Monday, January 31, 2011
The Importance of Internal Branding and the Customer Experience
Today MODEcollective gave a presentation on the importance of Internal Branding and the correlation with the customer experience, a topic which has been on the top of retailers list of priorities and talking points since the crash in the economy in 2008. In today's' retail environment competitions is at its highest so it is the brand and its people that make the difference in the overall customer experience.
Apple is a phenomenal example of a hot brand that is cutting edge and exhibits a cool image that is appealing to both the hipster and yuppy alike. The product also reflects the philosophy of the brand, it is hip, modern, sexy and cutting edge. But what about the people? Do the people who work for Apple, especially in the front lines of their stores represent the brand? This is the element that is often times forgotten. Branding is not only the philosophy of a company but also the product/services it provides and above all its people. An article from last September's Harvard Business Review perfectly explained the need to create a culture and support the internal branding or culture within a company. The key points in this article explained the need to understand your customer and the relationship between the people in a company and the brand identity and marketing for that company. It closes by asking the questions, " How does your brand shape your culture? How does your culture bring your brand to life?" If the people who interact with the customer daily do not embody the philosophy of the brand of understand it and incorporate it to enhance the customer experience, then the company is missing an integral part of being competitive in today's marketplace.
HBR's: Brand is Culture, Culture is Brand
A perfect example of understanding the power of branding is the case study of Tory Burch. So many publications have written about the power of the Tory Burch brand and her 5 year research into her branding philosophy which took place before she even began designing her first Reva flat. Ms. Burch's background in marketing gave her the insight needed to understand the importance of developing her brand from the beginning and defining what the philosophy was and how it carried through to every aspect of the company, from the product, service, store environment, logo and of course the people. Tory herself is the biggest brand ambassador and marketing tool for the brand. Each function she attends or speaks at is an opportunity to advertise the brand and educate her audience about the philosophy of her brand. She is the perfect model of a successful, well-dressed business woman which relates to her audience and her client.
To break it down to the simplest and most crude level, branding consists of three major areas (the 3 P's of branding as coined by MODE): Philosophy, Product and People.
Additional Reading Material on the correlation between Internal Branding and the Customer Experience
HRM Today
BIZ Community
Apple is a phenomenal example of a hot brand that is cutting edge and exhibits a cool image that is appealing to both the hipster and yuppy alike. The product also reflects the philosophy of the brand, it is hip, modern, sexy and cutting edge. But what about the people? Do the people who work for Apple, especially in the front lines of their stores represent the brand? This is the element that is often times forgotten. Branding is not only the philosophy of a company but also the product/services it provides and above all its people. An article from last September's Harvard Business Review perfectly explained the need to create a culture and support the internal branding or culture within a company. The key points in this article explained the need to understand your customer and the relationship between the people in a company and the brand identity and marketing for that company. It closes by asking the questions, " How does your brand shape your culture? How does your culture bring your brand to life?" If the people who interact with the customer daily do not embody the philosophy of the brand of understand it and incorporate it to enhance the customer experience, then the company is missing an integral part of being competitive in today's marketplace.
HBR's: Brand is Culture, Culture is Brand
A perfect example of understanding the power of branding is the case study of Tory Burch. So many publications have written about the power of the Tory Burch brand and her 5 year research into her branding philosophy which took place before she even began designing her first Reva flat. Ms. Burch's background in marketing gave her the insight needed to understand the importance of developing her brand from the beginning and defining what the philosophy was and how it carried through to every aspect of the company, from the product, service, store environment, logo and of course the people. Tory herself is the biggest brand ambassador and marketing tool for the brand. Each function she attends or speaks at is an opportunity to advertise the brand and educate her audience about the philosophy of her brand. She is the perfect model of a successful, well-dressed business woman which relates to her audience and her client.
To break it down to the simplest and most crude level, branding consists of three major areas (the 3 P's of branding as coined by MODE): Philosophy, Product and People.
Additional Reading Material on the correlation between Internal Branding and the Customer Experience
HRM Today
BIZ Community
Thursday, January 27, 2011
Business of Fashion Blog Exclusive
One of our favorite blogs just posted an excellent article that focuses on the luxury division but also has valuable information for all of us in the industry. Many of the topics discussed in this analysis have been published here at MODEcollective but have also been a constant theme found in every publication following the fashion industry.
Click on the link below to view the article.
http://www.businessoffashion.com/2011/01/bof-exclusive-getting-the-luxury-fashion-business-model-right.html
Click on the link below to view the article.
http://www.businessoffashion.com/2011/01/bof-exclusive-getting-the-luxury-fashion-business-model-right.html
Wednesday, January 26, 2011
What to Watch in 2011-UPDATE
Last week we wrote about some big changes to watch out for in this new year and as retail can be ever-changing there are a few updates to keep you informed.
