I – MORNING SESSIONINTERNATIONALIZATION OPPORTUNITIES AND CHALLENGES IN "THE PERFECT STORM”
II – AFTERNOON SESSIONSALES CHANNEL AND GO TO MARKET OPTIMIZATION
TODAY: SPANDET AND PARTNERS, BOARD POSITIONS, Inq,
Industry Expert CBS, Management Consultant Mars and neutral.com
MARS: Training of > 150 associates in US/CA/BE/POL at top management level in “productivity” and and effective meetings. Outstanding scores and testimonials
BOARD MEMBER: HTM GROUP, EVITA PERONI, STELLA NOVA, TICKET TO HEAVEN
AAGAARD/KRANZ ZIEGLER (CAPIDEA), ABC lys, INQ, WEAR/DANSK ERHVERV
Co-Owner Brand And Retail Consulting Asia (BARCA)
SPANDET AND PARTNERS: CEO, Co-owner. Successful specialized consultancy company with high customer satisfaction and 70 clients mainly internationally acting fashion and lifestyle brands. The core; business and brand development, company structure optimization, internationalization, sales channel optimization. Consultancy still active
STELLA NOVA: CEO, Co-owner. Internationalization and turnaround. Brand platform/merger with Baum und Pferdgarten (backwards integration, forward optimization)
DYRBERG/KERN: CEO. 5 doubling of revenues and profits in 5 years, winner of Ernst and Young´s Entrepreneur of the Year. From 8% to 88% export share. Conversion from wholesale to international retail and franchise. 27 shops China
HABURI.com: Retail Sales Director. Back in Copenhagen 15 years later. Significant improvement of conversion and operations
CARLI GRY: Regional Director. Posting to Düsseldorf. Continuous regional profitable growth in DE, AU, CH, NL, BE with Jackpot, Cottonfield, Peak Performance
ØK: Youngest Division Manager in Manila. Responsibility for > 50 staff
EAST ASIATIC COMPANY/ØK: Department/Senior Manager. Posting to Singapore. Organizational and revenue responsibility for Heidelberg printing machines.
[email protected], + 45 22660911, 1985 (23 YEARS) UNTIL MAY 2015 (53 YEARS)
27
31
40
23
38
45
48
49
53
YEARS
44-53
TICKET-TO-HEAVEN, 2009 - 2014Branded retail, Key Account Management, Go to Market - focus Germany, Change of Management
AAGAARD/KRANZ & ZIEGLER (Capidea), 2011-2014E-commerce, wholesale, retail, franchise, marketing mix, strategic market planning, business models and brand management
ABC lys, 2013Internationalization. Product to lifestyle brand. Professionalizing operations
Aluproff, 2015Product to brand. Professionalizing operations and focus on sales.
Inq (PR), 2013Product mix, new biz, structure, organizational development, business model revitalization
WEAR, Danish Chamber of Commerce, 2013Export, PR, industry expert, member acquisition
Copenhagen Business School, Industry Expert, 2012Expert Panel to internationalize Danish Fashion. Organizer of workshops with associate professor2015 temporary contract as industry expert. As of September 2015 external lecturer
EVITA PERONI 2007-2013Conversion from wholesale to Retail and Franchise. Risk management, investor searchTrade marketing and consumer marketing including online launch and social media
STELLA NOVA 2009-2010 Turn around, brand platform, forward optimization, backwards integration. Focus on execution of business strategies and efficient leadership
HTM GROUP, Whiite & Mini-a-Ture 2006-2007 Establishing board as Chairman, Planning, improving and executing global sales growth.
