Home Apparel Twitter map of APP logo

Apparel Magazine

CONTACT US | SUBSCRIBE | NEWSLETTER | RSS Feeds RSS FEEDS

Welcome, Guest |   Sign In   |   Register  
Apparel Magazine
 
Print Email Page RSS Feeds

Posted Date: 5/1/2003

New Strategies for Private Label Brand Leverage

By JAY D. LUSSAN and GABRIEL F. FRIED

There is an opportunity for apparel manufacturers and retailers to make a low-risk, high-return investment in acquiring consumer data and private label brand assets.

These assets are on the market because of the retail bankruptcies and closures of the past few years.

Retailers have long viewed private label branding as a means to two important ends: improving margin and improving customer loyalty. The loss of a retailer in the marketplace, until recently, has frequently also meant a loss of its private label brands and a lost opportunity to retain or quickly re-capture customers while their loyalty to the brands remains strong.

Yet the cloud of bankruptcy quickly disappears, and the strength of these brands can endure for many years.

Firms such as IPRecovery Inc. (www.iprecovery.com) have been working to create an orderly market for the exchange, sale, licensing, acquisition and redeployment of such brands in their respective sectors. They provide buyers with an opportunity to acquire at a significant discount a proven alternative to the expensive and risky investment of building their own brands.

The lack of a direct association between a private label brand and the retailer contributes to the lasting power and resilience of those brands with established brand equity. Because so much time and money has been invested in many of these brand assets, buyers are able to reduce risk, time and money by acquiring these discounted assets and returning them to the marketplace.

Moreover, savvy manufacturers are looking beyond the retailer toward an understanding of the individual consumer, and how the consumer's transition from a defunct retailer to another apparel source may yield new opportunity. That opportunity, the ability to associate individual customers with trademarked brands, has only been possible with the recent advent of sophisticated retail point-of-sale, data warehousing and data mining technologies.

The integration of sales data for branded products with information about end consumers provides quantifiable measures of brand equity. This data enables the new owners of a brand to step in and hit the ground running.

Additionally, information from distressed or defunct firms' sales and customer files can help manufacturers more effectively utilize co-op advertising dollars. For example, a manufacturer could use co-op advertising dollars to send the customers of a defunct retailer a mailing informing them that the manufacturer's products (i.e., merchandise under the newly acquired label) are available at a different, nearby retailer. These well-targeted campaigns yield better results than newspaper inserts and help drive new sales.

These opportunities to combat market sluggishness have only recently become available with the emergence of a nascent, orderly market for trademarks, and retail business intelligence and related proprietary content. Acquiring brands and customer data when it is deemed as surplus, either by way of a bankruptcy or other business change event, can be a cost effective, lower-risk method of recapturing market share, improving margin, improving volume and sustaining growth.

JAY D. LUSSAN and GABRIEL F. FRIED are president and vice president, respectively, of IPRecovery Inc. The authors can be reached at jlussan@iprecovery.com or gfried@iprecovery.com.

Rate this Content (5 Being the Best)
12345
Current rating: 0 (0 ratings)

 


Discover How To Keep Up With More of Your Mobile Customers
6/24/2014 11:00:00 AM (EST)
Moderator:
Susan Nichols, Publisher, Apparel Magazine
Panelists:
Ron Klein, "Total Retail" Service Leader, PwC Advisory
Annabelle Hoover, Director of Customer Service, North America, BROOKS SPORTS, INC.
Marie-Pascale Authie, Solution Consultant, Infor Fashion
Bob McKee, Industry Strategy Director, Infor Fashion
View On Demand

Planning in the Omnichannel World with a Single View of Inventory
5/13/2014 11:00:00 AM (EST)
Moderator:
Susan Nichols, Publisher, Apparel Magazine
Panelists:
Rich Pedott, Partner, Columbus Consulting
Peter Charness, SVP America’s & CMO, TXT MAPLE LAKE
View On Demand

The Reinvention of B2B eCommerce The Reinvention of B2B eCommerce
5/1/2014
Online sales and marketing vehicles are one of the most important channels fashion has for engaging with customers, but optimizing the value of your electronic interactions can be a complex undertaking. Front-end websites must be user-friendly and smart, but just as critical is tight integration to the back office systems used to produce, manage, and control the products you sell. If you cannot create an online platform that delivers across all fronts, you’re missing critical opportunities to engage with customers, increase sales, and extend your market reach across global time zones. Read this White Paper – authored by Bob McKee, Infor Industry Strategy Director, where he will share insights into the eCommerce market and just how Fashion companies can deliver on a 24/7 sales economy.

Download Now

Benefit-Based Promotions: How to Capture Real Value Without Giving Away the Store Benefit-Based Promotions: How to Capture Real Value Without Giving Away the Store
5/1/2014
L.E.K. Consulting discusses how retailers can avoid promotional traps by using the benefit-based promotional strategy to garner higher same-store sales and more profitable and incremental sales.
Download Now



MEDIA KIT | EDITORIAL BOARD | PRIVACY STATEMENT | TERMS & CONDITIONS | CONTACT US
All materials on this site Copyright Edgell Communications. All rights reserved.