1. Power Retailing
Like most of the last decade, 2017 has been brutal on the retail business. In this climate, the retailers still managing to thrive fall into two major groups. At one extreme are the giants who have mastered the art of scale (e.g. Amazon) and/or procurement (e.g. Zara).
At the other end of the spectrum is a smattering of niche retailers regarded by their customers and followers as essential. Stores on this side of the equation often share a talent for nourishing a community while driving traffic and sales – balancing their physical and digital presence with a mix of relevant products, content and experiences.
Most retailers find themselves caught between these extremes – unable to reconcile the costs of creating high quality engagement with the stock that simply must be sold.
When it comes to implementing sophisticated ideas and campaigns, monobrand stores have it easier. But multi-brand retailers have advantages of their own.
Some of the biggest names in the licensing industry are increasingly taking notice of the nuances in the influence relationship between multi-brand retailers and audience. As a result, a particular business model is gathering pace that not only recognises its value, but also provides a rare win-win solution to all parties.
Last month the fashion site, Mr Porter, announced its most recent collection in partnership with the Kingsman movie franchise. The new 120+ piece range features Mr Porter’s own, private label styles among items from a dozen iconic names of British style like Turnbull & Asser, Drake’s and Smythson. Managing Director, Toby Bateman, explained “Kingsman has become one of Mr Porter’s top performing luxury brands. We couldn’t have imagined its success, and we’re thrilled to be working on an even more diverse and wearable collection.”
In the coming weeks, the eCommerce platform plans to double down on its success with a parallel collection of classic American styles. Brands like Stetson and Mister Freedom have been mentioned as names to be included in the new Statesman collection – which takes its name from new characters in the forthcoming sequel to Kingsman: The Secret Service.
The Kingsman by Mr Porter relationship shares a similar framework to a model that Disney has used several times in recent years in partnership with the teleshopping channel, HSN – and already this year in conjunction with Beauty and the Beast and Pirates of the Caribbean. While super spies, lonely princesses and pirates have different target audiences and timing, both examples show a dynamic at work that captures the best aspects of multi-brand retail.
In both cases, the exposure and positioning benefits for channel and movie are obvious. What’s interesting is the effect the relationship has on brands that would never otherwise acquire a movie license, and on consumers who would never otherwise buy “movie merchandise”. With Mr Porter or HSN in the role of curator, products and transactions become possible that would never otherwise occur.
For retailers, this sophisticated form of licensed promotion promises engagement that is measurable and impossible to copy. The downsides are few, provided they make good choices when it comes to property selection and creative direction. Any brand faces the same dilemma when it engages in licensing or collaboration.
Examples of such platforms aren’t confined to Hollywood movies. Book publishers and music properties are increasingly using this “hosted halo” model. In a weird way, art properties have always been doing it if you consider the type of product found in some of the better museum and gallery gift shops.
Presenting a buffet of products under a relevant, contemporary theme has always been a hallmark of good retailing. The tools available in 2017 mean that this role is one that retailers can do more effectively now than ever before. While the backing of a strong licensed property isn’t essential to success, retailers need to take note that in these times of scarce attention, themes that can be expressed succinctly and memorably stand far more chance of engaging emotions and being regarded as remarkable.
2. Got Upgrades?
It’s a good time for brands and retailers to think about post-sales services and innovations they can offer to make products last longer or perform better.
In recent months I’ve seen flagship stores of brands like Sandqvist and Munich offering in-store product overhaul and repair workshops. Services like these are valuable for encouraging repeat visits and reinforcing to customers the value of their original purchase. In a less tangible way, they are just another way of exposing the craft behind the product and reinforcing the notion of something worth holding onto.
Platforms like Patagonia’s Worn Wear programme go even further by reconstituting returned, old products as new ones, but it would be simplistic to think of the popularity of such services as being motivated solely by sustainability.
Christopher Raeburn’s REMADE capsule for Eastpak uses four standard military and border-force fabrics to build a range of ultra-utilitarian bags. But the hot anticipation for the capsule has more to do with being exotic than ecological.
Disney used a similar concept by working with vintage clothing specialists, What Goes Around Comes Around, to remaster a range of pre-worn garments for the newest instalment of Pirates of the Caribbean.
Initiatives like these remind us how ever more consumers are obsessed with owning something scarce and singular. Special editions and customisation services answer this demand, but an increasingly popular way for users to personalise their product experience is through “mods”. Mods are add-ons that allow products to be adapted so that they perform beyond factory specifications. For generations raised on video game upgrades and smartphone apps, using mods in the real world is a perfectly natural solution.
Mods can be offered by the original manufacturer, but are more likely to come from third party suppliers and brands. A great example from the past month are Lomography’s Neptune Convertible Art Lenses, which give buyers options to enhance the capabilities of Canon, Nikon and Pentax cameras.
Lomography is a great example of a brand that feeds into the product ecosystem while also feeding off it. The Neptune project is the Austrian brand’s sixth Kickstarter campaign and succeeded in raising more than €500,000 in product funding.
Like many dynamic brands, names like Lomography, Eastpak and Patagonia consistently show a strong affinity with specific communities. A large part of this connection is their detailed understanding of the role accessories play in enabling an obsessed audience to get what it wants.
3. To Football, An Apology…
Following my piece last month about the differences in product marketing between European and North American sports, football responded in May with an unusual degree of diversity and creativity. Nike and adidas were among the brands to introduce new products to play on football’s lifestyle and fashion cachet. Most of the projects had a U.S. focus.
Perhaps the European approach is always likely to be more subtle: see, for example, the vague relationship of Lacoste or Fred Perry towards tennis. The recent revival of brands like Umbro and Le Coq Sportif point to a similar dynamic in football. While their success points to a fashion value for football nostalgia, examples like these don’t go far towards dealing with sport at its most molecular and fascinating levels.