1. Barney's continues to undergo changes as the company now has a new creative director, Dennis Freedman, who will be responsible for the company's overall creative direction. The well known Simon Doonan, a celebrity in his own right and the former creative director, will remain as a creative ambassador-at-large and will continue to be a media spokesperson and for the company and contribute to the creation of special window projects, host special events and serve as an ambassador to all creative and communication areas inclusive of social media.
2. JCrew's deadline has come and gone. Last week the $2.68 billion offer that would help JCrew go private expired. The mastermind behind the revitalization of JCrew several years ago, Mickey Drexler, appears to be unwilling to work for someone new and wants to continue to work for TPG Captial who owned the retailer before it went public in 2006. Now that an agreement has not been made it remains open for other parties of interest to possibly make bids. Some companies that could flirt with an offer could be the local Sears Holding Corp or even Urban Outfitters Inc.
3. Target to expand into Canada.Target is looking to expand into Canada by opening 100 to 150 stores in 2013 and 2014. The retailer has a $1.84 billion deal with the retailer Zeller's to take over up to 220 of its stores. Target is optimistic about the expansion and industry experts believe that Target's formula will be well received in Canada. Target could also potentially lease out some of the stores to other US retailers looking to expand into the new market. In addition the retailer will be adjusting its merchandising strategy to fit the smaller store spaces of the Zeller's stores but maintains that they will continue to have the depth and breadth that is traditionally expected by the consumer.
There will certainly be more to come given the constant transformation of the retail industry.
To read the original article please click on the below.
What to Watch in 2011
1. Barney's continues to undergo changes as the company now has a new creative director, Dennis Freedman, who will be responsible for the company's overall creative direction. The well known Simon Doonan, a celebrity in his own right and the former creative director, will remain as a creative ambassador-at-large and will continue to be a media spokesperson and for the company and contribute to the creation of special window projects, host special events and serve as an ambassador to all creative and communication areas inclusive of social media.
2. JCrew's deadline has come and gone. Last week the $2.68 billion offer that would help JCrew go private expired. The mastermind behind the revitalization of JCrew several years ago, Mickey Drexler, appears to be unwilling to work for someone new and wants to continue to work for TPG Captial who owned the retailer before it went public in 2006. Now that an agreement has not been made it remains open for other parties of interest to possibly make bids. Some companies that could flirt with an offer could be the local Sears Holding Corp or even Urban Outfitters Inc.
3. Target to expand into Canada.Target is looking to expand into Canada by opening 100 to 150 stores in 2013 and 2014. The retailer has a $1.84 billion deal with the retailer Zeller's to take over up to 220 of its stores. Target is optimistic about the expansion and industry experts believe that Target's formula will be well received in Canada. Target could also potentially lease out some of the stores to other US retailers looking to expand into the new market. In addition the retailer will be adjusting its merchandising strategy to fit the smaller store spaces of the Zeller's stores but maintains that they will continue to have the depth and breadth that is traditionally expected by the consumer.
There will certainly be more to come given the constant transformation of the retail industry.
To read the original article please click on the below.
What to Watch in 2011
Wednesday, January 19, 2011
The Saga Continues: Hermes v LVMH
As many of you may have already read, roughly a week and a half ago the AMF ruled in favor of Hermes which provides the 3 family branches that own the majority of Hermes to pool together and have a defense against a possible take over from LVMH by creating a holding company. The new holding company comprised of many of the individual family members could protect against unwanted purchasers of stock by giving it the right to give first refusal to prospective buyers.
There is additional trouble with this ruling however; the other day on January 17th, it was announced that the minority investors in Hermes are now appealing to annul the AMF's decision.
Only time will tell if this latest move will deter LVMH. Many say the French fashion conglomerate may just continue to bide its time.
To be continued...
To read more you can follow the story on bloomberg:
http://www.bloomberg.com/news/2011-01-06/hermes-wins-amf-ruling-on-new-holding-company-strengthening-lvmh-defense.html
http://www.bloomberg.com/news/2011-01-17/hermes-investors-appealing-family-s-lvmh-buyout-defense-waiver.html
There is additional trouble with this ruling however; the other day on January 17th, it was announced that the minority investors in Hermes are now appealing to annul the AMF's decision.
Only time will tell if this latest move will deter LVMH. Many say the French fashion conglomerate may just continue to bide its time.
To be continued...
To read more you can follow the story on bloomberg:
http://www.bloomberg.com/news/2011-01-06/hermes-wins-amf-ruling-on-new-holding-company-strengthening-lvmh-defense.html
http://www.bloomberg.com/news/2011-01-17/hermes-investors-appealing-family-s-lvmh-buyout-defense-waiver.html
(capsule) trade show
Please visit the website for more information:
http://www.capsuleshow.com/index.html
To see additional coverage of this show please visit the link below which will take you to one of my favorite fashion sites, Wondermode, which not only supports emerging designers buy giving them a platform to sell their product but also has a fantastic fashion blog.
http://www.wondermode.com/blog/
Tuesday, January 18, 2011
What to Watch in 2011
Because this is the beginning of a new year, let's take a look at some changes that started the end of last year and will continue to change and make an impact in 2011. These are some of the stories to watch.
