Retaissance’s Cathie Osborne: 6 Reasons Why 2021 Will Be the Year of the Independent Brand

For the retail industry, 2020 was the year everything changed. While the Covid-19 pandemic has had a global impact, few industries have been hit as hard as retail, where we have experienced great losses - both emotional and fiscal. In many ways we are still in a grieving process – lamenting the loss of the ‘old normal’, while working through a mix of shock, anger, reflection, acceptance and hope for the future.

The pandemic has accelerated many of the changes that were already taking hold in consumer behaviour - and added even more complexity! But as smaller businesses, independent brands are able to pivot and adapt quickly, and the new normal may offer new opportunities for those who embrace it.

1. Changing wholesale models

Wholesale models are changing in response to disrupted supply chains and a need to reduce risk. Wholesalers are more open to demand-focused models that favour stock which is always available for order, always in season and can be ordered on short notice and in lower quantities. Independent brands are best positioned to provide this kind of offering, and being able to offer smaller order sizes may open doors at larger retailers who would previously have required greater manufacturing capability.

2. More ethically-minded consumers

The 2021 consumer will be more ethically minded than ever - a continuation of a trend that has been growing in recent years, and brands and retailers should be building their business with a conscience. Retailers love these products as they can be sold at a premium and are rarely discounted, so they’re offering more than their fair share of new listings.

For brands that already have strong sustainability credentials and are committed to high ethical standards, now is the time to shine the spotlight on them. For those that don’t, the new normal could serve as a reset opportunity to strengthen your commitments.

3. Retailers compete to attract consumers

Millenials and Gen-Z consumers are drawn to smaller brands with compelling, authentic narratives. Retailers are constantly on the look out for new brands to feature in their retail spaces, to share their stories and help cut through the noise of the high street. These markets are set to become more influential as consumers in the longer term, and the coming year offers the best opportunity for growth since 2009 for these categories to increase their market share.

4. A Return to Local Retail

While high-street giants face the biggest losses of the pandemic and a growing number enter administration, local retailers and independent stores have found themselves in the spotlight. Travel restrictions may continue over the coming months and this drives traffic towards local shops. Local retail and independent stores are strong advocates of Indie brands and can be a great showcase for your products. You may have more control over how they are presented, and your products will be sharing the shelves with fewer competitors. With more localised shopping still prevalent, this is a market not to ignore.

5. A Digital Shift

A shift to digital has been seen in both D2C and B2B channels. With the pure-play internet retailers and their phenomenal growth in 2020 comes more opportunities - independent brands can showcase, increase brand awareness and sell more products, and do so with the support of the sites big advertising budget. However, it’s important that you select your sites wisely. A store needs to be more than just a place of transaction, it needs to be somewhere that people gather - a marketplace that aligns with both your consumer’s and your own brand values.

6. Diversifying risk through trading and exporting

The trading conditions in 2021 are likely to be challenging, though some businesses and geographies will suffer more than others from closures and job cuts. Diversifying risk is sensible, and we have already seen a huge increase in demand for exporting products into new markets. A large number of Retaissance clients are now looking at expanding overseas to generate revenue in other countries.

To build a stronger retail industry, we need to make a collaborative effort to support our ecosystem. At Retaissance, partnerships are key and we are currently working with top providers in all retail categories to deliver an unmatched blend of services – including FashionUnited, Joor, Tranoi, Hyve Group, First Insight, Drapers, Retail Jeweller to name a few.

By joining together, we can deliver a full portfolio to enable trade at all levels globally. This support combined with our team of wholesale managers is unrivalled in the market.

The decisions a brand makes in January will be critical to future business. Brands that are successful in 2021 are likely to continue to pivot towards a blended approach to retailers, have a greater understanding of consumer demand and will be exporting and expanding into better-performing countries.