Grow Deep. Not Wide
Scott A. Martin
Creating Waves Moving Oceans ?? Brand Strategy & Growth Advisor | Author l TEDx Speaker | Podcaster | Investor
The downfall of some of the most iconic surfbrands
Big news: Liberated brands are bankrupting some of the biggest surf brands... read my first take.
Short notes: Grow Deep not wide.. don't forget the people who you built your brand on like surfers and surf shops... lose your way? Lose your brand soul and eventually support.!
"The Company has been further challenged by trends impacting the retail environment more broadly, including shifting consumer preferences for "fast fashion" and e-commerce as opposed to branded apparel and brick-and-mortar retail" - Liberated CEO Todd Hymel
I am not sure Todd is right. I think the bigger story here is he is blaming outside conditions and shifts in buyer behaviour, NOT the fact they lost connection to their core audience in the pursuit of growth. He in my view, is lying to himself and the stakeholders.
Is that mean those conditions contributed to his downfall? Sure. But its not the reason. In my humble view, he lost the soul of the brand, which was why people connected with the core brand to start with.
So thought I would see what the ChatGTP would say:
Liberated Brands, the operator of retail stores for Quiksilver, Billabong, and Volcom in the U.S., filed for Chapter 11 bankruptcy on February 2, 2025, citing several contributing factors:
These factors culminated in significant financial strain, leading to the decision to close all 124 of its brick-and-mortar stores in the U.S. and Canada, affecting nearly 1,400 employees. Despite these closures, the brands themselves will continue under new licensing agreements managed by Authentic Brands Group.
The challenges faced by Liberated Brands are reflective of broader trends in the retail industry, where economic pressures, evolving consumer behaviors, and the rise of e-commerce have led to numerous bankruptcies and store closures among traditional retailers.
Source: ChatGPT
Again. Sure. They were factors but they failed to innovate with their core audience in my view. This is the UNSEEN Wave of this LACK OF GROWTH.
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Grow better. ?Do not focus on bigger, bigger, bigger. ?What happened here with the bankruptcy of some of the most iconic surf brands of all time is when you go too far outside of our core audience, you begin to appeal to "everyone," and then you finally appeal to NO ONE.?
There is a phrase... GROW GROW GONE.
This is a sad story this is a repeat offender in branding. ?Grow Better means you have to stay authentic to your core audience, and you accept that if you leave that, it's likely (unless you have a bigger groundswell mission/brand center of gravity). eventually, it's a race to nowhere.?
These brands all started only being available to the surf shops, then wanted to grow, and then went beyond that distribution network. In effect, KILLING the small shops with a final blow of opening up their own stores and making it exclusive to their stores while also distributing to Walmart / Target.
What started as an exclusive lifestyle was now mainstream, aka LAMESTREAM.?
It takes patience to pull back growth for the sake of growing sustainably. Fast growth can be great initially but when you have shareholders demanding more and more growth vs more depth with their core audience. This is what happens. You are NOT resilient to the market changes.
When brands act like this essentially, they have no fallback position of a core audience. The brand focused on transactions vs relationships, mission, and a vision of building a groundswell it's all about the $ until it isn't there anymore.
Stay core. Innovate, grow better. Grow bigger if you can stay core and keep the soul of your brand honouring your roots - and not "selling out" the brand.?- Me
There is such a thing as growing wrong. ?
Unhealthy growth is Unsustainable growth. ?Patagonia is still growing. ?They are not.?
Grow Deeper, Not Bigger.?
Scott A. Martin
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Luxury Goods Professional
2 周The retail arena (especially in the mid to upper mid market) is ruthless and perhaps the equivalent of those old Roman battles between bears, lions, humans, and whatever else they saw fit for a good butchering drama. There is nothing pretty about companies folding up, and having picked, shaped, and being part of the retail world, I feel most sympathy with the employees struggling to come to terms with and finding alternative employment. Been there, done that, wore the t-shirt ??. Companies often come under immense pressure from their shareholders (dividends) and/or top tier directors, who want to make a career and name for themselves. All too often it can become a vicious circle and a downright quagmire, once the rigid and tight financial structure is failing or being undermined, worse of all hollowed out by the very same people who built it up in the first place. Double digit growth will become a thing of the past. I really did cry recently, barely missing the last day of sales from a well established Austrian furniture house, that I have fond memories of as a child being taken on a shopping trip by my late father. These memories will stay with me forever. Retail is more than KPIs and ca$h, it is part of us all.
Smart Money Strategist / Empowering women to feel confident about their financial future / Creating generational wealth / The majority of my clients are women, but I also enjoy working with qualified men.
2 周Great insights!