BOARD POSITIONS - HENRIK SPANDET-MØLLER
Birger Christensen, Barbara I Gongini, Capidea, Copenhagen Business School, Gudrun Gudrun, Noa Noa, Ticket To Heaven, ej sikke lej, Norlie, Gardenia, Shoe Biz, Venus de Milo, Spon Diogo, Development Centre UMT, Innovationsnetværket Bolig og Beklædning, Kolding School of Design, Joha, Closed, Maria Zabel, Stella Nova Copenhagen, Baum und Pferdgarten, Evita Peroni, Mismo, Mini-A-Ture, Inq, Dyrberg/Kern, Copenhagen International Fashion Fair (CIFF), Design Skolen Kolding, Neutral, Whiite, Scandinavian Shoe Center, Zylinc, Muuse.com, Newline, KEA, Texman, Lindbergh, Shine, Tøjeksperten, Wagner, PWT, New Generals, Lommé Bags, Holly's, New Balance, Dansk Erhverv, Wear, Riis Sko, Kaospiloterne, Hertz Jewelry, Aagaard Jewelry, Kranz & Ziegler, Fredericia Furniture, ABClys, Mars
CLIENT RELATIONS - HENRIK SPANDET-MØLLER/SPANDET AND PARTNERS
ENTREPRENEUR OF THE YEAR 2004
“DYRBERG/KERN has won the Danish competition thanks to the complexityof the company. DYRBERG/KERN has not only created a unique designconcept, but they have also been able to strengthen and motivate theorganisation and increase the turnover by 30% annually since the companyfoundation in 1985”
Børsen, November 2004
DYRBERG/KERN A/S Copenhagen 2001-2007
From 2001-2006 Henrik Spandet-Møller contributed to DYRBERG/KERN´s growth –a 5 doubling of revenues and profits, a revenue mix from 8% to 88% export share and conversion from wholesale to international retail and franchise. 27 shops China
www.spandet.com - SPANDET AND PARTNERS - ESTABLISHED IN 2010
OUR PLATFORM; MORE THAN 100.000 HOURS OF EXPERIENCE AND 70
CLIENTS
SPANDET AND PARTNERS MAINLY DEAL WITH INTERNATIONALLY ACTING
FASHION AND LIFESTYLE BRANDS, AS A CLOSE AND OPERATIONAL SPARRING
PARTNER
THE CORE OF SPANDET AND PARTNERS; BUSINESS
DEVELOPMENT AND STRATEGY, LEADERSHIP, BRAND DEVELOPMENT,
COMPANY STRUCTURE OPTIMIZATION, SALES CHANNELS/ GO TO MARKET
RECRUITING/HEADHUNTING
SPECIALS: GERMAN + CHINESE MARKETS + GLOBAL FASHION TRENDS
+ OWN OFFICE IN CHINA
OUR MANTRA: “DON’T DECLARE, DELIVER“!
WORDS NEED ACTION AND WE MAKE BRANDS FIT FOR FIGHT!
WELCOME TO INQ, WHAT CAN I DO FOR YOU?
Inq activates brands through weaponized storytelling from scratch, by journalistically digging to the core.
You and your stakeholders will obtain increased awareness, knowledge, liking, preference, conviction and sales through on all communication platforms.
Inq is first mover within the international story telling trend (kill the press release-turn into a corporate newsroom).
8
_INQ references
9
KEY MESSAGES:
1. "THE PERFECT STORM” & ”WIPE OUT”2. ”NEW BUSINESS MODEL”3. ”PRODUCT IS (STILL) EVERYTHING”4. ”ONLINE CHANGES EVERYTHING”5. ”RETAIL (AND CONSUMER) IS KEY”
INTERNATIONALIZATION OPPORTUNITIES AND CHALLENGES KEY MESSAGES:
"THE PERFECT STORM” & ”WIPE OUT””NEW BUSINESS MODEL””PRODUCT IS STILL EVERYTHING””ONLINE CHANGES EVERYTHING””RETAIL IS KEY”
Consumer on all media
Knowseverything
WIFM – big data
Online sales nescessary but…
THE PERFECT STORM
Profit margins under pressure, increased costs for marketing, peopleand logistics
Difficult to earnmoney in online and retail
Important to be #(or #2), distance to #3+ increases
No borders
Lowest pricein EU withinseconds
Too many shops too muchmerchandise
Big players – structural competitives
New shop concepts
BRIK, Globalisationand competition
INTERNATIONALIZATION OPPORTUNITIES AND CHALLENGES KEY MESSAGES:
"THE PERFECT STORM” & ”WIPE OUT””NEW BUSINESS MODEL””PRODUCT IS STILL EVERYTHING””ONLINE CHANGES EVERYTHING””RETAIL IS KEY”
Wipeout is a game show series in which contestants compete in what is billed as the "world's largest obstacle course".
Distribution of the show is handled by Endemol USA. The show is taped at Sable Ranch in Canyon Country, Santa Clarita, California, about 40 miles north of Los Angeles.
