Trademark Trial and Appeal Board Electronic Filing System. httgj/estta.usQto.gov
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`
`
`91197848
`
`Plaintiff
`
`Retail Royalty Company
`KRISTIN G GARRIS
`KILPATRICK TOWNSEND & STOCKTON LLP
`1114 AVENUE OF THE AMERICAS 21ST FLOOR
`NEW YORK, NY 10036
`UNITED STATES
`
`IamiIIer@kiIpatricktownsend.com, agarcia@ki|patricktownsend.com,
`kgarris@ki|patricktownsend.com
`
`Opposition/Response to Motion
`Laura Miller
`
`IamiIIer@kiIpatricktownsend.com, agarcia@ki|patricktownsend.com,
`kgarris@ki|patricktownsend.com, OHarris@kts|aw.com, tmadmin@ki|town.com
`/Laura Millerl
`
`10/26/2012
`
`Client Declaration (AEO v Hawke) (3).pdf ( 7 pages )(523619 bytes )
`Exhibit 1
`(1 of 3).pdf (49 pages )(7844665 bytes )
`Exhibit 1 (2 of 3).pdf (42 pages )(6946076 bytes )
`Exhibit 1 (3 of 3).pdf (21 pages )(2922005 bytes )
`Exhibits 2-4.pdf (32 pages )(4286308 bytes)
`
`Proceeding
`Party
`
`Correspondence
`Address
`
`Submission
`Filer's Name
`Filer's e-mail
`
`Signature
`Date
`Attachments
`
`Trademark Trial and Appeal Board Electronic Filing System. http://estta.uspto.gov
`ESTTA502467
`ESTTA Tracking number:
`10/26/2012
`
`Filing date:
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`91197848
`Plaintiff
`Retail Royalty Company
`KRISTIN G GARRIS
`KILPATRICK TOWNSEND & STOCKTON LLP
`1114 AVENUE OF THE AMERICAS 21ST FLOOR
`NEW YORK, NY 10036
`UNITED STATES
`lamiller@kilpatricktownsend.com, agarcia@kilpatricktownsend.com,
`kgarris@kilpatricktownsend.com
`Opposition/Response to Motion
`Laura Miller
`lamiller@kilpatricktownsend.com, agarcia@kilpatricktownsend.com,
`kgarris@kilpatricktownsend.com, OHarris@ktslaw.com, tmadmin@kiltown.com
`/Laura Miller/
`10/26/2012
`Client Declaration (AEO v Hawke) (3).pdf ( 7 pages )(523619 bytes )
`Exhibit 1 (1 of 3).pdf ( 49 pages )(7844665 bytes )
`Exhibit 1 (2 of 3).pdf ( 42 pages )(6946076 bytes )
`Exhibit 1 (3 of 3).pdf ( 21 pages )(2922005 bytes )
`Exhibits 2-4.pdf ( 32 pages )(4286308 bytes )
`
`

`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
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`RETAIL ROYALTY COMPANY,
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`Opposition No. 91197848
`
`
`vs.
`
`HAWKE & COMPANY OUTFITTERS,
`LLC
`
`
`
`Opposer,
`
`
`
`Applicant.
`
`
`
`
`DECLARATION OF REBECCA GIBBS IN SUPPORT OF OPPOSER’S
`MEMORANDUM IN OPPOSITION TO APPLICANT’S MOTION FOR PARTIAL
`SUMMARY JUDGMENT
`
`
`I, Rebecca Gibbs, declare under penalty of perjury:
`
`1.
`
`I am Associate General Counsel at American Eagle Outfitters, Inc. (“American
`
`Eagle Outfitters”), the parent company of Opposer Retail Royalty Company (“Opposer”). In this
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`declaration, I refer to American Eagle Outfitters and Opposer collectively as “AEO.”
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`2.
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`I have held the position of Associate General Counsel for approximately one year.
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`Before holding this position, I was Chief Counsel, Intellectual Property at American Eagle
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`Outfitters for three and a half years.
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`3.
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`I make this declaration based upon my own personal knowledge and my review of
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`American Eagle Outfitters’ legal department files and the documents annexed as exhibits hereto,
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`in support of Opposer’s Memorandum in Opposition to Applicant’s Motion for Partial Summary
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`Judgment.
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`4.
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`AEO has created a highly successful lifestyle brand of retail stores, featuring a
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`wide variety of products, including apparel, jewelry, accessories, and fragrances.
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`
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`

