Sequoia-backed Houzz scraps plan to create home goods in-house

Houzz, the home decorating startup backed by Sequoia Capital, has scrapped a plan that would have seen the company design and sell its own houseware. The plan, a pilot program called Private Label, was still in progress within the company, but given current market conditions, Houzz has set aside its hopes of getting into the…

Sequoia-backed Houzz scraps plan to create home goods in-house

Houzz, the home decorating startup backed by Sequoia Capital, has scrapped a plan that would have seen the company design and sell its own houseware.
The plan, a pilot program called Private Label, was still in progress within the company, but given current market conditions, Houzz has set aside its hopes of getting into the manufacturing space. If Houzz were to start creating its own furniture, it would have to rely on suppliers, designers, manufacturers and a slew of other process-orientated jobs. It could also put the company at odds with all of those parties, as the coronavirus pandemic clogs up business processes around the world.
A manufacturing arm also takes a good chunk of capital and requires heavy upfront costs on equipment, space, contractors, and more. Excessive spend and bets on supply chain processes are always a risk, especially during a time of uncertainty. So Houzz’s decision makes sense. 
“At Houzz, we continually review our strategic investments, such as Private Label, to ensure that they are aligned to the current needs of our business and optimized for our continued growth,” the company sa
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