• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Retailconsolidation
 

Retailconsolidation

on

  • 412 views

 

Statistics

Views

Total Views
412
Views on SlideShare
412
Embed Views
0

Actions

Likes
0
Downloads
7
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Retailconsolidation Retailconsolidation Presentation Transcript

    • Retail Consolidation The Continuing Saga!
      • Cause / Effect
          • - What’s driving retail consolidation?
      • The Retail Landscape ( Next 5 Yrs.)
            • - Survival Of The Coolest?
      • Life Expectancy Of Labels Vs. Brands
          • - Will the consumer figure this out?
      • Small / Mid Sized Apparel Manufacturers
            • - Where do they fit?
      • “ The Vanishing Middle”
            • - Goodbye Generic!
      • “ Generational Evolution of Apparel”
            • - Youth Meets Boomer!
      Retail Consolidation
      • The Taste Level Of America - “Forever Changed”
            • - Thank You…Mickey Drexler and the Gap
      • Once Upon A Time…
            • Higher price points equated to better product
            • Lower price points meant poor quality / “no taste”
      • Now Its: “Good, Better, Best” Vs. “Cheap or Expensive”
            • The Consumer doesn’t want cheap
            • They want “Good, Better, Best” at a discount
      • Added Value Isn’t A Bonus…
            • - It is a requirement!
      Cause / Effect - What’s driving retail consolidation?
      • Apparel is declining in importance to the consumer
      • Lifestyle is driving apparel decisions
      • Apparel must adapt and provide relevance
      • Provide what they want…Not what they need
      • “ Good taste is expected” …”Good deal is desired”
      What’s Different?
      • “Live Young, Work Young, Look Old
        • - The Aging Boomer will not go quietly…Dressing Younger is Cool
      • The 40 yr old of 1981
        • vs.
        • The 40 yr old of 2006
        • Single Biggest change…
        • Father / Son and Mother / Daughter all dress alike
      • Price is the ultimate vehicle of change
        • Price / Value equation much more important vs. past
      • The “25-35 Year Old” Consumer Has A Different Perspective
        • Based on exposure to all outside influences of Media
        • Grew up with different “Tools” (Instant Access)
      The Changing Consumer
      • Effect of “Younger vs. Older”
        • - Clash of lifestyle apparel choices
      • “ Everyone looks good in a “Suit and Tie”
        • - Casualization of America = Men with no clue
      • “ No one buys an outfit to go out on Saturday Night”
        • - Your Lifestyle dictates what you wear
      • “ Households with children under 18 dramatically alter
        • what parents wear”
        • Inherent awareness of what’s cool / what’s not
      The “Generational” Shift of Apparel For Consumers
      • Technology
          • - “Warp Speed” visibility to brand awareness - Good & Bad
      • Old Adage: Better Product = Better Taste Level = Better Distribution
          • - Throw it out the window
          • - New School: Cool product at lower price points in broader distributional channels
      • Apparel Spending Grew In 2005 (+4% [2005] NPD)
            • Mens Stronger Than Womens
            • Lifestyle Segment Driven
            • Price Factor: Important more than ever
      • New Consumer Profile Emerging
            • Non “Brand / Channel” specific
            • Buy what they want / where they want
      Changes In The Game Today
      • The Dept. Store Format Stabilizes And Prospers
            • - Federated / Macy’s streamlines and further separates from mid/tier and discount to create “Reason To Exist”
      • Brand Direct Retail Over-Expansion
      • “ Rush To Direct Retail”
            • Survival Of The Fittest = Weeding Out
            • “One Dimensional Brand Retail” Platform Fails
      • Outlet Store Malls Re-Focus
            • Good, Better, Best Brands = Better Product Offering
            • Less “Outlet Private Label”
      • “ Neighborhood” Niche Specialty Stores Emerge
            • Non Mall Based “Cool” Stores: “Lifestyle Center”
            • Destination Locations - I.E. Abbot Kinney
      The Retail Landscape - Next Five Years
      • “ Uncool” Stores Cease To Exist
        • Mass / Midtier Customer Once Identifiable > Becomes Invisible
        • Everyone Wears Cool Product
      • Big Box Players “Modernize” Assortments
        • Generic Product = Gone
        • Lifestyle Focus
        • Picture Multiple “Target” Formats
      • “ Transformational” Brands Impact Retail Formats
        • Think J.C. Penney / Sephora
      • The Mall Reinvents Itself
        • “ Plastic,” “Food Court,” “Non-Traffic Driven” Retail Space
        • Picture “Farmers Market Of Apparel” (Mixed Category / Real Life Experience )
    • Cool Stores
      • Costco
      • Home Depot
      • Victoria’s Secret
      • Target
      • Whole Foods
      • American Eagle
      • Best Buy
      • Pac Sun
      • Abercrombie & Fitch
      • Lifestyle Focused
      • Clear Point Of View
      • Category Dominant
      • Modern / Relevant Business Model
      • “ Speed To Market”
      “ Common Thread”
      • Federated / Macy’s : Big Upside
          • - Macy’s West: Prototype Future Better Department Store
      • J.C. Penney: Big Opportunity
