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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