Retail Merchandiser Volume 63, Issue 1

License to

accessorize

Working with some of the world’s biggest names, Concept One Accessories is an expert in licensed and own-brand products

Stock

Market driven fulfillment connects stores and increases availability Volume 63, Issue 1 - 2023

Returns

The right returns processing system can determine profitability

Payments

How technology is helping retailers capture reduced consumer spending

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Welcome

CEO Andrew Schofield Group COO Joe Woolsgrove Creative Consultant Tom Vince Data & Insights Director Jaione Soga Editor Libbie Hammond

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Assistant Editor Mary Floate Content Editors Alex Caesari, Danielle Champ, Annabelle Crook, Steven Dobinson

ello and welcome to the February issue of Retail Merchandiser. This issue includes features on stock management, returns, data and payments technology. We also have an article on retail insights, where our own Mary Floate spoke to Gabriella Santaniello, Founder of A Line Partners. She shares some predictions for the year ahead, including a trend in fashion that she describes as ‘the Tumblr 2014 aesthetic’ – I don’t think I will be trialling that one personally! Also commenting on the luxury market, holiday season and recession spending, Gabriella highlights some fascinating points and the article is well worth a read. Turn to page 18 to find out more.

Editorial Administrator Afiya Lucombe Davis, Amy Gilks Creative Lead Lee Protheroe Managing Art Editor Fleur Daniels Art Editors Paul Gillings, David Howard, Charlie Protheroe Artwork Administrator Rochelle Broderick-White Sales Director Alasdair Gamble Project Directors Philip Monument, Joy Francesconi Head of Content Management Adam Blanch Project Managers Michelle Fontaine, Jo-Ann Jeffery, Lauren Proulx Content Managers Victoria Burke, Mark Cowles, Valentina Forero, Melanie Joyce, Tarjinder Kaur De Silva, Wendy Russell Media Sales Executives Mike Berger, Jessica Eglington, Will Gwyther, Reid Lingle, Sam Surrell

Libbie Hammond, Editor LH@finelightmediagroup.com

General Manager Florida Division Ryan Finn Social Media Co-ordinator Rosie Clegg IT Support Iain Kidd Administration Natalie Fletcher, Rory Gallacher, Ibby Mundhir

Our cover story this issue focuses the spotlight on Concept One Accessories.

Founder Sam Hafif shares his insights into driving products into new markets.

License to

accessorize

Working with some of the world’s biggest names, Concept One Accessories is an expert in licensed and own-brand products

© 2023 Finelight Media Group Corporate Head Office Cringleford Business Centre, 10 Intwood Road. Cringleford, Norwich NR4 6AU U.K.

Stock

Market driven fulfillment connects stores and increases availability Volume 63, Issue 1 - 2023

Returns

The right returns processing system can determine profitability

Payments

How technology is helping retailers capture reduced consumer spending

Turn to page 24 to learn more.

T: (312) 854-0123 T: +44 (0) 1603 274130

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Please note: The opinions expressed by contributors and advertisers within this publication do not necessarily coincide with those of the editor and publisher. Every reasonable effort is made to ensure that the information published is accurate, and correct at time of writing, but no legal responsibility for loss occasioned by the use of such information can be accepted by the publisher. All rights reserved. The contents of the magazine are strictly copyright, the property of Finelight Media Group, and may not be copied, stored in a retrieval system, or reproduced without the prior written permission of the publisher.

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Contents

Inside

this issue

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12 2

8

Stock

Data

14

Payments

18

Retail Insights

Returns

retail merchandiser magazine

24

42

Cover Story

34

Concept One Accessories

New & Notable

44

PRS Guitars

52

Kingsdown

Rovio Entertainment Corporation

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Forward

thinking Rising to the holiday shopping occasion through market driven fulfillment

By Chap Achen

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onsumer shopping trends are brought into particular relief each year during the holiday shopping period. And 2022’s high volume end-of-year celebration season was no exception. Twin trends – continued growth in online shopping and consumer expectations for fast delivery – put pressure on many retailers’ already-strained supply chains and distribution networks.

As they begin planning for the 2023 holiday shopping season, national retailers who embrace market driven fulfillment – a new approach to meeting consumer expectations by leveraging store networks in a given market – will be best positioned to deliver the highest levels of service for product availability and delivery next year.

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A new approach to solving the omnichannel fulfillment challenge Market driven fulfillment is a new strategy that pulls inventory from multiple stores, consolidates shipping into fewer packages, and makes any product available for pickup anywhere in that market According to a survey by Sitecore, more than 60 percent of survey respondents admitted to holiday shopping online during their workday in 2022. Coupled with this trend is consumer desire for convenient delivery options. In another recent survey, 62 percent of online shoppers said that fast delivery is the most important factor in a positive customer experience.

Stock

Retailers are well aware that the pandemic created a surge in e-commerce that is overwhelming their supply chains and stretching distribution networks to the limit.

At the same time, as the statistics referenced show, consumers have become accustomed to the speed and convenience of Amazon shopping. In fact, the online behemoth has set the bar high for consumer expectations, with shoppers expecting free two day shipping, overnight, and even same-day delivery.

With the average cost of opening a new distribution center running around $100 million in capital per facility, most retailers cannot simply double or even triple the number of fulfillment centers in their network to meet these new consumer expectations. The costs are simply not feasible. Market driven fulfillment solves this challenge by pushing fulfillment closer to the end customer, increasing delivery speeds while avoiding the massive investment required to expand their network of distribution centers. retail-merchandiser.com

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Going beyond BOPIS and Dark Stores Retailers have already started addressing consumer demand for immediate availability through a range of online shopping and delivery approaches. Over the past few years, buy online, pickup in-store (BOPIS) curbside pickup and ship-to/ship-from store have become table stakes for end consumers who want to be able to buy and take delivery of practically any item they can imagine.

Retailers have enabled this expanded menu of fulfillment options through the use of dark stores, micro-fulfillment centers, pop-ups and shipping via local and regional carriers.

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But now, retailers face mounting costs and logistical challenges, including: ■ Limited inventory availability and accuracy at the store level ■ Constrained labor and space limits the amount of ship from store opportunities ■ Increased ship from store costs due to higher labor, real estate, and split shipments Market driven fulfillment solves these challenges by creating a virtual inventory pool and distributing that inventory, based on demand, by connecting a network of stores. This approach makes any product available anywhere in the market, with store-based inventory now available to the market for pick up anywhere, for example by using alternate stores, access points, or lockers.

Market driven fulfillment can change the game for national retailers. Models show that retailers with revenues of $2B+ and store fleets of 200 to 1000 or more can increase shipping speeds by an average of 1.5 days and reduce costs by more than 15 percent.

By pooling existing stores’ inventory, the retailer will be able to make items from any store in market available to the end consumer, and transfer inventory from stores to the in-market sort/ship center and get those products to the end user.

In addition to cutting costs and increasing shipping speed, they will also able to reduce splits by 20 percent and shipping distance by an average of 200 miles.

As retailers look back at the 2022 holiday shopping season – and plan ahead for 2023 – they must plan for the ways that market forces will continue to strain their distribution networks. Consumers demands for more and more convenience when shopping will only grow, and brands that offer the most options will win their loyalty. At the same time, with labor and financial market constraints, retailers must find ways to delight their customers cost-effectively.

