How EMEA’s most influential retail brands influence up for growth

Sustainability and personalisation both feature heavily in how brands influence in an era of changing consumer demands and the need to offer something special that commands a premium at a time when it’s tempting to simply lower prices to maintain share.

One of the world’s most successful retailers, IKEA, has been deeply influential from Day One by transforming homeware shopping into a unique and often pleasantly exhausting experience across flat-pack furniture, Swedish chocolate, meatballs and more. All with one focus – customer at the core.

The brand moves smartly with great shopper behaviour insight.

Take Sustainability. A huge consumer of raw wood and cardboard, IKEA had the potential to fall out of favour among a growing environmentally aware generation. Yet its mission to “inspire and enable more than 1 billion people to live a better everyday life within the boundaries of the planet” has come to mean more than sturdy bookshelves – making the brand more relevant than ever.

As part of an environmentally-led campaign, IKEA is introducing smaller stores to reach urban shoppers – also part of a bid to compete against e-commerce sites. It’s experimenting with different ways of inviting customers to experience products, both in real-life via pop-up cooking classes and via virtual reality apps in-store. Just recently, it launched an in-store AR game with Meta teaching customers about marine life and sustainability. “We are constantly exploring new ways to meet our customers,” said Helena Gouiveia, marketing manager at IKEA Retail Sweden.

In BAV’s research, IKEA stands out for being Contemporary and Fun. After 80 years in retailing, a contemporary tag is no mean feat!

Fast fashion brand Zara, founded in 1975 to become a global powerhouse, is another business that has led right from the outset – its obsession with customers is driving the retailer to pivot its approach to fast fashion.

If we think back, Zara brilliantly pioneered the introduction of new collections in just four weeks, compared to an industry average of four to six months. It changed generations of shoppers’ expectations of what fashion could be, with affordable prices and young buyers frequently returning to purchase.

Yet, as fast fashion falls out of favour, Zara is smartly adapting with a huge recycling and upcycling sustainability programme. Last year it entered the resale market with a pre-owned service – where shoppers can book repairs and donate unwanted items.

Finally, world-famous Adidas stands out for its relentless focus on personalisation. Today, it’s developing digital experiences and creating relationships with customers beyond just making a sale.

It understands that some customers want to be served online or buy through TikTok or live streams, while others prefer to buy in-store. “It is about shifting from customer experience to total experience. That is the main trend that we are seeing, and personalisation helps dramatically.” says adidas.

Back to the question I’m often asked about the role brands play in influencing people, communities and the planet. My answer is simple: it’s imperative. Brands must stay connected to people and culture. And relentlessly demonstrate they’re evolving to meet the needs of their customers today and importantly their customers of the future.

One final thought. Influence is a serious business. Just ask Rihanna, whose Fenty Beauty Empire was recently valued at $ 2.8 billion.


This article was originally published in Modern Retail