Expected growth in Brands Going Retail via Brick & Mortar, Online shop, Online Pure Player.
Consumer brands continuously drive to achieve profitable growth via improved market share. Historically, brands have used two key strategies in this effort: a) marketing to build brand awareness and b) expanding distribution through channels that provide direct consumer access to the product or brand.
Recently, we have witnessed an acceleration of a different model: brands operating owned direct-to-consumer retail, either brickand- mortar or e-commerce, or both.
Ebeltoft Group´s 2016 Brands Going Retail report studies this global trend of brands opening owned retail stores, underpinning their commitment to establish critical direct relationships with the end consumer.
The report outlines the key insights and recommendations for Going Retail, while analyzed the trend across the globe:
- Define the role of the direct-to-consumer channel within the overall strategy
- Actively manage the direct-to-consumer channels with existing channels to optimize growth and profitability
- Develop direct-to-consumer competencies
- Make it an experience and make it outstanding
Leaders of world-class brands emphasize the importance of direct-to-consumer channels in their overall strategy:
“Our ambition is to build a global brand, where our own stores are an important asset to help discover and experience the brand. The store is our main advertising tool.” Raymond Cloosterman, CEO and founder, RITUALS
“The retail strategy strengthened us, as we created close contact with our customers, which helped us to build strong and recognized brands.” Edson Amaro, brand director, CMO, Hering
“With Lindt´s global retail focus, the company aims to strengthen the brand image, achieve a promotionally-effective impact and boost sales through conventional retail channels.” Lindt & Sprüngli
Brands Going Retail - Main Strategic Goals
Brands pursuing the Go Retail Strategy have different objectives. Ebeltoft Group identifies three levels:
- First level: High level of control over marketing, branding, and direct experience of their shopper
- Second level: Selling a broader range and increase direct margins
- Third level: Focused on independence from retailers, testing new products and consumer data
The Brands Going Retail report is a result of Ebeltoft Group´s retail expert survey conducted among its partners in 24 countries and covers best practice cases from Warby Parker, Nespresso, Lindt, Hering and Rituals.
For further information about the white paper and to learn how we can support your organization, please contact us.