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`5.
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`Over the past 35 years, AEO has built its AMERICAN EAGLE OUTFITTERS
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`brand into one of the most popular and highly respected lifestyle brands and is one of the top
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`youth fashion brands in the country, as is evident from unsolicited, popular press reports,
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`including the following examples:
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`• AEO “has been a leader in connecting emotionally with its audience . . . .” and
`ranking AMERICAN EAGLE OUTFITTERS as the 38th most valuable retail brand
`in the United States. Interbrand Design Forum, The Most Valuable U.S. Retail
`Brands 2011, at 21.
`
` “A strong emotional connection to [AEO’s] brand is nurtured through its 18-million
`member loyalty programs. And for added glamour, a new Times Square flagship
`location projects photos of customers onto 25-story high LED screens outside the
`store.” Interbrand Design Forum, The Most Valuable U.S. Retail Brands 2010, at 15.
`
` •
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`• “The American Eagle brand is considered among the ‘coolest’ brands (second only to
`Nike, according to Teen Research Unlimited . . . .” Taking a Flyer on American
`Eagle, Bloomberg Business (July 31, 2007).
`
`
`
` •
`
` Ranking American Eagle as the 5th specialty retail brand in a 2012 survey. L2 Think
`Tank’s 2012 Digital IQ Index: Specialty Retail.
`
`
`True and correct copies of these articles touting the AMERICAN EAGLE OUTFITTERS brand
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`are annexed hereto as Exhibit 1.
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`6.
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`AEO designs, markets, and sells clothing, footwear, accessories, and other
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`products and operates retail stores under the AMERICAN EAGLE OUTFITTERS (the
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`“AMERICAN EAGLE OUTFITTERS Mark”) and the eagle design depicted below (the “AEO
`
`Flying Eagle Mark”) (collectively, the “AEO Marks”).
`
`
`
`
`
`

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`7.
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`AEO has continuously used the AMERICAN EAGLE OUTFITTERS Mark since
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`1977 and the AEO Flying Eagle Mark since 2003 to identify its retail store services and the full
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`range of apparel, accessories and other products sold in its AMERICAN EAGLE OUTFITTERS
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`retail stores and on its website.
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`8.
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`AEO has spent substantial sums of money to advertise the goods and services
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`offered under the AEO Marks.
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`9.
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`The AEO Marks have achieved considerable fame, both individually and when
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`used together, as indicia of origin identifying AEO, have acquired a highly favorable reputation
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`and goodwill, and have come to be immediately identified with AEO,
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`10.
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`AEO operates more than 900 stand-alone retail stores under the AMERICAN
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`EAGLE OUTFITTERS Mark, and offers products bearing the AEO Marks in all such stores, as
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`well as on its web site <www.ae.com>.
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`11.
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`Opposer owns, inter alia, U.S. Registration Nos. 2,086,693; 2,050,115; and
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`3,888,496, for the AMERICAN EAGLE OUTFITTERS Mark, which are registered on the
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`Principal Register for use in connection with various goods and services, including “clothing”
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`and retail stores selling clothing, in International Classes 25, 35, and 42, and were issued on
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`August 12, 1997, August 8, 1997, and December 14, 2010 respectively.
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`12.
`
`Opposer also owns, inter alia, U.S. Registration No. 3,878,197 for the AEO
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`Flying Eagle Mark, which is registered on the Principal Register for use in connection with
`
`various goods and services, including “clothing” and retail stores selling clothing, in
`
`International Classes 3, 18, 25, and 35, and was issued on November 16, 2010.
`
`13.
`
`AEO frequently uses the AEO Marks together in the marketplace, as shown by
`
`the representative marketing materials annexed as Exhibit 2, as well as the representative
`
`
`
`

