THEME TWO BUSINESS MODELS Can they dictate consumer behaviour and their…
Can they dictate consumer behaviour and their spending habits?
THE CUE CLOTHING COMPANY
THE POWER OF 'AUSTRALIAN MADE'
"By being predominantly Australian made, and with all designs and samples originating from our head office in Sydney, Cue has been able to deliver of-the-minute designs weekly for almost 50 years. 100% Australian operated and family owned, Cue is proud of its accreditation with Ethical Clothing Australia. An ethical local supply chain isn’t just about doing the right thing – it’s also about supporting an industry and its workers so that Cue can remain onshore for many years to come. Shorter lead times, smaller runs, maintaining a very high standard of quality and the ability to react quickly to fashion trends are just some of the benefits of manufacturing locally. The ongoing growth and expansion of our brand is proof that a trade-off between ethical production and profitability need not exist."
Ethical Clothing Australia
THE IMPORTANCE OF STAFF AS A SELLING TOOL
"We don't have products that can be thrown on easily. So staff have to know the product and know how to sell to customers."
The Importance of Cue Employees
DEPARTMENT STORE RELATIONSHIPS
For the last few decades, Cue has been exclusive to Myer and sister brand Veronika Maine exclusive to David Jones.
The takeover of David Jones by South African retailer Woolworths and the subsequent expansion of Woolworths' Country Road Group and private label brands has prompted Levis to open about 15 Veronika Maine concessions in Myer this month and to close a similar number of Veronika Maine concessions in David Jones.
"Our competitor is now in David Jones so why wouldn't Veronika Maine be in both department stores?" Levis said.
The Cue Clothing Company Within David Jones
Myer's chief merchandise and marketing officer, Daniel Bracken, says Cue continues to be a popular and in-demand brand in Myer stores and performs strongly across its portfolio.
"Welcoming Veronika Maine to our womenswear offer adds further momentum to our wanted brands strategy," said Bracken.
Levis also hopes to open Dion Lee concessions in David Jones after acquiring a stake in the young designer's label three years ago and opening five stand-alone Dion Lee stores.
The Cue Clothing Company Within Myer
REACHING THE UNTAPPED MARKET: THE MILLENNIALS
is one of the most recognizable sneaker resellers (a new kind of B2B Business Model) in a flourishing resale market valued at $1.2 billion.
"The brand caters to the new luxury consumer. No longer does luxury consumer mean a woman in her mid-40s strutting down the Champs Elysees but more a kid in Shanghai inspired by the likes of Kanye West. This new luxury consumer, whilst tech savvy and embracing digital retailing, is still human. As humans we seek to engage all of our senses in the shopping experience, and this is where this concept excels."
A Conversation With Chris Kyvetos
A PHYSICAL ONLINE EXPERIENCE
"We’re an online store with a physical display space,Who said you can’t walk into an online store? I saw an opportunity for a brand that didn’t remodel itself to fit a new market but rather was built from the beginning for that younger luxury market, and if that was going to be case, then it needed to be developed from the ground-up for how that customer shops. What I started to see was this growth of a younger luxury market"
Who Said You Can't Walk Into An Online Store?
HOW IMPORTANT IS IMMEDIATE INVENTORY?
Why pay thousands per square metre when you can basically pay zero?
Chris Kyvetos on Inventory Management
"Nearly 80% of consumers interact with brands or products through digital before arriving at the physical stores. Omni-channel shoppers will spend 15% to 30% more than multi-channel consumers and exhibit stronger brand loyalty. One thing you cannot do online is socialise, therefore the store encourages the social aspect of shopping. We have found that our customers shopping socially in our stores has given us a significant competitive advantage over pure play web retailers"
No Inventory Creates Customer Loyalty
Made.com is a furniture e-tailer that has been in operation since 2010. In 2015, Made.com opened its first showroom in London, which leverages technology to close the gap between e-commerce and in-store retailing, while creating a captivating and truly innovative retail experience. From projecting virtual products onto walls to utilising 3D printers and providing hand-held tablets, Made.com has created a format that overcomes the restrictions of physical space to offer the broad range of an online shop in a traditional bricks and mortar setting.
The instore projections are used alongside physical goods to help customers understand how different product combinations might work together in the home. Shoppers can view any desired product from the catalogue, in any size or colour, at the touch of a button. The innovative projections both satisfy customers’ desire to view physical goods and offer flexibility to customise, normally possible only online.
or "Sale Culture" is the conditioning customers to only buy discounted or sale items by having regular discounted products in store or flash sales.
Sportsgirl prices its new season products at a higher price point, so that when the products are discounted 2 - 3 weeks later they are at a price point that attracts a wider age range of consumers while still allowing the company to make a profit. The
strategy that Sportsgirl uses is the key to their constant high foot traffic in both stores and online.
regularly holds 'Super Saturday' in which all or most brands within the department store offer their customers some form of discount on full-price or already discounted items.
UNDERSTANDING AN EVOLVING CUSTOMER
“Our marketing strategy really hasn’t changed in 70 years. At Sportsgirl we believe it’s vitally important to remain true to our core brand values and absolutely consistently stick to our
– that’s so we are clearly differentiated from all the global brands now coming to Australia."
MYER 'Super Saturday' could be a potential threat as it is conditioning consumers to expect regular discounts on full priced items. this may discourage them from spending during Monday to Friday, or from purchasing full priced items at all. It also drives customers away from a brands stand alone or boutique stores and into their concession stores in Myer. Although this is a benefit for Myer, it could be potentially detrimental for the brands within Myer's business as a whole.
MYER CATWALK TO CART
Launched at Myer's 2017 VAMFF runway show, 'Catwalk to Cart' was the first time any fashion brand in the world has enabled attendees of a runway show to shop a catwalk live from their seat.Built to deliver a direct sales outcome, '
Catwalk to Cart
' is an idea that provides a new channel through which fashion brands can commercialise the significant investments they make in positional runway shows.
COLLABORATION FROM MYER & EBAY
Myer & Ebay have collaborated in order to adapt to the modern consumers needs, and create what is the first ever Virtual Reality Online Store.The app works with virtual reality headsets like Samsung's Gear VR, but also with cheaper options like Google Cardboard. eBay and Myer are offering 15,000 customers a free cardboard viewer, which they are calling a
Personalisation will also mean in future an individual will have their own virtual reality store that is built up by their past purchases and tastes only showing products in their size and shape. This will make it a serious new retail channel.