The show holds a "TV-PG L" rating for mild language by participants and some crude humor.
YOU NEED TO JUMP BUT EVERY “JUMP” IS A GAME CHANGER
BRANDS
0-5 Mio. 5-15 Mio. 15-50 Mio. > 50 Mio.
Finland or Scandinavia
ScandinaviaNL
Europe Globalambition
Agents Export Agents Agents/Distribut. Own
Wholesale Wholesale/ Consignment
Concession/ Wholesale
Retail,concessions
WIPE OUT – GROWTH STEPS –MORE WOW, MORE POW, MORE OW
INTERNATIONALIZATION OPPORTUNITIES AND CHALLENGES KEY MESSAGES:
"THE PERFECT STORM” & ”WIPE OUT””NEW BUSINESS MODEL””PRODUCT IS STILL EVERYTHING””ONLINE CHANGES EVERYTHING””RETAIL IS KEY”
1. BACKWARD (UPSTREAM) VERTICAL INTEGRATION
2. FORWARD (DOWNSTREAM) VERTICAL INTEGRATION
3. BALANCED (BOTH UPSTREAM AND DOWNSTREAM) VERTICAL INTEGRATION
INDUSTRY INTEGRATION
OFFLINE VERTICAL / FRANCHISE CHAINS
OFF-LINE VOLUNTEER CHAINS
OFF-LINE INDEPENDENT SHOPS
ONLINE FROM 10% TO ?%
BOOZT, ZALANDO ETC FROM 20-50%?
FASHION INDUSTRY INTEGRATION
INTERNATIONALIZATION OPPORTUNITIES AND CHALLENGES KEY MESSAGES:
"THE PERFECT STORM” & ”WIPE OUT””NEW BUSINESS MODEL””PRODUCT IS STILL EVERYTHING””ONLINE CHANGES EVERYTHING””RETAIL IS KEY”
THE WORLD HAVE DOUBLED, TRIPLED……A LOT OF NEW MARKETS DEVELOP AT HIGH SPEEDASIA, AFRICA, SOUTH AMERICA – THE POTENTIAL FOR BUSINESS ON THE RISE – AND SO IS COMPETITION FIERCELY!!!
TODAY - LOOKING LIKE A MILLION IS
NOT THE ONLY ANSWER
THE LONG TERM TRENDS ARE
ABOUT UTILITY AND CREATIVITY
FROM LUXURY TO UTILITYIT USED TO BE ALL ABOUT HIGH PRICED AND HIGH PROFILED LUXURY
NOW IT IS ALSO ABOUT GENUINE FUNCTION
…WITH STYLE!AND CREATIVITY
+
ACT SMALL
ALSO A TREND
BEING SMALL MEANS YOUR ARE MORE:PERSONALHONESTLESS CORPORATEMORE CREDIBLEMORE AUTHENTIC
ACT SMALL ALSO MEANSSMALL SCALE ACTIONS:
TREND: SUSTAINABILITY
NEUTRAL.COMWINNER OF SUSTANIA AWARD 2013 IN NEW YORK
YOU NEED TO LEARN FROM THE STRONG BRANDS, HOW TO SHOW WHO YOU ARE
WHAT IS YOUR VALUE PROPOSITION?
HOW ARE YOU DIFFERENT FROM YOUR COMPETITORS……(AND FORGET ABOUT THE PRICE TAG)
WHAT IS YOUR UNIQUE PLATFORM TO GAIN AIRPLAY IN THE INTERNATIONAL BUSINESS?
INTERNATIONALIZATION OPPORTUNITIES AND CHALLENGES KEY MESSAGES:
"THE PERFECT STORM” & ”WIPE OUT””NEW BUSINESS MODEL””PRODUCT IS STILL EVERYTHING””ONLINE CHANGES EVERYTHING””RETAIL IS KEY”
RETAIL IS KEY AND DRIVES THE MARKET
MORE THAN EVER
THE STRONG FASHION AND LIFESTYLE RETAILERS TELL STORIES….AND CURATE
TO INSPIRE AND MOTIVATE
A SHOP:
IS NOT JUST A ROOM, IT’S A LOT OF DIFFERENT OPPORTUNITIES TO CONVINCE THE CONSUMER THEY ARE ON THE RIGHT TRACK AS THEY MOVE ALONG THE SHOP, ALL THE WAY TO THE CASH REGISTRE.
