DAVY VIEW

The pending flotation of The Hut Group (THG) piques our interest on two fronts – (1) as a competitor of Glanbia and (2) the group’s end-to-end business-to-business (B2B) e-commerce platform. THG is both a branded and technology play – a builder and an enabler of direct-to-consumer (DTC) digital brands. The individual components of the THG e-commerce model, with numerous competitors, are of themselves not unique; however, when housed and integrated on a single proprietary technology platform, the model creates a unique offering. External commercialisation of the technology stack is embryonic but is gathering momentum with leading brands. While barriers to entry for DTC are relatively low, barriers to scale are high – for most brand owners, DTC is fast becoming table stakes. Over the long run, the THG investment proposition will hinge on the trajectory and sustainability of growth at Ingenuity.