019, as a useful blueprint for AAI to follow, while leaving room to incorporate Parade’s focus on gender fluidity and community building via collaborations.  “AAI would be smart to observe strategy and tactics in action while bringing their scale, sourcing, and professional brand management competencies to Parade,” Driscoll said. “This transaction holds a lot of promise and for the team at AAI, growing Parade while taking its Gen Z learnings and applying where appropriate to its brand portfolio, is likely to be a real fun exercise.” Alex Kavege, an influencer who has previously worked with Parade, seconded Driscoll’s opinion and added that AAI would be wise to learn from the content creators who helped turn Parade into what it is today.  “They should keep in mind that as a small brand that worked with hundreds of creators, if they want their partnerships to succeed, they need to listen to creators more. Creators are the face of the brand and a great way for Parade to know what their greater audience wants and needs,” Kavege told Inside Retail. At the end of the day, Parade has built its reputation on catering to a diverse audience — one that is size, gender, and sexuality inclusive — and authentic interactions with content creators on social media. To maintain the brand’s legacy, AAI will need to avoid watering down the brand’s essence for something that may be considered more mainstream.