RETAIL, LUXURY AND CONSUMER GOODS

Three fast-moving industries facing the same problem. How do we see things at Bartle?

Historic profit sources are now saturated and newcomers have disrupted the competitive landscape

Brands and chains are being forced to act fast to update their business and societal models. In retail, consumer goods and luxury, the historic sources of growth have been depleted. Industry players must preserve operations while simultaneously innovating with the creation of new avenues of sales and profitability.

In distribution, digital challengers and DNVBs (digital native vertical brands) are shaking up the established order, while the Covid-19 pandemic also shifted the dynamics among market players. 

On the manufacturer side, the emphasis is on relocalisation and developing brands with local roots to counter the spread of the mighty “world brands”. 

Finally, in the luxury sector, purchases originating in the primary consumption areas (Asia in particular) have eaten up tourism market share, a phenomenon also driven by the rise of local brands – Korean and others – as department stores seek out new vectors for growth.

"To reverse the trend, nothing less than total reinvention will do"
Yves Marin, Partner

So how does one reverse the trend?

Nothing less than total reinvention. Carrying on with the “more of the same” mentality is no more helpful than knocking one’s head against a wall. Market newcomers are bringing to the table new ideas and shifting business models, such as quick commerce, whose commitment to ultra-fast delivery has transformed the value chain.

But reinvention is difficult, even more so when research and development budgets are limited to around 0.5% of turnover in the retail industry, but are 50 times higher at GAFAM (15% of turnover).

Toward new business models… and societal models

This makeover cannot rely on incremental innovations which add a bit to margins, but are incapable of making a major dent on income statements or market share. 

Indeed, a real boost in sales and profitability can only come from business model innovations. These are more daring, as well as riskier, but only such innovations have the necessary capacity for returns. 

Bartle consultants work frequently on business and social model innovations. They foster brainstorming to bring out new ideas, then seek convergence around possible actions to make shared, substantiated recommendations followed by implementation.

Time
is precious!

Lead time, or the time between the design and deployment of a strategic target, has shrunk significantly under the influence of digital culture. Long gone are the days when businesses took the time to run endless pilots, followed by roll-outs conducted at a glacial pace. 

The teams at our consulting firm work actively to help design ground-breaking innovations, but also to rapidly put them into operation. The purpose is to “process” the implementation by providing the project management method and corresponding management mechanism, and then to set the pace of progress by coordinating the actions of stakeholders to achieve concrete results.

Sometimes (wrongfully) considered to be less glamorous than strategic targeting work, the phases in which projects are tangibly implemented are just as crucial, and we are delighted and proud to carry them out on behalf of our clients.

The supply chain
is the keystone

The supply chain is front and centre again. Once discounted as a key success factor and a focus of management committees, the supply chain, under the influence of the new urban proximity and digital players, is now an integral part of the marketing promise of brands and chains.

We work with our clients to optimise the logistics chain and strike a balance between customer satisfaction, cost control and reduced carbon footprint.

Sell? Yes, but why?

Selling is no longer enough. Companies must explain their strategic intentions, which has become the inescapable condition for success. Why are you here? What is your role? What makes you different? These are the questions asked by consumers, who care as much about meaning as a good deal.

Of course, this quest for meaning among consumer goods and luxury players often goes well beyond the core customer target. A company in transformation must also instil its values throughout its ecosystem: suppliers of raw materials or finished goods, intermediate distributors, social media influencers, lobbyists and, of course, employees. 

To achieve this buy-in, we develop change management plans scaled to large organisations and adapted to the specific context of each client.

Faster,
higher, stronger

Bartle has particular expertise in distribution, consumer products and luxury goods. Our consultants are passionate about these sectors, and they bring energy and commitment to helping our clients hold on to the inventive and agile spirit of the early days and to cast off the shackles and clichés that hinder the emergence of vital innovations in business and operational models.

Bartle’s steady rise is spurred not by the frenzied pursuit of growth, but by the loyalty of our clients. If you are contending with operational or development issues, talk to us! Let us find the innovative, concrete response that is best suited to your unique circumstances.

Does your organisation need to be adjusted or transformed?
Let's talk it over!