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`examples of an AMERICAN EAGLE OUTFITTERS retail store sign, shopping bag, and
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`clothing label depicted below:
`
`
`
`
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`
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`14.
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`In addition to the Flying Eagle Mark, AEO has marketed its products and services
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`under other bird silhouette marks. These include the first two bird silhouette marks shown below
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`that have been used by AEO to identify its AERIE BY AMERICAN EAGLE sub-brand and the
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`second two bird silhouettes that have been used by AEO to identify its 77KIDS BY AMERICAN
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`EAGLE and LITTLE77 BY AMERICAN EAGLE sub-brands.
`
`
`
`

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`
`
`
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`
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`
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`15.
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`Opposer owns a number of U.S. trademark registrations for the bird silhouette
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`designs depicted above including U.S. Registration Nos. 3,539,007; 3,674,436; 3,902,114; and
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`4,150,218. True and correct copies of the registration certificates for the aforementioned marks
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`are annexed hereto as Exhibit 3.
`
`16.
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`True and correct copies of Internet articles suggesting that people are often
`
`confused between hawks and eagles are annexed hereto as Exhibit 4. For example, a web page
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`appearing at http://www.birdsource.org/gbbc/learning/trickyIDs/eagle-identificiation-tips tells
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`readers “Be careful not to assume large, dark, soaring birds are Bald Eagles. From a distance,
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`and especially in poor light, Red-tailed Hawks, Ferruginous Hawks, and even Rough-legged
`
`Hawks can appear larger than they actually are, suggesting an eagle.” Another web page
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`appearing at http://fw.ky.gov/baldeagleid.asp tells readers that “Several other species of birds can
`
`be mistaken for bald eagles. Some of the more commonly confused species are osprey, turkey
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`vultures, black vultures and red-tailed hawks.” Another web page appearing at
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`http://www.differencebetween.net/science/nature/difference-between-eagle-and-hawk/ tells
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`readers that “It’s hard to admit it but many are really confused about the real difference between
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`an eagle and a hawk.”
`
`17.
`
`Applicant’s Motion for Partial Summary Judgment (“Applicant’s Motion”) was
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`filed the day after Opposer sent its first set of written discovery requests to Applicant Hawke &
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`Company Outfitters, LLC (“Applicant”). Because Applicant has yet to respond to those requests
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`in light of the suspension occasioned by Applicant’s Motion, Opposer has not yet had an
`
`
`
`

`
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`
`

`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
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`
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`
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`Opposition No. 91197848
`
`
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`
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`Applicant.
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`CERTIFICATE OF SERVICE
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`I hereby certify that a true and correct copy of the foregoing DECLARATION OF
`
`REBECCA GIBBS IN SUPPORT OF OPPOSER’S MEMORANDUM IN OPPOSITION
`
`TO APPLICANT’S MOTION FOR PARTIAL SUMMARY JUDGMENT has been served
`
`on the attorney-of-record for Applicant Hawke & Company Outfitters LLC by mailing said copy
`
`on October 26, 2012, via First Class Mail, postage prepaid, and addressed as follows:
`
`Jay Begler, Esq.
`Niesar & Vestal LLP
`90 Montgomery Street, Ninth Floor
`San Francisco, California 94105
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`/s/ Laura Miller__________
`Laura Miller
`
`
`
`Attorney for Opposer
`Retail Royalty Company
`
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`
`
`RETAIL ROYALTY COMPANY,
`
`
`vs.
`
`HAWKE & COMPANY OUTFITTERS,
`LLC
`
`
`
`Opposer,
`
`
`
`
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`

