Coterie treats its physical retail presence not just as a sales channel, but as a marketing tool. A well-placed product block acts like a billboard, driving discovery and funneling 10-12% of new customers back to their primary D2C subscription business.
Sephora combats intense competition by applying a "game of inches" philosophy to its physical retail space. Every section, from teen-focused fragrance displays to strategically placed checkout-line minis, is optimized to sell. This meticulous space utilization creates a highly profitable, frictionless customer experience without any "wasted" space.
While many celebrity brands hit a valuation ceiling around $1 billion, Skims has broken through by aggressively pursuing a multi-channel strategy. Expanding into a significant number of physical retail stores is the crucial step that elevates a personality-driven brand into a durable, multi-billion-dollar enterprise.
Brand campaigns reach the 95% of buyers not currently in-market. Instead of relying on vanity metrics, Square ties this investment to business outcomes by tracking the subsequent lift in organic traffic, which they've found converts better than paid channels.
Instead of treating all channels equally, identify which customer segments (e.g., brand advertisers) are best served by which channels (e.g., TV screens). Shifting demand accordingly can unlock massive growth by optimizing the entire portfolio and increasing customer ROI.
Stop viewing brand as a top-of-funnel activity. For elite companies, brand isn't a precursor to selling; it is the selling. It creates inbound demand that bypasses traditional conversion tactics like search ads or affiliate marketing, making it the most powerful and sustainable growth engine.
Placing products in hotel rooms serves as a 'non-cheesy free sample.' It's a high-context discovery channel where consumers experience the brand as a curated part of a premium travel experience. This creates a strong positive association and drives adoption more effectively than traditional sampling.
Advanced retailers are moving beyond treating retail media as an ad channel for short-term sales. They integrate it with loyalty programs to deliver personalized value, which strengthens long-term customer relationships and retention, making it a strategic lever for growth.
Proving digital data can fuel offline sales, a Toronto restaurant group that launched e-commerce during the pandemic bridged the online-offline gap. By integrating Shopify data with MailChimp, they used automated welcome and win-back campaigns based on online grocery and wine purchases to successfully drive customers back into their physical restaurants.
To balance platform and partner needs, think of your product as a mall. The mall provides a managed, curated discovery experience. But once a customer enters a specific "store" (a merchant's page), the merchant controls the environment completely, preventing cross-promotion of competitors.
For premium brands like Coterie, the choice of retail partner is a branding decision. A retailer's reputation for quality reinforces the product's own values, while a poor retail environment like a messy shelf can actively dilute brand equity.