$5K for an Outfit Of The Day

We love discovering niches that are 1) surprisingly big and 2) surprisingly important to people (and uncovering why). Last week, we encountered a WSJ article about the rise of sorority rush consulting firms, which offer preparation services for potential new members in exchange for… a few thousand dollars. The WSJ’s deep dive into this booming cottage service industry is certainly topical. The 2021 #RushTok explosion was followed by an intense 2022 rush season, and even a documentary (which was not very good).

Judging from the immense amount of content, rush is not for the faint of heart. It requires multiple rounds of interviews, letters of recommendation, academic history, and sometimes written essays. In the midst of such competition and desper– aspiration, consulting firms like It’s All Greek to Me and Hiking in High Heels offer advice on outfits, etiquette, and communication skills, and even perform social media audits. Their fees range from $600 (seminars) to $4,000 (on-call services). While primarily aiming to assist young women in securing a bid for membership, consultants also help the prospects, and importantly, their parents, manage disappointment.

High-end consulting is just one business that has emerged from this (much larger) world. US Greek organizations boast a total of 750,000 current undergraduate members, with a fourth turning over every year, and ~8M alumni. Annually, members pay for dues, social events, merchandise, room, board, and food – which often overlap with traditional undergraduate expenses.

The willingness to spend on admission to and participation in these organizations is a testament to the power of emotional affiliation in identity-based communities – across which we often see external displays of inclusion. In the case of Greek life, this often presents as members (and sometimes alumni) wearing their ‘letters,’ or inserting their ‘house’ into introductions or personal bios. The more members define themselves (or want to be defined) by a given group, the greater their social and financial commitment. Greek ‘houses’ are identities that have existed and could continue to exist without social media; however, the emergence of fraternity- and sorority-related content has offered unbridled visibility into a niche aspect of the American collegiate experience. And, with intense fascination, viewers globally have flocked to this voyeuristic lens – witnessing, in real time, the emotional and (often irrational) economic implications. The proliferation and popularity of Greek content has only served to amplify the community’s power; more people than ever are aware of the realities of rush and potential membership.

As investors, we find Greek life, and the surrounding hoopla, interesting for two reasons. First, we are reminded of the importance of finding creators who can build communities that resonate with or help define their audience’s identity. Those types of bonds are enduring. Second, the emergent consulting industry presents an interesting example of how communities can help scale services (which is notoriously difficult) by leveraging members with local ties for distribution and operational know-how. While we are not asserting that Greek life is an investable category (and we certainly recognize the dangers of too much dogmatism), we do believe its ability to generate demand and willingness to spend in exchange for social signal has meaningful parallels to, and is worth examining through the prism of, consumer opportunities.