I love LEGO, and they have paid me in great childhood memories and eight wonderful years of assisting in partner and own retail.
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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.
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.
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? If you think that’s outrageous, how did your 2020 forecasts from around this time last year pan out?
As we wrap up our post-lockdown publishing, we realise the industry mood is somewhat in-between. In-between first and second lockdown. In-between a return to office or of stay at home office for good. In-between going on international travel or staying put. Slowly we start to see, in-between could be the new normal for some time to come.
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.
Before this post reaches you, it went through five different incarnations in six weeks of lockdown. It started out very German in tone ‘this will get very dirty before it is over’, to shift to ‘how to stop your cash bleeding’, until it gradually reached its current Italian mood, ‘andrà tutto bene’.
We have 2020, pre COVID 19, online and multichannel have long become your daily bread and butter, and building sustainable fashion brands is the next big brand strategy priority. (more…)
Please excuse the pun, I just had to make it 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.
Global expansion in sales and distribution competence has become a lifesaving strategy feature, but allow me a question first:
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…)
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.
In case a cycling jersey isn’t yet part of your casual wardrobe, this story about brand community management may change that when bike apparel may well set trends in mainstream clothing by 2025.
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.
And Amazon is not the only one.
So let’s look at the fundamentals behind the e-commerce trends 2019 that indicate a new direction in growth.
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?
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?
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.