Market driven fulfillment is a critical strategy that will solve retailers’ fulfillment challenges by replacing expensive fulfillment centers with a pool of inventory built by connecting all stores in a given market and making any product in any store available anywhere within that market for pickup.

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Market driven fulfillment is a critical strategy that will solve retailers’ fulfillment challenges

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Market driven fulfillment in action

Stock

As they assess their performance in 2022 and begin planning for the 2023 holiday shopping season, retailers will only face increased pressure on supply chains and distribution networks. The ability to intelligently leverage local market assets for fulfillment will be a make or break. Forward-thinking retailers should be planning their market driven fulfillment strategies now so they are fully prepared ahead of Black Friday 2023. ■ For a list of sources used in this article, please contact the editor.

Chap Achen www.Nextuple.com Chap Achen is VP Product Strategy & Operations at Nextuple. Nextuple helps customercentric retailers create and transform omnichannel fulfillment by using a microservices architecture. The Nextuple Fulfillment Studio enables retailers to quickly build and scale new fulfillment experiences to delight customers, create more omnichannel agility, and accelerate time-to-value. Nextuple has offices in Massachusetts, US, Ontario, Canada, and Bangalore, India.

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Returns are a fact of retail The need to maintain efficient returns systems in warehouses; to retain customers, maximize margins and remain competitive

By Edward Hutchison

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eturning goods has become as an established part of shopping as buying them, since being accelerated during the era of growth in online shopping, where goods are purchased without being tried. The free returns promise carried over to all retail channels, including the high street, and has created a situation in this ultra-competitive sector where the unconditional invitation of free return of goods has become enshrined. Returns being limited only to occasions when a retailer failed to match customer expectation has become a distant memory.

This has led to an evolution in shopping habits where consumers, taking free returns for granted, purchase multiple sizes or varieties in the knowledge that they can be 8

returned at no cost. This practice is felt acutely in fashion retail, where shoppers are now accustomed to buying clothing and shoes in a variety of sizes in the knowledge that they will send back any unwanted items.

This can be clearly seen in the returns of online purchases by category in the UK in 2022, as shown

by Statista Global Consumer Survey published in May 2022. It asked: ‘Which of these kinds of articles have you sent back after an online order in the past 12 months? Clothing topped the list of items people shop for by far, with almost a third of purchases returned (32 percent). Shoes come next (15 percent). All other categories follow some way behind, being evenly distributed between three percent and eight percent – though 51 percent said they didn’t send anything back.

Returns

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However, there is of course a cost to processing a return and this is leading some retailers to question the economics of free returns and to consider invoking a charge for customers. Such thoughts may not go down well with consumers, some 89 percent of who identify ease of returns as their top priority when purchasing online, according to data from delivery experience platform Sorted.

Research from market researcher Appinio found that 71 percent of UK consumers would avoid shopping online if they were required to pay to return the items. It will be interesting to see what happens. But irrespective of whether a charge is imposed or not, returns still need to be processed with maximum efficiency.

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Indeed, dealing with a return correctly does provide the retailer with an opportunity for positive customer sentiment, potentially increasing customer loyalty and to gain customer advocacy. Having a lowcost, simple yet effective and above all efficient returns processing pathway, will allow returned goods to be placed back on sale as quickly as possible.

The logistics sector has developed solutions to help returned goods to be processed as quickly as possible to gain the maximum value through reintroducing the goods back into stock. For many retailers now, returns are a large and important element of their inventory.

Returns new products, for example, at a glance or separate product lines or returns.

To speed the movement of returned goods back to stock, a driverless container transporter, such as the LEO Locative from BITO, makes a smart addition to a warehouses. It helps to reduce travel times for returns as well as other tasks.

Proactive action to reduce returns can be instigated by retailers handling large numbers of items. Deploying order picking systems with minimal error rates will reduce picking errors in e-commerce. This will not only result in higher customer service levels, but will also help to eliminate incorrect orders in fulfilment as a cause of returns.

A sophisticated and highly efficient returns processing system is critical to success in many sectors and can be decisive for a business’ profitability. BITO distribution systems massively optimize order and returns logistics, improving online retailers’ competitiveness. They meet the e-commerce sector’s current demands for flexibility, speed and maximum accuracy. As a result, logistics specialists can optimize goods flow and organize returns logistics so that returned products promptly show back up in the system. ■ This makes the selection of the appropriate shelving system, container transport, picking methods, as well as the complete internal warehouse processes, a vital factor for an efficient returns system.

BITO provides many products and solutions that contribute to this aim.

For example, pallet racking can be configured with a single pallet bay level and shelving above to provide locations for unpalletized ‘returned to stock’ items.

When using BITO’s galvanized shelving for returned items, dividers can be placed on a shelf to help organize stock simply.

They can be easily moved to change the size of compartments and can clearly identify

Edward Hutchison www.bito.com Edward Hutchison is Managing Director of BITO Storage Systems. With its head office and main production facilities in Germany, BITO is an internationally operating manufacturer of storage and order picking systems. The company’s product range includes shelving and racking; storage and order picking systems; bins and containers and warehouse equipment and accessories.

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Locating confidence

Data can tell us what we need to know, if we are willing to listen By: Tahirah Mahan Thomas & Taras Skavinskyy

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etail decision-making inherently comes with risk. Inflation, supply chain issues, and changing consumer demands are shifting the retail business model, and companies need to try new methods and invest in new technologies to stay ahead of their competitors. While the looming threat of a recession can make companies draw inward, a prime opportunity exists to get out ahead of competitors by prioritizing data.

New, cutting-edge data empowers retailers with deep insights to help minimize risk. For example, sales and behavioral data can offer perspective on whether specific products should be prioritized for e-commerce or in-person retail to reach specific audiences. And when it comes to selecting new locations, which 12

carries significant risk, CBRE’s location intelligence is helping clients understand shopping segments featuring co-locators that retailers already have seen succeed.

With location intelligence, CBRE is helping clients leverage location data to make the best site selection decisions possible. Its ShopoGraphics offering quantifies the relationships from over 1.2 million retail locations across the country, clustering more than 200,000 retail zones to form 41 different segments that will help inform decision-making. This analysis helps brands understand the best co-locators to seek out and paints a full picture of competitor distribution.

By creating a robust depiction of retail ecosystems, our data provides actionable insights that allow clients to be more confident in their decisions.

Data Identify successful co-location profiles ShopoGraphics insights address a wide range of retail segments and can benefit retailers in rural, suburban and urban areas. For example: ■ ‘One Stoplight Wonders’ can be found in over four thousand segments in rural communities. These mixed-use centers are in tiny hamlets – think one stoplight towns with a single shopping center that includes a mixture of grocery stores, gas stations, food, and dollar stores. There may even be a school or gym located in the area too.

■ ‘Soccer Mom Pit Stops’ are located primarily in the suburbs. These retail clusters are anchored by fuel stations. More than half of the time, they include burger joints. Auto repair shops and a variety of fast-food options round out these small suburban activity areas, along with banks, pharmacies and even storage facilities.

