When Brand Visibility Is No Longer Enough
For the past couple of years, we have been talking about how successful so-called mono stores are in Germany. And among industry experts, we know very well that most of them - not all - shouldn't still be operating from a pure profit point of view. So brands cannot solely be driven by financial gains as they keep opening new retail stores.
Most brands strive for more: brand experience. For many of them, the substantial decrease in brand and product visibility has become more and more of a problem. They no longer display their extensive collections in-store, and so customers aren't visually experiencing their "collection statements."
This is the result of shrinking order volumes, especially of renowned brands. And yet, personal customer relations are essential for brands - a retail presence enhances both brand recognition and brand loyalty. Online retail giant Amazon, for example, names the latter as one of their strategies. That is why, despite their online success, they strive to increase their retail presence.
Looking at mono stores in the sports and outdoor markets, however, I rarely see this strategy at play. It seems to me that store concepts are still conventional (sales per sqm), and I'm doubtful that this approach will work for the majority of brands in the future.
I believe that brand visibility alone is no longer enough. The Amazon example teaches us that retail stores are still exciting, but that brands should start implementing a holistic strategy to measure their overall success. And this requires more than the conventional formula, "sales per sqm."