Guido is the initiator & curator of "Brand Growth Inspiration". Prior to launching the industry platform, he worked 30+yrs as brand & retail manager. Guido’s passion is performance and growth, for what he was engaged from retailers & brands in Europe, Asia, US and the Middle East. Today Guido works part-time, travels the world for projects, coaches start-ups and grown-ups and engages in education in his hometown Berlin.
In the middle of global store lockdowns, 100+ lifestyle brands announce the opening of new flagship stores.
Versace, Puma, Under Armor, Gucci, Saint Laurent, Montblanc, Adidas, Lacoste, Dior, Hermes, Supreme and more report new flagship store openings. All that adds up to retail investments of US$ 200m (assuming standard buildout cost and store sizes) in a time when the internet is booming.
Do you measure the payback of TV advertising, sports sponsorship and the profitability of your warehouses by EBIT? You think that’s short sighted? Why then do you measure retail stores with basically the same functions (branding, community building, shipment handling) by its P&L alone?
Wholesale distribution managers knew it all along, traditional brand wholesale wouldn’t last forever. And 2020 saw an acceleration of change that began long before the pandemic: the termination of mediocre businesses.
But turmoil in wholesale distribution isn’t over yet; ahead lie at least one to two more years of trouble and possibly major strategy changes at online pure players.
A long time ago in a galaxy far, far away… (retail) humans and many species of (online) aliens co-exist with robots who assist their routines. Travelling between planets takes place offline as well as online. The same goes for shopping, where retail spacecrafts range from small starfighters called mom & pop shops to battle stations such as the moon-sized Death Star (called Zalando). (more…)
Our research and industry dialogue ‘Future in Brand Distribution’ has been off to an enlightening start. Four weeks in, executive talks and our online survey have already returned much valuable inspiration on the future of the lifestyle industry.
The sentiment we encountered in the industry dialogues was generally positive and energising, even though many still find themselves in lockdowns. It seems as though the Covid-19 pandemic not only gave a boost to digital transformation but also liberated some of the brand industry’s best creative thinking.
How are these snapshots for a future in brand distribution?
“2025 retail rents will be like 2020 flight routes: back to the 1980s.” “The future is social commerce, digital market places are an interim hype, for brand industry’s e-com latecomers.” “In five years, an office workspace and business travel will be recruiting incentives.” “Grandpa tells me, his company used to pay him for sourcing travel to adventurous rural locations.”
The Covid-19 pandemic is devastating for those with pre-existing conditions. But it also mobilises the best in all others: unforeseen creativity, outstanding personal engagement, true loyalty and support among many more qualities.
There is no way around acknowledging that the situation is grim wherever you look and listen across the brand and retail industry, in parts even online. But if we pay close attention, we can also observe new brand industry best practice emerging.
Please excuse the pun, I had to grab your attention. I want you, and I want your engagement – to read and perhaps share this article, but much more importantly, to make sustainability a wholehearted top priority in 2020.
International sales growth remains mostly dynamic post pandemic. But as financial reports show, growth rates have decreased for many. Be it in the US or in Europe, especially domestic-bound retailers and brands stumble.
Global expansion in sales and distribution competence has become a lifesaving strategy feature, but allow me a question first:
The speed of global brand growth has been slowing down. While fast-movers pay a high price for restructuring, successful brands continue to grow with brand best practice management.
Whether Tommy Hilfiger wins over Zalando buyers with a digital showroom, Rapha thrives thanks to their tight-knit membership community, or Lululemon enters new markets on grassroots values – brand best practice management enables brands to outgrow competitors. (more…)
Shoppers love unique products and great brand stories. If on top you sell upcycled products, are a niche company from a small country, that makes all the ingredients for a great brand story. For us that delivers great learning on strategic brand management.
If someone had told you in 1993 that someone would manage to turn truck tarps into it bags in Seoul by 2019, and create a best practice brand development story in the process, you may have questioned their judgement.
The likes of Amazon and Alibaba open tech-heavy brick & mortar stores, but best practice commercial brand retail still happens elsewhere.
Early sales reports indicate that 2018 was a good year for large parts of the lifestyle brand industry. Almost 4/5 of the top 100 European and US American lifestyle brands had a growth year, and for the most part did better than in 2017. This was despite a global department store fallout and online growth and was largely based on store growth.
Brand growth management already has many KPIs. What omnichannel measurement do you use to determine the payback of your investment?
Summertime is brand strategy planning time, when brand managers prepare for battle with their KPIs to prepare for new recruiting and securing a higher share of next year’s investments for their channel. But consumers have fundamentally challenged that profit centre logic. Perhaps it’s also time to rework your brand investment planning and the KPIs that measure brand growth success?
While most brands and retailers are building and expanding their online stores, Amazon is investing in brick & mortar: a surprising update on Amazon’s omnichannel retail status.
Let’s imagine for a moment that you’re running a billion-dollar brand. Last year’s net expansion of stores was negative (not counting a recent acquisition) and your share in online sales remains below 5%. Can you already feel how analysts and journalists rip you to shreds over your unconvincing omnichannel retailing?
Aiming for the world’s most affluent consumers in highly competitive environments: Adidas’ ‘Top City Strategy 2020’ is at halfway, what is best practice and what can you learn for your business?
It’s widely known that consumer markets and brand distribution channels have fundamentally changed over the past 25 years in more ways than anticipated. Fact is, the internet as a brand distribution channel grew from 0 to commonly 8-15% of sales. But far more relevant from a commercial and strategic perspective is that many formerly emerging countries, especially China and countries in the Middle East and Central Europe, grew to 30-40% of total sales and profits in lifestyle brand distribution.
Affluent tourists are sought after shoppers and a retail market’s most attractive segment. What does it take to grow your tourist retail sales?
Those of you working in travel retail know Global Blue. The company services tourist retail around the globe with VAT refund services. In this way they collect valuable information about a very precious consumer group. With more than 30 years in that business, they have collected a lot of valuable consumer information. Global Blue have shared some of their insights together with the Economist Intelligence Unit (EIU). This post takes an in-depth look at an example of these insights: the habits of Brazilian consumers and their luxury spending. (more…)
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