■ ‘Meds, Beds and Upper Ed’ segments are in urban centers and demonstrate how ShopoGraphics can provide insight into the unique community a retail zone might serve. This cluster is anchored by hospitals and medical centers and primarily serves those working at and visiting these facilities. Mail and postal centers, hotels and convenience stores round out some of the 250 segments found across the country.

By analyzing the number of different segments in any given city, this information can also provide retail hub profiles in each market. For example, in Dallas, Texas, one of the most popular clusters with 122 locations is ‘Corner Store and More’. This segment features centers designed to meet the needs of commuters driving through the area – and its prevalence offers insights into the heavy car usage in the community. For those retailers that are well positioned to serve carcentric consumers, Dallas may be the ideal market – and one of those 122 Corner Store and More sites can serve as the ideal location.

No matter where a retailer is located, or what the exact profile of their target audience may be, this type of data is indispensable and can help take the guesswork out of selecting a co-location site.

But in spite of its power, ShopoGraphics is just one piece of the puzzle. Retailers must use all of the tools available to them to accurately identify expansion opportunities that capitalize on converging consumer trends. Shopographics can become a powerful tool in the analytics toolbox to navigate the future real estate challenges.

With a full grasp of the retail landscape, industry leaders can enter the new year with the confidence needed to make an impact. ■

Tahirah Mahan Thomas & Taras Skavinskyy www.cbre.com

Tahirah Mahan Thomas is Managing Director of Location Intelligence and Retail Analytics, CBRE, and Taras Skavinskyy is Director Of Analytics, CBRE. CBRE Group, Inc., a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue).

The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.

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Positioned to succeed

How retailers can capture constrained consumer spending in a tight economy

By Brian Travers

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s the cost of living crisis bites, consumers are tightening their belts, cutting back on activities such as holidays, leisure and shopping. Reduced consumer spending will invariably have a major impact on retailers that are now competing for a share of a smaller spending pie.

Many retailers are turning to technology in order to meet consumer expectations and maximize consumer spend.

Self-service, omnichannel commerce, soft point-of-sale and endless aisle technologies are each helping retailers capture reduced consumer spending in a tight economy.

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Turning to self-service technology Retailers are tapping into automation and unattended retail on a greater scale than ever before. With 81 percent of consumers reporting that they want self-service in stores, it’s a move that retailers need to consider to remain competitive.

Many retailers are already ahead of the game, citing the benefits of improved customer experience and, as a result, increased sales.

Unattended retail technology provides a roadmap for retail selfservice transformation. Take Selecta, a leading pan-European provider of self-service food and beverage solutions in the workplace and public spaces such as metro stations,

Payments

as an example. Selecta added contactless payment terminals to its traditional and next generation intelligent self-service devices, such as vending machines and smart fridges. As a result, the average monthly card turnover per machine increased 30 percent in the first five months following implementation, and the average transaction value increased nine percent.

Selecta is now partnering with the largest supermarket chain in the Netherlands, Albert Heijn, and Belgian merchant Delhaize, testing a fully automated ‘Shop & Go’ store concept in workplaces to streamline operations and offer employees 24/7 convenience.

By improving customer experience through innovative technology such as ‘Shop & Go’, merchants can capture more consumer spending, even in periods of economic instability.

Expanding shopping channel and payment choice Omnichannel commerce is on the rise and smart retailers are ready to capture sales in any channel, and even across channels, to meet consumer preferences and reduce the risk of lost or abandoned sales. Retailers are embracing omnichannel strategies, blending digital and physical shopping experiences, enhancing payment methods and purchasing options and creating a seamless unified journey for customers.

Increasing digitalization and the global pandemic forever changed how consumers engage with their favorite brands and how they pay for goods and services. New norms around social interaction drove rapid increases in touchless payment capabilities and incredible acceleration in digital commerce adoption across all consumer demographics. retail-merchandiser.com

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In the online space, offering a range of payment options, including local payment options for retailers selling in international markets, will help to minimize shopping cart abandonment. This is particularly significant given that the Baymard Institute found that an average of 69.9 percent of consumers abandon their shopping cart at the payment stage.

While online shopping has risen in popularity, in-person shopping is seeing a return and merchants should be ready to serve customers wherever they are.

Consumers ultimately want convenience, whether that’s buying online, through hybrid methods such as ‘click and collect’ options, or purchasing in-store with contactless payment methods. Indeed, according to Fiserv research, contactless in-store payments have grown 450 percent since the pandemic began, more than 16

50 percent of consumers are now using digital wallets, and consumers worldwide expect to have an option to pick up goods at the curbside, have them delivered, or even buy online and pick up in store wherever they shop.

While these cross-channel technologies existed before the pandemic, since then their availability among large and middlemarket merchants and their use by consumers is more pervasive. In today’s connected world, retailers need to meet the needs of their customers across the full digital and physical landscape by offering a seamless experience across channels to convert visitors into buyers and ultimately increase the bottom line. Offering a range of payment methods and purchasing options so consumers can pay how they wish via their preferred channel will minimize the risk of lost sales.

Payments

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Consumers are often deterred from making a purchase in store if they perceive a queue to be too long or moving too slowly

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Reimagining the in-store experience

Capturing consumer spend in the current climate

Consumers are often deterred from making a purchase in store if they perceive a queue to be too long or moving too slowly. To combat this, retailers are also turning to soft pointof-sale technology to reduce queues and reimagine in-store shopping experiences.

Commonly known as SoftPOS, soft point-of-sale solutions allow merchants to use mobile phones and tablets to accept payments, untethering sales from the till.

Enabled by soft-point-of sale solutions, retailers have seen benefits in deploying ‘queue-busting’ tactics, engaging shop assistants on the floor to help alleviate queues and assist customers with personalized advice to upsell and cross sell.

Another tactic retailers can use to capture more sales is the endless aisle, in which the customer can choose from a selection of goods that are not actually available physically in the store, shopping either with an employee or through an unattended kiosk, helping to ensure that customers do not take their business elsewhere.

At a time when consumer spending has dropped and with economic volatility looking set to continue, retailers are leveraging technology to meet the demands of their customers, increasing satisfaction, loyalty and revenue. By focusing on improving the customer experience and creating seamlessly integrated processes, retailers can ensure they are positioned to succeed. ■ For a list of the sources used in this article, please contact the editor.

Brian Travers www.fiserv.com Brian Travers is Product Director, Enterprise & Digital Commerce at Fiserv in EMEA. Fiserv, Inc. aspires to move money and information in a way that moves the world. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover® cloud-based point-ofsale solution and business management platform.

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What’s in store for 2023?

Gabriella Santaniello, Founder of A Line Partners, shares her expertise and insights on the year ahead in retail

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Line Partners is the goto independent retail research company that investment firms turn to for in-depth information on retailers and brands. Gabriella’s career began working for a variety of fashion brands, such as Ralph Lauren Children, on the wholesale side of business, and with a particular focus on managing department store accounts. Before A Line Partners, she was a Managing Director of Retail Market Research at Wedbush Securities, where she built and managed the comprehensive channelchecking Retail Research Program.

As a result, she knows the fashion industry inside and out, and also boasts extensive experience as an analyst.

