In recent years, retail’s focus has shifted towards entertainment and emotional experience due to growing competition and changing consumer habits.
Successful promotions and point-of-sale campaigns aren’t just about cardboard boxes anymore. Rather, they require close partnership between the licensor and the retailer.
Experience is the secret to success in retail today. One phenomenon of increasing the retail experience is retailtainment: a hybrid of retail and entertainment, bringing excitement to the consumer, encouraging their purchasing decisions and delivering them back to the moment they resonated with the brand the most. Establishing such emotional commitment often matters more to brands than customer satisfaction.
Heightening the brand’s value often stimulates a consumers’ willingness to pay more.
To succeed in retailtainment, brands should establish a match between the values of the brand and the quality of its products. It is key to achieve concurrence between values and quality to avoid damaging a consumers’ perception of the brand. Equally, the retail environment must remain on par with the campaign, matching – not disrupting – this harmony.
Experience is the secret to success in retail today.
Timo Olkkola, Flowhaven
A well-resonating match between brand and retail campaign might create a special feeling of immersion and influence a positive change in consumers’ minds towards the brand. But it takes two to tango. The retail space and the brand must align to create that distinguishable experience and increase consumers' emotional connection to the brand and store alike.
An increased demand for unique experience among the consumers had made direct-to-retail deals more frequent, but deals of this type require a closer cooperation between the licensor and the retailer, shortening the supply chain and possibly making go-to-market times and reaction to consumer trends faster.
To organise retail campaigns with licensing teams, companies should automate and streamline their manual licensing work in a way that allows them to meet the approval and retail deadlines for campaigns.
Whatever tactics a brand employs to strengthen consumer loyalty towards their merchandise, a well-planned brand licensing strategy is always indispensable. Working towards the creation of exciting experience at stores may help a brand get closer to their consumers and make them cherish even the smallest retail shelves.
Whether your brand has own branded stores, partner retail chains or even hypermarkets, it is the added value of unique experience that increases loyalty rates and takes the win in retail campaigns today.
Timo Olkkola is the CCO and co-founder of Flowhaven, a leading platform for managing licensing and merchandising programmes. Olkkola can be contacted at firstname.lastname@example.org.