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Brand positioning essential in a time-poor world

Premium denim brand Denham spoke to Drapers this week about its repositioning in the market, Victoria Gallagher takes a look at the importance of brands being in the right stores.

Brand adjacency is one of the big buzz terms when it comes to new stock, as retailers must make sure their brand mix complements incoming labels, with pricing and position in the market key factors.

From a brand’s point of view it is key to make sure their collection sits alongside complementary labels.

If a premium label is on the shelf next to something with a much lower price point then it could devalue its image. Alternatively if a lower priced brand with a younger appeal is sold in a store which mainly sells pricier mainstream brands then not only will the brand fail to be showcased to the target consumer but it could also be deemed “too cheap” and dismissed by shoppers.

From a retailer’s perspective, having brands with similar adjacencies gives the brand mix continuity and will help the store to establish a solid customer base. If shoppers trust that a retailer is always going to deliver likeminded brands, they will keep coming back. 

In a world where people have less patience for browsing, it is down to the retailer and the brand to ensure they are where the right buyer can find them.

That is why Denham’s move to pull out of certain retailers, such as House of Fraser, makes sense.

In rationalising the stockist base and placing the brand in stockists at the premium end of the market Denham can ensure that it is seen as the aspirational brand it is.

Reducing the base could result in a dip in sales as distribution is realigned, but in the long run it will help the brand’s positioning.

Brands should play the long game, and understand that not every sale will ultimately help them in that strategy. After all, once that hard-won premium reputation has gone, it is very difficult to claw back.



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