Edited by: Anna Tinning, Jessy Pelzer, Maja Sokolowska, Jānis Trukšāns and Daniel Grabow Jensen Int. 1C. Handed in to: Thomas Bredahl Handed in: 30/11-2018.
SELECTED
retail assignment
BESTSELLER
Selected Femme/Homme is a part of Bestseller, which is a Danish family-owned brand. The company was founded in Brande in 1975 by Troels Holch Povlsen. Originally they mostly focused on women’s fashion, in 1986 they introduced children’s clothing and menswear in 1988. Today Bestseller has more than 41,000 employees, whom are designing, developing, selling and marketing Bestseller’s 12 brands. The products are sold through chain stores, multi-brand retailers and wholesale. Bestseller has more than 5,300 stores in 43 different countries. The stores are build on close and loyal relationships between business partners and Bestseller. Bestseller does not own any factories but they co-operate with loyal surpperliers in China, India, Bangladesh, Turkey and Italy.
Selected’s distribution strategy and argues for and against Selected’s choice of distribution channels. Selected has a selective distribution strategy. This means that it has more points of sales than for example the exclusive strategy. However, the company doesn’t belong to the intensive strategy. Because you can’t buy their product everywhere. Selected is both B2B as B2C brand. B2B (business to business) because Selected sells their products in multi-brand stores and shop in shops like Magasin. B2C (business to customers) because Selected also has their own stores where they sell their products. Argue for and against the choice of distribution strategy For: Because Selected has their own stores (B2C strategy) they have control over their products.
Antonio Baneras x Selected Homme collaboration
SELECTED
retail assignment
BESTSELLER At this stage Selected already know, that they should think about new directions. That’s why they focus on sustainability and organic fibres as well. However, they have already implemented the organic fibres towards their collections, because they handpicks organic fibres when they’re buying new suppliers. They’re focusing on not using chemical fibres, but the organic one instead. Also, they’re focusing on using recycled products and innovative fibres. Especially for innovative fibres which is made by cutting-edge environmental technology, where they can for example turn wood into Tencell, Lyocell or fibres in general. The institutional theory When we’re talking about the institutional theory, Selected is doing really well at the moment. The have taken the environmental trend into consideration and implemented into their production of clothing.
They know who their customers are and what their buying behaviour is. Through their own stores they can also see which products sell good or which products don’t sell that good. And they get a change to interact with their customers and get feedback on their products. Against: Being a B2C company and having their own stores is more expensive than selling it to other stores. It also brings a bigger risk having their own stores, if something goes wrong, they don’t have any one to rely one. Being a B2B company also has some downsides. The biggest reason why not to be a B2B company is that they don’t have control over their products. They don’t have their own employees selling their products in a multi-brand store. Because of this they also don’t know who their customers are and what their buying behaviour is. And they don’t get any feedback from the customers.
Explain, illustrate and apply one or more of the ‘theroies of retail change’ to Selected. Based on theroies used what is next for Selected. Retail life cycle theory Selected is a well established company, that has been around for a long time. Therefore, when we’re talking about their life cycle they’re in the maturity stage. They’ve been established on the market for a couple of years, where they have a lot of experience from Bestseller in general. They know how to interact, how to run a business within a retail concept and online market as well. Therefore, it’s the maturity stage that they’re in right now. Now when they’ve reached the maturity stage they should start thinking about innovating again. Otherwise, they could end up in the decline stage. However, they should start thinking in new directions and areas, which gives them the most value towards the business but also towards the target group as well.
However, they’re especially focusing on not using chemical fibres. At the moment it’s primarily organic fibres, recycled fibres and innovative fibres that they are focusing on at the moment. (More sustainable Fibres | Mens & Womens Clothes | SELECTED, 2017) This means that they meet the demand from both the market and their target group very well. It shows versatility, but there’s still more they can do to meet the demand and implement in their company. For example they could reduce their use of electricity in the stores, only produce after need and not mass produce. Overall, they’re in a really good path, but they can still make efficient changes towards their CSR strategy. Describe how the physical shop supports the brands strategy through the store design (both inside and out), the layout and the basic space management practices. Illustrate with photos, sketches, ect. SELECTED is a company focused on minimalism and Scandinavian style with the touch of international and modern, trendy looks.