“The company was looking for someone who had industry experience and could provide a different view and understanding of retail for its publicly 18

traded retail clients,” Gabriella begins.

“Hence why I set up this program, where we had a team of people out in the malls, collecting data that I would collate and use to write reports for institutional investors to be used as part of their investment process. I really tried to fill in the missing pieces for them, to create a fuller picture and provide an idea of what was going on out in the field. The overriding aim was to help facilitate a more research-driven decision-making process,” she begins.

“I started A Line Partners in 2014 and have been in business ever since. I am in the malls nearly every day, three or four times a week, and have people working for me in ten different regions across the country. Subsequently, we are able to gather a lot of data and glean insights into what is going on in the market, including what trends are presenting on a regional basis.”

Retail Insights

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Reflecting on the holiday season, Gabriella begins by discussing outcomes from a retailer perspective. “Many came into the season with a lot of inventory, and I think there was some concern that they wouldn’t be able to get through their stock without staging promotions. As it happens, the expectation of a highly promotional holiday season didn’t quite transpire, rather it played out in a more normal fashion than anticipated.

“Conversely, last year, there were supply chain issues, a lack of inventory and a drive for consumers to shop early. This year, there was less pressure from the consumer’s perspective, and an attitude of sitting it out and waiting for discounts. Several department stores have said business has been a little more challenging this holiday season. I think there wasn’t a big enough price difference between department and off-price stores. That, combined with supply chain issues and inventory coming in late in 2022 meant many of these vendors sold merchandize to off-price outlets. With the exact same brands, and sometimes the same stock levels, why would the consumer pay more to shop at a full price retailer when they can trade down? So, generally 20

speaking, we have seen a considerable trade-down and more promotional activity.

“More predominantly, inflation has obviously had a considerable impact on the consumer.

From gas and energy to food price increases, for many consumers, it’s come down to a case of wallet share, and as a result, the mall has really been feeling the effects.”

Based in California, Gabriella is wellpositioned to track the effects of the recent stimulus payments. State stimulus payments are intended to help residents dealing with the squeeze of high inflation.

“Unlike previous stimulus checks, which went straight back into retail, with this round, the sector was simply waiting to reap the rewards, and unfortunately, kept on waiting,” explains Gabriella. “While some people may well have spent their check on nonessentials, at the time of this stimulus, we were experiencing considerable price increases, particularly in gas. In the past, while not specifically in California, stimulus checks would often be used as part-payment for luxury goods. Retailers were hoping for the stimulus to be more impactful, but it simply wasn’t put back into the economy on this occasion.”

Retail Insights Shopper dynamics This is contrary to what transpired during the pandemic. As Gabriella details: “People were not going out, they were in receipt of stimulus and feeling a little flusher. Those who didn’t normally buy luxury items were doing exactly that. They had nothing else to do and were intent on treating themselves. It’s an entirely different story now however. Those customers are no longer shopping in that way. In fact, we’re actually seeing an influx of luxury goods on resale sites; so much so, some are no longer accepting new submissions.

People are now trying to sell those luxury goods to help weather the inflationary storm.

Likewise, even for those still spending, the behavioral trend has been to trade-down.

Within Nordstrom, for example, consumers who would potentially have purchased Golden Goose are now buying Steve Madden.

While those customers are still heading to the store, they are simply spending less.

“Meanwhile, also in the luxury market, there is an entirely different dynamic at play.

Chanel, for example, has recently heavily increased the price of some of its most popular lines. It would seem certain luxury products were potentially becoming too accessible. To maintain exclusivity, prices have hiked. While many people are trading down, there will always be an element unaffected and the top end of the luxury consumer market will likely remain so.”

Looking to retail trends currently driving sales, Gabriella highlights the Tumblr 2014 aesthetic. Delineated by indie pop and films, the look can be described as soft goth or emo. Throw on a skater skirt, leather combat boots to match and some dark eyeliner, and the Tumblr aesthetic is down-pat. “We started to see that trend in the fall and it gained momentum following the Netflix release of Wednesday,” Gabriella says. “This trend is influencing fashion and driving a general shift away from denim. In turn, we are seeing alternative pants, alongside silhouettes

such as skirts and dresses. Beauty is also influenced by fashion: think a smoky eye, a much darker lip, the slept-in make-up look.

“Post-pandemic, we are also seeing backto-work outfitting, and this isn’t exclusive to those with an office to go to; younger girls are also wearing suit pants, but styled with super cropped t-shirts. Additionally, lowrise parachute or cargo pants, and balloon joggers are also making a reappearance, reminiscent of the late 90s and early 2000s.

For those physically going back to the office, or slightly older women, another Netflix series, Emily in Paris, is also highly influential. This takes the trouser trend even further with the addition of a blazer for a more polished look.”

While inflation will always have a considerable impact on consumer spending, retail trends will still come and go and people will always have the desire to part with their hard-earned cash. As Gabriella concludes: “An interesting aspect of talking about recession spending is the conflicting reports we often receive. On the one hand, we may hear that people are spending on credit but on the other, we also hear that people have more cash. I don’t think we’re currently in a crash to the extent anticipated.

We would be expecting the customer to just not be spending at all, but that’s not the case. The current situation is transpiring to be a little better than first feared, which bodes reasonably well for the year ahead.” ■

Gabriella Santaniello www.alinepartners.com retail-merchandiser.com

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Cover Story

License to

accessorize

Holding licenses with some of the biggest brands in the world, Concept One Accessories continues to drive its innovative products into new international markets

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stablished in 1999, Concept One Accessories (Concept One) has quickly developed a reputation as the go-to resource for licensed fashion, and entertainment accessories, across all channels of distribution. Aligning itself with over 50 premier licensing partners, the company has developed an integrated portfolio of licensed and owned brands, offering a diverse and expansive range of products. Exhibiting a unique range of capabilities that cover the full design to distribution process for all markets and price points, the company has been successfully developing an extensive and varied customer base over the past few decades.

Company CEO, Sam Hafif, originally founded the company as a licensee of the United States Polo Association 24

(USPA) for various different categories of accessories. Today, the company still holds its USPA license, but its product offering and relationships with other key licensing partners have expanded well beyond this, having executed over 150 license agreements with a range of fashion, entertainment and consumer brands such as Disney, Coca Cola, Marvel, Hello Kitty and Ford. Concept One’s owned brands include Ful, and Block Headwear with product categories including handbags, luggage, sports bags, headwear, and seasonal goods. Following the global expansion of the business over the past 23 years, during which it has acquired eight new companies, Concept One has become the primary supplier of licensed and branded accessories to many of the largest retailers in the world.

Concept One Accessories

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Cover Story

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Concept One Accessories

Concept One boasts one of the most diversified and talented in-house design studios in the industry

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True Religion True Religion is a proud licensing partner of Concept One Accessories, and honours Sam Hafif for his achievements and leadership in the industry. This strategic partnership marks an important milestone in True Religion’s resurgence and builds on our commitment to support the True Religion customer experience by offering a robust assortment of classifications. We look forward to our continued success together.

