Ashley Merrill, founder of Lunya, contends that the traditional high-rent retail model is unsustainable, especially for DTC brands. She predicts a decline in retail rents as consumer habits shift and brands re-evaluate the ROI of large physical footprints. The episode provides a forward-thinking perspective on how brands can strategically adapt their physical presence for brand building and customer engagement in a digital-first world.
Key takeaways
Rethink large, expensive physical footprints: The traditional model of extensive, high-rent retail spaces is increasingly untenable for many brands, particularly DTCs.
Prioritize customer engagement over sheer sales in physical spaces: Utilize showrooms or experiential spaces for brand building and customer immersion, not just inventory display.
Explore flexible retail formats: Consider pop-up shops and short-term leases for agility and reduced financial commitment.
Integrate online and offline channels strategically: Physical stores should complement e-commerce by aiding customer acquisition, brand education, and fostering loyalty.
Prepare for declining retail rents: Landlords will likely be compelled to lower prices as demand for prime retail locations wanes.
Biossance president Catherine Gore has always considered skin care as medically significant, and believes customers will be more inclined to share that thinking as coronavirus lockdowns continue around the world. "Our skin is our largest organ, and it's also our first line of defense against outside aggressors," Gore said on the latest Glossy Beauty podcast.
Education is a big part of Biossance's marketing strategy and value to customers. One of Biossance's central ingredients for skin care, for instance, is squalane, which it derives biochemically from sugar cane -- the larger cosmetics industry sourced a similar squalene (with an e) from a not-so-vegan source: shark liver.
That makes a big difference for the typical customer who has more time to do her research, according to Gore: "What's actually driving her is a curiosity to do better for her own skin and the planet and to make better choices," she said.
What does this episode say about retail & omnichannel?
Rethink large, expensive physical footprints: The traditional model of extensive, high-rent retail spaces is increasingly untenable for many brands, particularly DTCs.
What does this episode say about dtc strategy?
Prioritize customer engagement over sheer sales in physical spaces: Utilize showrooms or experiential spaces for brand building and customer immersion, not just inventory display.
What does this episode say about founder & leadership?
Explore flexible retail formats: Consider pop-up shops and short-term leases for agility and reduced financial commitment.
What does this episode say about retail & omnichannel?
Integrate online and offline channels strategically: Physical stores should complement e-commerce by aiding customer acquisition, brand education, and fostering loyalty.
What does this episode say about retail & omnichannel?
Prepare for declining retail rents: Landlords will likely be compelled to lower prices as demand for prime retail locations wanes.
