Consumer Understanding – Heike Linnemann

Europe’s mono-brand retailers

Heike Linnemann — Fri, 19 Sep 2025 12:11:41 +0000

Learning from failures and successes

In the past two years, Europe has witnessed a wave of mono-brand retailers filing for insolvency. Yet at the same time, others are expanding successfully across the continent and beyond. This article focuses on understanding the difference between failure and success to drive learning for brand-driven businesses. Overall management, the power of the group a brand belongs to and other aspects of retail management e.g. location and rent are not the focus of this article.

The headwinds facing mono-brand retail

Mono-brand retailers face a particularly tough environment. Inflation has dampened consumer spending while store costs remain high. Ultra-low-price online players like Shein and Temu have grabbed share with relentless churn and aggressive marketing. Returns and last-mile delivery costs weigh heavily on margins, while regulatory changes around sustainability (Ecodesign, Extended Producer Responsibility) add new complexity. Finally, shifts in shopping behaviour make it harder for traditional high-street brands that rely on footfall.

The recent insolvencies – and reasons why

The common treads are a consumer mismatch, failing to keep up with the shifts in what consumers want, lack of brand differentiation, assortment inefficiencies, and premium pricing without premium value.

Ted Baker (UK)

Shift to casual, “work from home” reduced demand for tailored, formal apparel and the consumer preference shifted faster than the brand could adapt.

Quirky, British positioning lost appeal and the brand its distinctiveness.
Seasonal trends weren’t matched with agility and pricing didn’t match competitive landscape offering cheaper alternatives.
Licensing deals failed.

2. The Body Shop (UK)

The ethical and natural beauty market has become crowded, with intensified online competition; smaller, niche brands and indie players offer similar values. Added to this, cost-of-living pressures made “luxury-ethical” less of a priority for consumers.
Multiple ownership changes (L’Oréal → Natura → Aurelius) led to shifts in strategy and muddied positioning.
Innovation lagged behind smaller nimble brands.
Pricing was high relative to competing “ethical” or “clean” beauty or naturals at lower price points. Heavy reliance on promotions, especially during the key season, which underperformed.

MUJI (Europe)

Changes in consumer expectations: minimalist design is still appealing, but demands on affordability, convenience, speed of delivery have increased.
A very broad assortment (home, apparel, houseware etc.) created complexity in stock, slower turns in several categories.
MUJI’s premium pricing did not match consumer value perceptions compared to competitors, and did not always align for all markets.

Five success stories – and what they do differently

There is no secret sauce or magic trick that drives success. What drices success are a consumer-first and focus to remain relevant, clear brand positioning that their consumers understand and a choice not to serve evryone, a disciplined and curared assortment, pricing clarity – none are cheapest, but all deliver clear value-for-money in their segment. Promotions are strategic, not constant.

UNIQLO

A clear LifeWear positioning that transcends seasons and generations, serving consumers who are not after “fast-fashion”.
Consistently delivering product quality resulting in strong brand trust for fit and fabric innovation.

Value-based pricing, limited promotions, and a careful expansion of flagship stores.

ZARA

Meets consumers’ desire for constant newness with fast cycles and addresses global trends.
Investment in store experience for premium look, better layouts, and tech integration.
A mid-market pricing, linked to a quality, trend and speed in combination with strategic promotions.

Rituals

Speaks to the growing consumer demand for “self-care,” wellness, and achieves an emotional connection through ritual and lifestyle storytelling.
Creates a distinctive, and holistic brand world behind “The Art of Soulful Living”, with a clear focus on an assortment of beauty and home, bridging personal care and lifestyle.
Premium-accessible pricing, limited promotions, gifting packs that drive perceived value, and strong loyalty programs.

KIKO Milano

Captures consumers seeking affordable beauty with trend responsiveness.
A clear brand identity: Italian, colourful, and trend-led.
Frequent launches, including product and packaging innovations, and limited editions, bringing the positioning to life.

Intimissimi

Serves daily, repeat-purchase needs (lingerie/underwear) with value-for-money positioning and consistent fit/comfort and extends reach with Intimissimi Uomo → IUMAN to capture men’s basics and gifting.
Clear, single-brand world: Italian, sensual, everyday elegance executed in a disciplined store image worldwide.
Vertical integration enables fast refresh on fashion capsules and limited editions while protecting depth in basics.
Intentionally omnichannel approach including pick-up in store to drive traffic.
Accessible premium: not the cheapest, but strong perceived value from quality, fit and Italian design. Promotions are selective (campaign-led), avoiding margin-eroding constant discounting.

To summarise

In a sector where competition is fierce, and consumer expectations are changing fast, staying close to consumers, clarity of brand, agility of execution, and disciplined economics make the difference between flourishing and faltering.

If your business is facing similar challenges, now is the time to identify growth blockers, stress-test your consumer understanding and brand differentiation to unlock sustainable, profitable growth

Let’s connect to explore how your brand can thrive where others stumble.

Beauty Brands are Scoring in Sports Sponsorship

Heike Linnemann — Fri, 29 Aug 2025 12:14:32 +0000

From Lipstick to Lockerroom

For decades, beauty brands have owned the runway, the red carpet, and the glossy magazine spread. But now, a new stage is stealing the spotlight: the sports arena.

This isn’t about a halftime ad or a product placement. It’s about full-fledged sponsorships — team partnerships, league deals, and athlete collaborations that put beauty brands front and center in a world once considered far from cosmetics.

And at the heart of this shift? The meteoric rise of women’s sports.

