Retailconsolidation
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Retailconsolidation

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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 ”