            • - “Transformational Brands” (Sephora) Drive The Business
      • K-Mart: Big Question
          • - Create Reason To Exist
      • Walmart: Big Challenge
            • - Modernize Apparel Assortment And Add Brands
      “ Retailers In Transition”
      • “ Versions”: according to Webster
        • A name given to a product or service
        • A type of product manufactured by a company under a particular name
        • The name or trademark of a fashion company
      Definition Of Brand vs. Label
    • My Version
      • Labels Have Recognition • Brands Have Loyalty
      • Labels Get Your Attention • Brands Get Your Heart
      • Labels Serve A Purpose • Brands Serve A Consumer
      • Labels Offer Value • Brands Offer Value - Added
      • Labels Trust Consumers • Brands Consumers Trust
      • Labels Are For Now • Brands Are Forever
      • 3 Types of “Labels”
        • Direct Retail Private Label
        • Generic Vendor Label
        • Niche Specific / Category Expert Label
      • Direct Retail Private Label
        • Continued Evolution Of Superior Price Value Equation
        • Future Upside in Better Design And Quality Execution / Investment
        • Specialty Retail Dominates Execution Vs. Department. Store / Midtier
      Life Expectancy Of Labels Vs. Brands
      • “ Generic Vendor” Label
        • “ Vulnerable To Extinction”
        • Price Driven
        • “ No Reason To Exist”
      • “ Niche Specific / Category Expert” Label
        • Future Is Bright
        • Creating Expertise In Category
        • Flexible Sourcing / Design Capabilities
      • 3 Types Of Brands
            • Vertical Retailer
            • Traditional Manufacturer
            • Licensing
      • Vertical Retailer
            • 100% in Control
            • Direct Access to consumer
            • Best price / value equation
            • Fastest “Trend to Market Provider”
            • Sales Comps: “True Barometer of Success”
      • Traditional Manufacturer
            • Reliance on retail distribution
            • “Middleman to Consumer
            • “Limited” control
              • - Pricing, Point of Sale, Positioning
            • “Wholesale Sales” growth
              • (vs. Retail Sales Success )
      • Licensing
            • “3rd Party” Control
              • - Licensor to licensee to retailer
            • Management of diverse licensee cultures: “One Voice”
            • “Direct correlation of success
              • - Degree of brand promise kept
            • “ Brand Extension” - revenue growth
            • “ Difficult” control
              • - Wide variations: “Best to None”
      • 7 Stages Of Development
          • “Emerging”
          • “ Cool ”
          • “Aspirational”
          • “Accessible”
          • “Mainstream”
          • “ Declining ”
          • “ Gone ”
      • Direct correlation to sales volume & stage of development
      • The hotter the brand gets - The younger the consumer that embraces it.
      • Define brand strategy before stage 4 ( “Accessible” )
      Life Of A Brand
      • Adults “Dress Younger” - “Less Serious”
          • - Subtract 10 years of age from your dated consumer profile
      • “Being Cool” vs. “Dressing Cool” 2 Different Things
          • - Cool Products exist at all distribution points vs. 5 years ago
      • Remaining “Separation Factor” of cool: “ Brands ”
            • “Tribe Differentiator”
            • “Lifestyle Statement”
      • Price / Value Equation: New Dynamic
            • More choices to spend money on
            • Apparel facing new competition
      Brands Today
      • “The Modern History Of Apparel”
        • 3 Parts:
          • Luxury / Premium
          • Generic / Mainstream
          • Mass / Commodity
      • “Educated Consumers Changing The Game”
        • Better Fashion, Better Quality, Cheaper Price
        • “ Polarization” Of Retail Landscape
        • Direct Brand Retail Replacing The Middle
        • Generic Product Rapidly Vacating Middle Tier
        • Mass Getting “More Sophisticated” On A Daily Basis
      The Vanishing Middle
      • The Term “Moderate Department Store Is An Oxymoron
        • Squeezed From Both Ends (Luxury / Premium and Big Box / Mass)
      • Growing Trend :
        • Luxury / Premium Fashion Mass / Commodity Prices
      • Generic Product :
        • Forces Consumer to search for lowest common denominator price point
      • “ State Of The Union”
        • Highly Competitive, Price Driven, Lack Of Predictable Future / Long Term Status
        • Forced To Compete With Large Public Apparel Firms ( Chargebacks, Allowances, Discounts )
        • Increasing Margin Pressure
        • 100% Of Existence Held In the “Hands Of Retail Distribution Or Wholesale Brand”
      The Lifecycle Of The Small / Midsize Apparel Company
      • Qualifications
          • Strategic Plan
          • Specific goals / objectives
          • Proper due diligence
          • “ Realistic diagnosis of the patient”
          • Time frame - you can live with
          • Financial support to execute
      • Tools
          • Sub-Branding
          • New product launches
          • Multi-channel distribution strategy
          • Category extensions
          • Trade Advertising
          • “ Exclusive” brand extensions
      “ Requirement For Survival ”