INSIDE THE SHOP YOU ARE TOLD THE STORIES
CUSTOMERS/CONSUMERS AREPEOPLE OF FLESH AND BLOOD -WITH DREAMS AND HOPES OF GOODLIVES.
AND THEY GOT A VOTE!
INTERNATIONALIZATION OPPORTUNITIES AND CHALLENGES KEY MESSAGES:
"THE PERFECT STORM” & ”WIPE OUT””NEW BUSINESS MODEL””PRODUCT IS STILL EVERYTHING””ONLINE CHANGES EVERYTHING””RETAIL IS KEY”
OFFLINE VERTICAL / FRANCHISE CHAINS
OFF-LINE VOLUNTEER CHAINS
OFF-LINE INDEPENDENT SHOPS
ONLINE FROM 10% TO ?%
BOOZT, ZALANDO ETC FROM 20-50%?
FASHION INDUSTRY INTEGRATION
THE PERFECT STORM. BIG PLAYERS. PRESSURE ON MARGINS. ONLINE CHALLENGE. LESS WHOLESALE, MORE BRANDED RETAIL
WIPE OUT. YOU NEED TO JUMP BUT EVERY “JUMP” IS A GAME CHANGER. PREPARE WELL; GET YOUR DETAILS RIGHT, BUT PLEASE DO JUMP - THE ONLY CONSTANT IS CHANGE
THE BUSINESS MODEL IS CHANGING. INCREASED VERTICAL INDUSTRY INTEGRATION IN DIFFERENT FORMATS = MORE RETAIL
CHANNEL CONFLICTS OR CO-WORKS. GROSS MARGINS DOWN, COSTS UP = LESS $ AVAILABLE FOR EACH PLAYER FORCING BRANDS TO THINK MORE RETAIL
RETAILERS THE MOST IMPORTANT MARKETING TOOL FOR BRANDS. ON-LINE AS WELL AS OFF-LINE. GET YOUR RETAIL AND DETAILS RIGHT.
RETAILERS ARE OPINION LEADERS FOR THE NEXT STEPS IN TRENDS. ACTING VIA RETAIL THINKING IS A STRONG TOOL
PRODUCT IS STILL EVERYTHING. EACH CONSUMER SPENDING IS A VOTE IN YOUR BRAND. YOU NEED TO UNDERSTAND RETAIL TO REACH OUT. CHOOSE YOUR SALES CHANNELS CAREFULLY IN THE RIGHT SEQUENCE AND SPEED
MORE WOW, MORE POW, MORE OW
THE PERFECT STORM. BIG PLAYERS. PRESSURE ON MARGINS. ONLINE CHALLENGE. LESS WHOLESALE, MORE BRANDED RETAIL
WIPE OUT. YOU NEED TO JUMP BUT EVERY “JUMP” IS A GAME CHANGER. PREPARE WELL; GET YOUR DETAILS RIGHT, BUT PLEASE DO JUMP - THE ONLY CONSTANT IS CHANGE
THE BUSINESS MODEL IS CHANGING. INCREASED VERTICAL INDUSTRY INTEGRATION IN DIFFERENT FORMATS = MORE RETAIL
CHANNEL CONFLICTS OR CO-WORKS. GROSS MARGINS DOWN, COSTS UP = LESS $ AVAILABLE FOR EACH PLAYER FORCING BRANDS TO THINK MORE RETAIL
RETAILERS THE MOST IMPORTANT MARKETING TOOL FOR BRANDS. ON-LINE AS WELL AS OFF-LINE. GET YOUR RETAIL AND DETAILS RIGHT.
