Retail Experience a Plus for Manufacturers
operate their own retail outlets often have a deeper understanding of consumer
behavior than those that don’t and that leads to a competitive advantage,
according to Claudia D’Arpizio, a partner with
Bain & Co., who spoke at the Reuters Global Luxury Summit
in New York.
Ms. D’Arpizio told attendees, "You have in your hands all
the levers to really understand how the consumers are changing."
ownership is not a requirement for a deep understanding of consumer behavior
and success, said Ms. D’Arpizio, who tracks the
global luxury product business. Many brands who have close relationships
with retailers are able to create a relationship that gives them access
to shoppers without having to set up shop in a more permanent and costly
think in particular category leaders can work with department stores and
retailers, trying to understand how really to improve the relationship," Ms. D’Arpizio told Reuters‘
also believes that brands that are part of larger organizations have an
advantage over smaller independents.
"For sure if you
are a medium-sized brand inside a big group you are better-equipped to
overcome this moment of crisis because in that group there is at least
one big cash cow that is still fueling growth for all the others," Ms. D’Arpizio said.
Do you believe brands that set up their own stores have a deeper understanding
of consumer behavior and therefore have a competitive advantage over
those that do not? How can suppliers that do not operate their own stores
work with trading partners to deepen their understanding of consumer
behavior across a wide range of retail channels?