May 2, 2024
KPOV
Retail Innovation
Attending the World Retail Congress in Paris last week was a game-changer (move over, Vegas!). This premier event brought together top-tier department stores and brand leaders (mostly European), assembling for a dynamic two-day conference.
The agenda? A deep dive into cutting-edge topics such as AI, in-store experiences, revitalizing heritage brands, and groundbreaking innovation.
One standout presentation (Linked Here), spearheaded by BCG, caught my attention as it delved into the latest investment trends among industry “innovators.” From Retail Media Networks to Marketplaces and Social Commerce, the session shed light on where the smart money is flowing. BCG's comprehensive survey encompassed a diverse range of companies, from corporate giants to nimble players with sales under $50 million.
It’s great read to understand what the important trends are for companies focused on innovating.
TECH TALK
The Marketplace Era
Nordstrom just announced its new Marketplace that will showcase a broader selection of products, sizes and brands and enhance the company’s e-Commerce business.
The significance of marketplaces and dropshipping is on the rise in today's digital landscape. A company with a marketplace strategy is both selling third-party brands on their platform and selling their products on other platforms. However, larger corporations like Amazon, Walmart, Macy’s, and Nordstrom operate more akin to a dropship strategy which is defined by leveraging 3rd party brands, curating their assortment, showing the product online and not owning any of the inventory. There is no better way to improve your GMROI.
To thrive in this evolving market, it's essential to leverage leading tech platforms that support dropshipping and marketplaces, such as Mirakl, CommerceHub, and Commercetools. Additionally, platforms like Shopifyoffer plugin solutions including Fabric Commerce and Cymbio to streamline operations and enhance performance.
Here are a few golden rules for success in this arena:
Appoint a dedicated individual to oversee business operations.
Curate your assortment meticulously, prioritizing quality over quantity.
Aim for margins comparable to wholesale purchasing.
Establish robust Sales Licensing Agreements (SLAs) to uphold vendor accountability and ensure customer satisfaction.
FEATURED PARTNER
I recently joined forces with Matt Mueller, co-founder and CEO of Knot Standard, as Head of Strategy and Board Advisor.
Knot Standard, a leading made-to-measure (MTM) platform, is undergoing a strategic shift from a direct-to-consumer (DTC) brand to a tech-enabled platform empowering brands to deliver MTM services under their own labels. Our successful partnerships include industry giants like Nordstrom, Brooks Brothers and Billy Reid, with the latter now a key partner as they are taking over Knot Standard showrooms and doubling down on MTM.
Similar to the dropship model (and why I love it), Knot Standard revolutionizes the retail experience by enabling brands to provide bespoke services without the burden of inventory management or dedicated space. With just 200 ft², we can offer MTM, delivering unparalleled personalized service and a remarkable 99% fit accuracy. With access to over 18 factories covering a wide range of products from knits to wovens, suits to tuxedos, and catering to both men's and women's fashion, Knot Standard offers a distinct advantage for retailers. Our extensive fabric library enables suit price points from $495 to $2,500 (Loro Piana). Just another way to defy GMROI:).
THE RETAIL PILOT PODCAST
Our most recent flights of The Retail Pilot - Leaders & Legends feature Retail leaders and entrepreneurs with very different backgrounds.
Michelle Wlazlo is EVP, Chief Merchandising Officer of JCPenney and is responsible for leading the Company’s global merchandise strategy and operations. Since joining the company, she has led the charge in clarifying and defining the positioning of private brands to give customers more choice. Wlazlo brings more than 30 years of merchandising and stores experience from a variety of retailers including Target, where she was senior vice president of merchandising, and Gap, where she spent 19 years in a variety of roles. She began her career at Saks Fifth Avenue, Inc. Wlazlo attended Lowthian College in Minneapolis and the Executive Education Program at Columbia University’s Graduate School of Business.
Peiman Raf is the Co-Founder and CEO of Madhappy, a contemporary lifestyle brand that develops and designs goods for the curious. After graduating from the Michigan Ross School of Business, Peiman spent a short stint in investment banking. Recognizing mental health as a growing societal issue, Peiman launched Madhappy with his brother, Noah and two friends, Josh and Mason in 2017 as a platform to uplift others and drive conversation around mental health. In a few short years, Madhappy ignited a cultural movement around optimism garnering an investment from luxury conglomerate, LVMH in 2019. Along with his Co-Founders, Peiman has been named Forbes 30U30 and featured in major publications such as The New York Times, Vogue, GQ and more.