`
`EXHIBIT 1
`
`

`
`BEST
`
`RETAIL
`
`BRANDS
`
`2011
`
`Interbrand :::::J“V2,::“W“9
`
`
`
`

`
`Interbrand
`
`Interbrand began in 1974 when the world thought of
`brands as just another word for logo. We have changed
`the dialogue, defined the meaning of brand management,
`and continue to lead the debate on understanding brands
`as valuable business assets. We now have nearly 40 offices
`and are the world's largest brand consultancy. Our practice
`brings together a diverse range of insightful right— and
`left-brain thinkers making our business both rigorously
`analytical and highly creative. We create and manage
`brand value for clients by making the brand central to their
`strategic business goals.
`
`II1terb:'andDesignForum
`
`For more than 30 years we have been creating retail brand
`experiences for companies around the world. Interbrand
`Design Forum's talent for game—changing innovation
`spurred us to create a business model that integrates
`ana|ytics—based strategy into what began as a design
`and architecture group —— the first and only company
`with such a comprehensive offering. Our broad range
`of services includes: brand strategy, shopper sciences,
`digital, retail design, documentation, and rollout. This
`unique ability to address retail's growing complexity has
`led many of the world's top companies to our doorstep
`and propelled Interbrand Design Forum to the forefront
`of the industry.
`
`u.u_— -— -—
`
`-g...
`
`—
`
`

`
`Contents
`
`01
`
`Introduction: Signs of Recovery
`A letter from Jez Frampton-
`
`New Dynamics
`The future ofthe retail brand experience is
`multichannel, authentic, and global.
`
`09
`
`U.S. Overview: U.S. Brands Prove Resilient
`by Bruce Dybvad
`Which brands are new to the list? Which dropped off?
`Profiles ofthe most valuable retail brands in the U.S.
`
`24
`
`28
`
`32
`
`35
`
`40
`
`44
`
`48
`
`50
`
`52
`
`53
`
`Canada Overview: The oncoming Threat of U.S. Brands
`by Alfred DuPuy and Stephen Weir
`Profiles of the most valuable retail brands in Canada,
`
`U.K. Overview: Where Value Meets Brand
`by Graham Hales
`Profiles ofthe most valuable retail brands in the U.K.
`
`France Overview: What About the Customer?
`by Nicolas Chomette
`Profiles ofthe most valuable retail brands in France.
`
`Germany Overview: A Retail Experience Beyond Just Discount
`by Nadine Hohlfeld
`Profiles ofthe most valuable retail brands in Germany.
`
`Spain Overview: Spanish Brands did Their Homework
`by Bosco Torres and Gonzalo Brujé
`Profiles ofthe most valuable retail brands in Spain.
`
`Asia Pacific Overview: The Rise of Value Perception
`by Stuart Green. Jonathan Chajet. Dominic Walsh, Eric Shao,
`Giulia Chiara Rocca, Viren Razdan, Hidetomi Tanaka, Alex Murray
`Hannah Shin, and Ryan Chanatry
`Profiles ofthe most valuable retail brands in Asia Pacific.
`
`Brand Strength
`Interbrand's 10 principles ofstrong brands.
`
`How Interlsrand Values Retail Brands
`Criteria for consideration and methodology.
`
`Contributors
`
`Contact Us
`
`