Exhibiting a plethora of experience and talent, Concept One demonstrates its strength across a range of capabilities, including design, production, marketing and distribution. Taking inspiration from the apparel industry as opposed to the accessories industry, the design team at Concept One sets itself apart from competitors through its capacity to forecast trends and produce dynamic, contemporary designs. This design philosophy has enabled the company to establish its position as a driving force in fashion accessories. Consisting of 30 skilled designers and artists, Concept One boasts one of the most diversified and talented in-house design studios in the industry.

The team is also competent in graphic design which provides them with the skills required to create distinctive and eyecatching logos, packaging and hangtags.

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Cover Story When it comes to production, Concept One manufactures its products worldwide with the majority of its manufacturing being outsourced through South East Asia, with offices in China, as well as announcing plans to open a new office in Bangkok next year.

The company has recently set up

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two production factories in Mexico for near shoring its supply chain to the United States. The Shanghai office maintains responsibility for overseeing the company’s global supply chain, supporting its factories all across the world. This office, with a team of 27 employees, is tasked with ensuring that sourcing, quality control and factory compliance procedures are carried out responsibly. All manufacturers are ISO certified, requiring the highest standard of approvals, therefore, the company employs quality control supervisors at every level of the manufacturing process to ensure that its products are manufactured to high quality standards and exact specifications.

The fabrics and materials utilized during the manufacturing process are sourced ethically and responsibly from the finest manufacturers in the world and the company is adept at coordinating streamlined logistics, intelligent design processes and conscious packaging requirements in order to maintain its high-quality control and sustainability standards.

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Concept One Accessories

It is not enough to just design a nice product. There has to be an emotional connection for the consumer

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A range of comprehensive marketing and public relations programs are also offered

by Concept One to support its brands and retail partners. Amongst these are support with trade advertising, catalogs, social media advertising and public relations programs to help brands optimize their consumer image. Sam Hafif sheds some light on the importance of product image and marketing for businesses in the fashion, sport and entertainment accessories industry: “It is not enough to just design a nice product. There has to be an emotional connection for the consumer when they experience and use the products, especially when it comes to licensed merchandise.” He goes on to provide an example of how this translates in practice: “Take a brand like Corona for example. Not only is it a great-tasting beer, it’s also a terrific lifestyle brand that speaks to vacation, sunshine and social interaction with friends. If you are successful in creating a product that evokes a feeling of a great day at the beach, with the Corona IP, you’ll captivate that person who recalls the best weekend of their life in Cancun.”

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Cover Story

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Take a brand like Corona for example. Not only is it a great-tasting beer, it’s also a terrific lifestyle brand

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Concept One Accessories To deliver its offering, Concept One partners with two national distribution facilities situated in Buena Vista, California and Edison, New Jersey, with both 2,000,000 square-foot warehouses employing over 300 members of staff and incorporating the latest in warehouse design and stateof-the-art computer systems. The company distributes its products internationally through a local market network and is currently in the process of setting up a new distribution partner in the Middle East. The business maintains distribution capacities in almost every retail chain in North America.

Additionally, Concept One products appear in over 1400 specialty stores. The business works with 20 independent sales reps and also has its own robust ecommerce platform, which has grown 100 percent per year for the past five years, as well as utilizing various third-party platforms including Amazon.

A strong commitment to growth is further demonstrated by Concept One’s continuous investments in production capabilities and strategic acquisitions around the world. The business has successfully secured a number of new licenses, one of the most recent being an exciting new licensing deal signed with True Religion back in May 2022, in addition to a continued expansion of its customer base which has added incremental revenue streams for the company. The strong retail environment experienced in 2021, which was primarily driven by government stimulus funds that were poured into the economy throughout the year, was instrumental to the recent growth of the company, which has spent the last two years expanding and consolidating its international markets.

This can be demonstrated by the fact that the company’s annual revenue was up by 25 percent from 2020 and 32 percent

Competitive advantage Exploring one of the key differentiating qualities of Concept One, Sam Hafif explains the advantages of the company business model and product catalog strategy: “One of the main advantages that we have over our competitors is our range of properties across both fashion and entertainment, as well as all of the classifications we cover. Today, retailers will typically rely on one or two vendors to cover one category, therefore it is crucial that you are able to build curated assortments for the buyers that cover their core demographics and can be merchandised back to the range of apparel on the selling floor.” He continues: “For our licensors, we offer a global solution as we have offices in the USA, LATAM, Europe, South Africa, the Middle East and Australia with product development teams in New York and London. This enables the company to successfully orchestrate its operations on an international scale, optimizing each key component of the supply chain and acquiring global access to customers and consumers.” retail-merchandiser.com

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Concept One Accessories from 2021. These developments, alongside Concept One’s steadfast and aggressive approach towards growth, will ensure it maintains its long-term position as a proven leader in the accessories business.

Trend setters Alongside the importance of growing the business, ensuring that ethical and sustainable initiatives are incorporated, particularly during the manufacturing process, has become one of the core focusses of the company. In addition to the compliance oversight team in China, a new member on the senior leadership team has recently been hired to carry out the task of overseeing each company and its sustainability initiatives, ensuring that compliance is met both at the manufacturing level as well as with regards to raw material procurement. Sustainable alternatives have now been introduced across 100 percent of the materials used by the company including various metals, plastics, nylons, polyester, cotton and polyurethane. In addition to this, the company is currently working to swap out all of its packaging for recycled alternatives, in an attempt to reduce waste and a reliance upon single-use materials. Concept One has recently engaged with HIGG, a value chain sustainability platform, to monitor the company suppliers’ manufacturing processes and carbon footprint contributions.

Reflecting on recent developments and potential opportunities for the future, Sam Hafif explains: “Our push into new global markets is being met with a lot of enthusiasm, and is gaining momentum much faster than we anticipated. We recently opened our new showroom in London’s Shoreditch neighborhood to feature all of our licensed products and to house our UK design and sales team.” Looking towards the future of the company, he continues: “My hope is that within the next five years, the majority, if not all of our products and packaging will be 32

made from sustainable materials, and that we will have opened new offices in primary markets such as Japan and India. Although I’ve been in this industry for 35 years now, each day presents new opportunities for me to learn. The consumers’ shopping habits and the technology around bringing great products to them is evolving so fast, my ambition is to stay ahead of the trends, and to continue learning from those around me.”

Concept One continues to prove that there are incremental business opportunities within the accessories space, and it will continue to drive its product assortments and innovation to maintain long-term success for the future. ■

www.concept1.com

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Rovio Entertainment Corporation

is

the

word The latest retail and merchandising marvels from Rovio, the developer of one of the world’s most successful games

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hen we spoke with Rovio Entertainment Corporation (Rovio) earlier this year, the Finnish developer, which is best known for creating the Angry Birds franchise, told Retail Merchandiser that it had a busy few months ahead. With over five billion downloads of its hit mobile games, plus two feature films and multiple television and web shows, Rovio is in an ideal situation.

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By turning casual players and viewers into passionate fans, we are purposefully building a more robust fan base

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“Since our last feature, the wheels have certainly been in motion,” begins Katri Chacona, Director of Brand Licensing at Rovio.

“This year has been a huge one for the Angry Birds brand, with various new game launches, partnerships, and our first long-format animated series.”

