Omni-Channel

The Future of Retail and Brands is Truly Exciting!! Each year, the Wharton Graduate Retail Conference draws upon the best and brightest from the worlds of retail and brand to share their experiences and insights with Graduate students who truly represent the potential of our retail and consumer businesses. This year, Steve Goldberg, President of TGC, had the privilege to moderate a panel focused on customer loyalty through innovation. The conference also featured extraordinary leaders and entrepreneurs from retail and brands who shed light on the fundamental issues surrounding our consumer world today.  Discussion topics included breakthrough technology, the concept of connecting with customers through “authentic experiences”, and the process of inventing and reinventing businesses; all of which reveal important leadership lessons of how to succeed in business in today’s hypercompetitive, multi-channel marketplace. We left the conference optimistic that the future of our brand and retail leadership is very bright indeed. So [...]

Kevin was asked to comment on the spate of middle-market retail closures in 2015: "Being average in the middle is death," said Kevin Mullaney, president of retail consultancy the Grayson Co. "The high end and the low end—those two businesses are thriving. If you're in the middle, you'd better have a darn good reason for being there based on product and freshness." Check out the rest of the article at Crain's New York.

Many retailers check the box on omni-channel once they have retail stores and an e-commerce site. But a true omni-channel strategy encompasses so much more than those two channels. By The Grayson Company's estimation, there are at least 27 different channels of distribution applicable to consumer goods companies today. While not all of the 27 channels are appropriate for each company, leveraging more than two or three channels certainly can create significant advantages as customers continue to seek product however, whenever and wherever they want it. When two companies go to battle for consumers' dollars, who will win? The advantage is almost certainly with the one that makes itself available in more ways than its competitors.

Last week, Citizen Watch Company of America opened its first global flagship store in North America in the heart of Times Square. Located at the corner of 43rd and Broadway, the flagship bridges the gap between the brick and mortar and digital worlds, bringing a physical store environment to life through a variety of interactive technologies and displays. The new Citizen flagship store truly represents the convergence of retail channels that is quickly becoming the norm in today's retail environment and represents Citizen's commitment to "Better Starts Now." "We felt that a store in Times Square was the best stage in the world for domestic and international customers to interact with our brand," said Jeffrey Cohen, President of Citizen Watch Company of America. "We wanted to create a venue where customers could experience our brand like never before and establish an emotional connection with our products. The look, feel and state of [...]

The pressure on the management teams of consumer businesses to enter new channels of distribution is overwhelming. Going “Omni-Channel” is the strategy of the day, being touted as the only path to survival, let alone successful growth or market dominance. May be, but there is reason to carefully study the success stories before jumping on the bandwagon and especially before investing heavily in the development of the new channels. In reviewing examples of omni-channel success, it is apparent that the most important factor to consider when making channel expansion decisions is the power of the company’s brand. In 2000, our consulting firm conducted a consumer survey for a women’s apparel company. The peer group to which our client was compared included Ann Taylor. Questions asked in the survey allowed us to identify the respondent’s favorite store. One of the subsequent questions asked the respondent what percentage of purchases from her favorite store [...]

While there are exceptions to every rule, there is no question that throughout the history of commercial enterprise, the companies who have strategically positioned themselves to move in the direction of dominant environmental and industry trends have enjoyed greater chance of success than those who chose to operate outside, or worse, against the trends.  As we survey the landscape of the consumer sector today, there are clearly identifiable components which are present in the strategies of the majority of the most successful consumer companies.  We share them with you knowing there are no guarantees that these strategies lead to success and the exceptions will no doubt be pointed out by contrarians.  We’re only highlighting  the dominant themes that influence success. Owning the brand is critical In our opinion, Mickey Drexler was directionally correct with his statements at a Financo event a few years ago when he duked up with Burt Tansky, the [...]