An heir to the Hyatt Hotels, Adam Pritzker is the chief executive officer and chairman of Assembled Brands. Although he is still young, Pritzker is making a name for himself by analyzing the way business is done, particularly in the Retail clothing market. He appears to understand the forces at work and fashion changes quite well. Pritzker’s company, Assembled Brands, is focused on providing financial services and working capital to up-and-coming consumer brands that need the support of a centralized network such as his to access important data and resources.
Analyzing the Current Retail Model
Pritzker sees the traditional model of wholesale-to-retail marketing as a cumbersome way to reach customers. He believes that a direct-to-consumer business model is more suitable for success in the current retail climate. His reasoning is simple: understand your customer better by interacting more directly with them. Use the data gleaned from that relationship to create a better product, one that customers can relate to and appreciate. Observe the customer’s buying patterns and then capitalize on them.
This strategy almost reminds one of an old-fashioned store where the owner knows the customers personally and gears the merchandise to please them. The main difference is that Pritzker’s model is on a more sterile, impersonal level. His concept is based more on the idea of wholesale distribution being the first line of contact with the customer, who in turn will, hopefully, become a repeat customer. This paves the way for a direct path to the customer who will revert to online shopping after the first initial purchases. As such, the strategy allows for higher profit margins for the distributor.
Pritzker’s first project was a retail experience named The Line. His executive creative director, Vanessa Traina, collaborated with him to create this unique shopping experience. In addition to its posh atmosphere, a collection of clothing, accessories, and home décor are tastefully displayed to attract consumers. He didn’t create this store just for the sake of opening one, but to attract potential stakeholders to engage in a stimulating conversation about the evolving face of retail shopping and fashion space.
Successful, Pritzker now seeks to help other newcomers to the fashion scene with his wisdom and possibly some working capital to help get them on their feet so they can operate in a profitable manner. Because his retail equation works, Pritzker is being credited with the resurgence of the fashion empire.
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