Summary
In a very difficult climate of trading in the UK, brands need all the help they can get. Viyella has been one 'name' that has traditionally stood out for quality if not for styling. It now looks as if it is about to get the attention it deserves as a brand. Austin Reed Group are a well matched group to revitalise the Viyella brand. Controlled by the same CEO who has been responsible for the brand revitalisation of Country Casuals as CC, the omens are good for Viyella. I believe within 2 to 3 seasons we will see a new look and new marketing that excites women of a 35 to 55 age range (assumed!) when they visit Viyella shops and concessions.
Analysis
This news should emphasise to many brand companies that they need to have a clear strategy and implementation plan for the seasons ahead. Fundamentally, they need to have the infrastructure and funding to deliver a revitalised brand to market.
This move by Austin Reed tells other companies that a clarity of focus has been applied to select and purchase a brand that 'fits' with the parent Groups objectives. Austin Reed has a market position that sits comfortably with Viyella in the brand portfolio. The purchase (presumably at the right price!) makes very good sense.
In the UK, I can see other women's wear brands commonly sold in department stores and some stand-alone sites to look increasingly 'tired' and vulnerable alongside brands such as CC and Gerry Weber. Brands with good names crying out for attention.
The pressure will really be on some of these upper middle market brands selling in the UK market. Some have certainly 'lost the plot'. This is the market where M&S stops serving consumers through its multi-site locations and these established women's brands take over. Once one reaches the Jaeger level, there is (generally) very good market positioning.
Clarity of objectives supported by infrastructure and funding are key. Everything in the supply chain has to be 'nailed' to achieve success with processes, procedures and systems for all stages from concept through to customer sales and returns. This may sound like a cold approach for a fashion company but fashion businesses are in it to make money and need to cut out waste at every level.
But this does not mean being negative about creativity and design. These are aspects which are often viewed as easily cut by the finance department because they are viewed as potential savings simply because they are 'intangibles'.
The impact that the Viyella news should have on women's wear, upper middle market brands is that they will need to look fast at their brand products through consumer eyes. How good or bad are brand merchandise ranges? Where is the creativity and design? How does their infrastructure stand up?
The problem for brands in difficulty comes RIGHT NOW! Changing the brand through to consumer viewing in store will take 2 seasons for an established infrastructure...3 seasons from a standing start.
UK based competitors to Viyella will be viewing the acquisition by Austin Reed as a further threat to market share as the downturn continues. Sometime (we all hope soon) things will not be so bad in the malls and on the high streets and consumers will go in search of a fresh shopping experience. Only the brands that can offer 'fresh and new' will survive.
The lesson for brands is clear...be complacent and die!
