Strategy

A new paradigm for European retail?

European markets are shifting. Find out what trends and challenges European brand retail faces and learn how to navigate shifting markets to sustain growth into the future.

With the European economy showing positive signs of growth and consumer markets improving, this year’s MAPIC is set to be an interesting one. The FSP team is looking forward to attending the conference to explore the opportunity for real estate investment with clients and colleagues.

(more…)

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:

(more…)

How to get Quality into your Brand Growth Planning 2018

Key learnings of 30 years strategic planning. A plea for enhanced quality and tips how to improve your planning, today.

In January, Reuters reported that 38 % of 406 major US companies prepared for 2017 with a zero-based budget (ZBB) approach, and cites a respective 2016 Bain study. How lifestyle brands had planned for 2017 is unknown, but in the light of the US retail environment, many brands had to apply major cost cutting exercises to adjust earlier plans.

(more…)

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.

(more…)

Partner Retail is Still the Smarter Retail and Here is Why

DTC became brands’ favourite distribution channel, but it is investment heavy. Partner retail is lighter and more profitable. VF, Pandora and Levi’s show how to grow both.

If you are like most premium and mid-market brands, partner retail is not an own distribution channel, but a strategic stepchild. If you want to determine where you are, allow me these 3 health questions:

(more…)

(Retail) Love in the Time of (Store Closure) Cholera – 8 Reasons why Retail Growth will Prevail

There are store closure programs wherever you look. But online pure players and successful brands continue to invest in retail growth. So why is this?

To start with, I’m a finance and control guy by origin, certainly not a creative that simply likes brand stores because of their looks. I love retail growth, because with the right ingredients almost any product category and brand can operate profitable stores – but you’d better know how. Retail strategies have been my most interesting assignments, because the store operations models behind the façade are as complex as they are colourful.  (more…)

International Expansion: Product Adaptation Without Jeopardising SKU Productivity

This post will answer the question “how much product adaptation is needed and healthy for a brand starting its international expansion?”

In answering the question, I am going to use examples from fashion and lifestyle companies, as I’ve spent the majority of my professional life in those industries.

(more…)

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…)

The Digital Age needs Digital Leadership

If you look into the digital market, you will notice that there are no German or even European big players in the digital commerce business.

Jeff Bezos, Zuckerberg and the Google boys are leading the western hemisphere while clever and aggressive Asian entrepreneurs like Jack Ma or Robin Li are leading the Eastern world. So why is there no German Jobs? A Dutch Bezos? A French Ma? (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.

(more…)

The Uber Way of Wholesale Buying – Tommy’s New Digital Showroom

Investing in wholesale processes was not a brand industry priority over the last few years. Tommy Hilfiger prioritized it though and created wholesale buying best practice.

The media is flooded with stories of new future stores and advanced consumer technologies. All brand investment strategies point towards direct-to-consumer, while digital wholesale transition is far from flavour of the month. Despite this, Tommy Hilfiger launched a new digital showroom in 2015 that has been piloted and is now being rolled out across the globe. (more…)

Regain Growth & Performance by Promoting the Unsexiest Business Strategy: Good Workmanship!

Speed of global brand growth is slowing down. Fast mover strategies pay a high price for restructuring. Successful brands grow with brand best practices.

Whether Tommy Hilfiger convinces Zalando buyers with a digital showroom, a Royal Copenhagen store manager in Japan tracks KPIs by hand, or Lululemon enters new markets on grassroots values – brand best practices, small and large, enable brands to outgrow competitors. (more…)