In the last six months, Rovio has also increased its integration with sports brands that reflect positive values of staying active and healthy. Having just partnered with Rovio, Yunes Ben, Head of Marketing & Communication at Venum, the world’s leading manufacturer of combat sports equipment and apparel, said: “This collaboration is designed to combine utility with pleasure by

Rovio Entertainment Corporation

enabling children to have fun while developing their cognitive abilities.”

The deal will see an exclusive line of combat sports and lifestyle products – boxing gloves, bear paws, reflex bags – all based upon the Angry Birds universe and its characters: Red, Chuck, Bomb, the Green Pigs, and so on.

By partnering with Venum, Rovio intends to get more children active in a fun and safe way. In addition to the physical products, an exclusive augmented reality experience will be accessible to buyers – all they need to do is scan the special QR code on the packaging!

Another example is Rovio’s partnership with Capsule Skateboards (Capsule), a Cyprus-based company that takes

an alternative approach to skateboard manufacturing. “Instead of using trees to build the decks, Capsule has invented a new, more sustainable skateboard made of a special high-quality polymer compound resulting from meticulous research and development from their team of skaters and engineers,” explains Katri. “The decks are waterproof, impact-absorbing, and longer lasting than traditional boards. Capsule decks are also 100 percent recyclable, free from toxic glues and resins, and proprietary construction technology provides a more durable and eco-friendly board that is lightweight. In short, it provides a whole new skating experience for the end user.” retail-merchandiser.com

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“

Rovio has also increased its integration with sports brands that reflect positive values

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Rovio Entertainment Corporation Regarding the company’s games, Rovio is a business that listens to its fans. This has led to the return of the original, premium Angry Birds game, which has been requested for years. Another development that quickly followed suit was a collaboration with Mighty Mojo Toys. “We wowed people by bringing back the original Mighty Mojo plush toy, a classic and firm favorite among Angry Birds aficionados,” says Katri. “By turning casual players and viewers into passionate fans, we are purposefully building a more robust fan base, leading to better brand engagement and equity for decades to come.”

An additional pair of Rovio’s new merchandising partners are Ion8, which is based in the UK and creates leakproof hydration water bottles, and Four Seasons Design, a seasoned manufacturer of apparel.

“Bright colors, durable powder paints, and 3D tactile prints bring Angry Birds to life with Ion8’s legendary OneTouch water bottles,” comments the former. Four Seasons Design is similarly proud of its association with the Finnish game developer: “We are excited to announce a new relationship with Rovio. As a registered licensee, Four Seasons Design will put to work its 22 years of apparel and accessories manufacturing experience to create innovative new products for all Angry Birds fans.”

Leading the development of these ventures is IMG, the licensing agency that facilitates an ever-expanding range of Angry Birds merchandise and commercial partnerships.

“IMG is our global exclusive licensing agency and, in 2020, we built a new licensing strategy, which is now starting to come to fruition with regards to new partnerships,” details Katri. “IMG is the biggest licensing agency of its kind. With personnel all around the globe, it allows us to build on the program exponentially. Our strong relationship with them, as well as our common goals, means we are able to grow the business successfully and in the right direction.” retail-merchandiser.com

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On its fruitful, ongoing collaboration with Rovio, Bruno Maglione, President of Licensing at IMG, comments: “Angry Birds is one of the most recognizable brands in the world and is loved by people across generations and territories. We have worked to identify the right opportunities for the brand so that we can deliver authentic collaborations that capture the values and energy of Angry Birds and appeal to loyal fans and partners alike – whether that is performance-based lifestyle products, eyepopping sporting equipment and collectibles, or memorable physical experiences.”

It is clear that Rovio is bridging the gap between mobile video games and, well, the rest of the retail merchandising sector.

Partners like Somerbond and PowerLocus attest to the success and commercial fortitude of the Finnish developer. “As an awardwinning licensee of apparel, we are excited 40

to announce our renewed partnership with Rovio, bringing to market innovation and creativity – not to mention 35 years of experience,” says the former.

“Our first range of Angry Birds merchandise will hit the Angry Birds World Theme Park stores in Qatar this November.”

Similarly, PowerLocus is keen to express excitement for the company’s burgeoning partnership with Rovio: “We are happy to announce the start of our new cooperation with one of the most successful game developers in the world. We specialize in the development of audio and consumer electronics, and as such we are eager to put all our expertise and creativity into the task of designing sleek headphones for all Angry Birds fans.”

On top of these partnerships, the company released multiple announcements for exciting Location-Based Entertainment (LBE). “This has been a really important development and growth area for the brand. We have several launches planned this year, and even more in 2023, including the first Angry Birds café, where fans will be able to step into the world of Angry Birds every time they enter,” says Katri.

The café will double up as a retail store and will be located inside a mega-development in Flushing, NY, acting as a central hub for the global phenomenon. Fans of Angry Birds will be treated to the nation’s largest collection of merchandise, and the bakery will be fully

Rovio Entertainment Corporation stocked with sweet treats, such as cake pops, macarons, and bubble tea.

“Scheduled to open later in 2022, the café will feature many unique photo opportunities and a specialty menu,” reveals Katri. “The location uniquely combines the Angry Birds game and movie character aesthetic with a newer, smooth combination, allowing fans to enjoy all versions of the characters they know and love.”

But there is more! Across 12 UK and US locations, Immersive Gamebox will host an interactive Angry Birds gaming experience like no other, allowing fans of the franchise to engage themselves in a life-sized version of a slingshot adventure game. Launched in June, fans have been eagerly trying the one-of-a-kind, hyper-immersive gameplay, running through various levels where different teams must compete to destroy digital adversaries with two slingshots. Utilizing the latest technology, such as projection mapping, motion tracking sensors, and touch screens, players must collaborate and work together if they want to win.

Building the brand Alongside that, the global pop culture phenomenon has been turned into a theatrical performance: Angry Birds Live: The Slingshot Adventure! The stage show will feature some of the franchise’s most beloved characters, including Red, Silver, and Leonard, as they comically progress in an entertaining (mis) adventure that incorporates iconic gameplay elements in its presentation. Spearheaded

by Kilburn Live, a global market leader in branded live family entertainment, this is just one example of how Rovio is using its wellestablished brand to break down boundaries and show the world the vast commercial and entertainment applications that a mobile game can have.

“All of these projects expand the brand to new audiences in innovative and exciting ways,” explains Katri. “These experiences take Angry Birds outside of the digital world and allow fans

to be part of a bigger story – one told with real life experiences.

“Angry Birds is over ten years old and it is growing into an evergreen brand with multiple touch points,” she reflects. “The multigenerational product continues to expand into new marketplaces and media, with different experiences targeting different demographics, such as games for older audiences, movies and television series for families and children, and LBE for all. By building the brand in these different areas, we are able to collectively elevate it.”

Like any good magician, Rovio always has something new up its sleeve. Unexpected and exciting, but always pushing the envelope of what is possible in gaming and merchandising. “Looking forward, we have a clear roadmap for each business area – games, content, social media, products, and LBE – to support the brand for years ahead,” concludes Katri. “In terms of content, our first long-form animated series, Angry Birds: Summer Madness, was released on Netflix earlier this year. Over three action-packed seasons, fans are given a more in-depth look at the Angry Birds characters and their teenage histories. It should not be missed!” ■

www.rovio.com

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New& notable New & notable

Venum Combat sports equipment for kids Release your anger in a fun and safe way! www.venum.com/collections/angry-birds

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ION8 Leakproof water bottles

Capsule Skateboards Expressive Angry Birds skateboards

3D prints bring Angry Birds to life with ION8’s legendary water bottles.