`
`

`
`Best Retail Brands 2011
`
`Signs of Recovery
`
`In many ways Interbrand‘s 2011 Best Retail Brands
`report — a survey of retail brands’ performances in
`2010 — can be read as a progress report on the gradual
`global economic recovery. While the already-immediate
`impact of Japan's tragic and devastating crises, the
`recent conflicts in the Middle East. and pressures from
`European debt. reveal just how fragile this climb back
`up is, our study shows true and measurable signs of
`optimism. The future may still present challenges, but
`consumer confidence has been returning, particularly in
`the U.S., where spending is up across categories. Indeed.
`just as the the U.S.'s retail market felt the impact of the
`recession most immediately in 2008, it is the first to feel
`the initial inklings of a turnaround — a good indicator
`that, even with new obstacles in front of us, the path to
`recovery is within reach.
`
`is performing
`the category of apparel
`In particular,
`strongly,
`in large part due to aggressive internation-
`alization Spain may have been hit hard by the recession,
`but
`its
`retail stars, Zara and Mango. have fared
`unusually well due to expansion in Asia and the U S
`and a commitment to reinforcing their brands through
`digital touchpoints. Japanese brand UNIQLO has also
`continued to benefit
`from international expansion,
`particularly in Southeast Asia.
`
`is consumer
`The other strong category performer
`electronics. Electronics stores comprise a number of
`new entrants on our lists (Conforama. Darty, Future
`Shop, Suning), while mainstays like FNAC and Best Buy
`continue to increase in value. Overall growth in this
`category underscores the ever—increasing role that
`technology plays in our everyday lives.
`
`And yet, while apparel and electronics may be thriving,
`the category most challenged by the shifts in the
`marketplace this year were grocery retailers. Brands like
`Asda (part of the Walmart group) dropped significantly
`in brand value in the face of intense competition and
`failure to use their brand to bring something new
`to the fray, something to sustain shoppers‘ positive
`perceptions of their value. Meanwhile, the exceptions
`to the rule — Whole Foods, Woolworths, and Tesco — all
`
`saw significant increases in brand value ll"; 2011, due to
`their ability to understand customers and reinventwhat
`a grocery retailer can offer, expressing the brand idea
`through many small but meaningful actions that unlock
`value creation and lead to big impact.
`
`As stated in our 2010 Best Global Brands Report in
`September, we are at a pivotal moment when it comes
`to commerce. The relationship between brands and
`customers is in a state of flux. For retailers, this means
`the pressure is on to find the best way to exercise their
`brands — whether it is global expansion, more engaging
`brand experiences, or more compelling use of digital
`touchpoints. The financial and behavioral cycles of
`yesterday are fading and brands can no longer rely on
`the same strategies that worked in the past. To truly
`connect with skeptical and savvier customers, retailers
`need to focus on crafting a true point of view. This means
`ensuring that each and every touchpoint —— whether it is
`brick and mortar digital, mobile_ or internal — is infused
`and operating with the same unique brand story.
`
`is. But those
`Sound challenging? That's because it
`retailers that get it right will find themselves unlocking
`new and exciting opportunities to connect with their
`customers.
`
`Regards,
`
`Jez Frampton
`Global Chief Executive
`Interbrand
`
`Best Retail Brands 2011
`
`

`
`Thisyear, three emergmgtrendsaresending
`a clear message to retailers: the demand for
`a more seamless retail experience, the need
`for a more human touch in all interactions,
`and an increasingly global retail market. All
`three hinge on the remarkable growth and
`innovation happening in the digital world.
`
`Digital and the demand for a seamless
`retail experience
`
`While certainly not a new story, digita|'s
`continued rapid growth is forcing smart
`retailers to stay on their toes, constantly
`adapting their brand to new mediums,
`and exploring
`new opportunities
`for
`growth.
`Just some areas where we are
`beginning
`to see impressive innovation
`include: e-commerce, m—commerce, and
`social media.
`
`that certain
`shows
`report
`While our
`regions have been slower to adopt these
`innovations, others are well
`in the lead.
`like the U.S. and Korea. However, what
`is evident
`is
`that. across
`the board,
`the use of
`these channels is growing.
`The shopping journey now begins online,
`
`The future of the retail brand
`experience is multichannel,
`authentic, and global.
`
`Best Retail Brands 2011
`
`

