Stuck in the middle with you

At the risk of showing my age, I recall a pop song when I was younger that was entitled 'Stuck in the middle with you'.”

Perhaps that title could easily apply to the many retailers out there who, to varying degrees, are stuck in the middle of their market. That amorphous undefined unintelligible gray area where the offer is undifferentiated, easily copied, undefinable and generally attackable. More so than ever, being different and unique is paramount to success in a crowded retail market so you don’t get stuck in the middle with all the other.

Rule 101 of any strategy conversation will include the stock standard “how is your business differentiated?” as they pull out the market positioning maps to illustrate the point.

An ex boss used to tell me that 'Retail is a Brand Game' – build a brand that people want and you are halfway there and that has proven to be true.

Now we see two very apparent global retail trends emerging that emphasise the importance of a differentiated customer experience portrayed through a uniquely branded proposition.

Imagine a simple horizontal line with one end representing retailers whose offers are based on price, range, convenience, a 'flight to value' offer, if you will, where a perception of paying less for quality products is the driving motivation and differentiation. A great example of a value driven brand is Aldi which prides itself on great value products and service and in fact won the 2009 Australian Retail Innovation award.

At the other end of the line we see the luxury premium brands who are differentiated by everything but price, from elegance, sophistication and aspiration through to sheer lust for the brand and all it represents. Louis Vuitton for example have reported good business growth through the global financial crisis and they are the embodiment of the luxury brand offer.

Now go the middle of your line and you will find the murky swamp of retailers who are price driven, try to be all things and eventually suffer from margin degradation. This must be seen as the “no go zone” for retailers focused on growing sustainable business value. Aim for the top and be the best at something rather than average at everything.

There is a range of Fitness KPIs for any business and the starting point is the following

* Specialist not generalists
* Strong value proposition
* Highly disciplined retail execution
* Established and trusted brand
* Understand target market

Are you fit in business or 'stuck in the middle'?

This month marks the fifth birthday of The Retail Doctor. We would like to thank all our regular readers for their support and we look forward to many more years to come. Contact us for a diagnosis of your business to find out where your retail offer fits on the line and how you can differentiate your offer to stand out in the market.

Happy ‘Fit’ Retailing

The Retail Doctor

Contact brian@retaildoctor.com.au, phone 02 9460 2882 or visit www.retaildoctor.com.au .

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