In Volume 36 of our newsletter (written way back when we were on Substack) we talked about the use of a multi-track calendar for product creation.
The benefits of a multi-track include:
- Responding to customer demands rapidly.
- Innovation is treated as a process and not just as an event.
- More efficient product development by acknowledging the inequality of products.
(If you want to read that edition of the newsletter, click here for a pdf)
Brands, whether DTC or wholesale, have been known to use a multi-track calendar.
What we haven’t discussed is how a multi-brand retailer (specialty or department store) can use a multi-track calendar.
Specifically, how to use it for their private brands while building a branded assortment.
Let’s dive in.
A multi-brand retailer, as the name implies, sells multiple brands. The merchandising teams assemble brands and products to meet the needs of their customer. Brands show their seasonal collections during market week or a tradeshow. The retail merchant then writes orders during market and follows the delivery schedule of that brand. The branded product creation calendar is called the go-to market (GTM) calendar. Here is what a GTM calendar could look like for a brand.
Note that the market milestone is when the brand sells the collection to the retail buyer.
Now, private label is meant to complement and/or fill a gap in an assortment. Examples include Nordstrom’s Zella or Macy’s On 34th. These private brands follow their own product creation calendar. This is identical to the calendar that a brand uses. Unless the private label is also sold wholesale, they do not have a market milestone moment.
So, here is what the private label calendar looks like alongside a brand’s calendar:
Here’s the trouble: Unless the merchant works closely with their brand on design/development, it is difficult to address any gaps that a branded collection might have.
Reason being is that a key milestone in each calendar overlaps, namely assortment lock.
As such, the retail buyer can’t fill in any gaps of the branded assortment because their own private label assortment is already locked. Even if there was time to go find an alternative, there may not be enough open to buy budget.
We propose adding one more track to the private label process.
It would look something like this:
Track 2 is initiated after assortment lock and serves as a “fast-track.” This means design, development and merchandising decisions are made much more quickly than in the main track. Further, products can be designed/developed digitally and with minimal physical sampling So, the retailer creates a lane where they can capitalize on an opportunity almost immediately to add a product. This avoids to scramble and cobble together resources at the last minute or miss the opportunity altogether.
Now let’s put all three tracks of calendars together:
Both branded and private label products have their path charted out. And, an express lane is created to accelerate development of private label when necessary.
Visualizing the GTM and private label calendars in this way means unlocking opportunities to curate a more relevant product assortment. Also, more desirable margins on private label means an increase in profit.
As you have heard me say before, the opportunity in retail today is not so much about what products are brought to market, it’s about how you get them there.
