A Brand Equity Diagnosis of Modern Retail: Myer vs. Zara
By Elli Sharples/ s3599007
The climate of retail is ever changing, dominated by brands all sharing their own
unique story and identity and embodied by the products they sell and the
consumers they attract.
In
a world dominated by social media and fast paced technology, the world of
retail has proliferated and continues to do so, as once upon local brands morph
into global brands in search of greater identity and profit.
Examining the brand narratives of both Myer and Zara
using Kevin Lane Keller's Consumer
Brand Based Equity Model (CBBE)-
Brand Identity, Meaning, Response,
Relationship
When
we consider the world of Australian retail, it is hard to neglect Myer, the
largest department store group in the country, with 67 current operating stores
trading across all states and territories of Australia.
(Myer, 2017)
Much of Myer’s brand identity and imagery stems from its history as an “icon of Australian retail”(Myer, 2017) offering a range of products across men, women and childrens apparel as well as cosmetics, fragrances, homewares, furniture and many more items.
The brand’s long-standing history as icon of Australian retail is visually embodied in its black and white logo, which continues to adorn the shopping bags of the retail giant to this day.
In today’s retail market, Myer is the very essence of a “local brand” (Li, Lecture Four) one solely dedicated to its operations in Australia with no presence in the global market.
While a lack of global presence has hindered their ability to gain recognition within the global retail market, from an outsider looking in it appears that in retaining a great presence domestically has allowed the retailer to harness and enhance its prime brand strategy and strength.
During a significant remodel in 2016 under new CEO Richard Umbers, Myer’s brand strategy maintained as shopping as a personal touch in order to build personal relationships with their customers.
This strategy was both identified and endorsed by chief digital and data officer of the company Mark Crispey who noted that the “sweet spot” (Sotiropoulus 2016) for Myer in the face of international competition was to stay “personal and make people feel more connected to Myer” (Sotiropoulus 2016)
This unique brand strategy allows the company to hold a sustained advantage against the wave international retailers commencing trade in Australia.
Myer’s attempt to build a close brand relationship with its customers was further enhanced in 2016 under the leadership of new CEO Richard Umbers. During this period, the company invested in labels identified as “wanted brands” (Erem, 2016) after analysis of brand popularity on the basis of customer sales.
Umbers identified that a need to understand “who our (Myer’s) customer is” before “building an offer that responds to the changing nature of today’s retail climate” (Umbers, cited in Robinson 2016) is the key to maintaining Myer’s brand and marketing strategy of creating a personalised shopping experience for its consumers.
MY SWOT ANALYSIS OF MYER
In the globalised market of retail today, Myer’s brand strategy and commitment to being a one dimensional, local force is one that would be considered rare.
While many other brands have branched out into international markets, Myer has stayed domestically focused in a stark contrast to its competitors, such as Spanish retail giant Zara, a likeminded fashion label that has excelled in the global market.
Under the ownership of the worlds largest retail group Inditex, there can be no disputing the fact that the multinational Spanish clothing and accessories retailer catering for men, women and children is one of the most dominate brand forces within the global retail market.
With over 2000 stores worldwide, the retail giant commenced operations in Australia during 2011 and now operates 12 stores throughout the country (Inditex, 2017).
Zara is a prime example of “global brand” (Li, Lecture 4 2017) a retailer that has maintained the same name and same image/positioning throughout the world.
The core of Zara’s identity lies within its image as an on trend and affordable brand. Zara have sustained their image as “a brand that possesses high cultural capital and is competitive with todays luxury brands”. (Kellner, 2013)
But perhaps the greatest asset to the company is its renowned status as a leader of “fast fashion” the online fashion phenomena that is dominating today’s retail climate.
The success of Zara speaks within its figures, with the company
amassing a total of $19.4 billion globally in 2014 alone. (Loeb, 2015)
Zara’s engagement with consumers is perhaps the key reason behind the success of the global retail giant, as the brand continues to find success and strength in all corners of the globe while maintaining its identity as a high fashion brand at a low range budget.A SWOT ANALYSIS OF ZARA
So have these brand narratives been a success? Will they continue to be?
Myer has successfully reinvigorated its brand success in a short span of time. Despite several lean years, the retailer seems to have recovered and has maintained its status as iconic Australian retailer, offering a personalised touch in the face of competition from international brands.
Myer successfully communicates its narrative as an Australian retail giant that allows all customers to “find wonderful” amongst a range of mid to high price ranged apparel and accessories.
While in years to come, Myer may need to take a more international approach as many retailers around the globe have, they continue to find success and strength in a sustained local community despite a stream of international retailers commencing trade in Australia.
