Explosive Growth in Branded Retail Propels 'Lifestyle-Branded' Merchandising

If you wanted to buy a box of Godiva Chocolate, a trendy new Swatch watch, or a pair of Nike running shoes, where would you go to purchase these specific brands? If you're a lifestyle-oriented consumer of the '90s, it's a good possibility that you would buy directly from a branded retail store. They are popping up everywhere on the retail landscape, including regional malls, urban downtown locations, outlet centers, airports, and even on Internet sites."A good economy has propelled consumer demand and expanded their purchasing power. As a result, branded retail in all categories is exploding," says Jose Raul Padron, visual merchandise manager, retail division for New York-based Godiva Chocolatier Inc. He oversees displays and merchandising in more than 175 Godiva branded stores. Recently, Padron spoke at The Design Show in Secaucus, N.J.There are a lot of experiments going on in brand retail, which means that companies manufacture, distribute and sell directly to consumers in branded stores. "Brands are doing whatever it takes to get to the consumer. They are pushing the envelope," Padron says. "It is relatively simple right now to go out and experiment with branded retail. People have money to spend."Shopping is a social experience. Brands are trying to get away from just delivering product offerings. We not only produce a product, but we communicate an attitude and mannerisms," explains Padron. "A consumer might say, 'I feel like running and I'm into sports, so Nike is where I want to go. If I want chocolate, I'll go to Godiva.'"Successful brand retail combines four elements and reflects them in the store environment. Besides the product itself, the elements include:Symbol -- visual imagery. Good examples are the Nike swoosh and Coca-Cola's bottle profile with the red logo.Organization -- what the company thinks of itself and what it communicates to the consumer. For example, Saturn redefined the way automobiles are purchased. "Saturn sold us on the organization itself, and a warmer, fuzzier way to sell cars," notes Padron.Person -- the personality that is the brand. Harley-Davidson is a brand with personality. A hard-core user might tattoo the logo to his arm, says Padron.Details, Details, Details"As brands move toward retail, attention must be given to detail," says Padron. The entire marketing mix must be addressed by the brand marketers including: public relations, product/packaging, merchandising and advertising.With database marketing you can target consumers who have a tendency to purchase your products, says Padron. You can offer customer clubs, special deals, VIP treatment and entertainment to provide a connection and value to the consumer.Branded retail isn't for everybody, says Padron, but for those companies that have taken advantage of its powers, it can reinforce the brand image and increase customer loyalty.

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