Future Commerce · with Ingrid Milman Cordy · August 9, 2019 · 50 min
Summary
This episode delves into the evolving landscape of retail, highlighting the struggles of traditional luxury department stores like Barneys New York amidst changing consumer perceptions and the rise of digital discovery. It also explores innovative brand collaborations, particularly in the cannabis and plant-based food sectors, offering insights into how established brands are adapting to new markets and consumer demands. Operators will learn about the impact of discounting on brand perception, the competitive pressure from Amazon, and the potential of sustainable initiatives and
Key takeaways
Traditional luxury retailers must adapt to younger generations' perception of luxury, as digital discovery on platforms like Instagram has supplanted the role of department stores.
Strategic brand collaborations, even with unexpected partners like cannabis brands, can open new markets and generate buzz, as seen with AriZona Iced Tea and Dixie Brands.
The 'cost of discounting' can devalue a luxury brand over time; avoid cannibalizing full-price sales with discount outlets. Focus on maintaining brand perception and exclusivity.
Explore novel customer loyalty programs and subscription models to compete with Amazon. CVS's Carepass and Disney+'s bundle offer examples of creating unique value propositions.
Embrace sustainable initiatives not just for environmental impact, but also as a way to engage consumers and create unique value, such as 'Recycle + Travel' programs.
Consider the growing market for plant-based alternatives and the
Meatless Deserts
phenomenon, where demand outstrips availability. Brands like Subway and Burger King are capitalizing on this by introducing meatless options.
What does this episode say about retail & omnichannel?
Traditional luxury retailers must adapt to younger generations' perception of luxury, as digital discovery on platforms like Instagram has supplanted the role of department stores.
What does this episode say about brand & content?
Strategic brand collaborations, even with unexpected partners like cannabis brands, can open new markets and generate buzz, as seen with AriZona Iced Tea and Dixie Brands.
What does this episode say about dtc strategy?
The 'cost of discounting' can devalue a luxury brand over time; avoid cannibalizing full-price sales with discount outlets. Focus on maintaining brand perception and exclusivity.
What does this episode say about retail & omnichannel?
Explore novel customer loyalty programs and subscription models to compete with Amazon. CVS's Carepass and Disney+'s bundle offer examples of creating unique value propositions.
What does this episode say about retail & omnichannel?
Embrace sustainable initiatives not just for environmental impact, but also as a way to engage consumers and create unique value, such as 'Recycle + Travel' programs.
