Might the underlying reason for N Brown Group’s profit warning be its reduction in catalogue distribution volumes rather than the great weather we enjoyed in September? I am not the first to question this, nor will I be the last, and there is a mass of research to prove this point. Of course, the “wrong weather” will always affect sales – just as the “right weather” will. Surely though, an agile master of the digital channel would have leapt upon the opportunity to turn the change in weather into an opportunity rather than treat it as a disaster. Perhaps N Brown’s digital team did that and perhaps it has a between seasons offer in development as most in the clothing world must be focused on now.
That aside, the stalwart and highly respected business that is, N Brown Group has proudly announced that it is transforming itself from a catalogue business into a “modern multichannel business” – with stores. Whilst in agreement that these days the bulk of orders across most categories are placed online, never forget that it is the catalogues mailed to customers and prospects, as well as compelling press ads which drive online sales. Cut back on targeted catalogue distribution and sales will inevitably fall. TV advertising? We know, from research, how much more effective it is when TV campaigns coincide with catalogue mailings.
Where would Aldi & Lidl be now if it wasn’t for the relentless door-drop distribution of offer “brochures” (catalogues) and press ads? Why is it that major retailers produce customer magazines and catalogues or use direct mail and inserts to push new season collections. Why too are the etailers also producing magazines and mini–catalogues to enclose with customer orders. Why is Next now producing new between seasons catalogues? Because print really is the workhorse that builds strong businesses. Yes, it costs a lot to produce and mail catalogues and, as a result, savvy businesses have redesigned their editions, reduced page sizes and paginations to make them more cost-effective. They’ve cut out waste too but not at the expense of alienating profitable loyal customers.
Businesses can have the best of all worlds – using digital to reduce order processing costs – make timely offers to reflect good or inclement weather – drive footfall into their stores – recruit new online customers – but without the catalogue and print media that communicate the brand, reassures, recruits and retains loyal and profitable customers …. and triggers most sales (when correctly attributed) – pound to a penny, sales will inevitably fall, good weather or bad.
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