Vendor-led vs Partner-led: What is the best retail rollout model for your brand?
How Rollout Models Change Everything.
I recently went down the rabbit hole of Gary Hamel. In case you’re wondering who he is, The Wall Street Journal recognized him as the world’s most influential business thinker. There’s this quote he said.
Strategy is, above all else, the search for above-average returns.
According to me, the quote was a commentary on a fundamental human tendency, the tendency to give in to immediate gratification instead of a greater reward somewhere down the line. Since I happen to make a living writing about the retail industry as a whole, it got me thinking about why should a brand work with a partner instead of vendor. A vendor is agile, promising to pivoting immediately with feedback. Why should a brand, then, partner with a partner?
1. Visual sameness vs. experiential sameness (Consistency)
Vendors are great, with an asterisk. They really are a great option to cut down on cost, considering you check the following boxes:
- You have a strong design vertical in-house
- You don’t plan to execute more than 1 store
But in the case that you can’t satisfy any of the above boxes, a partner-led execution becomes imperative to imagine a store (in the case of a lack of in-house design direction) and/or execute more than one store across a geographical expanse unfeasible for a vendor alone.
Sure, a vendor will be able to match the items exactly to the specification you provide, and check all the boxes that need to be checked, but their logistics break down as soon as regional constraints, local adaptations, and translating brand intent are expected of them.
2. What looks fast vs. what stays fast (Speed)
Judging a retail rollout based on speed is easier, unlike the experience mentioned above. Having the pleasure of enjoying the largest vendor-partner execution network in India, we understand what it means to be a vendor and a partner.
For a vendor, decisions are transactional in nature. Their primary objective is to deliver a store that matches the provided drawings to a T, which usually results in faster rollout times, as their business model prioritizes the number of stores they execute, and not the strategy.
But as soon as the scope of the retail expansion increases, so does the need for ‘applied-planning’ where a partner needs to take care of managing the logistics of executing a store in different geographies with varying local laws. For a vendor, every new city will pose itself as a brand-new puzzle, but for a partner like us, we prioritize repeat delivery.
3. Savings per store vs. savings across the campaign (Cost)
I can’t deny that vendors are extremely hard to compete with. They have some of the most competitive quotes, which a brand that operates at scale and prioritises a nationwide rollout just can’t match if there are only a couple of stores to execute. The economies of scale favour a vendor in this situation.
However, if you look closely, you may find why the costs favour a vendor here. Tighter quotes are usually supported by an assumption that everything will go according to plan. In a real-world scenario, there is rework, late-stage changes, and local jurisdictions that are practically unavoidable. A vendor may charge extra for correction, and then the costs leak.
With a partner, there will be more conversations at the start to define the intent behind the rollout, and there will be a strategy that aligns stakeholders for a smooth retail rollout. The upfront cost might seem steep, but this results in fewer reworks. Those savings, if multiplied across a large of stores, result in a rollout that is designed to save money across the campaign.
Your Rollout Problem Isn’t Execution.
Coming back to the original thought that sparked this blog, a business should prioritize above-average returns. A vendor-led retail expansion MIGHT JUST BE exactly, if the scope of the rollout isn’t large enough. But as soon as the scope increases, the average cost input per store increases, which makes it more difficult for a vendor-led nationwide rollout to break even.
Anmol Dham is a Content Strategist at D’Art Design, where he crafts meaningful narratives that elevate brand experiences and spotlight design thinking.
Known for his curious mindset and a keen eye for detail, he delves into topics others often overlook, and brings fresh perspectives that are backed with solid strategy and analytics.
and new opportunities in the retail world.