RETAILERS ARE OPINION LEADERS FOR THE NEXT STEPS IN TRENDS. ACTING VIA RETAIL THINKING IS A STRONG TOOL
PRODUCT IS STILL EVERYTHING. EACH CONSUMER SPENDING IS A VOTE IN YOUR BRAND. YOU NEED TO UNDERSTAND RETAIL TO REACH OUT. CHOOSE YOUR SALES CHANNELS CAREFULLY IN THE RIGHT SEQUENCE AND SPEED
MORE WOW, MORE POW, MORE OW
THE PERFECT STORM. BIG PLAYERS. PRESSURE ON MARGINS. ONLINE CHALLENGE. LESS WHOLESALE, MORE BRANDED RETAIL
WIPE OUT. YOU NEED TO JUMP BUT EVERY “JUMP” IS A GAME CHANGER. PREPARE WELL; GET YOUR DETAILS RIGHT, BUT PLEASE DO JUMP - THE ONLY CONSTANT IS CHANGE
THE BUSINESS MODEL IS CHANGING. INCREASED VERTICAL INDUSTRY INTEGRATION IN DIFFERENT FORMATS = MORE RETAIL
CHANNEL CONFLICTS OR CO-WORKS. GROSS MARGINS DOWN, COSTS UP = LESS $ AVAILABLE FOR EACH PLAYER FORCING BRANDS TO THINK MORE RETAIL
RETAILERS THE MOST IMPORTANT MARKETING TOOL FOR BRANDS. ON-LINE AS WELL AS OFF-LINE. GET YOUR RETAIL AND DETAILS RIGHT.
RETAILERS ARE OPINION LEADERS FOR THE NEXT STEPS IN TRENDS. ACTING VIA RETAIL THINKING IS A STRONG TOOL
PRODUCT IS STILL EVERYTHING. EACH CONSUMER SPENDING IS A VOTE IN YOUR BRAND. YOU NEED TO UNDERSTAND RETAIL TO REACH OUT. CHOOSE YOUR SALES CHANNELS CAREFULLY IN THE RIGHT SEQUENCE AND SPEED
MORE WOW, MORE POW, MORE OW
THE PERFECT STORM. BIG PLAYERS. PRESSURE ON MARGINS. ONLINE CHALLENGE. LESS WHOLESALE, MORE BRANDED RETAIL
WIPE OUT. YOU NEED TO JUMP BUT EVERY “JUMP” IS A GAME CHANGER. PREPARE WELL; GET YOUR DETAILS RIGHT, BUT PLEASE DO JUMP - THE ONLY CONSTANT IS CHANGE
THE BUSINESS MODEL IS CHANGING. INCREASED VERTICAL INDUSTRY INTEGRATION IN DIFFERENT FORMATS = MORE RETAIL
CHANNEL CONFLICTS OR CO-WORKS. GROSS MARGINS DOWN, COSTS UP = LESS $ AVAILABLE FOR EACH PLAYER FORCING BRANDS TO THINK MORE RETAIL
RETAILERS THE MOST IMPORTANT MARKETING TOOL FOR BRANDS. ON-LINE AS WELL AS OFF-LINE. GET YOUR RETAIL AND DETAILS RIGHT.
RETAILERS ARE OPINION LEADERS FOR THE NEXT STEPS IN TRENDS. ACTING VIA RETAIL THINKING IS A STRONG TOOL
PRODUCT IS STILL EVERYTHING. EACH CONSUMER SPENDING IS A VOTE IN YOUR BRAND. YOU NEED TO UNDERSTAND RETAIL TO REACH OUT. CHOOSE YOUR SALES CHANNELS CAREFULLY IN THE RIGHT SEQUENCE AND SPEED
MORE WOW, MORE POW, MORE OW
THE PERFECT STORM. BIG PLAYERS. PRESSURE ON MARGINS. ONLINE CHALLENGE. LESS WHOLESALE, MORE BRANDED RETAIL
WIPE OUT. YOU NEED TO JUMP BUT EVERY “JUMP” IS A GAME CHANGER. PREPARE WELL; GET YOUR DETAILS RIGHT, BUT PLEASE DO JUMP - THE ONLY CONSTANT IS CHANGE
THE BUSINESS MODEL IS CHANGING. INCREASED VERTICAL INDUSTRY INTEGRATION IN DIFFERENT FORMATS = MORE RETAIL
CHANNEL CONFLICTS OR CO-WORKS. GROSS MARGINS DOWN, COSTS UP = LESS $ AVAILABLE FOR EACH PLAYER FORCING BRANDS TO THINK MORE RETAIL
RETAILERS THE MOST IMPORTANT MARKETING TOOL FOR BRANDS. ON-LINE AS WELL AS OFF-LINE. GET YOUR RETAIL AND DETAILS RIGHT.
