Distribution

E-Commerce Platforms: Challenges & Opportunities for Brands

Large platforms like Amazon, Zalando or Asos increasingly dominate digital distribution. Should brands be worried?

In their report The state of fashion, published in late 2017, McKinsey point out that online shopping is increasingly dominated by large platforms like Amazon, Zalando or Asos. After reading this report, I’m surprised to not hear more reactions from the fashion industry – particularly from brands, as the report concludes that working with these platforms has become a ‘necessity’ for them.

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Marketplaces Are Now the Biggest Digital Distribution Channel for Brands

Digital distribution via marketplaces is big business. The choice of marketplaces is large. Selecting the right ones and operational execution are key.

Germany’s Bundesverband Onlinehandel (BVOH) teamed up with the agency p.digital to conduct a study about the state of the e-commerce marketplace industry. The study ‘Marketplaces Across the World’ charts 335 marketplaces in Europe alone and lists over 740 globally.

These findings alone make obvious that e-commerce marketplaces in Europe and globally have become an important channel of distribution. But there is more:

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Is Your Retail Format Ready for International Expansion? Part I

The days, when brands could establish a successful retail format at home and just roll it out internationally without major adaptations, are long over.

Customer centricity is the new holy grail in the retail business, promising prosperity and success for any retail format. Surprisingly, many brands still start to roll-out a retail format without even trying to understand whether and how consumers and their behaviors differ in a new market. This post illustrates what to explore and adapt to establish a successful retail format when going international.

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1000 Myths, 60 Locations & 5 Formats – The Facts about the Amazon Retail Strategy

Amid many myths and rumors, this research sheds light on the facts, corporate communication, and the evidence from physical store openings. Long quality read.

Imagine you own 43% of your online market, and 50% of the online growth, but 85% of your market continues to be brick & mortar? Imagine (more…)

Brand Distribution: Why Now Is the Time for Mexico

Reaching a realistic assessment of Mexico’s brand distribution potential

As the second largest retail market in Latin America, Mexico has long been considered an attractive market for international retail brands. With Brazil in recession, Mexico has been able to further improve its position. The country is now on the radar of current and new players seeking to conquer market share. (more…)

Is your Outlet Strategy financially a Princess but Strategically Cinderella?

Factory outlets are brands’ most profitable retail distribution method; and a bricks-&-mortar market still growing. We shed light on the outlet strategy of top brands.

Today Düsseldorf witnessed a unique and crazy retail premiere. The grand dame of New York department store retail, Saks 5th Avenue landed its first store in Europe, Saks OFF 5th: an outlet.

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International Expansion – How to Find the Best Distribution Model?

Selecting the most appropriate channel mix – using the optimal distribution model for any new market – is like finding your way in a multidimensional maze. It is one of the most complex and risky decisions top management has to make, as each market comes with its own set of conditions and requirements.

There is plenty of information available about characteristics of the different distribution channels. Therefore, in this post I would like to focus on how to select the best distribution model for your brand. A distribution model that allows you to expand into the targeted channels in a specific country in your market segment!

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Lululemon vs Under Armour: Is it Barbie vs Ken or about Qualitative Brand Growth?

In the competitive sporting goods industry, not many brands succeed in reaching the top, but Lululemon and Under Armour have.  We outline how they created brand growth and whether they have the potential to stay on top.

Over the last couple of years some sporting goods brands have managed to gain visibility and market share and two of them – Lululemon and Under Armour – have shown an outstanding brand growth development. (more…)

Brand Distribution via Digital Marketplaces – What Business Model is Right for You?

Brand distribution via digital marketplaces requires new skills and systems. This post argues that you need to be clear about your digital B2C readiness to decide how to best execute.

In my last post, I shared some facts on the importance of marketplaces. This time let me talk about HOW to do your business via digital marketplaces right.

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How to Balance Digital Brand Distribution: Learn from the Bricks-&-Mortar World

Digital brand distribution has huge sales potential, but brands miss out on the growth opportunity. This article outlines how to achieve successful growth.

Internet marketplaces are the digital version of High Street shopping areas, but with increasing ‘footfall’.  The Ecommerce Foundation estimates that by 2020, up to 40% of all online purchases will made via marketplaces. Can you afford to ignore 40% of the online market? (Ecommerce Foundation, 2015)

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Managing the Impact of Double Digit Footfall Drops

How a new retail KPI can help to keep store performance on track and retail staff motivated when footfall drops.

Retail business always has been tough – but today’s challenges for bricks-&-mortar retailers seem to reach unprecedented heights, with footfall dropping up to 20% compared to last year, even in prime locations.  (more…)

Growing with Brand Distributors in Partnership

Global brands use wholesale & retail distributors to enter foreign markets. This article provides tips on how to avoid pitfalls and best manage distributors.

Jan 2014, Berlin: Three years earlier, a French outerwear brand* signed an exclusive partner store distribution agreement for southern Germany. Visiting the newest German store, the French CSO realises locations continue to be rather ‘cheap’ and off the High Street. The distributor argues that the brand doesn’t pay High Street rents.

May 2014, Dubai: The CEO of a Swedish womenswear brand* is on vacation in Dubai and realises his long-time Middle East distributor is also managing 10 other brands. The brand’s previously exclusive position is diluting as the distributor’s new favourite brands get the better locations in the new malls opening up. (more…)