#88: The Rise of MonoBrand Stores

This is a 2 part article: 

Part 1: The Death of the Department Stores

Part 2. The rise of Mono Brand Stores 

In Part 2 of this series, I write about the rise of Mono-brand Stores. 

'As in Newtons law, every action has an equal and opposite reaction'

The loss of the Department Stores has been a blessing in disguise for Concept/Boutique Stores. Having successfully led and managed Teams across both Multi Brand and Mono Brand Format Stores, my bias has lately been more towards Mono-stores. 

So in this article, let us look at how Mono-stores can be managed effectively to become nerve centres for the community and profitable units for any Business. 

1. Brand is King: The main success attributed to Monostores is the fact that the Brand is king! Here the store environment is not generic, more personalised and you are not competing with several brands for eyeballs thus sending mixed signals to customers

2. Ambience & Presentation: If you notice Department Stores, especially ones that have a Leased and Owned business model, there is no real synergy or correlation between ambience and presentation. Brands are competing with each other for shelf space and you end up becoming nothing but a 'Box of Brands' with no clear messaging from a Customer point of view. Some Department stores have tried to eliminate the 'Box of Brands' approach and have tried to combine Looks & Categories into their product merchandising strategy, however such stores have met with limited success as these types of formats are present in the absolute mass segment (Carrefour, Lulu) or in more mature and evolved retail markets (Europe/USA) where the Customer is more educated and prefers comfort over style. However, I believe that the Middle East market is not yet ready to embrace this type of merchandising and thus 'Box of Brands' still trumps over generic

3. Disconnected, Lack of synergy: The first place where you will notice a disconnect is in the service levels a Department Store can offer. Sales Associates who operate in the Owned business are seldom product experts. They are rotated frequently among Owned brands and thus feel no real sense of Brand loyalty. They end up knowing a little of everything but not enough of anything to make a dent in the Customers mind. For Department Stores that operate Leased concepts, here Leased Brand staff appear more like hawks guarding their territory and pouncing on any unsuspecting passerby. If you are in doubt, all you need to do is to enter the Cosmetic section of a Department Store and you will have your answer. These types of issues are completely overcome in Concept Stores where you have staff stability, product specialists and non generic brand guidelines. Some Operation Managers have a very lousy habit of transferring staff frequently between formats and concepts. This is totally wrong and is something that I am definitely not a proponent of! It damages Team morale, does not give stability to the Store and most of all regular customers don't see their favourite faces 

So in summary, what does it take to help a Monobrand succeed?

1. Mall Profiling: Each Mall has a draw and you will need to keenly know and understand its target group. Make sure you have a strategic approach to expansion rather than having the unexplainable urge to open up everywhere and then wonder how you are cannibalising your own Sales. Key to success is maintaining profitability balanced with sustainable expansion.

2. Product Profiling: Each Store is a living and breathing entity and has a personality of its own. Understanding how to align your product mix to suit your Mall demographic is key. This will also determine your pricing strategy and your balance between fashion, tradition and value. In some stores, you have to be geared to Fashion, in others to Tradition, and in some to Value

3. Staff Profiling: First of all, you need a captain of the ship (store leader) who is not afraid to challenge the status quo, someone who has a charismatic hold on the Team and is confident enough to cater to every customer who walks through the door no matter how quirky or unique. When you know your target audience well enough, you we be able to adjust your team nationality to suit your customer demographics and this will enable you to find more meaningful ways to engage with your audience (customer). You of-course need staff who are passionate about the brand, excited to wear its collections, and understands all the nuances that have made the brand what it is!

So there you have it! 3 simple components can make you or break your MONO-BRAND!

After all, Retail is not rocket science, its just common sense!

What are your thoughts?