RETAILERS ARE OPINION LEADERS FOR THE NEXT STEPS IN TRENDS. ACTING VIA RETAIL THINKING IS A STRONG TOOL
PRODUCT IS STILL EVERYTHING. EACH CONSUMER SPENDING IS A VOTE IN YOUR BRAND. YOU NEED TO UNDERSTAND RETAIL TO REACH OUT. CHOOSE YOUR SALES CHANNELS CAREFULLY IN THE RIGHT SEQUENCE AND SPEED
MORE WOW, MORE POW, MORE OW
THE MESSAGE
1. ACT LIKE A STRONG BRAND AND RETAILER2. LEARN FROM THE CONSUMER/SELL OUT3. NEW DISTRIBUTION CHANNELS 4. ONLINE (SALES AND MARKETING)5. UNDERSTAND YOUR FIGURES 6. BE IN CONTROL OF YOUR SHIT7. GLOBAL THINKING (NOT MARKETS)
BRANDED RETAIL
WHOLESALE
RETAIL WHOLESALEOR BOTH?
CHANNEL CONFLICTS – HOW TO HANDLE
FRANCHISE OR OWN RETAIL?
OWN ONLINE OR PARTNERSHIP ONLINE OR BOTH?
WILL THE MULTIBRAND RETAILER BE IN MY MARKET IN 5 YEARS?
CAN AN AGENT HANDLE BRANDED RETAIL
DIFFERENT COLLECTIONS FOR DIFFERENT MARKETS
WIPE OUT - HOW TO JUMP AND WHEN TO JUMP?
CAN MY BUSINESS MODEL AFFORD MULTIBRAND RETAILERS OR AGENTS`
IS AN AGENT THE RIGHT PARTNER TO HANDLE BRANDED SALES?
HOW TO FINANCE GROWTH WITH INCREASED NEED FOR CASH / FINANCING
MULTICHANNEL (O-T-O) – HOW?
SUPPLIER’S RISK; IN-SEASON REPLENISHMENT/IN-STORE TRAINING/VM/EDI
HOW TO FIND AN UNIQUE PLATFORM TO GAIN AIRPLAY IN THE INTERNATIONAL BUSINESS
I – MORNING SESSIONINTERNATIONALIZATION OPPORTUNITIES AND CHALLENGES IN "THE PERFECT STORM”
II – AFTERNOON SESSIONSALES CHANNEL AND GO TO MARKET OPTIMIZATION
WHICH MARKETS, WHICH CHANNELS?
BRANDED RETAIL
WHOLESALE
RETAIL WHOLESALEOR BOTH?
CHANNEL CONFLICTS – HOW TO HANDLE
FRANCHISE OR OWN RETAIL?
OWN ONLINE OR PARTNERSHIP ONLINE OR BOTH?
WILL THE MULTIBRAND RETAILER BE IN MY MARKET IN 5 YEARS?
CAN AN AGENT HANDLE BRANDED RETAIL
DIFFERENT COLLECTIONS FOR DIFFERENT MARKETS
WIPE OUT - HOW TO JUMP AND WHEN TO JUMP?
CAN MY BUSINESS MODEL AFFORD MULTIBRAND RETAILERS OR AGENTS`
IS AN AGENT THE RIGHT PARTNER TO HANDLE BRANDED SALES?
HOW TO FINANCE GROWTH WITH INCREASED NEED FOR CASH / FINANCING
MULTICHANNEL (O-T-O) – HOW?