1. Re-sizing retail space. Some retailers who have previously prided themselves on oversized, gigantic spaces are now experimenting with smaller retail spaces. Some of these retailers are looking at smaller, urban prototypes to expand into markets like New York City which does not have the space to house an oversized superstore. Other brands are looking to capitalize on increasing profitability and sales per square foot or are looking to experiment with small accessory only stores and concept stores. And still others are seeking new, smaller spaces to create a more neighborhood feeling that relates to the average Joe.
Be on the lookout for retailers like Target and Wal-Mart who are looking into urban expansion by creating smaller spaces. Wal-Mart has been researching this in an effort to expand into the New York City market. In addition to Target and Wal-Mart, Bloomingdale’s is looking for new locations to for its scaled-down concept store like the one in Soho in New York and many other retailers are exploring accessory only stores and concept stores such as wedding concepts.
2. Changing of the guard. Many companies experienced changes in management and ownership which will impact how these companies operate and could change the products and services offered to the consumer.
Last year Mark Lee took over as the new CEO of Barney’s New York and has been exploring changes throughout the executive team which will surely lead to some exciting new changes for the retailer.
In addition to Barney’s, there continue to be rumors around a takeover of Saks with Diego Della Valle buying up shares. J.Crew will also continue to move forward with a $3 billion deal to go private. And lastly, what changes will take place for Neiman Marcus with Karen Katz at the helm as CEO and her focus on bringing Neiman’s to the forefront using the Web and Social Media.
3. Going Global. Some US companies have been looking into global expansion for the last few years. Two such retailers are Abercrombie and Victoria’s Secret who have looked into expanding overseas to Europe. Anyone who has been to the corner of 56th street and Fifth Avenue in New York would witness the phenomena of Abercrombie and the line that develops outside by 10am and sometimes earlier. If you walk past that line often times you will hear many different languages with only a minority speaking English.
Abercrombie and Victoria’s secret are very popular with foreign tourists given their exclusivity to the US in addition to their unique product offering which is unavailable to them at home. So if these two companies venture overseas how will this affect the exclusivity factor that draws so many foreigners to purchase while on vacation? Would this affect US sales?
Friday, January 7, 2011
2011: A New Year in Retail
Happy New Year!
The New Year is a perfect opportunity for reflection on the successes and challenges of last year. It is an opportunity to start planning for this year’s business with the slate wiped clean, especially if the fourth quarter brought more challenges than successes. Despite many retailers experiencing a slump this Q4, some retailers experienced impressive growth. Apple of course being top dog this holiday season with the iPad being a leading gift and amazon a leader of online sales. In fact, online sales experienced another year of significant growth during the holiday season. Regardless of what your financial outcome for 2010, now is the time to create a plan for the new year. As a retailer, now is the perfect opportunity to ask yourself a few questions.
What can be improved upon from 2010?
What opportunities were missed?
How should I be investing?
What can I cut back on?
How can the assortment better meet the demands of the consumer?
How can customer relations be improved?
These are just a handful of questions retailers begin to ask themselves as the new year arrives. Often times these questions are being answered even as the fourth quarter is playing out. I once had a brilliant mentor impress upon me the necessity of a 52 week calendar. 52 weeks is all we have in order to achieve our financial goals. When you look on a calendar those 52 weeks fill up very quickly and if you find your self in week 26 without a plan of action you have done yourself a tremendous disservice. Start the 52 week calendar now. What are you going to be doing each week for 52 weeks which will allow you to achieve your financial goals.
How do you start a 52 week calendar?
1. Print a calendar of the year and start filling it out.
2. Look back at what happened last year and the year before? Are there any patterns, cycles in spending with tourists, events, conferences which impact your business?—If so, write them down on the calendar.
3. What events, conferences etc do you want to target and work on building a clientele from? Mark them on your calendar and later come up with a strategic plan on how to market and outreach.
4. What type of marketing or advertising will you be doing? When will it go public?-Mark it on the calendar.
5. What events either image or promotional will you be planning for your business this upcoming year. When is sale? When does new product arrive? Does the first day of school effect your business if you are in an area with a high concentration of college students? Do you plan on having a fashion show, participating in a trade show? Will you have trunk shows, demonstrations, designer visits etc?-Mark it down.
6. When does your customer primarily shop? During slower periods of business plan what you can be doing in order to entice new customers to come in. I don’t like to push promotions because they impact the margin and the bottom line but would a promotion for a particular target group like a student discount during the school year have a postive return on investment (ROI)?
7. Does a top client have a strong relationship with an organization that you would like to partner with? A charity group? A business group? Would you be able to do an event with them offering a discount for the day of the event or a portion of the proceeds going to the charity?
These are just a few ideas and once you start this exercise you will find that the calendar fills up very quickly. This is just an organizational exercise. It is up to you to execute and follow through. This is the most important part. Remember each week is key to achieving your overall annual plan. Retail is about execution and being at the top of your game each and every day.
Good luck in 2011!
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