Page Contents
Introduction
The nature of marketing, as we know, is complex and often contrasting. There is a need to have a defined process and discipline to achieve the objectives.
There are companies already having a legacy and they extend the same via their physical stores.
On the other hand, there are small physical stores that provide such an excellent service to their customers so that they themselves become a brand at a later stage.
The thumping success of brands like Walmart, Costco, Hermes, Ikea, etc is largely driven by the superior retail experience they provide. Luxury brands design retail touchpoints so that they can exhibit the company culture and provide the same “exclusive” perception that the brands stand for.
Now, this is not limited to such single-brand retailers but these days even the multi-brand retailers have started to follow the good practices.
What is Retail Branding
We can call retail branding a strategy that is based on the brand concept.
A retailer’s store becomes the product. These will be marketed in a similar manner as we do to a branded ‘product’.
A brand is then a group of the retailer’s outlets that carry uniqueness. In terms of name, symbol, logo, tagline, etc. It is not normal to become a brand in itself. Many retailers struggle to become one. However, some retail brands are strong in providing above par service, offering a better product and standing by the customer.
Once a retailer becomes a brand the next logical step is to expand the footprint by adding more stores and reaching out to new places and new customers.
Heard about franchises? Yes, they are here to leverage the brand they are associated with.
They play a crucial role in retail expansion and increasing the ROI.
What is the difference between Product Branding and Retail Branding
A product itself becomes a brand. Apple is a great example of it. The products they offered were innovative and robust. The company is considered to be one of the most valuable now.
On the other hand, retail branding transforms a retailer into a brand.
In this case, the preference transcends the product or service in itself. It is like matching the branding with performance. We all know what Hermes as a brand stands for?
Premium and exclusive!
Another thing with product branding is that a customer is skeptical about the product unless the product has an excellent track record and had generated trust among customers. Coca-cola, for example, is a good fit for product branding.
On the other hand, a retailer like Starbucks, due to its direct interaction with the ultimate consumers, must live up to the brand reputation continuously. A retailer has to go through the grind and will have to sustain the image every single time.
Advantages of Retail Branding
Whatever the size of the retailer, a focused branding strategy is imperative.
Trending brand
Social media is a handy tool to get attention rather quickly. The entire digital landscape is open for you to make your presence felt. The uniqueness of the retailer becomes trendy. What is popular among youth, seniors and women are the factors that govern the trend. Also for retailers to stay ahead of the curve, they must keep a close eye on the competition too.
Targeted Customers
A fundamental necessity of any retail brand is to understand the target audience and their journey as well. Without knowing whom I want to sell my products I will be selling to no one.
Based upon “look-alike” modeling and with the use of technology a retailer will have the idea of intended customers beforehand. Without targeted customers, a brand is set on a slippery slope. One cannot target everyone, a costly and useless affair.
Personalization
For a retail brand, it is extremely critical to showcase they are better than the competitors.
Through the visual appeal, technological integration, and social media presence retailers are able to provide strong personalization. This leads to healthy customer engagement and generates a unique feeling in the minds of customers. As the customers visit the store, brands should try to “pamper” them without being invasive. Consistency is the key, for businesses in terms of customer needs.
Challenges of Retail Branding
Online and offline synchronization
Shopping offline is comparatively easier as you can touch and feel the product. One can try different options before buying.
How to compensate for these features of offline experience while buying online?
In online shopping, the expectation is to get into the details of the product as much as possible. They cannot physically see the product hence those relevant details help in decision making.
For example, shopping for sports shoes calls for greater detail in terms of size, the material used, sole, color option and cushioning, etc.
When a consumer is on the lookout to buy a product via online mode, his or her primary needs are convenience which consists of ease of research and comparison. They are also helped by feedback & reviews by other customers. The ability to easily access a wide range of products to make an informed decision is what makes online mode so popular.
In an offline channel, the primary consumer needs are to physically touch and feel the product.
In the physical world, consumers are expecting a comprehensive experience. This acted as a trigger to morph retail stores into an experience center. So much so that there are places where one can only experience the offering and not necessarily buy them.
Issues in personalization
A big challenge faced while providing personalized offerings. Not every customer is equal neither should we focus on everyone. A targeted approach is the best way out.
The business will have to think as what to offer as a service and how it stands out. The feeling of “I haven’t had this kind of service anywhere” is what a brand should thrive for.
Technology
In the internet age, it is important for any business to experiment with technology.
Prospective customers are everywhere and they are looking for relevant brand experience.