SUPPLIER’S RISK; IN-SEASON REPLENISHMENT/IN-STORE TRAINING/VM/EDI
HOW TO FIND AN UNIQUE PLATFORM TO GAIN AIRPLAY IN THE INTERNATIONAL BUSINESS
KEY MESSAGES FROM MORNING SESSION:
1. "THE PERFECT STORM” & ”WIPE OUT”2. ”NEW BUSINESS MODEL”3. ”PRODUCT IS (STILL) EVERYTHING”4. ”ONLINE CHANGES EVERYTHING”5. ”RETAIL (AND CONSUMER) IS KEY”
THE PERFECT STORM. BIG PLAYERS. PRESSURE ON MARGINS. ONLINE CHALLENGE. LESS WHOLESALE, MORE BRANDED RETAIL
WIPE OUT. YOU NEED TO JUMP BUT EVERY “JUMP” IS A GAME CHANGER. PREPARE WELL; GET YOUR DETAILS RIGHT, BUT PLEASE DO JUMP - THE ONLY CONSTANT IS CHANGE
THE BUSINESS MODEL IS CHANGING. INCREASED VERTICAL INDUSTRY INTEGRATION IN DIFFERENT FORMATS = MORE RETAIL
CHANNEL CONFLICTS OR CO-WORKS. GROSS MARGINS DOWN, COSTS UP = LESS $ AVAILABLE FOR EACH PLAYER FORCING BRANDS TO THINK MORE RETAIL
RETAILERS THE MOST IMPORTANT MARKETING TOOL FOR BRANDS. ON-LINE AS WELL AS OFF-LINE. GET YOUR RETAIL AND DETAILS RIGHT.
RETAILERS ARE OPINION LEADERS FOR THE NEXT STEPS IN TRENDS. ACTING VIA RETAIL THINKING IS A STRONG TOOL
PRODUCT IS STILL EVERYTHING. EACH CONSUMER SPENDING IS A VOTE IN YOUR BRAND. YOU NEED TO UNDERSTAND RETAIL TO REACH OUT. CHOOSE YOUR SALES CHANNELS CAREFULLY IN THE RIGHT SEQUENCE AND SPEED
MORE WOW, MORE POW, MORE OW
THE MORNING MESSAGE
1. ACT LIKE A STRONG BRAND AND RETAILER2. LEARN FROM THE CONSUMER/SELL OUT3. NEW DISTRIBUTION CHANNELS 4. ONLINE (SALES AND MARKETING)5. UNDERSTAND YOUR FIGURES 6. BE IN CONTROL OF YOUR SHIT7. GLOBAL THINKING (NOT MARKETS)
BRANDS
0-5 Mio. 5-15 Mio. 15-50 Mio. > 50 Mio.
Finland or Scandinavia
ScandinaviaNL
Europe Globalambition
Agents Export Agents Agents/Distribut. Own
Wholesale Wholesale/ Consignment
Concession/ Wholesale
Retail,concessions
WIPE OUT – GROWTH STEPS –MORE WOW, MORE POW, MORE OW
OFFLINE VERTICAL / FRANCHISE CHAINS
OFF-LINE VOLUNTEER CHAINS
OFF-LINE INDEPENDENT SHOPS
ONLINE FROM 10% TO ?%
BOOZT, ZALANDO ETC FROM 20-50%?
POWER HOUSES IN FRONT
• SIGNIFICANT GROWTH FOR (MOST OF) THE POWER HOUSES
• CONSOLIDATION OR WIPE OUT IN NUMBER OF BRANDS
• DO WE HAVE / WILL WE HAVE A FASHION INDUSTRY OR A NUMBER OF BIG PLAYERS (IN 5 YEARS)?
FASHION INDUSTRY BUSINESS MODEL-- THE FUTURE FOR THE MULTI BRAND RETAILER?
EICKHOFF DUSSELDORF KÖFOUNDED 1961 CLOSED 2013
The main reason is the changed market situation and the distribution policy of the big [luxury] brands,” “Big brands are now either sold in mono-label stores or large shop-in-shop concepts. The current form of multibrand stores have only a limited future,”, listing other recent German closures such as Maendler in Munich, Fischer in Stuttgart, Möller + Schaar in Frankfurt and Heinsius + Sander in Kassel. Eickhoff launched many international designer brands in Germany during its 52-year run. Claiming to have better sell-throughs than the mono brands, the store generated 27.8 million euros in sales in 2012, “and we're super positioned this year,” “But we have seen how the acquisition of brands has gradually become more and more difficult, and there are too few brands on our level to find adequate replacements. We've tried, but they burn out too fast. They don't have the strength and longevity,”
CONTRARY TO HORIZONTAL INTEGRATION (CONSOLIDATION OF MANY FIRMS THAT HANDLE THE SAME PART OF THE PRODUCTION PROCESS)….
