“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.”
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?
Everything you should know about your potential partner retailer’s business and how to get the information you need.
There are many reasons why it makes sense to conquer a market through reliable retail partners. Besides the shared risk, lower investment and faster growth, you may want to benefit from your partner retailer’s deeper understanding of the market – the local players, dynamics (e.g. real estate and channel development) and consumer behaviours – before opening your own retail stores. (more…)
H&M gave up their monthly reporting in July. An indication of an ailing retailer? Debatable – Zara never did it in the first place.
Three years after H&M gave up on like for like reporting, they stopped publishing monthly sales figures altogether. H&M follows the path of other well-known retailers that no longer publicly report monthly details of their like for like retail performance. (more…)
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!
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:
Investing in wholesale buying processes was not a brand industry priority over the last few years. Tommy Hilfiger prioritized it though and created 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 has all the ingredients for best practice wholesale buying processes. (more…)
How to find a realistic assessment of the country’s brand distribution potential, for international brands aiming to expand into India.
Reading about brand distribution in India lately, has meant encountering an endless stream of comments filled with superlatives. For example: “India has emerged as the fastest growing major economy in the world” ; “India has become the second most competitive BRICS economy” ; ” … the Indian retail sector is poised for tremendous growth” and so on. (more…)
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…)
It was ‘the’ topic during Milan Fashion Week this spring: Starbucks is going to open its first store in Italy next year. Italy – birthplace of coffee culture and until now a ‘Starbucks-free nation’ – will host the first coffee shop of the Seattle coffee chain, right in downtown Milan! Swiss giant Nestlé first entered Italy in 1999 and opened a Nespresso flagship store (out of 6 worldwide) in Milan last year, now another big player is daring to do the impossible – the equivalent of selling ice to the Eskimos. (more…)
Most brands use partners to grow their brand internationally. We provide 10 best practice tips to grow your international partner distribution successfully.
You think the biggest risk in partner distribution is to lose a partner and all local sales? Puma’s CEO Jochen Zeitz thought so too, until Puma’s Greek distributor filed for bankruptcy in 2012. Puma paid a high price when it had to inform the stock market that it might lose €115m; quite a figure, considering the entire Greek sporting goods market is less than €500m in annual sales. (more…)