Catch some serious air with these durable and ecofriendly skateboards!

www.ion8.co.uk

https://tinyurl.com/533jr5au

New & notable

Four Seasons Design, Inc. Crashing Legend Tee The birds are back with new retro designs, coming out next month! www.amazon.com

Powerlocus Colourful wireless headphones Kids collection of high quality headphones launching at the end of 2022 https://tinyurl.com/2j8uhsyw

Mighty Mojo Toys Classic Angry Birds Plush Collect all fan favorite characters - coming this winter! www.mightymojotoys.com

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Fine tuning excellence PRS Guitars has been publicly endorsed by a wealth of talent – from Carlos Santana to Beyoncé

E

stablished in 1985 by Paul Reed Smith, PRS Guitars is a name that carries with it a certain weight. A weight made of wood, tradition, nickel-plated steel strings, rhythm, electronic components, and a small slice of the historycake that we call rock and roll. Based in Maryland, the company manufactures worldrenowned guitars, amplifiers, and other music industry-related items, including aftermarket components and upgrades.

PRS Guitars is devoted to an ongoing mission: (re)discovering the rich heritage of the guitar while committing itself to innovation and the development of cuttingedge musical technologies that allow musicians – adroit and amateur alike – to continuously refine their craft.

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PRS Guitars

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MANUFACTURING | DISTRIBUTION | SOURCING | SALES

Over

40 Years

International Business Experience

Servicing

500+ OEM Partners

Worldwide

Providing quality & reliability in manufacturing, distribution, and sourcing for the music industry and beyond PH: 732.919.6200 | EM: sales@apintl.com 14661 Jetport Loop, Suite 100, Fort Myers, FL 33913

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Andrew Papiccio Company Founder

Find out more at apintl.com

PRS Guitars

The company began with the hands-on talent and charisma of the man that gave the brand its name: Paul Reed Smith. Exploiting these characteristics, Paul would often hang out at local concert arenas for hours before a show, introducing himself to the roadies and bandmembers with a handmade guitar in hand that he was hoping to peddle. It turned out talent and charisma attract attention – from Carlos Santana, no less.

Who would have thought it? One-off sales turned into a backlog of orders, and Paul quickly got to work on two prototype models for scaled production.

In 1985, PRS Guitars opened its first factory. Just over ten years later, the

company moved to Stevensville on the Eastern Shore of Maryland – what was a relatively modest operation carried out by four employees started to snowball.

Today, PRS Guitars employs around 450 people and has launched numerous stock lines, including a custom private line for one-of-a-kind feats of musical ingenuity (or simply a personalized engraving), and its Product Tech Center (PTC) program, which offers a repair and upgrade service with a full warranty for customers. The Stevensville facility, which has been expanded and improved over the years, now boasts more than 90,000 square feet of manufacturing space. retail-merchandiser.com

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Stellar Industrial Supply Stellar Industrial Supply is a privately held, ISO/ AS9120-certified premier industrial supplier.

Our specialists, sales force and customer experience managers serve small, medium, and large manufacturers; federal, State and local municipalities, and commercial construction companies across the US. We are dedicated. We have invested in our business to maintain our profitability and stability. We partner with our customers and suppliers to provide individual products and individualized solutions that help you save costs and boost profit efficiently and without frustration. We go on-site to handle purchasing, receiving and delivery, obtain competitive pricing, and manage tools and inventory.

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We are a diligent yet creative, hardworking but easy-to-work-with partner.

Innovating our solutions, caring about our people, performing as one with our suppliers and customers. That is how we thrive; acting with authenticity and excellence that improves the customer experience, stakeholder trust, market leadership and value to benefit all involved.

What truly differentiates Stellar from other industrial supply companies is our divisional approach to supporting customers. We operate through five divisions, each with its own product and market specialists. These specialists utilize specific industry and product knowledge to help customers receive the best value for the greatest profitability.

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PRS Guitars

Paul would often hang out at local concert arenas for hours before a show, introducing himself to the roadies and bandmembers with a handmade guitar in hand that he was hoping to peddle

One of those 450 employees is Meghan Efland, Director of Supply Chain, who sat down with us to talk about the ways in which the industry leader is taking on new challenges and streamlining its end-toend processes.

“Every component in our guitars is designed internally by our own engineering team,” she begins. “Even the screws that hold parts in place. All our materials are selectively sourced with companies that can make them to the tolerances we are looking for. People often ask about Paul. He cares deeply about the product and is here every day; he wants every customer to get the best – whether that is a guitar, amplifier, bridge, tuner, or pickup. He is always trying to find ways to improve these components and make them more functional, stay in-tune longer, and sound the best they can.”

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We create a timeless, handcrafted product

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To reach the incredibly high standards that PRS Guitars has set itself – the very standards that have carved out a global reputation for the Maryland-based company – a robust supply chain must be maintained even amid economic and industrial disturbances.

“Our processes are comprehensive,” asserts Meghan. “We have purchasing and sourcing; however, significantly, wood is not part of our supply chain.

That team directly reports to Paul. Our people are travelling all over the world, inspecting the wood before it gets put on a container and transported to us.

They are picking from the top lot of wood vendors and pulling out only the

most premium of offerings; they are involved from the point where trees are being felled and taken to sawmills to the point where we unload the wood in our building.

“We have master scheduling for the US factory as well as purchasing and scheduling for our OEM facilities,” she goes on. “Then, of course, there is compliance (state, federal, and international), inventory control, warehousing, plus packing, shipping, and receiving – all directly with customers or via our global dealer network. To better fulfill these processes, we have our own European distributor and an office in England as well one in Japan for that market.

Currently, we are trying to figure out ways we can use our volume in the US and get these other centers consolidated under our accounts, thereby creating a more holistic shipping process.”

Another way that PRS Guitars is enacting its multiform philosophy of continuous improvement, whether that concerns an individual guitar or the supply chain that expedites its manufacturing and shipping, is by streamlining its enterprise resource planning (ERP) systems.

PRS Guitars “We were using an older DOS system and had maxed out its capacity,” Meghan reveals. “Anyone who has transitioned to a new ERP system will know how much goes into it! Six years after that change, we are trying to assess its capability and get the most out of it. Naturally, part of that is utilizing its out-of-the-box capability and understanding its core functionalities; however, we are also working with consultants on how different modules, including reporting and connections, can be better applied to our business.

“Moreover, our warehouse consultants have been investigating ways of incorporating better equipment in our facilities and how changes to our layout might improve manufacturing efficiency,” she adds. “More recently, we have been working with our shipping partners and our ERP system to create a custom shipping method that consolidates orders and appropriately targets our wideranging customer base. So, in short, a lot of fine tuning!”

Though Meghan admits there have been numerous roadblocks along this path of improvement, particularly around robotics, an area that is still lagging due to the relatively small scale of the industry that PRS Guitars operates in, she is confident about the future of the company.

