Arezzo & Co.'s CEO, Alexandre Birman, shares how the company navigated the 2020 pandemic challenges by rapidly adapting its strategy, including transforming store associates into digital sales experts. This agility allowed them to maintain significant revenue despite store closures and set them up for a strong 2021. Ecommerce operators will learn the importance of flexibility, strategic investments, and omnichannel integration for survival and growth in a volatile market.
Key takeaways
Implement rapid digital transformation strategies, such as repurposing in-store staff for online sales, to adapt to sudden market shifts.
Diversify your brand portfolio through strategic acquisitions, including exploring opportunities in emerging sectors like luxury resale, to build resilience and new revenue streams.
Focus on omnichannel integration to ensure a seamless customer experience and maintain sales velocity, even when physical retail is disrupted.
Prepare for and embrace market volatility by building an adaptable business model rather than relying on static plans.
Analyze and proactively address geographic market dynamics, including vaccine rollout impact and government restrictions, to tailor operational strategies effectively.
Arezzo & Co. CEO Alexandre Birman is prepared to handle a rough 2021.
“The first half of the year will be very challenging,” he said on the latest episode of the Glossy Podcast. “It's not going to be easy. And who is going to survive is not the strongest, but the most adaptable. So we have to be very prepared to adapt.”
The company managed just fine in 2020, emerging relatively unscathed though big changes were necessary. Those adjustments, including putting its 6,000 store employees to work as digital sales associates, set it up for a strong start to 2021. Though 80% of its stores are now closed due to pandemic-related restrictions -- they’re largely located in the company’s home base of Brazil, where the vaccine has been much less widely distributed -- it finished March with 70% of the revenue it earned in March of 2019.
“That's decent," said Birman. "It’s going to be a gradual rebound."
Brazil-based Arezzo & Co. owns six shoe brands and the distribution license for Vans in Brazil. In the fourth quarter of 2019, it expanded its focus to clothing by acquiring apparel group Reserva Group and 75% of online luxury resale platform Troc.
Birman discussed the company’s investment strategy, as well as its future plans for physical retail and expansion in the states.
What does this episode say about retail & omnichannel?
Implement rapid digital transformation strategies, such as repurposing in-store staff for online sales, to adapt to sudden market shifts.
What does this episode say about dtc strategy?
Diversify your brand portfolio through strategic acquisitions, including exploring opportunities in emerging sectors like luxury resale, to build resilience and new revenue streams.
What does this episode say about founder & leadership?
Focus on omnichannel integration to ensure a seamless customer experience and maintain sales velocity, even when physical retail is disrupted.
What does this episode say about supply chain & operations?
Prepare for and embrace market volatility by building an adaptable business model rather than relying on static plans.
What does this episode say about retail & omnichannel?
Analyze and proactively address geographic market dynamics, including vaccine rollout impact and government restrictions, to tailor operational strategies effectively.
