It comes down to owning the value chain. The retailers that are doing well can claim that their success is based on being able to own their value chain.
Atlanta, GA (PRWEB) May 03, 2012
In a new blog entry posted on retail thought leadership site WhatsNextRetail.com today, Junction Solutions Vice President Jeff Marker took his key message that retailers need to own the value chain deeper, touting Lululemon and Ralph Lauren as benchmarks of companies that have a near flawless retail value chain.
Marker said, “It comes down to owning the value chain. There are product companies out there that are not in a position to control the interaction of their brand with the customer. The retailers that are doing well can claim that their success is based on being able to own their value chain.”
Marker, who is also an expert on multi-channel management and business solutions for retailers, said that Lululemon and Ralph Lauren are two retailers that own their value chain and have benefitted significantly from doing so.
“From day one, lululemon been able to understand the lifestyle of healthy people and meet their needs, not just with apparel, but with seminars, advice, information, and ancillary offerings. It’s a uniquely customer-centric retailer where you don’t need to buy something every time you walk into the store and you’ll still feel welcomed and satisfied when you visit,” he said.
“While Ralph Lauren does not own the point of sale (at department stores), it’s still very much in control of the brand, how the brand is displayed, and thus the retail value chain,” Marker said.
Jeff Marker is Senior Vice President of Multi-Channel Retail at Junction Solutions and a regular contributor to WhatsNextRetail.com, a thought leadership site led by members of the Retail Industry Partner Community, a network of Microsoft Dynamics partners.