This episode features Omar Saad, a leading analyst in the softlines and retail sector, discussing the disruption of traditional retail middlemen like department stores. He explains how digital transformation is forcing brands and retailers to reinvent their strategies to survive and thrive in an increasingly direct-to-consumer landscape. This is a must-listen for any ecommerce professional looking to understand the future of retail and how to adapt to changing consumer behaviors and supply chains.
Key takeaways
The rise of digital transparency means consumers have instant visibility into pricing and selection, eroding the traditional advantages of multi-brand retailers.
Social media influencers and content creators are replacing traditional buyers and fashion media as key drivers of style and trends, demanding shifts in brand-building strategies.
The new consumer expectation for convenience, particularly same-day delivery, necessitates a re-evaluation of supply chain and fulfillment models for all retailers.
Brands reliant on traditional wholesale channels must develop direct-to-consumer strategies to survive the elimination of middlemen.
Retailers must reinvent their value proposition beyond just acting as intermediaries, focusing on unique experiences or highly curated offerings.
EP073 - Evercore ISI Softlines Analyst Omar Saad Omar Saad is a Senior Managing Director and heads Evercore ISI's Softlines, Luxury & Dept Stores team. In February 2017, he published a report "Softline Wholesale Channel Must Evolve or Die." (PDF Download). In the report, Omar predicted that one of the most pronounced effects of the digital disruption we are currently living through will be the elimination of middlemen throughout the economy. He views department stores and other retailers of third party products as one form of middlemen (between the product manufacturer and the consumer) that is already being dramatically disrupted and will need to re-invent itself to survive. In the softlines category, he believes this disruption will also effect the products brands dependent on a middleman based supply chain, and it's economic model. As a result he downgraded the status of seven brands he follows. Shortly thereafter, many of those firms reported disappointing earnings and/or predicted significant headwinds in their businesses. In this interview we cover: Why the Middlemen are being eliminated: a) consumers have instant visibility into price, selection, and value across retailers and brands; b) celebrities, fashion bloggers, and YouTubers (not department store buyers) define style and synthesize trends; c) brand building is achieved more through social than traditional media; and d) the new standard of convenience is same-day delivery, not a shopping center with a bunch of stores
What does this episode say about retail & omnichannel?
The rise of digital transparency means consumers have instant visibility into pricing and selection, eroding the traditional advantages of multi-brand retailers.
What does this episode say about dtc strategy?
Social media influencers and content creators are replacing traditional buyers and fashion media as key drivers of style and trends, demanding shifts in brand-building strategies.
What does this episode say about brand & content?
The new consumer expectation for convenience, particularly same-day delivery, necessitates a re-evaluation of supply chain and fulfillment models for all retailers.
What does this episode say about supply chain & operations?
Brands reliant on traditional wholesale channels must develop direct-to-consumer strategies to survive the elimination of middlemen.
What does this episode say about retail & omnichannel?
Retailers must reinvent their value proposition beyond just acting as intermediaries, focusing on unique experiences or highly curated offerings.