Brand should provide a seamless experience between platforms and technologies be it desktops, tablets or mobile phones.
The business should be able to meet the demands and needs by leveraging technology in the best possible way. If not done correctly, the brand would find itself lost in the virtual world.
Geography
The major challenge for a global retail brand is to provide the same experience to customers wherever their products are sold in the world.
The system should be equipped to handle the brand image which enables companies to replicate a similar campaign, promotion or new product launch consistently across territories.
Retailers have to ensure a consistent and high-quality brand experience across the points of engagement.
For example, an unpleasant customer experience on the online platform of a retailer will certainly impact the footfall in physical stores.
The retailer is always under scrutiny by customers, hence it is crucial to have a culture that enables the brand to act at par consistently, irrespective of platform or geography.
What are the best practices in Retail Branding
Regardless of whether it is single-brand or multi-brand retail, strong branding in the retail industry requires a comprehensive understanding of the following aspects.
Understanding the consumer decision journey
Differentiated positioning at different stages of the consumer decision journey is the basis of branding. For retailers how consumers engage has seen a shift lately. They search, research the products, and would like to be educated about the products and the services offered.
Retailers should ensure that their brand gets visibility and remain consistent across all touchpoints.
Follow the trend
These days our lives are influenced by events and people are not always present physically but virtually all the time.
Trends are too dynamic, so retailers should remain one step ahead and the process should be such that it allows JIT(Just In Time) process and services development. This will ensure retailers shouldn’t miss the bus. If the trend for summer clothing is floral patterns retailers certainly incorporate those in their product line.
Take the example of Zara. Once considered adaptive and dynamic is now increasingly under threat from new-age startups which believe in aggressive branding and also have disrupted traditional fashion retail business models.
Embracing technology
In special Starbucks Reserve stores, eye-catching arty images are projected on the walls. Each Starbucks Reserve store in the world is uniquely designed to provide a “coffee theater” experience.
Hermès the luxury brand created a virtual e-store to showcase its silk squares, shawls, twills, scarves and stoles collections.
The use of AI (Artificial Intelligence) and Virtual Reality (VR) are pretty hot these days.
Beyond boundaries
Retailing is now a global phenomenon. E-commerce has changed the lives of people. Geographic boundaries are no longer considered a barrier in purchasing your favorite product.
It is now the brand’s responsibility to give your customers the same experience they are expecting, irrespective of their location.
Amazon and Alibaba have redefined the way global retail business is being carried out.
It is critical to understand the fact that online business does not have the limitations of physical retail.
E-commerce giants like Amazon have changed the scene, one can get the product delivered from one country to another. Expertise should be acquired at the local level and intercontinental level logistics.
Strategic differentiators
Consumers are spoilt for choices.
Retail brands that do not invest in creating individual experiences are at greater risk of being pushed down.
Consumers are now expecting attention and personalized experiences. Even at your neighborhood store or a swanky shop at the mall.
Successful retailers are the ones who can exceed expectations and provide specialized services. One great opportunity is to revamp loyalty card programs, which helps in strengthening brand equity.
Examples of Retail Branding
Bonobos.
Bonobos is a men’s clothing brand founded in 2007 by Andy Dunn and Brian Spaly. Due to its strength and unique value proposition, the company was recently acquired by Walmart for $310 million.
Customer engagement is top class. They put extra effort to connect with their customers. To differentiate from other men’s clothing brands online, Bonobos manages a digital editorial publication on their website called Equateur. According to them, the publication conveys this
“At Bonobos, we strive to make great clothing. With Equateur, we tell the stories of the humans who wear it. The places they go, the things they do, the people they meet — everything that gives meaning to what otherwise would be just fabric and thread.”
Beardbrand.
Beardbrand is a beard lifestyle company that was founded in 2012 by Eric Bandholz. Bandholz started the company to create a connected community around beard-growing, and, according to the company mission statement, “To change the way society views beardsmen.”
Beardbrand sells a variety of beard-growing products and tools to beard enthusiasts. They go all around the world. Bandholz and his team have successfully built an active and passionate community around their company and products by investing in content. They also educate their customers from day one.
Conclusion
We are observing the evolution in retail branding dynamics. Consumer behavior and perception management needed to be handled well if we have to establish as a brand. Retailing is a cutthroat business.
Consumer engagement with retail is the key. However, it is constantly evolving and is being strongly influenced by technology.
Come what may, one thing always holds true – once established, a strong retail brand stands tall despite disruptive changes in the market and will continue to do so.