In the ever-competitive retail landscape, building a solid private brand is more than just having a unique product. It’s about crafting a distinct identity that resonates deeply with your audience. Macy’s Chief Merchandising Officer, Nata Dvir, provides an inside look into their strategy and how they’re reshaping private branding to create cult favorites.
A Deep Dive into Customer Insights:
The recently launched On 34th, a womenswear label, exemplifies Macy’s renewed approach. Targeting women aged 30-50, this brand wasn’t just plucked from thin air. It was built on the bedrock of extensive customer research.
Dvir shared, “Our brand emerged from over 100,000 online surveys, 35 days of digital community engagement, and countless hours of in-person store engagements.” This extensive groundwork ensures their products aren’t just trendy but honestly fill gaps in their customers’ lives.
Why Private Brands Matter for Retail Giants:
Private labels give retailers more than just another product on the shelf. Dvir emphasized, “It allows unparalleled oversight from design to distribution, ensuring quality and fit. Moreover, they foster loyalty and encourage repeat visits.”
Considering its potential, Macy’s has laid out an ambitious roadmap. “By 2025, expect four more private labels, each rooted deeply in customer research and serving a unique purpose,” says Dvir.
Evolving Brand-Retailer Dynamics:
For Macy’s, brand partnerships aren’t short-term. Dvir stresses long-range planning, sharing, “We look at where we want to be in the next 2, 3, 5 years. Our shared goals, be it sustainability or targeting specific customer segments, shape these partnerships.”
Riding the Waves of Customer Spending:
Every retailer faces challenges during economic downturns. However, Dvir believes a well-curated mix of products and private brands can cushion the blow. “They offer value to our customers and boost our profit margins. With the introduction of new brands, we will also be refining our existing lineup to streamline and enhance the shopping experience,” she adds.
Consistency is Key:
Dvir emphasizes the importance of a unified brand experience across all channels. Whether it’s in-store displays, online reviews, or marketing campaigns, consistency reigns supreme. It not only offers a seamless experience for shoppers but also galvanizes the internal teams. “When everyone, from leadership to ground teams, is focused on a clear set of priorities, it’s easier to navigate challenges and stay on mission,” says Dvir.
For CMOs looking to make their mark with private labels, Dvir’s approach at Macy’s offers valuable lessons.
The core of it all?
Deep customer insights, long-term partnerships, and unwavering consistency.
In such a dynamic market, these might be the pillars for turning your private label into the next cult brand.