`
`
`
`MAPPING THE SHOPPER JOURNEY
`
`Best Retail Brands 2011
`
`
`
`For many retailers, the immediacy and multiplicity of digital has turned
`the path to purchase into a seeming labyrinth. Untethered from TV, radio
`and newspapers, and floating in a cloud of always-on technology, brands
`are left wondering where to connect and how. With so many touchpoints
`at customers’ fingertips, how can retailers decide where to invest time
`and money?
`
`
`Before retailers invest in the increasingly crowded and complex landscape
`of digital,
`it’s imperative they listen carefully to what their customers
`want. For brand-led companies,
`this means not just looking to digital
`tools, but how these tools unite with their overall foundational brand
`
`strategy. It also means using a digital approach steeped in analytics, so
`
`the retailer can build platforms that intercept shoppers at crucial points along
`
`the path to purchase, and guide their decision-mal<ing.
`
`
`
`
`
`
`
`
`The channels that retailers use to reach customers may be changing, but the
`same time—tested rules of branding still apply: Listen to what customers want
`and deliver this clearly and simply through your brand.
`
`where shoppers spend more than half
`their shopping time on research. Today's
`consumers prefer email
`receipts, airline
`kiosks, GPS systems, and e-books over
`paper. They are comfortable shopping
`anytime anywhere, and demand instant
`answers and , customized service, whether
`throughliveonlinechatorreal-time,Twitter
`feedback. Perhaps most importantly of all,
`consumers want their retail experience to
`be as seamless as possible.
`
`Unfortunately, most retailers have been
`slow to recognize and enable the inter-
`dependency of all channels. Many are
`strugglingwith thequestion ofwheretoput
`capital investments to best accommodate
`the way shoppers want to shop. Should it
`be in the physical store environment? Or
`should all available resources be poured into
`technology to take advantage of the mobile
`channel with its high screen resolution,
`dynamic content, bar-code recognition and
`real—time, location-specific data?
`
`Although it might seem that brick and
`mortar is
`in danger of devolving into a
`distribution center, forced to take second
`
`place to the seductive mobile channel, the
`opposite,
`in fact,
`is true. The store has a
`newly important role now that shopping
`has become decentralized.
`Indeed,
`the
`shop of the last century — a counter, a
`cash register, and merchandise on a shelf-
`is destined to become a quaint relic of
`the
`past.
`In
`its
`place will
`be
`an
`atmosphere
`infused
`by brand values,
`graphic
`design,
`interactive
`elements,
`unique
`architecture,
`and
`exciting,
`relevant merchandising. The brick and
`mortar store of
`the future will offer
`shoppers Insight and perspective while
`conceding control to them. (Read more about
`the store ofthe future at www. interbrand. com.)
`
`The shopping experience: retail must
`learn to become more human
`
`Today's merchants are well aware they
`can't afford to be perceived as a simple
`box of stuff sold by promotions, price
`cuts, and coupons. Value is everywhere and
`the market is saturated with commodities.
`Consumers are shopping again, but in a
`different way. The dizzying choice between
`similar
`items offered through copycat
`
`promotions and
`loyalty programs
`like
`has diluted retail's options for competitive
`advantage.
`
`The recent ro|ler—coaster years of boom-
`and-bust recovery have caused people to
`stop and think about their consumption
`habits —— not only in terms of smarter ways
`to spend and save, but also on a larger and
`more profound level. While we're certainly
`concerned about our material needs, we are
`more concerned about how we want to live
`and the effects of our choices on the planet.
`
`In many cases, how we want to live directly
`affects how we want to shop. Although
`the recession slowed the trend, consumers
`continue to put emphasis on the brand
`experience, expecting that a favorite retail
`brand will act as a filter for their choices.
`This brings us to another decisive retail
`trend for 2011:
`consumers‘
`increased
`demand for transparency and humanity
`from their corporate behemoths.
`
`trend toward large, pervasive, and
`The
`impersonal retail spaces is beginning to
`reverse. As retailers become more aware
`
`Best Retail Brands 2011
`
`