“We are moving forward with a smart and sustainable growth plan,” she concludes.

“We create a timeless, handcrafted product, so we are flowing at a relatively slow pace – but always in the right direction. Part of that steady flow will mean becoming more involved with our European and Japanese offices and deep level logistics to improve cross-company efficiencies. Going forward, we are looking forward to getting back out into the world and meeting companies that are using the latest and greatest tooling, thereby enabling us to keep making some of the finest guitars in the world.” ■

www.prsguitars.com

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The Science of Sleep

Kingsdown applies scientific principles and technologies to the design and manufacture of its world-leading mattresses

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eople will spend at least one-third of their lives sleeping, so it pays to make sure that mattresses are comfortable and aid restful slumber.

That is the thinking behind the strategy of Kingsdown, which specializes in the design and manufacture of a range of luxury mattresses.

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Headquartered in Mebane, North Carolina, and now 118 years in business, Kingsdown has ten manufacturing facilities across the USA, employs over 500 associates and sells in more than 20 countries across the world. The business boasts manufacturing sites in Canada (which hosts R&D, manufacturing and production from Ontario Province),

Kingsdown

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Australia, Brazil, China, Malaysia, Mexico, Taiwan and Vietnam. It has representative offices in the UK, Hong Kong and Japan, and revenues are in excess of $100 million a year.

Sleep is big business. Mattresses do more than provide just a cushion between the sleeper and the floor. A good mattress will aid restful sleep and last for years; a bad one will lead to aches and pains and just one night can be too much.

Kingsdown’s comfortable product range extends from its ‘affordable luxury’ $699 Prime Collection up to $8000 Vintage Collection creations. Its markets include individuals purchasing for the home, boutique hospitality contracts and the interior design community.

“Product designs cover the whole gamut, from inner springs to hybrid, artisan foam, premium latex, superior air systems and even boxed bed solutions,” says Frank Hood, President and CEO of Kingsdown.

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Industries PF Industries PF manufactures high-quality sprucepine-fir (SPF) wood cut-to-size components, and assembled solutions for the mattress, appliance, automotive, shipping and fence industries.

To offer the most cost-effective solution, our components are offered in a wide variety of grades, dimensions, and treatment options. Using our own facility, we offer ISPM-15 certified products, which can also be stamped or provided with an HT certificate to facilitate shipping around the world.

We also offer cost-effective assembled solutions, thanks to our highly mechanized nailing production process, and our skillful and experienced team.

The lumber we process is also sourced exclusively from the sustainably managed forests of the northeastern US and Canada, and we are a zero-waste company. All the raw materials we use is either processed, reused, repurposed or recycled.

Reach out to our sales team to find out how we can help you save.

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Finished mattresses are bulky and have to be shipped by surface transportation. Multiple facilities across North America mean that the business can service its customers efficiently, quickly and with the lowest possible carbon footprint. While not the biggest mattress manufacturer on the planet, Hood sees that as a distinct advantage. “Our smaller size, combined with our large-scale capabilities, makes us a nimble, flexible partner, and our speed to market means that we can meet the most ambitious challenges.”

Kingsdown is a forward-thinking company.

Regardless of price point, strategic analysis is the basis of every product’s design and

Kingsdown development. Since it was founded, the company has invested in technology to make its products better, more competitive and more attractive to purchasers.

Customer-centric product design is a collaborative process. Hood acknowledges that this means it can take longer and create SKU complexity but maintains that its personalized approach is worth the effort.

“While much of the industry is moving towards centralization, automation and standardization, we still value hands-on attention carried out by highly engaged, skilled associates,” he says. “We will do things on a personal level that the largest brands simply won’t take the time and trouble to do.”

Our smaller size, combined with our large-scale capabilities, makes us a nimble, flexible partner

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Kingsdown is proud of its tradition of hand-crafting but technology is integral. It sees distinct competitive advantages in its styling and the quality of its materials and manufacturing techniques, which are very much driven by sleep science and testing.

“While we integrate innovations in materials, construction and assembly techniques, we do so without sacrifice to long-term performance and lasting comfort,” Hood explains. Product design is a customer-focused, collaborative process.

Kingsdown maintains that close business relationships and collaboration with commercial partners may be complex but they allow retail customers to help ensure that products address specific needs on their showroom floor. The company constantly monitors the bedding marketplace to spot emerging trends and to identify new markets and opportunities.

Its advanced solutions are scalable across large retail networks but can also be bespoke to individual customers.

The company maintains that its bedMATCH® application is the leader in consumer diagnostics. It uses 18 statistical measurements and over 10,000 scientific calculations combined with sleep preference details to provide personalized recommendations for products on the retail floor that will offer optimal postural support.

“Our product development process begins with X-Factor testing. Fourteen differently-shaped platens work together to simulate body shape and mass, from the smallest person to the largest. The mattress’ support characteristics are then measured and performance curve data are entered into our database,” Hood explains. All Kingsdown mattresses are tested to ensure they meet proper support standards. “Our patented Inline Comfort and Support Analysis (ICSA) system is the first in the world that measures every 56

mattress to ensure the intended support level is delivered, every time.”

No Kingsdown mattress is delivered to a consumer’s home or a retailer’s showroom unless it passes ICSA standards. All test results for each product are recorded and held in the system and each individual item made is tracked.

“These processes are unheard of in our industry but Kingsdown is dedicated to exceeding industry standards, so our manufacturing integrity is of the utmost importance,” he says. “Kingsdown has been a ‘smart company’ for over 20 years, developing smart mattresses, the rigorously scientific bedMATCH® process, and our patented ICSA system. Lately, we have gone further into generating and utilizing data insights through every

Kingsdown

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Kingsdown

aspect of our organization, from market strategy to specific customer insights.”

This has enabled the company to respond with agility to the challenging market conditions of the past few years – and it hasn’t stopped thinking about development and innovation. Growth is an ongoing objective, both organic and by acquisition; Kingsdown is constantly on the lookout for other businesses that will complement its existing capabilities, help it enter new markets or enable it to gain a competitive advantage. Licensing to manufacturers in Europe and Asia is another development route. In addition to commercial sustainability, environmental responsibility is also high up the agenda.

“We take pride in sustainable sourcing of natural materials, such as organic cotton, Joma wool, Canadian lumber and coil systems made from recycled steel.

Zedbed, our artisan foam bed partner, sources natural, sustainable latex and practices low-emission processes. We have comprehensive recycling programs in all our facilities and the Kingsdown Group operates in accordance with Mattress Recycling Council and Forest Stewardship Council standards,” Hood says, adding in conclusion: “As consumers continue to evolve their shopping preferences, Kingsdown has many exciting developments on the horizon, and technologies like bedMATCH® are positioned to exceed their expectations.” ■

www.kingsdown.com retail-merchandiser.com

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Take Your Packaging to New Heights BerlinPackaging.com 1.800.2.BERLIN

Berlin Packaging helps food and beverage brands stand-out on the shelf with tasteful packaging and value-added services designed to boost your bottom line and make your profits soar.

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Custom design, quality assurance, strategic sourcing, warehousing, and more.