Episode 08: Brand rebuilding isn’t easy, shipping costs gone wild, digitizing luxury brands

Brand rebuilding isn’t easy

Examples of recent brand rebuilds/relaunches: Old Spice, RadioShack, and J.C. Penney are all examples of success – with J.C. Penney being the most recent rebuild success. 

  • J.C. Penney has been around for 114 years
  • “J.C. Penney’s evolution is paying significant dividends: The company has now topped earnings forecasts for over sixth straight quarters.”
  • Two major factors: refreshed product assortment and better customer experience
  • Product assortment: re-introduced appliances, added plus-size women’s apparel, partnered with Sephora

Shipping costs gone wild

  • Shipping costs from UPS and Fedex are expected to rise by 5% after the holidays, with some costs increasing earlier.
  • Amazon exploring their own logistics service called “Prime Air”.
  • Other retailers have less options and are at the mercy of UPS, Fedex, and USPS.
  • What about drones?

Digitizing luxury brands

  • The Apple Watch Hermès is a good example of new partnerships brought about by digital. Birchbox, whose subscribers receive a box of selected beauty products each month, helped pioneer a new business model in luxury.
  • Luxury brands can’t operate like they used to, simply relying on store traffic.
  • 58% of luxury sales are digitally influenced.

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