New episodes out each week - subscribe now!
APRIL 18, 2024
KPOV
Product Distribution is a critical aspect for brands seeking broader market reach.
Direct-to-consumer (DTC) brands are expanding into wholesale channels, while others, like Coach, are leveraging platforms such as Amazon. Additionally, brands are actively pursuing placement in innovative platforms like Apple's new VisionPro and establishing shop-in-shops within renowned retailers like Sephora and luxury department stores. To extend digital reach internationally, partnering with global e-commerce solutions such as ESW (eShop World) is key.
Leveraging the power of social commerce, where sales thrive on platforms such as TikTok and Instagram, and harnessing he influence of celebrities, influencers, and user-generated content (UGC) to enhance your organic posts will drive sales.
These strategies represent significant opportunities for brands to strategically position their products closer to customers, embracing the concept of Omni-channel distribution while deleveraging risk and Capex.
TECH TALK
In-Store “Tech-Out”
Enhanced store technology plays a vital role in meeting the evolving needs of today's shoppers, with a majority still preferring the in-store experience.
Leveraging modern POS solutions like PredictSpring (Featured Partner) facilitates seamless online purchases and in-store transactions, including Buy Online, Pick Up In Store (BOPIS) services. Additionally, digital screens, such as those offered by Glass-Media, expand product accessibility beyond physical store inventory while effectively promoting store-specific promotions.
The implementation of RFID technology, powered by companies including Radar, enables precise inventory tracking, facilitating optimized stock management and meeting customer demand with lean size runs.
Workforce tools like Zipline streamline operations for store teams, ensuring efficient day-to-day management. Moreover, companies like FourKites utilize GPS technology to provide real-time insights for store management, such as tracking delivery trucks and optimizing logistical operations.
Embracing these technological advancements will enhance overall store efficiency and customer satisfaction.
FEATURED PARTNER
A global, Modern POS, PredictSpring combines in-store and online transactions, extended aisle, inventory management/cycle counts, mPOS, BOPIS and clienteling. Customers include: Deciem, Steve Madden, Movado, LoveSac, Janie & Jack and Bouclair.
Meet the PredictSpring team May 22-23 at Salesforce Connections in Chicago
THE RETAIL PILOT PODCAST
Our most recent flights of The Retail Pilot - Leaders & Legends feature Retail leaders from two of the largest Retail Store brands in the US.
Denise Incandela is Executive Vice President of Fashion and Private Brands for Walmart U.S. In this role, Denise is propelling Walmart’s reputation as a fashion destination, helping democratize access to stylish, quality apparel for Walmart’s 140 million weekly shoppers.
Pete Nordstrom is the President and Chief Brand Officer of Nordstrom. Throughout his career, Pete has helped Nordstrom innovate the customer shopping experience and redefine the role fashion plays in customers’ lives leading major strategic initiatives such as building the designer offering to a $1.5 billion business, evolving Nordstrom’s mix of brands and categories and bringing in limited distribution brands as exclusive partners.
New episodes out each week - subscribe now!
APRIL 4, 2024
KPOV
"The Luxury E-Commerce Bubble: Who Will Emerge Victorious?"
The New York Times recently asked, “Has the luxury e-commerce bubble burst?”
Explore the fallout of luxury e-commerce giants like MATCHES and FARFETCH, and discover how traditional department stores like Saks Fifth Avenue and Nordstrom could capitalize on the changing landscape.
In light of MATCHES declaring bankruptcy and FARFETCH's significant valuation decline, the luxury e-commerce sector is facing scrutiny. As industry giants falter, traditional department stores like Saks Fifth Avenue, Neiman Marcus Group, Nordstrom, and Macy's are poised to capitalize. With their established real estate presence and robust online platforms, they could emerge as winners in this evolving market. Could the downfall of online-only luxury players spell opportunity for department stores? Join the conversation.
TECH TALK
Our Israeli Tech Partner, Re:Tech is hosting Re:Tech Disrupt live from the “Startup Nation.” Join the first of four events on April 16th as top tech leaders and retail executives meet the next generation of cutting-edge tech solutions focused on immersive commerce and customer experience. Use our discount code PILOT_25 to save 25% off the registration fee.
