WEEKLY WISDOM
“If you find yourself in a hole, stop digging.”
Why Consumers Leave Brands
Consumers are leaving brands at an increasing rate and neither discounts nor loyalty programs seems to be stopping them.
The biggest reasons that drive consumers to leave brands that they used love are often not what retailers and brand owners think.
Most brands believe that to retain customers they need more advanced technology, celebrity collaborations – or a bigger social media presence.
Recent research from leading consulting firms reveals a very different picture.
“To have a healthy business, retailers need to be able to be relevant to their existing customers while attracting new customers to their stores,” according to Santiago Gallino, a Wharton professor of operations, information and decisions whose research focuses on retail.
People are drawn to brands and become loyal through value, performance, branding and personal ROI.
However poor customer experience is the overwhelming reason people abandon brands.
Why consumers stay loyal; What experiences they value most
The global apparel, textile and retail industries – at a glance!
SHOP OPENINGS & CLOSINGS
Lids Sports Group (USA) has opened a massive 7,000 sq. ft flagship in San Francisco, USA – its largest store.
- The new store features two Custom Lids stations, where shoppers can customize hats and jerseys.
- The company is North America’s largest hat retailer selling over 28 million pieces per year.
The RealReal (USA) has opened a it’s largest store to date – a 12,000 sq. ft flagship in Chicago, USA.
- The store offers services including a tailoring department for alterations and a repair service for shoes, bags and jewelry.
Carter’s (USA) is closing 200 stores, but plans to open about 100 new stores within the next five years.
The focus going forward will be on fewer, but more profitable stores.
“These [stores being closed] are generally older, lower margins stores in declining centres and less likely to support our focus on high-value omnichannel customers.” – Michael Casey, CEO, Carter’s
RETAIL FINANCE
Adidas (Germany) is planning to sell its Reebok division by March 2021.
- Adidas had written down the book value of Reebok by nearly 50% to €842 million ($995 million) since 2018. (according to German media)
- Potential buyers include VF Corp (USA) and Anta Sports (China)
Debenhams (UK) is anxiously awaiting suitors, who were given until the middle of this week to make a £300 million rescue bid for the department stores chain. (Times)
- Prospective buyers include Frasers Group.
- If no buyers come forward, the chain could face liquidation or parts could be sold to the group of hedge funds that holds its debt.
Edinburgh Woollen Mill (UK), whose brands include Peacocks, Austin Reed and others, has secured another grace period of 10 days before his retail empire falls into administration.
E-COMMERCE
Alibaba (China) has added a pre-sales event to its massive November 11th ‘Singles’ Day’ shopping festival.
- A new sales window from Nov. 1-3 has been added this year. It will focus on smaller brands, with the bigger brands taking the spotlight on Nov. 11
- Singles’ Day will include promotions from nearly 200 luxury brands, including Cartier, Montblanc, Piaget, Balenciaga, Vacheron Constantin and Chloé.
- This year over 2 million new products and 25,000 brands will be on offer.
- Tmall Global will debut over 2,600 new brands from overseas companies.
PODCAST
If you’re an executive looking for a new job, this podcast is for you
Darcy Bevelacqua, managing director of Executive Connections, shares an executive recruiter’s view on crafting a CV that gets read, networking strategies and how to position yourself to look like the perfect candidate for your next position.
Click here to listen to this episode.
TRADE FAIRS
Performance Days (Germany) will host a virtual event in lieu of its December fair.
ISPO Munich (Germany) has announced that it’s Feb 1-5, 2021 fair will be a virtual event.
Munich Fabric Start (Germany) has canceled its View Premium Selection scheduled Dec 1-2.
- Fabric Days, scheduled for Jan. 26-28, 2021, is still on the calendar.
ALSO THIS …
Authentic Brands Group (ABG) has announced a new partnership with AR Holdings to expand the presence of Forever 21 in Latin America. A dedicated LATAM e-commerce platform will be set up in 2021.
Vietnam’s e-commerce market is forecast to grow 20 percent in Q4 2020 to reach $12 billion by year end if the COVID-19 pandemic is brought under control.
Harrods (UK) will open its first permanent private shopping space in Shanghai in December. It will offer personal shopping services to China’s high-end customers.
Do you have something to share? You can contact us here.
(we’d love to hear from you!)
IN CASE YOU MISSED THESE STORIES
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4 Biggest Supply Chain Pain Points
Consumers Say ‘Black Friday is Best’
How to Source Quality Crystals
The Battle of the Shopping Festivals
How China is Winning with Textiles
Knitwear Gets A Jump Start for the Next Season
