Of all the market categories, retail offers the broadest canvas for any brand to show its true colours. From the understanding of a market that gives birth to a strategy. From the creation of environments, to the engagement of the people that bring the brand to life. To the supply of product that puts the brand into the consumers hand. Retail really does have it all.
So how do retail brands create their value?
What lessons can we learn from the leaders?
How should retailers create and manage strong brands?
How can retailers change the world in which they operate?
Given below is the Report "Top Performing Retail Brands 2008" (Courtesy: Interbrand; UK)
Brand as a Value Generator
Retailers come in all sorts of shapes and sizes. Standing back from the total retail market, we have identified three broad models.
1) The Aggregator
These are brands that are primarily providers of manufacturer choice, environment and price to mass consumers. Examples would include Tesco, Carrefour, Auchan and ASDA.
2) Branded Own Label
These are brands that are primarily providers of a private label proposition, environment and price. Examples would be Zara, Marks & Spencer, Mango and Aldi.
3) Product Brands
These are brands that are primarily providers of a private-label proposition with the majority of their product being distributed through third party retail brands. Examples would include Adidas, Sony, Levis, Burberry.
The present study focuses on models 1 and 2; it is looking at brands as retailers, first and foremost. These are the brands that become valuable through the successful management and combination of any progressive retailers favourite subjects; finance, environment, and increasingly, brand. We have excluded luxury brands from this report. Whilst our work with luxury brands in our Best Global Brands study shows that they provide many fascinating insights, we felt that this report should focus on brands that see retail as their core business, rather than a channel.
Luxury brands tend to distribute through numerous stores and this led us to a working definition of retailers that have full control of their shopping environments. This allows us to see the retail brand as the primary magnet that draws shoppers to the store.
Originally published in New Cloth Market; June 2009