The retail and F&B scene is brutal. It is crowded and highly competitive. Many entrepreneurs who believed that they have the winning formula, end up losing their investment and are left with shattered dreams.
Closing operations is not limited to the small operators. Guy Savoy’s celebrity restaurant at the Marina Bay Sands closed in February 2014 with less than four years in business. In Jan 2015 Japanese casual wear label Lowrys Farm announced its decision to pull out of Singapore after three years, citing poor sales.
Retailers are faced with rising rental and labour costs and new online entrants are changing the rules of the game. While it is important to keep an eye on operational expenditures and cutting inefficiencies, it is equally if not more important to focus on growth. A focus on short-term profitability and cash flow may hamper future growth and pose risks to the brand.
Retailers can work with landlords to boost overall traffic flow, however, they should also take ownership of investing in their brand. More retailers are acknowledging that marketing and branding are key factors in the success and the sustainability of their business.
So what is branding and why is it so important? Branding is the unique image that goes through a person’s mind when he or she is thinking of your store. A strong brand will create tangible value and become a retailer’s most powerful connection to his customers, employees, suppliers, and potential investors.
A good starting point to ask yourself is how you want the world to view your store and to know who are your customers. Identifying the direction will help you create a consistent message and be customer-centric.
The ENCE Marketing Group has been helping SMEs maximize their returns with the development of an effective brand.
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