`
`
` While sustainability efforts may not immediately impact a retailer's bottom
`
`
`
`'
`
`'
`
`THE CALL FOR CORPORATE
`RESPONSIBILITY
`
`line,thelong-termbenefitsforbrandsarehuge.Herearejustafewreasonswhy
`
`retailers need to work on crafting a corporate citizenship strategy that is aligned
`with their brand:
`
`I
`
`Corporate citizenship enhances brand loyalty
`Interbrand's studies on corporate citizenship show that brand loyalty is
`enhanced by a company's ethical practices. Retailers should not under-
`estimate the importance of this, as brand loyalty is becoming increasingly
`difficult to achieve in the current marketplace.
`
`Corporate citizenship is becoming a table stake
`
`Our research shows that in countries with more of a corporate citizenship
`
`legacy (Japan, Germany, and the U.K.), corporate citizenship levels off over
`
`time as a differentiating factor in decision-making and comes to function
`
`more as a table stake. This means that over time, as corporate citizenship
`
`practices become more common, the brands that don't begin charting and
`
`actively engaging in a corporate citizenship strategy are setting themselves
`upforfailure in the future.
`
` Corporate citizenship is necessary to draw a loyal workforce
`
`Good corporate citizenship practices are a huge draw for an organization's
`
`future workforce, with 64 percent of Millenials reporting that employer
`
`corporate citizenship activities increase their loyalty, 90 percent of employees
`
`are more likely to choose an employer perceived as more socially responsible,
`
`and 50 percent of consumers viewing employee treatment as central
`
`to corporate citizenship. Statistics such as this suggest that a corporate
`citizenship strategy is necessary to retain a happy and fruitful retailworkforce.
`
` Regulations and resources
`Regulatory pressures, a limit on resources, and cost concerns are all realities.
`
`Brands need to address these concerns now as these pressures will only
`increase overtime.
`
` As the above points demonstrate, there is no question that corporate
`citizenship efforts are necessary for long-term retail survival. Overall the
`
`question for retailers shouldn't be whether or not to engage in a corporate
`citizenship practice, but how to create the best corporate citizenship strategy
`
`for their brands. (Read more on how to craft an engaging corporate citizenship
`strategy and top retailers’ efforts on wwu/.interbrand.com.
`
`
`
`
`
` Best Retail Brands 2011
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`

`
`Best Retail Brands 2011
`
`they've made
`of themselves as brands,
`efforts
`to revamp their businesses
`to
`be more mission—driven and focused on
`customers’ specific demands. For example,
`Carrefour
`strategically selects
`from its
`multiple store formats —— Carrefour, Market,
`Express, City, and Contact — each designed
`to suit a different
`type of market and
`location. Similarly, Walmart struggles to
`make its store experience convey its emotive
`new slogan, "Save Money. Live Better."
`
`This shift toward emotion is in large part
`due to advancements in technology and
`digital, which have provided retailers with
`moretoolsto connectonadeeperlevelwith
`customers. Rather than create a barrier
`
`between brands and customers as initially
`anticipated,
`technology
`has
`provided
`brands with powerful analytic tools to
`read and meet customers’ needs and offer
`the empathy and insight missing from
`yesterday's retail,
`
`As more brands begin to ta|<e advantage of
`these analytic tools. expect to see deeper
`insights
`emerge
`regarding
`customer
`behavior.
`Still,
`retailers will need to
`be cautious about how they use these
`insights, avoiding a big brother approach.
`Instead,
`they would be best advised to
`focus on bringing these insights to life
`through an enthused and engaged staff and
`improvementstothe retailenvironment.
`
`More than ever, shopping is about how it
`makes you feel, and the shift in consumer
`expectations is compelling retailers to look
`at aspects of "who" as opposed to "what"
`they want to be. In today's retail landscape,
`brands with genuine character, definitive
`core values, and concern forcommunity are
`li|<ely to profit the most. The competition
`is now for share of life, as opposed to share
`ofwallet.
`
`Indeed, around the world, stores already
`have more
`emotion,
`creativity,
`and
`community, or are at least trying. Some
`examples include:
`
`an
`connects with
`(Spain),
`Mango
`international
`shopper
`base
`through
`its blog and the highly engaging "What
`Should I Wear by Mango" video mini=series
`campaign. This creative approach supports
`its plan to continue to expand globally to
`offset soft domestic sales.
`
`has
`(Australia). which
`woolworths
`improved customer experience by investing
`in new store concepts that focus on fresh
`products, such as fish markets,
`in—store
`bakeries, and expanded fruit and vegetable
`sections.
`
`lululemon athletica (Canada), which has
`seen international
`success because
`it
`resonates with consumers as a true
`lifestyle brand and goes above and beyond
`to connect through its mission towards
`healthier, happierliving.
`
`Sainsbury's (U.K.). which has focused
`on the emotional benefits of shopping,
`emphasizing price without compromising
`quality |il<e a number ofits competitors.
`
`UNIQLO (Japan), which has devoted time
`to product innovation rather than fashion
`trends based on customer feedback, and
`seen strong sales of its HEATTECH heat-
`generating clothing line.
`
` ii—u.-n-.a—__.
`
`Best Retail Brands 2011
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`

