The Art of Nurturing Strong Retailer-Brand Partnerships
Virtually all brands today have pursued multichannel commerce, providing customers with multiple channels, both offline and online, to purchase their products. Multichannel commerce can be especially beneficial for small e-commerce businesses, enabling them to reach a larger audience by leveraging various online platforms and brick-and-mortar retail partnerships. Additionally, multichannel commerce allows businesses to diversify their revenue streams, reducing dependence on any one platform or channel. Plus, by providing a variety of convenient purchasing options, customers can exercise their preferences, and businesses can tailor the customer experience to meet those different needs.
Apple, for example, effectively utilizes multichannel commerce to enhance its brand presence, reach a global audience, and provide a seamless customer experience. The company sells its products in its physical retail stores, on its e-commerce website, through online marketplaces like Amazon, and by partnering with other retailers such as Best Buy and Target.
Multichannel commerce has not only redefined how customers shop but has also profoundly impacted the dynamics of retail partnerships.Retail partnerships have become more critical than ever for fostering brand growth and expanding market reach. The synergy between retailers and brands can create a win-win scenario, driving increased sales, brand visibility, and customer loyalty. This blog post delves into the intricate art of nurturing strong retailer-brand partnerships, offering valuable insights and actionable strategies for building lasting collaborations.
Benefits of Retail Partnerships
The brand-retailer relationship is of paramount importance for both parties and plays a crucial role in achieving mutual success and growth. This collaborative partnership holds several key benefits:
- Market Reach and Exposure: Retailers provide brands with access to a broader customer base, leveraging their existing customer relationships and store foot traffic. Brands, in turn, enhance the retailer's product offering and contribute to a diverse and attractive product assortment.
- Brand Visibility and Recognition: Being featured in reputable retail spaces enhances a brand's visibility and credibility. Retailers serve as valuable platforms for introducing new brands to customers, ultimately boosting brand recognition and awareness.
- Customer Trust and Loyalty: Retailers often have established trust and loyalty with their customers. When a retailer endorses a brand by featuring its products, customers are more likely to trust and try those products, fostering a sense of loyalty to both the brand and the retailer.
- Marketing and Promotion: Retailers typically invest in marketing, advertising, and promotional activities. Brands benefit from this exposure, as retailers use their resources to promote products through various channels, including in-store displays, online campaigns, and mailers.
- Market Insights and Feedback: Retailers are on the frontline of customer interactions, providing brands with valuable insights and feedback about consumer preferences, trends, and demands. Brands can use this information to refine their products and strategies.
- Shared Resources and Expertise: Collaborating with retailers allows brands to tap into the retailer's established supply chain, distribution network, and logistical expertise. This can significantly reduce operational complexities for brands, especially smaller ones.
- Customer Experience Enhancement: Retailers play a role in shaping the overall customer experience. A positive in-store or online experience can reflect positively on the featured brands, leading to higher customer satisfaction and loyalty.
- Diversification of Sales Channels: For brands, partnering with multiple retailers diversifies their sales channels, reducing reliance on a single distribution point. This helps mitigate risks associated with changes in market dynamics or consumer preferences.
- Innovation and Creativity: Retailers often collaborate with brands to develop exclusive or co-branded products. This allows brands to showcase their innovation and creativity in crafting unique offerings that resonate with a specific retailer's customer base.
- Long-Term Growth: Establishing strong brand-retailer relationships can lead to long-term partnerships, creating a stable and sustainable growth trajectory for both parties. Consistent collaboration can lead to joint planning, co-investment, and strategic alignment.
In essence, the brand-retailer relationship is a symbiotic partnership that leverages each party's strengths to create a win-win scenario. By working together, brands and retailers can achieve greater market penetration, customer engagement, and overall success than they might individually. Now that we’ve looked at why these types of partnerships are beneficial, let’s get into how to establish such a relationship.
Understanding the Foundation
Before embarking on any partnership journey, it's crucial to comprehend the foundational elements that make a retailer-brand relationship strong.
The foundation of a strong partnership lies in shared values and common objectives. Begin by aligning your brand's mission, vision, and goals with those of your potential retail partners. Seek partners who resonate with your brand's identity and are committed to delivering value to customers. Establish objectives that create mutual value such as increased sales, customer satisfaction, and market growth.
Leesa, the mattress company, has had a partnership with West Elm since 2017. This relationship is a prime example of what it means to build a strong foundation, rooted in shared values. Both companies have a social component to their business. West Elm was the first home-retailer to join Fair Trade USA, and Leesa donates 1 mattress to a family in need for every 10 sold. Leesa CEO David Wolfe said of the partnership, “We think and we work the same way.” The brand and the retailer have clearly proven that value and objective alignment can lead to a long-lasting, fruitful relationship.
