August 19, 2020
So, What Can Retailers & Private Brands Learn from Start-ups?
80% of C-suite executives believe their companies will experience some form of major disruption in the next five years, but only 20% believe they’re ready. This foundational insight set the stage for our roundtable at Velocity: The My Private Brand Conference 2020 on what private brands can learn from entrepreneurs and start-up culture. For those of you who weren’t able to tune in, we’ve recapped some of the must-knows.
Let’s start with this historical lesson. The year was 1994. And, in that year, there was a launch of a little retailing start-up. At first, it gets curious attention. Some simply thought it was a novelty. And, then it kept growing (and growing). And that start-up? Yes, you most likely guessed, the little company was Amazon, the quintessential start-up that has forever changed the face of retailing.
But, Amazon is just one example. We can name others who have changed categories and markets. How about something called Dollar Shave Club? Within a few years of its founding, it brought Gillette to its knees prior to being acquired by Unilever. And, the list goes on and on.
The question for retailers and private brands is this: “How can your organization and brand(s) prepare for disruption?” Or, better yet, how can you learn to act and perform like a start-up?
With that in mind, we have a few tips to share:
- Mission clarity is critical. Think about it: start-ups’ founders literally have everything on the line. And, when you can lose it all, you tend to be motivated to discover clarity. How can you replicate this drive?
- Empowered teams provide surprising results. Again, start-ups tend to be made up of smaller, nimble, and highly-motivated teams with complete decision-making authority. They don’t have individuals looking over their shoulder. They are responsible for a wide range of decisions and the results of their decisions. Does your organization encourage this type of autonomy?
- Work at a focused pace. With limited capital, start-ups have a running clock from the moment they incorporate. Generally, they can’t afford to work at anything short of breakneck speed. But, speed can also be their ally. It forces them to focus on the important issues at the right time. Within your structure, do you manage time or does time manage you?
- Iterate, iterate, iterate. Start-ups learn quickly that getting an idea into a testable format is all-important. Failing forward equals learning; and learning equals success. Are you seeking perfection in your process… or seeking to discover?
By learning how to act and behave like a start-up, retailers and private brands can change their behavior. And, the results can be staggering.
At CBX, we have recently introduced the leap methodology. It’s designed to guide you through the points mentioned above. And, it’s been proven to deliver all of this and radical speed-to-market results.
If you’d like to learn more, please reach out. We’d love to hear from you.
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Written by Michael Draper
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