`
`Best Retail Brands 2011
`
`Today's retail is global, intangible, and
`intensely linked
`
`The world has always been a physical melt-
`ing pot, but as our 2011 study reveals, it's
`now virtual. The internet and smartphones
`have created a high-speed global
`trade
`route where millions of people are mixing
`cultures and making transactions.
`
`All that connectivity and consumer power
`— including a growing global middle class
`with a desire for material goods and a
`better life —— has multinational retailers
`ready to globe trot. Despite India's cultural
`diversity and complicated infrastructure, it
`is a top destination for the likes of Walmart,
`Tesco, Marks 8. Spencer, Mango, Carrefour,
`and Metro. And while no retailer can be
`truly "global" until the world has commonly
`recognized
`standards,
`terms,
`and
`IT
`protocols to enable and facilitate value
`exchange, digital
`is certainly facilitating
`increased connectivity.
`
`The "virtual trade route" has amplified retail
`brands and their market presence the world
`over — something that will only continue
`to intensify in the coming years. Indeed,
`apparel brands have been particularly adept
`
`at internationalization. Gap, Zara, UNIQLO,
`and Topshop are becoming international
`icons. Meanwhile, other
`retailers,
`like
`J.Crew are establishing an international
`presence priorto brick and mortar, through
`shopping sites |il<e Net-a-Porter.com.
`
`That means, of course, that retail brands
`must view their competition as both local
`and global. The store no longer offers
`a "non-compete zone." Now competitors
`can connect with shoppers at any store
`shelf,
`using
`tools
`like Amazon.com's
`mobile app, to make live comparisons and
`price checks.
`
`In the future, big retailers will routinely
`operate multiple formats and concepts,
`targeted to specific segments,
`in local
`markets, for precise consumer needs and
`occasions. Brands will combine global
`market savvy and sourcing with local
`market delivery and know-how. They will
`invest in resources with which to interact
`with individual consumers, either online or
`in—store. Overall, multichannel
`initiatives
`will be critical
`in developing segmented
`markets. For many big retailers, the next
`growth phase will be about segmentation
`and localization.
`
`As retailing grows more complex, brand
`thinking becomes even more essential
`for survival. New shopping patterns and
`dynamics will emerge, waiting for smart
`retailers
`to take advantage of
`them.
`Companies must look to their brands to
`guide them through the coming changes
`and complications.
`
`Brand—led companies tend to be more
`flexible than rigid — more resilient in the
`face ofchange and more likely to see ROI. In
`this age ofglobal influences and rapid social
`andeconomicchange,aclearbrand strategy
`will allow companies to adapt without
`getting derailed. An emphasis on customer-
`centricity will help a company focus on the
`specific market and match for its products
`and strengths, guiding it in gathering data
`on its core market's expectations. A clear
`brand strategythatfocusesonthecustomer
`also helps a company design and manage all
`aspects of its brand experience seamlessly
`- which in turn clears the way to achieving
`its business goals. As one wise retailer
`put it, "Vou can only reduce prices so much,
`but there is no ceiling on over-delivering
`on the brand experience."
`
`BIG CITY, SMALL WORLD
`
`The biggest macro-trend of the moment, urban migration, is already having
`an impacton retailformats. Overhalftheworlds population nowlives in cities,
`according to the United Nations, and the move from rural to urban continues
`at a high pace. In addition to the challenges climate change presents, cadres
`of city planners, design engineers, and architects are grappling with waste
`and inefficiency, faced with the need to transform tomorrow's cities into lean,
`clean, people-friendly places. As such, the pressure is on for retailers to ensure
`that their stores adapt to the new city model
`
`Urban retail sites with their slim iand parcels require a slightly adjusted brand
`focus to make stores more relevant to a city population. It's here that big-box
`retailers in particular may find themselves in the zoning crosshairs, subject to
`bans, or at least building limitations that prevent them from executing their
`traditional strategies and sizes. Indeed,
`it is already forcing many retailers
`to explore alternative formats to overcome these restrictions. The likes of
`Carrefour, REWE, and J.Crew have been experimenting with new formats.
`(Read rnoreabout t