First, retailers are key partners who help vendors reach a broad audience through department stores, specialty shops, and online marketplaces. If retailers feel undermined by a vendor’s DTC efforts, they may reduce support, leading to less favorable placement in stores and diminished promotional efforts. Maintaining positive relationships ensures that products are prominently featured and actively promoted.

A diversified sales approach is also vital. While a vendor’s DTC channel, including its website and branded stores, is important for growth, retailers provide additional revenue streams and help buffer against potential issues in the DTC channel, such as website outages or logistics challenges. A balanced and resilient sales strategy is crucial for long-term success.

Retailers contribute significantly to a vendor’s brand image and customer loyalty. If retailers feel marginalized by a DTC strategy, they might deprioritize the vendor’s products, offer less enthusiastic recommendations, or even favor competitors. This can negatively impact the vendor’s brand reputation and customer loyalty.

Retailers also extend a vendor’s market reach, helping to access a diverse customer base, including those who prefer in-store shopping or purchasing from multi-brand online retailers. Alienating retailers can limit market reach and reduce overall sales potential.

In addition to expanding market reach, retailers enhance
the customer experience by offering personalized service, the ability to try on products, and immediate purchases. If the DTC push threatens these services, it may lead to lost sales and dissatisfied customers.

Moreover, retailers provide valuable feedback on consumer preferences, emerging trends, and product performance.
This feedback is crucial for product development and marketing strategies. Losing access to these insights could hinder a vendor’s ability to stay ahead of market trends and meet customer
needs effectively.

Retailers often communicate with one another and can collectively respond to a vendor’s strategies. If they feel collectively disadvantaged by DTC efforts, they might take coordinated actions such as reducing orders, limiting promotional efforts, or even delisting the vendor’s products. Addressing retailer complaints can prevent such actions and ensure ongoing support from retail partners.

By acknowledging and addressing retailer concerns about DTC strategies, vendors can find a balanced approach that benefits both their DTC and retail channels. This might involve offering exclusive products or styles to retailers, setting different price points, or collaborating on marketing initiatives. A well-balanced strategy that integrates both channels ensures long-term sustainability and growth.

The Benefits of Not Competing on Price with Retailers

One of the key benefits vendors achieve by not competing on price with their retailers is the preservation of brand value. Price competition can lead to a race to the bottom, where the perceived value of the product diminishes. By maintaining consistent pricing across both DTC and retail channels, vendors can preserve the premium nature of their brand, ensuring that the product is seen as a quality offering, regardless of the purchase channel.

Additionally, avoiding price competition fosters trust and loyalty within the retail network. Retailers are more likely to invest in promoting and stocking the vendor’s products if they know they won’t be undercut by the vendor’s DTC channel. This leads to better in-store placement, more enthusiastic recommendations from sales staff, and a stronger overall partnership between the vendor and retailer.

Consistent pricing also helps avoid customer confusion
and dissatisfaction. When customers see varying prices for the same product across different channels, it can lead to frustration and erode trust in the brand. Ensuring price parity creates a seamless shopping experience, whether the purchase is made online or in-store.

The Role of Shoe Retailers in Building Brand Equity

Many top shoe brands in the United States owe their success— in terms of volume, acceptability, and top-of-mind awareness—to shoe retailers who championed their products. Retailers, especially those employing full-service salespeople, played a pivotal role in introducing new brands to consumers and educating them on the features, advantages, and benefits of these products.

Full-service salespeople are not just transaction facilitators; they are brand ambassadors who create a personalized shopping experience. By bringing out new brands, explaining their unique selling points, and helping customers find the right fit, they build a strong emotional connection between the consumer and the brand. This level of personalized service helps to establish trust and brand loyalty, making the brand a go-to choice for consumers.

However, when these shoes are no longer carried by these key retailers, the story can change rapidly. Brands that were once top-of-mind for consumers can see their brand equity erode quickly. Without the endorsement and active promotion from retailers and their sales staff, these brands may struggle to maintain their market presence and customer loyalty. As a result, their visibility and reputation can decline, leading to reduced sales and a weaker position in the marketplace.

In summary, the success of many top shoe brands has been closely tied to the efforts of full-service retailers. Maintaining strong relationships with these retailers is essential for preserving the brand equity built over years of personalized service and consumer education. n

Alan Miklofsky is a semi-retired Professional Shoe Dog with a distinguished career in the footwear industry. Over the decades, he successfully ran an award-winning shoe business while dedicating 29 years to the National Shoe Retailers Association (NSRA) Board of Directors, including serving as Chairperson from 2009 to 2011. Today, Alan channels his expertise into creating content on issues vital to independent shoe retailers and offering consulting services with a focus on financial oversight.

For more information on Alan, visit his LinkedIn page at: https://www.linkedin.com/in/alanmiklofsky