Managing Change in Private Brands
Craig Espelien
Is your company making money? Do you know how? Are you interested in learning how to make more?
Whether it is a retailer, a wholesaler or a manufacturer (or even the longer tail of broker/sales agent, agency, marketing partner, photographer, etc.) understanding how to lead others into and through change is a skill that is either known by the Private Brand professional or learned the hard way (three guesses which way I learned it - and the first two do not count).
Like any process that has to evolve, change is very difficult - not because folks are reluctant to embrace The New as much as they fear letting go of The Old. That is why there are so many business cartoons that are like the below:
While humorous, it is also part of what makes business so difficult - and the Private Brand business is not immune. Too many programs seem to be built as part of a Destination Strategy - meaning that, once completed, the box is checked and it is simply about execution. Think of it as one of the two options below:
Side Note: either of these works but one is much more focused on making it easier on the consumer and one is focused on making it easier for the retailer.
Option #2 is a clear winner if the goal is to serve the consumer AND make it easier to make category specific changes as the marketplace changes. Option #1 is easier to do and get accepted as it is rather simplistic. The problem with Option #1 is that it is extremely difficult to change.
Sure, you can change vignettes to update your packing/look but if you want to change more than that, a complete redesign is needed and then EVERYTHING must change to achieve the new look. Not only is this expensive (as suppliers often pay for it, retailers tend to be indifferent) but it also takes a long time and often leads to a mish-mash of designs on the shelf. The result is that retailers tend to stay with dated family designs well past their expiration date as the cost of change is seen as simply too high.
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So, to bring this back to making change easier, it is best to build a Change Mentality into your organization - and especially in your Private Brands group. This will help everyone understand why decisions are being made the way they are and help everyone process why change is necessary and the pain of making it happen is for all the right reasons - to meet the ever-changing needs of the consumer.
You may ask, is there a process for this to make it easier? Yes - my True North Group had a question on what one thing could I share that would help a new leader get started in recalibrating a business or business unit. The result is below - a change management roadmap that can be used for just about any type of change.
There are, of course, several more pieces to the overall work but this is the tool I tend to use to get started.
Change - it is not for the faint of heart but think of it this way; If you are not willing to initiate change internally, there is a high risk that change will be imposed externally. I can tell you from experience that the second one is much worse than the first.
Good luck - and let me know in the comments what has worked for you on the change management front (especially if it pertains to Private Brands).
Do you want to build a more sustainable private brand business (and perhaps enhance your total merchandising approach to PB) where you can outpace both the competition and who you were yesterday? Schedule a 30-minute session to explore the possibilities:?https://calendly.com/craigespelien/30-minute-meet_greet
? Forbes.com Top Advisor - Financial Advisor to Families & Business Owners | Featured: Forbes, The Wall Street Journal
1 年Your comments on change are timely because we are all experiencing it in different ways with our companies. Have you seen the need to effect change quicker due to a faster pace of business?