Maintaining the personalised shopping experience is a key to Myer’s success as a brand. If they can find a way to keep customers involved and invested in their store, they will always have a presence and audience among the world of Australian retail. Listening and tailoring a shopping experience is the ultimate key to Myer’s survival in an ever changing retail market that lacks personal touch.
Zara on the contrary has experienced success in a cross cultural context as a leader in fast fashion. The ultimate success of Zara as brand is offering high range fashion at an affordable price that has seen the company dominate the international market.
Zara offers its customers the ability to feel connected to the high end world of fashion, with affordable, quality low price point items that replicate the latest runway looks. Zara is both a fashion leader and imitator, as it introduces designs that replicate that of designer looks.
They focus on understanding the fashion items customers are seeking and then deliver them at speed.
The future success of Zara lies within maintaining their status as the leader of fast fashion, referring to the ability of the brand to quickly produce the hottest looks at high demand, particularly as they expand into more markets.
By increasing their online profile and presence by offering a website to each of its operating countries, the retail giant will have the opportunity to have a somewhat personalised shopping experience for all of its customers, a factor which may push the brand to even greater heights.
In order to continue their reputation as strong and successful brands, both Myer and Zara need to continue to cater for their customers by listening and adapting as required. By connecting with their customers functionally and emotionally, both brands will offer allow consumers to feel connected to the brand narrative they have created.
Myer customers will associate themselves as high end shoppers at the height of Australian fashion while Zara customers will feel connected to the world of trendy, high end fashion while shopping at a lower price point.
The future and sustained success of both of these brands not only lies within what they are producing but also how they communicate and connect their constantly expanding consumer audiences with their brand narrative in a constantly changing world of retail.
REFERENCES:
- Australian Business News, Myer’s Successful Turnaround Due To Focus On ‘Wanted Brands’, Ceyda Erem, 15th of September 2016
- Consumer, Culture and Identity, Brand Project- Zara, Amanda Kellner, Dec 16th 2013
- Communicating Brand Narrative Lecture 4, Leah Li, 20/3/2017
- Zara Leads in Fast Fashion, Forbes, March 30th 2015, Walter Loeb
- Myer.com.au, About Us
- Inditex.com.au, About Us, Our Brands, Zara
- Inside Retail, Dimitri Sotiropoulus, Myer’s Look Back To The Future, December the 16th 2016
- Myer and David Jones Have been marking time for years, do they have a future Andrew Robinson, ABC News, September the 23rd 2016
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Image Sources
Myer Logo-https://www.google.com.au/search?q=myer+logo&espv=2&tbm=isch&imgil=w3eGG2eCDNAvPM%253A%253BmI8nj4k1kb2miM%253Bhttp%25253A%25252F%25252Fwww.myer.com.au%25252F&source=iu&pf=m&fir=w3eGG2eCDNAvPM%253A%252CmI8nj4k1kb2miM%252C_&usg=___m6DQzIrt6v6Hugne7eSg7xu56w%3D&biw=1267&bih=659&ved=0ahUKEwi1-Ob03PvSAhWKxVQKHUP6DE8QyjcIMg&ei=_anbWPWFJIqL0wLD9LP4BA#imgrc=w3eGG2eCDNAvPM:
Myer Bourke Street Store-
https://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=0ahUKEwi8manF3PvSAhWJr1QKHQNPDjgQjRwIBw&url=http%3A%2F%2Fwww.architectureanddesign.com.au%2Fnews%2Fbpn%2Fapplications%2Ffire-protection-myer-bourke-st&psig=AFQjCNGr-SczlQhRf1J8buJZbdx85oECjw&ust=1490877207109889
Myer One Card-
https://www.google.com.au/search?q=myer+shopping+bag&espv=2&site=webhp&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiOqJKm2vvSAhVKzGMKHREjB5gQ_AUIBigB&biw=1267&bih=659#tbm=isch&q=myer+one+card&*&imgrc=Y-HKraS715bbYM:
https://www.google.com.au/search?q=zara+logo&espv=2&site=webhp&source=lnms&tbm=isch&sa=X&ved=0ahUKEwj__p7r3PvSAhXJjVQKHV0NCHQQ_AUIBigB&biw=1267&bih=659#imgrc=WIpEcqvtFDiiLM:
Zara Bourke Street Store
https://www.google.com.au/search?q=zara+bourke+street&espv=2&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiskIbi3PvSAhUQ4mMKHaOVCUAQ_AUIBygC&biw=1267&bih=659#imgrc=mYUEQBiqXcrZpM:
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