VERTICAL INTEGRATION IS TYPIFIED BY ONE FIRM ENGAGED IN DIFFERENT PARTS OF PRODUCTION (E.G. RAW MATERIALS MANUFACTURING, TRANSPORTING, MARKETING, AND/OR RETAILING). VERTICAL PLAYERS IN 1A LOCATIONS.
FASHION INDUSTRY INTEGRATION
1. BACKWARD (UPSTREAM) VERTICAL INTEGRATION
2. FORWARD (DOWNSTREAM) VERTICAL INTEGRATION
3. BALANCED (BOTH UPSTREAM AND DOWNSTREAM) VERTICAL INTEGRATION
FASHION INDUSTRY INTEGRATION
10 4020 10080
Production Price
Landed brand cost
MultibrandRetailer
Retail Excl. vat
Retail price incl. vat
10 to factory = 50%
20 to brand= 50%
40 to retailer = 50%
(2,5 Mark-upto the retailerbefore reductions)
VALUE CREATION
10 3320 10080
Production Price
Landed brand cost
Retail Excl. vat
Retail price incl. vat
EX METROPOL –“backward (upstream) integration”
Multi brand Retailer
40 to multi brand reduced to 33= 23 by brand= 70%
47 to retailer = 60%
3,0 Mark-upto the retailerbefore reductions vs. 2,5 Mark-up
10 4020 10080
Production Price
Landed brand cost
Retail excl vat
Retail price incl. vat
EX PANDORA – “balanced vertical integration” (both upstream and downstream)
70 to brand or shared with franchise partner= 88% before reductions
1. THE MULTIBRAND RETAILERS NEED TO OPERATE WITH A HIGHER GROSS MARGIN OF 50% (MARK-UP 2,5) DUE TO HEAVY DISCOUNTS AND VERTICAL CHAINS PRESSURIZING RENTALS. THEY NEED PARTNERSHIP AND RISK SHARING
2. THE BRAND NEEDS A GROSS MARGIN OF MORE THAN 50% TO PARTICIPATE IN CONSIGNMENT / THE GROSS MARGIN / VARIABLE AGENT COSTS OF 10-15%. OTHERWISE THE ALTERNATIVE IS PASSING THE MULTIBRAND RETAILERS THROUGH OWN (ON-LINE + OFF-LINE+STOCK SALE) RETAIL
CONFLICT OF INTERESTS OR MUTUAL INTERESTS?
REVENUES
GROSS MARGIN
DEPRECIATIONS
NET MARGIN
COSTS
PROFIT
100
50
(15)
35
(30)
5 OR LESS
MULTIBRAND RETAILER
BRAND OWNER
100
50
(15)
35
(30)
5 OR LESS
100
80
(15)
65
(45)
20
INTEGRATED PLAYER
GETTING RETAIL AND DETAIL RIGHTNO EASY FIX…
OFF-LINE AND ONLINE HAVE MORE OR LESS THE SAME STRUCTURE AND SAME
CHANNELS. IT IS MORE OR LESS THE SAME GAME BALL GAME.
DIFFERENT COUNTRIES/DIFFERENT STRUCTURES. DE/UK A LARGER DEGREE OF
VERTICAL INTEGRATION AND DEPARTMENT STORES (80% OF THE BUSINESS
FROM 20% OF THE SALES CHANNELS). CHINA DIFFERENT BALL GAME
MOST BRANDS START WITH SPORADIC WHOLESALE, THEN THEY SEGMENT
THEIR WHOLESALERS, THEN THEY DEVELOP RETAIL THINKING. NEW: FAST(ER)
RETAIL ENTRY IN DIFFERENT RETAIL FORMATS. NEW STRUCTURES REQUIRED
1. UNDERSTANDING OF THE CHAIN OF VALUE CREATION2. SPRAY AND PRAY, CHOSE OR BE CHOSEN3. AGENT, DISTRIBUTOR OR YOURSELF?4. WHOLESALE IN SEGMENTS AND PRIORITY5. FACTS OR FASHION. BIZ OR BUZ?6. COUNTRY OR RETAILER/CHAIN THINKING7. ONLINE AS SALES CHANNEL?8. ONLINE AS (DIGITAL) MARKETING?9. SELL IN vs. SELL OUT10. HOW TO FINANCE THE GROWTH?
(SOME OF THE) QUESTIONS TO ANSWER