The New Rules of Retail by Robin Lewis

Author:Robin Lewis
Language: eng
Format: mobi, epub
Publisher: St. Martin's Press
Published: 2014-06-18T16:00:00+00:00

Part 3

The Masters

Chapter 10

The Master Model

Omni-Brand to Consumer

The Omni-Brand to Consumer model will accelerate in Wave IV and become the dominant, or master, model in every product category. We believe the power of the model will compel more pure e-commerce sites to open physical stores and more brick-and-mortar retailers to expand their e-commerce and mobile capabilities. While there are many variables for the relative success or failure of any one of the omni-channel brands, in the aggregate, the very reason for their tremendous success is the strategic foundation of their model. Its entire focus is on connecting with their consumer neurologically with incredible experiences; highly differentiated, unique and personalized product; and superior service, all tightly aligned with the six major consumer desires in Wave IV. The model’s focus is also on ensuring the brand quickest and easiest access to its customers (preemptive distribution). And because the brand name on the door and its digital platform is the destination brand, they have total and/or dominant control over their value chain (not dependent on any third party), particularly those functions that touch the consumer, both in getting direct input from them (the co-creation of their desires) and the final connection at the point of sale. It is this totally controlled and integrated omni-brand value chain that enables the neurological connection and preemptive access in the first place. Finally, combining these inherent advantages with the new technology enablers and enhancers of Wave IV does make it the master model, poised to continue growing faster and gaining more share than all other retail models.

What follows is an analysis of the competitive advantages of this model, based on our three operating principles of neurological connectivity, preemptive distribution and value-chain control.

Better Potential for Creating the Neurological Connection

Because the entire presentation and environment are controlled by the omni-brand, and the entirety of its imagery is consistent, these brands can more easily create the desired experience. However, it’s important to note that while purely digital brands like Net-A-Porter may connect neurologically with consumers, the connection cannot be made as powerfully as when the brand embraces and surrounds the consumer in the physical store. Conversely, all those brands that launched in the physical world and that have now become omni-brands (like J. Crew, Victoria’s Secret, Coach and more) have discovered that it’s a challenge to replicate the same powerful neuroconnection online. However, for both, there is a synergy to be achieved as an omni-brand.

For example, one might go to an Athleta store or to Warby Parker’s website to sense and see the imagery, lifestyle and essence of the brands: the workout lifestyle and pictures of in-store events at Athleta; and the hip, modern and funky imagery of Warby Parker. Consumers may feel connected in a compelling way and may make the purchase online. However, it is the enticement online for them to come into the store and to feel the experience in all “six senses,” including the mind, that makes the indelible, impervious connection. Finally, there are new technologies that will augment reality and further enhance these experiences.

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