MR Magazine, June, 2008
Issue Story: People
Grayson/Hughes: Executive Search Meets Retail Consulting
By Karen Alberg Grossman
What is the purpose of Grayson/Hughes, your new collaboration?
Grayson: It enables us to deliver clients a broad range of solutions—we provide them with a success strategy and also with the human capital to execute that strategy.
Who will be the winners in this precarious economy?
Grayson: The winners will have five common features: 1) They will have marketed their company as a brand. Today more than ever, you're either a respected name with a clear image or you deteriorate to a commodity; 2) They will have become a vertical operation with control of the entire cycle, from original design to selling the consumer; 3) They'll have a multi-channel distribution strategy because it's the retailers, not the wholesalers, who establish prices—and the person with the most weapons usually wins...; 4) They'll have licenses; and 5) They'll have international exposure. (And this from a guy who spent 22 years working for Les Wexner, an adamant opponent of international expansion. "There'll be no ocean between me and my stores," he would say...")
What about retail winners?
Grayson: The parameters apply to both: there's a tremendous gray area between retailers and manufacturers. That said, the relationship between the two can be mutually beneficial. Early on at Bloomingdale's, Marvin Traub was the first to understand that Ralph opening a Polo store would help, not hurt, Bloomingdale's Polo business.
Judging from your five features, you're talking about big companies.
Grayson: Not necessarily. In fact, I had thought mom and pop stores were over, but I'm now feeling the re-emergence of multi-brand boutiques as customers are rebelling against the single brand stores. In my opinion, there's more great design out there than ever: in cars, in home décor, and in apparel. These are exciting times.
Hughes: I also predict a return to the small specialty store: it's impossible for department stores to reach such a broad consumer base (which is why Macy's is trying to regionalize its approach).
So why is business today so difficult?
Hughes: Obviously it's the economy but sometimes, it's also about leadership. Leadership has to be learned and developed. It comes from family values; it takes time and patience. Companies need to take the time to train their people: retailers have done a better job of this than wholesalers. Too few manufacturers are enlightened. How many are even walking around MAGIC, seeing what's out there, listening to the buzz?
Grayson: There are only a few. Yet the question, "Who am I going to hang with?" has taken on a whole new meaning these days....
Issue Story: People
Grayson/Hughes: Executive Search Meets Retail Consulting
By Karen Alberg Grossman
What is the purpose of Grayson/Hughes, your new collaboration?
Grayson: It enables us to deliver clients a broad range of solutions—we provide them with a success strategy and also with the human capital to execute that strategy.
Who will be the winners in this precarious economy?
Grayson: The winners will have five common features: 1) They will have marketed their company as a brand. Today more than ever, you're either a respected name with a clear image or you deteriorate to a commodity; 2) They will have become a vertical operation with control of the entire cycle, from original design to selling the consumer; 3) They'll have a multi-channel distribution strategy because it's the retailers, not the wholesalers, who establish prices—and the person with the most weapons usually wins...; 4) They'll have licenses; and 5) They'll have international exposure. (And this from a guy who spent 22 years working for Les Wexner, an adamant opponent of international expansion. "There'll be no ocean between me and my stores," he would say...")
What about retail winners?
Grayson: The parameters apply to both: there's a tremendous gray area between retailers and manufacturers. That said, the relationship between the two can be mutually beneficial. Early on at Bloomingdale's, Marvin Traub was the first to understand that Ralph opening a Polo store would help, not hurt, Bloomingdale's Polo business.
Judging from your five features, you're talking about big companies.
Grayson: Not necessarily. In fact, I had thought mom and pop stores were over, but I'm now feeling the re-emergence of multi-brand boutiques as customers are rebelling against the single brand stores. In my opinion, there's more great design out there than ever: in cars, in home décor, and in apparel. These are exciting times.
Hughes: I also predict a return to the small specialty store: it's impossible for department stores to reach such a broad consumer base (which is why Macy's is trying to regionalize its approach).
So why is business today so difficult?
Hughes: Obviously it's the economy but sometimes, it's also about leadership. Leadership has to be learned and developed. It comes from family values; it takes time and patience. Companies need to take the time to train their people: retailers have done a better job of this than wholesalers. Too few manufacturers are enlightened. How many are even walking around MAGIC, seeing what's out there, listening to the buzz?
Grayson: There are only a few. Yet the question, "Who am I going to hang with?" has taken on a whole new meaning these days....