FEATURED PARTNER
Powered by real-time data, Taggstar’s Social Proof Messaging, Social Proof Recommendations and eXtended Messaging tap into consumer behaviors to help retailers and brands deliver dynamic shopping experiences that convert and significantly boost the bottom line. Consumers are greatly influenced by the actions of others. Understanding what other people are buying in real-time, helps shoppers discover products and make more informed and confident buying decisions.
THE RETAIL PILOT PODCAST
Our most recent flights of The Retail Pilot - Leaders & Legends feature two Retail leaders who epitomize passion.
Simeon Siegel is a top Retail Analyst for BMO Capital Markets. Simeon stumbled into the retail sector by luck but fell in love with it due to the combination of qualitative story-telling and quantitative evidence where “the numbers don’t lie”. Topics in this episode range from Simeon’s opinions of The TJX Companies, Inc., Under Armour and Peloton Interactive to the impact experienced by brands who are pivoting from Wholesale to DTC (i.e. Nike).
Amy Williams has been a fashion leader for the last 30+ years, specifically in the Denim category. After 19 years at Gap Inc., she moved to Lucky Brand and ultimately found her home leading Citizens of Humanity since 2009. From building strategic distribution strategies beyond wholesale to maintaining brand integrity with a no-discount policy, Amy shares her wisdom and passion for a business that is growing organically in a very competitive retail landscape.
New episodes out each week - subscribe now!
MARCH 21, 2024
KPOV
Exploring Retail Media Networks (RMNs) - A Shoptalk Hot Topic
My “KPOV” for the week is about “Retail Media Networks” (RMN), a hot topic at Shoptalk, which concluded yesterday.
Retail Media Networks (RMNs) are revolutionizing digital advertising within retail spaces. Essentially, an RMN involves a retailer allowing brands to advertise on their digital platform, whether online or in-store. This strategic collaboration fosters increased engagement and conversion rates.
For instance, consider Dick’s Sporting Goods featuring video content from Nike in their storefront windows, or Nike leveraging the opportunity to launch new products or showcase exclusive sneaker drops on Dick’s e-Commerce site. Similarly, Veronica Beard may utilize video content from their runway shows to highlight products available on Nordstrom.com.
With RMNs, brands can execute highly targeted marketing campaigns within retail environments, leading to enhanced sales performance and RMN fees. It's a symbiotic relationship benefiting both parties involved.
When considering where to allocate your brand's digital advertising assets, RMNs present an enticing opportunity for maximizing visibility and driving conversions.
TECH TALK
Streamlining Business Operations: The Era of Tech Platform Consolidation
In the realm of business operations, the concept of Tech Platform Consolidation is gaining significant traction among brands and retailers. The objective? To streamline operations by reducing the number of platform providers required to run a business efficiently.
Amidst the myriad of solutions available, it's increasingly evident that a single platform can often cover a substantial portion of business needs, upwards of 80% or more. Not only does this streamline operations, but it also presents a more cost-effective solution.
To embark on this journey of consolidation, it's crucial to conduct a comprehensive inventory of existing tech providers across various operational areas. This evaluation will help identify essential platforms and highlight redundant ones that can be phased out.
When exploring new platforms, consider hosting a Request for Proposal (RFP) with a minimum of three contenders in the respective space. Prioritize proof of concept demonstrations before making any commitments and negotiate short-term agreements whenever possible. Remember, it's often more advantageous to "rent" a platform rather than invest resources in building one from scratch. Renting not only saves time but also ensures access to a superior solution.
Embracing the ethos of Tech Platform Consolidation can lead to enhanced efficiency, reduced costs, and a more streamlined business operation.
FEATURED PARTNER
Narvar provides the best post-purchase experience for those shopping online. The platform enables retailers and brands to effectively communicate with customers providing estimated delivery dates, reduces the need for online support lowering customer queries, automates the return process while providing customers with exchange alternatives, and manages customer expectations on package(s) delivery which may be coming from multiple sources.
THE RETAIL PILOT PODCAST
An article in the Wall Street Journal last week reminded us of Ken’s insightful conversation on The Retail Pilot podcast with Todd Snyder, founder of the men’s fashion brand, Todd Snyder. Read the article HERE, and listen to Ken’s conversation with Todd on your favorite podcast platform.
New episodes out each week - subscribe now!
