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Strategy

A strategy is brand’s master plan how to evolve its business successfully. A strategy can be worked out one or several functional areas of a business. Common functional strategies are a marketing strategy, a sourcing strategy or a retail strategy.Global lifestyle brands easily distribute to 80 markets, with each up to 10 different distribution channels. That provides many opportunities to grow and add complexity. While jumping on each market may prove lucky, growth can easily go very wrong. For that matter, it is good to have a well-planed brand growth strategy.In this section of our blog we share strategy views and best practice examples of key brands, and analyse what you can learn for your own brand strategy.

Business Model

Abercrombie – stripped of the Beach Models, It’s all about the Business Model

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If you are a great brand and plan to grow in international retail, make sure you have a competitive brand business model. It takes more than six packs to be successful.

As the beach boy six packs are no longer in action, what is the brand’s competitive edge? Can you remember any new store opening hype lately for Abercrombie? In 2011, at the height of Abercrombie & Fitch’s international expansion, we looked for the first time at the brand’s P&L and its retail KPIs (see retail intrapreneur). In 2011 alone, US$230m in capital expenditure was spent on expansion in Asia and Europe. The US management was counting on the success of the brand’s international expansion. We questioned whether the business model was ready for European growth.

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