Tag: H&M

As major retailers like Sears fall like very large dominos, you’d be forgiven for thinking the death knells have sounded for brick and mortar retail.

Closer to home, Myer is grappling with its own downward trend, with the retailer last month posting a $486 million annual loss.

So how are things going wrong for such significant retail players? And how can brick and mortar retailers’ future-proof their market share?

While there’s no overnight solution, there are reasons that some brands are able to buck even the toughest of economic conditions.

Take these five tips into account and you’ll be on your way to ensuring you have a thriving brick and mortar retail space both now and into the future.

  1. Be customer-centric

Brands can sometimes go wrong by trying to be everything to everyone. Knowing your customer and talking specifically to them, rather than utilising generic messaging, is key. This relates to your physical retail space and fit-out, as well as your other engagement touchpoints, such as a user-friendly website and your social media presence. M.J. Bale founder Matt Jensen is quoted saying that customer service is what sets his high-performing brand apart. Australian Retailers Association executive director Russell Zimmerman agrees, saying that creating a seamless customer experience includes an easy returns process, and good product pick-up and delivery options.

  1. Change it up

Product also must remain fresh and contemporary. Limited edition products and designer capsule collections, like those employed by high street brands Uniqlo and H&M in partnership with the likes of J.W. Anderson and Erdem, create a fear of missing out – and the market responds accordingly.

  1. Show, don’t just sell

In 2018, a brick and mortar retail space must be more than just a place that sells product. Retailers need to be much more interactive, and really showcase their products. In my recent blog postabout my time working at The Body Shop under the leadership of Dame Anita Roddick, I touched on how the company was ahead of its time by encouraging people to not only see but also touch and smell their products. Successful retailers will take up the opportunity to act as showrooms where customers can interact with products in beautiful surroundings. Liberty London, is one example of a destination department store that lovingly curates its products, showcasing artists from around the world, and acting as a launching pad for emerging and undiscovered artists. No wonder the brand has enjoyed success since it opened its doors in 1875.

  1. Encourage interaction

Encouraging interaction and discovery for guests must go further still. Brick and mortar retailers have the opportunity to educate consumers, and provide face-to-face opportunities for interactions with not only products, but also their designers and makers. Retailers must get savvier about how best to do this, and build a real community of supporters. Examples include internal pop up stores within a larger department store, a calendar of travelling artists and producers, and regional roadshows. The key is a space that is always changing and evolving. Matt Jensen of M.J. Balerefers to the “theatre of shopping”, saying, “You’ve got to entertain people as they part with their money.”

  1. Quality is key

Still, repeat sales increasingly come down to quality. Trends suggest consumers are growing increasingly discerning, and are turning away from products that are lacking in quality and ethics. This is undoubtedly one of the reasons why trusted brands such as Swarovski and Tiffany & Co. are continuing to open new brick and mortar storesin a volatile economic climate. Thankfully the trend is not only prompting many retailers to clean up their supply chains, but also to ensure they’re providing real value to customers.

 So whether you’re selling food, homewares, fashion, or something entirely different, remember that outstanding customer service, fresh, quality product, customer engagement, and an interactive retail environment will all help to future-proof your brick and mortar retail space.

 To find out more about Kiikstart’s business planning and coaching offerings for clients in the retail sector, get in touch at enquiries@kiikstart.com.

‘Collaboration’ has long been a buzzword in the business world.

Companies recognise that remaining relevant requires not only internal collaboration and team work, but also collaboration in the form of partnerships with other organisations.

Defined as “the situation of two or more people working together to create or achieve the same thing”, collaboration makes good business sense.

Consider the success of fast fashion retailer H&M’s collaborations with luxury design houses such as Balmain and Versace, or Uber and Spotify’s value-add partnership that allows you to connect your Spotify account to your Uber car’s radio.

But with great reward often comes great risk. Collaboration can be seen as a smoking gun means to achieving greater brand awareness and financial rewards based on a partnership vision that focuses too heavily on the ‘what’ – the strategy – and not enough on the ‘how’ – the tactics, or fails to adequately recognise the risks.

In these cases, the results can be disappointing. Loss of autonomy, dilution of your brand, lost time and resources, or a negative impact on your brand’s reputation, are just some of the risks.

So today I’m challenging you not to mention the ‘c’ word without first taking these six steps to determine whether you or your business are really in a position to commit to a collaboration.

Do so and you’ll be well on the way to more successful partnership opportunities that yield better results for you and your partners.

  1. Time is of the essence

The first key question you should consider is whether you have the time and resources to nurture a collaboration opportunity. You should consider the potential drain on company resources, both in terms of the number of hours key staff would likely spend on such a partnership, and upfront financial costs. Remember that the drain on financial and company resources is often greater than expected.

  1. Identify your processes

Before entering into any external collaborations or partnerships, you should identify your processes for critiquing the value of your collaboration. Ask: what am I seeking to get out of the partnership first and foremost? Once you know this, you’ll be able to deduce how best to measure this  – whether it be greater brand awareness, a spike in sales of a particular product or service, or customer satisfaction levels.

  1. Leverage your strengths

When negotiating any partnership, be sure to know your strengths. Consider both your access to knowledge and people. For example, you may have a small team, but you could have expert specialised knowledge that is particularly valuable to a potential partner. Alternatively, you may have a broader organisational focus, but perhaps you have the people power to support this work and do more of the heavy-lifting. Knowing and leveraging your strengths before commencing negotiations with prospective partners will ensure you get a better deal for your business. Be prepared to ask yourself and your team the tough questions about what you bring to the table as an organisation.

  1. Mind the gap

Also be aware of your skill gaps – and ensure you partner with an organisation that doesn’t have the same gaps as you. Consider whether you have complementary skill-sets, and creative ways to bridge any skill gaps.

  1. Better off alone?

Finally, assess the ideas and opportunities that collaborations offer and weigh these up against the potential challenges. Ask yourself: am I really better off collaborating, or could I/we be better off alone? Consider what you could do with the resources required for your collaboration if you decide not to go ahead. Which option is more favourable from a commercial perspective? And don’t forget to consider brand reputation and PR risks. LEGO’s collaboration with Shell is one example of a company failing to recognise the PR risk of such an association, as attitudes to Shell’s environmental practices have shifted over time.

  1. Trust is a must

Finally, weigh up the ‘co-opetition’. The term, utilised to describe collaborations with organisations that would often be considered your natural competitors, sums up the need for trust. In order for partnerships to be truly successful, all parties need to be willing to share ideas and insights. At the same time, protecting your IP and business plans is essential to mitigate unnecessary risk.

So, be sure to exercise consideration and caution when using the ‘c’ word. While collaborations aren’t for everyone, successful partnerships can offer immense value to all parties.

I’m interested in your thoughts… Do you have a favourite company collaboration? And are there any other considerations you would weigh up before using the ‘c’ word?