Even in the most competitive and disruptive environment there are winners and losers. In our industry, the winners are creating brands and offerings that stand for something, digitizing to understand consumers and keep costs down, and presenting consumers compelling reasons to engage in person. As the industry reboots, technology and diverse talent are the new tools for redefinition.

Industry innovators, legends and platforms from all around the world shared their challenges, strategies, stories and knowledge at the WWC in Madrid in April. It’s my favorite event of the year. Here are my observations and a few choice success stories.

Retailers Are In The Brand Business

Ill-defined segments and offerings are doomed. Just ask Eddie Lambert. Retailers merely (re)sell products. But brands are in the business of bringing value beyond products to consumers. At WRC we heard from Tina Sharkey (@TinaSharkey), CEO of Brandless (www.Brandless.com), a new e-commerce company that provides unbranded and essential products. Brandless creates communities by connecting people to their passions, to one another and to do good. They don’t produce product pitches, but they do provide digital tools and forums for their communities to have two-way conversations that inspire sales. They have 11M+ Twitter followers and are opening pop-up stores for IRL
( “in real life “) human-to-human interactions.

Palacio del Hierra is on a mission to make consumers rediscover department stores. This much-maligned format should watch out as Palacio, the upscale Mexican chain, embarks on a new initiative focused on wellness. They are establishing a unique theme for each location and infusing the DNA of the community into the offerings, services and décor, creating compelling, curated destinations.

Stores And Malls Are Destinations… Not Just Points Of Commerce

Did you realize that there are 1150 malls in the US market? Many are under-performing and depressing, including the Horton Plaza ghost mall just a few blocks away from me in downtown San Diego. Facilities were built specifically to enable consumers to shop. That is no longer the case. Only 49% of consumers go to a physical destination with the intention of buying products. The 51% want experiences: social, discovery, entertainment and aspiration. Smart organizations are putting short-term fixes, like day part program planning, into place while developing new financial models and long-term solutions for existing properties. And really forward-thinkers like JP Hiem are developing dream destinations on the other side of the world that combine commerce, tourism, recreation, agriculture, education, art, shopping and much, much more.

Digital Devices Are The Front Door

Google, the number one business driver of traffic to retailers who now push 8B shoppers into stores, shared staggering stats. Who knew that the average digital attention span is 3 seconds and ‘Open Now’ searches are up +145%? As one of the giant platforms powering the industry, it is interesting to know that Google is obsessed with removing friction through media and data stored on the cloud and powered by AI to speed up, show up and wise up. Smart brands are doing this as well, like Indochino which is expanding from its pure-play roots and opening inspirational physical locations that compliment and support its digital channel. In cities where Indochino has opened showrooms the custom-suit provider is growing two times faster and has cut the cost of customer acquisition in half.

Harvey Nichols CEO Stacey Cartwright outlined her company’s four-year transition, moving from a department store to a boutique. A new mobile-based loyalty program is a key component of the chain’s strategy. A team of digital natives in conjunction with long-term professionals with industry expertise developed and launched the program. Now 50% of all sales come through this program and Harvey Nichols’ most loyal customers shop 4.8X week, most entering through a digital door.

(Diverse) Talent is Top-of-Mind

While I do believe robotics, data and advanced analytics have a role in productivity, I don’t buy that robots, supported by AI, will replace all humans, as suggested by Richard Liu Founder, CEO and Chairman of JD.com. A magic mirror can’t tell you if you look great in a pair of jeans. Brands need humanity. And they must have diverse talent to solve their most pressing problems, to innovate and to connect personally with customers. There was much discussion about ‘lifting and shifting’ team make-up to exclusively consist of Millennials and Gen Z. But the chairman of Emaar, whose assets include The Dubai Mall, a destination that hosts 80M visitors annually, had another point of view. He urged attendees to spend 60% of their time looking for the best talent and to create blended teams consisting of seasoned professionals with wisdom and experience combined with digital natives with bright and fresh ideas. It was refreshing to hear – and attendees heartily agreed – given that many companies are disregarding the immense value of what I call institutional knowledge!

And speaking of talent, a number of accomplished women spoke at WRC, including Laura Albers, CEO of Williams-Sonoma, who was named Retail Woman of the Year (too bad only 25% of industry CEOs are female!). Under her leadership Williams-Sonoma is laser-focused on delivering great product, inspirational marketing and flawless service. The San Francisco retailer designs 95% of its products in-house, and offers distinct experiences and journeys by channel. Williams-Sonoma gets 5X spend from their omni-channel customers.

Finally I was inspired and invigorated, as always, by the WRC Future Retail Challenge, which promotes and recognizes the next industry’s generation.This year, university student teams from around the world were asked to come up with concepts that breathe new life back into abandoned venues in urban areas, reinventing them into exciting destinations.Their proposals for multiuse, multipurpose spaces were well thought out based on concepts such as sustainability, local, services, wellness, community contributions, as well as shopping, online lockers for pick-up, dining and entertainment.

Away from the daily grind of endless competition, retail graveyard reports and ghost malls, it was good to get a world-view, share experiences, celebrate individual and industry achievements as well as hear from the platforms and gorillas continue to change the business of brands. I came away renewed by capable, creative people and the work they are doing to deliver value to consumers.

It is extremely clear that winners are creating sustainable competitive advantage when they deliver value, operate efficiently and connect with consumers in meaningful ways in both the digital realm and through humanity. Technology is a brand’s core competency regardless of where it is deployed and people still make the difference.

Editors Note:

Patricia Vekich Waldron is Founder and CEO of P2 Advisors, a consultancy that helps companies stand out in a crowded market where many are vying for visibility. She has held executive positions responsible for marketing, product and business development at global corporations including IBM Corporation, Cognos, Lawson Software, Fujitsu and The Pillsbury Company. Patricia has spoken at global industry events, including World Retail Congress, Consumer Goods Forum, Retail Leaders Forum and the National Retail Federation (NRF).