To brand or not to brand?

Shinola is a good example of a brand (without real heritage) that is telling a great story--Detroit manufacture and resurgence--and it seems to be resonating with retailers and customers alike. The brand has little to no history to tap into and yet it has generated an exciting buzz that translates to the sales floor.

Pandora, of late in the news for ending relationships with some of the people who “brought them to the dance,” played a very important role in helping many retailers survive the depths of the recession. Despite the chorus of “we’re in the jewelry business, not the bead business” from many retailers, the simple truth is that the brand was singularly responsible for creating traffic and generating cash flow when it was most needed.

On a lesser scale, and certainly in a much-improved environment, Alex and Ani is helping to drive traffic into retail doors today and, one would hope, creating an opportunity for retailers to meet new customers and to convert those customers into loyal patrons for other jewelry purchases.

Then, of course, there’s the industry giant, Rolex. Or, as the late Allen Brill referred to the company he led, “The Crown.” They continue to serve as the standard by which all other brands and “wannabe brands” aspire to. Despite the scope of the “ask,” Rolex enjoys a revered place in the industry and there would be few retailers, if they are being perfectly honest, who would not want to have Rolex in their stores. 

When executed well, having the right brands, and telling brand stories, can be a gift to salespeople and can provide an important catalyst to elevate the customer experience. It also can elevate the perception of your store to your current and target customers. And, notwithstanding the few exceptions, it is also a way to protect margins, ensure consistency of product, provide exciting training content and provide differentiation for the retailer.

Believing, as the author of the aforementioned LinkedIn article intoned, that you ought to discard brands in favor of building upon your own heritage is, in my view, naïve. It presupposes that your heritage--with all due respect--matters one whit to young people today and any worthwhile retailing marketing strategy today must target millennials if the business is to sustain and grow.

The author wrote that the retailer should make the “store’s heritage, the real brand” and, with the utmost respect, that’s bunk. The Apple stores are not successful because of their heritage. Young people do not visit Starbucks because it was important to their grandparents. And even heritage brands like Tiffany & Co. and Polo are not successful because they have been around since 1837 and 1967, respectively.

These brands are successful, where many others have fallen short, because they are relevant to people today. Those brands speak to young customers in a way that resonates, both aesthetically (product) and narratively (what they say.) They don’t rely on the fact that they have been around for a long time and they do not approach their product development, marketing or staffing as though they are entitled to the business.

While your heritage can, and should, be a part of your messaging (has anyone done a better job than Tiffany in this regard?), what you really need to ask yourself is, why would a young person shop with you today? What is it that you do that is relevant to millennials?

Do you have products (brands or otherwise) that matter to them? Do you have people on your team that can relate to millennials? Does your marketing speak to a younger consumer? Have you created a truly energized environment that speaks to today’s consumer, or are you still doing the same things you were doing 10 and 20 years ago?

I was in Dallas this week and I asked a local retailer if he was getting young shoppers. He replied, “We deal more with the nearly-dead than the newly wed.” After the cursory chuckle, I re-phrased the question by asking him what he was doing to make sure that he was relevant to young people. His response was, “We have survived for 25 years.”

My reserves of cursory chuckles dried up at that point and I could almost hear the sucking sound of irrelevance, as I witnessed the advanced stages of another quiet demise.

Peter Smith, author of Hiring Squirrels, has spent 30 years building sales teams at retail and working with independent retailers to offer counsel and advice. He also has worked in both retail and wholesale with companies such as Tiffany & Co. and Hearts On Fire. He can be reached at Dublinsmith@yahoo.com and on LinkedIn.