SPECIALFEATURE: BRANDS DIVERSIFYING
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against the wave of change in consumer behaviour caused by, among other things, current economic conditions and constant technological development. Faced with changes to the high street
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and increasing competition, franchisors are diversifying into alternative platforms and outlets from which to sell their products and services. Customers are so well informed and discerning, with daily deals and vouchers pinging to their mobile phone inboxes, that no retailer can afford to rely on traditional shopping habits and brand loyalty. With regards to the question mark hovering over the future of the high street, a recent report, The Grimsey Review, on the state of the UK’s town centres, addressed a variety
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Matryoshka effect
Consumer habits are changing and franchise brands must diversify into new platforms in order to flourish, writes Annie Blinkhorn
he landscape of retail has transformed dramatically over the last decade and will without doubt continue to do so. To imagine otherwise is to stand Canute-like
of recommendations to local authorities, legislators, commercial landlords and to traders themselves. In his introduction to the report, Bill Grimsey, businessman and former CEO of Iceland, gives the first of the conclusions the report makes: “Town centre/ high street plans must encompass a complete community hub solution incorporating; health, housing, education, arts entertainment, business/office space, manufacturing and leisure, whilst developing daytime, evening time and night time cultures where shops are just part of the total plan.” There are numerous brands that are taking their product out into the market by placing themselves within other leisure or retail spaces. One brand that is growing its product in such a way is Baskin Robbins, part of Dunkin’ Brands. Expanding their premium ice cream and frozen yoghurt within the entertainment and leisure industry, the company has recently entered into a further franchise partnership with Cineworld,
adding another 43 outlets to its existing 18 in Cineworld cinemas. The company is also, meanwhile, rolling out its franchise network for Dunkin’ Donuts coffee shops. (See page 38 for interview with UK General Manager Jim Johnston)
The Grimsey Report further identifies the change in the landscape of retail in terms of where people go to consume and to socialise, concluding: “Transport hubs have become the latest iteration in this development of consumer-led locations,” citing the new King’s Cross/St Pancras International as a leading example. Of course, fast food names have long been in airports and railway stations, but there’s a proliferation of franchise brands using the site within sites model to reach new audiences. Saks Hair and Beauty franchises have been operating in David Lloyd leisure centres since 1988 and the Costa brand enjoys a presence within the Waterstones bookstore chain. Other brands have recently announced
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