High quality and attention to the even the smallest details is the key for them- they want to make clothes which will be timeless. This is confirmed by the quote on their official website-„We make fashion you want to keep”. This is also a confirmation that the company is intended for mostly mature people, who are sure how they want to look like, who are confident and individual in their way of wearing clothes but also in their way of being. Values of a brand are expressed and secured through a store. Their logo in the front of the shop is pretty pure with not too big, classic font in a white color, not imposing but falling into a memory. Big glass windows with the strict vertical lines in the opposite sites of the entrance showing few mannequins “ready-made” outlook you can pick for yourself. The shop from the inside gives the impression of a very elegant, minimalistic but also well organized — a mixture of dark tones of colors with lighter elements - on the walls, floor but also furniture, which through their simplicity represent very well the items lying on them. Moreover, pieces of clothes are separated into parts - suits, t-shirts, jeans, so you can easily found and get what you need. Also, a lot of space left between pieces, creating the feeling of “breathable” sense of shopping. Details are very refined and elegant in its simplicity - wood and leather, combined with a very minimalist, subdued interior, give the impression of luxury and maturity. Such small elements emphasizing the whole stand out from other popular chain stores - comfortable leather armchairs, plants, works of art on the walls, thanks to which the store not only shows that it has a good taste but is unique and has a soul.
SELECTED
retail assignment
BESTSELLER Identify at minimum two of the most important retail trends that could impact Selected. Describe the trends and then how and if Selected should implement them into the business and why. Experience economy Retailers are searching for new methods to infuse personal approach to the customers, using augmented reality, robust mobile applications, and other innovations, helping customers experience beyond (Alliance Data, 2018). The point is to give customers a reason to visit the store by creating rich experiential moments that go beyond the product and tap into the emotional elements of your brand (Post, 2018). Selected approach to the customers through their stores, commercials, and advertising. Using the strong visual picture in ads, dark tones in physical shops, details of the wood and leather, selected brings in the sense of serious, serve and wise atmosphere. Physically calm lights, dark tones in the shops helps a customer to “loosen up”, making shopping pleasurable. In future SELECTED might look at welltrained sellers, who can help you to build up your own, new and personal style. This also can be accomplished through the online platform with virtual assistants.
Customize products Using advanced listening tools and product customization, brands are empowering customers to feel like they are a part of the brand (Alliance Data, 2018). Retailers are going one step forward not only allowing customers to choose in between ready-made adjustments to the product (colours, shapes, and sizes) but also allowing them to build their own products (Alliance Data, 2018). Allowing shoppers to build products makes shopping itself a lot more exciting (Vendhq.com, 2018). For SELECTED that is the direction for improvement. Custom designed accessories, which are built in 3D app, and after delivered to the nearest store or your home, could be a perfect way to highlight SELECTED`s vision of “details” and also improve the personal approach to the customers. Subcriptions Because of the customer’s predestination to a personalized experience, subscriptions are not only a practical way of shopping but also builds personal relationships with each of customers, and the community of the brand itself (Square, 2018). Subscription keeps customers informed about new items which match their specific demands. Also, the Subscription boxes are an excellent way to commercialize the brand – offering monthly deliveries of the latest items, and accepting returns. Membership or subscription may increase the trust-building process with customers. It also grants additional data, and shopping preferences of the customers, that allows SELECTED suggest garments more precisely and develop a personal approach for each of the clients.
SELECTED
BESTSELLER
retail assignment
sources AllianceData. (2018). 2018 Retail Trends Report. [online] Available: https://nrf. com/system/tdf/webform/2018%20Retail%20Trends%20Report_Alliance%20 Data.pdf?file=1&title=2018%20Retail%20Trends%20Report [Accessed 28 Nov.2018]. 6 Retail Trends to Watch in 2018 (2018) Square. Available at: https://squareup. com/townsquare/retail-trends-to-watch-2018?country_redirection=true&fbclid=IwAR181RbHesVSivUDbzEkLhUbcdpwljarFFrYAdszEdoF-Hne0vJFQNgk-os (Accessed: November 30, 2018). The Future of Retail: 4 Upcoming Trends to Watch (2018) Business News Daily. Available at: https://www.businessnewsdaily.com/9836-future-of-retail.html (Accessed: November 30, 2018). More sustainable Fibres | Mens & Womens Clothes | SELECTED (2017) Selected. com. Available at: https://www.selected.com/dk/da/sl/sustainability-/ (Accessed: November 29, 2018). About us page (2018) Selected.com. Available at: https://www.selected.com/dk/ da/selected-femme-homme/ (Accessed: November 29, 2018). 2018 Retail Industry Trends & Predictions | Future of Retail | Vend (2018) Vendhq. com. Available at: https://www.vendhq.com/2018-retail-trends-predictions?fbclid=IwAR0BG007rv_vm8ORiZCX47VoTe9YtgywArVSAZdvB8JZpLx4-QXDM6XvlUo (Accessed: November 30, 2018).