Flightpath 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.