Selecting the Right Partners
Not all partnerships are created equal, and choosing the right retail partners can significantly impact the success of your brand. Carefully evaluate potential retail partners based on factors such as target audience alignment, brand fit, and market presence. Ensure that the partner's values complement your brand's ethos. By meticulously assessing potential partners, brands can ensure a harmonious and profitable partnership that resonates with their target audience.
Target and Neiman Marcus did not assess target audience alignment before embarking on a partnership for the 2012 holiday season. The merchandise featured yoga mats, barware, and other miscellaneous items from designers like Diane Von Furstenberg and Oscar de la Renta. It did not perform well, as the products were priced too high to be appealing to Target’s customer base.
Building a Mutually Beneficial Strategy
A successful retail partnership requires a comprehensive and well-thought-out strategy. It’s important to co-create strategies that benefit both your brand and your retail partner. Collaborate on marketing campaigns, exclusive product launches, or special events that leverage each other's strengths. Jointly developed strategies enhance customer engagement and create unique experiences.
Joybird and Sherwin-Williams have partnered together to bring customers unique design ideas featuring both brands products - paint and furniture. The partnership is promoted on both brands’ websites as well as their social media accounts to expand their marketing reach.
Communicating Openly and Transparently
Effective communication is the cornerstone of any successful relationship, and retailer-brand partnerships are no exception. Maintaining open lines of dialogue with your retail partners is necessary to foster trust and collaboration. Regularly sharing insights, updates, and feedback will ensure that both parties are on the same page.
When Apple announced Apple Pay in 2014, it was revealed that PayPal was supposed to be a part of the platform. However, the possible partnership fell through during negotiations due to a lack of transparency. PayPal partnered with Samsung, an Apple competitor instead. 8 years later, the companies were able to put this behind them and now accept each other’s products.
Leveraging Technology and Analytics
In the digital age, data is a powerful asset. Collaborative analysis of market trends, consumer behaviors, and purchasing patterns empowers both brands and retailers to make informed decisions that lead to targeted and successful campaigns. Sharing data fosters transparency and encourages proactive adjustments.
The popular Doritos Locos Taco (DLT) at Taco Bell first debuted in 2012 and was immediately a huge hit, reaching 500 million sold within the first 14 months. The Doritos (Frito-Lay) and Taco Bell teams had to figure out how to keep up with demand for the product. The companies each leveraged their specific expertise as well as technology to create special production lines for the DLT. Steve Gomez, Taco Bell’s food innovation expert, elaborates on the process of creating the product, explaining that, “for months we shared know-how between the technical teams at Frito-Lay and Taco Bell.” This is the kind of collaboration that leads to success in retail-brand partnerships.
Adapting to Change and Evolution
Change is inevitable, and a successful partnership must be adaptable to evolving market dynamics. By staying attuned to shifting consumer preferences and industry trends, brands and retailers can proactively pivot their strategies to ensure continued growth and relevance.
Ikea and fashion designer Virgil Abloh stayed attuned to customer preferences by surveying what they were looking for when it comes to household design. Virgil was then able to create a line with Ikea that met that criteria and was wildly successful.
Investing in Training and Support
Offer training and support to your retail partners to ensure they have a deep understanding of your products and brand values. Well-informed partners can provide better customer experiences and drive sales through their expertise.
During the 2019 holiday season, Glossier partnered with Nordstrom to open pop-up shops in several locations of the department store to sell its new fragrance. Glossier’s founder, Emily Weiss, said about the partnership, “We designed and created the same experience that we offer customers in our own pop-ups and retail stores.” Glossier was able to draw on Nordstrom’s expertise in the fragrance market while still offering a unique branded experience complete with sales associates in pink jumpsuits.
Tailoring Marketing Campaigns
Crafting personalized marketing campaigns that resonate with the retailer's audience enhances the chances of success. These campaigns should align with the retailer's branding and overall strategy while also showcasing the unique value proposition of the brand.
Balenciaga and Crocs have teamed up multiple times to design unique shoes like these platform Crocs and stiletto Crocs. This out-of-the-box partnership leads to lots of PR coverage and media attention, helping both brands stand apart from their competitors.
Collaborating with Category Managers
Collaborative category management allows companies and retailers to work together in optimizing product assortments, shelf placements, and inventory management. By understanding consumer preferences, this approach ensures that the right products are available at the right time, leading to increased sales and customer satisfaction.
The enduring partnership between P&G and Walmart has exemplified the power of collaboration. Through joint business planning and data sharing, both companies have successfully optimized product placement, inventory management, and marketing strategies.
The art of nurturing strong retailer-brand partnerships is a dynamic journey that requires dedication, collaboration, and strategic foresight. By establishing a solid foundation, selecting the right partners, co-creating beneficial strategies, fostering effective communication, leveraging technology, and embracing change, brands and retailers can unlock the true potential of their collaborative efforts. Through this harmonious synergy, they can achieve remarkable growth, increased brand recognition, and lasting success in the ever-evolving retail landscape.