1. Reaching New, Engaged Audiences Through Women’s Sports

Women’s sports are in a growth sprint. The WNBA’s 2024 season averaged 1.19M viewers on ESPN platforms — a 170% increase year-on-year. And it’s not just about viewership. Women’s sports foster tight-knit, value-driven communities that brands can authentically tap into.

Fans aren’t just watching; they’re showing up, engaging, and building culture around their teams. For beauty brands, this means a chance to tell authentic, human stories — stories about confidence, resilience, and self-expression — alongside athletes who embody those values.

2. Why Sports Sponsorship Delivers More Than Awareness

Unlike one-off ads, sponsorship offers repeated exposure and emotional association. Nielsen data shows:

Women’s sports sponsorship delivers double the brand recall compared to men’s sports.
Athlete-backed partnerships lift purchase intent by an average of 10% among exposed audiences.
Female fans are 25% more likely to purchase from a brand sponsoring their favourite sport.

For beauty brands, that’s the sweet spot: visibility that converts.

3. Who’s Playing

Fenty Beauty × New York Liberty (WNBA) – Official beauty partner, branding on warm-up gear, in-arena fan activations, and mascot-led product drops.
Glossier × USA Women’s Basketball & WNBA – Sponsoring the Paris Olympics and league partnerships, merging sport and style.
e.l.f. Cosmetics × NWSL & Indy 500 – From soccer to motorsport, connecting with diverse, cross-interest audiences.
Maybelline × Naomi Osaka / Ilona Maher / Women’s Lacrosse League – Athlete sponsorship plus league presence for multi-touch visibility.
Clinique × England Premier Women’s Rugby – Game Face Ambassador Holly Aitchison brings skincare into the rugby conversation.
Unilever (Dove, Rexona, Lux, Lifebuoy) × FIFA Women’s World Cup – Multi-brand global sponsorship, uniting personal care with the world’s biggest women’s sporting event.
Wella Professionals × Aston Martin Formula 1 – Haircare activations in the F1 paddock, bringing styling services to the racing world and tapping into a growing female fan base.

4. Watch-Outs

How Sponsorships Can Miss the Goal

Not every beauty-sports partnership is a win. Common pitfalls include:

Checkbook-Only Sponsorships – Paying for a logo on a shirt or a board without any activation, fan engagement, or content. This usually results in low recall and minimal brand lift.
Poor Cultural Fit – Pairing with a sport or athlete that doesn’t align with your brand values can feel forced and alienate both fans and customers.
Short-Term “One and Done” Deals – Single-season sponsorships rarely build enough equity to shift perception or behaviour.
Overreliance on One Star – When a sponsorship rests on a single athlete, the brand risks losing relevance if that athlete’s visibility fades.

5. Beyond Traditional Sports

Beauty sponsorships are no longer limited to tennis or figure skating. Brands are moving into rugby, volleyball, cricket, and lacrosse — sports gaining traction with a different, and younger audiences globally. The message is clear: beauty belongs wherever performance, passion, and personality meet.

6. Why This Works for Beauty Brands

Strategic Fit – Beauty partnerships with sports tap into narratives of empowerment, resilience, and diversity.
New Audiences – Access to GenZ and Millenials respond positively to brands championing representation.
Community Access – Women’s sports deliver highly engaged communities where brands can be part of the audience’s passion and conversation, not just the ad break.

The Takeaway

Sports sponsorship is no longer a side play for beauty brands – it’s becoming a core brand-building strategy. It offers a rare combination of reach, relevance, and resonance, particularly with Gen Z and Millennial audiences who value authenticity and representation.

That’s exactly the kind of shift I help businesses navigate – turning brand and marketing into true growth engines — from growth strategy to innovation sprints, brand positioning and digital marketing and selling. If this is a challenge you’re facing, I’d be glad to exchange perspectives.

This newsletter was sparked by Russ James, a commercial and marketing strategist specialising in sport. He is helping rights holders, brands, and investors unlock growth through sponsorship, audience engagement, and purposeful activation. If this is something you’re looking to explore, Russ is the person to follow and connect with.

2025 Consumer

Heike Linnemann — Fri, 25 Jul 2025 09:49:12 +0000

In 2025 consumer behavour is still influenced by the COVID pandemic. The article explores how and what it means for brands.

While the COVID-19 pandemic feels like a ghost from the past and old news, it’s still impacting consumer behaviour today. Five years later, it continues to shape how people live, shop, and make decisions. Here are five key changes in consumer behaviour and what brands need to do to stay relevant.

1. People Are Spending More Time Alone – And Online

With less commuting and more flexible work arrangements, consumers have reclaimed time. Much of this reclaimed time is spent independently—on hobbies, fitness, online shopping, and scrolling through social media. Interestingly, while people have more time, the amount of time they spend with others hasn’t increased. This means the share of time spent alone has grown.

2. Digital Channels Win Users – But Not Their Trust

Consumers are spending more time on digital platforms, but trust hasn’t followed. Social media is one of the least trusted sources for buying decisions, even though it’s where people connect with friends and family—who remain the most trusted sources.

The paradox: digital channels are powerful but under scrutiny. For brands, this means delivering authentic, personalised messages across platforms and tapping into trusted sources like product reviews, influencers, and social proof to build credibility.

3. Gen Z Grows Up – And Spends Differently

Gen Z is coming of age. They are poised to become the largest and wealthiest generation, but their path to adulthood is distinct. Unlike previous generations, they prioritise financial security and career success. Traditional milestones like marriage or homeownership matter less.

Despite this pragmatism, they’re also the most willing to splurge—especially on fashion and beauty. For brands, the challenge is to offer experiences and products that Gen Z deems “splurgeworthy”.

4. Local Beats Global

Consumers are leaning toward buying from local brands and supporting domestic businesses. Global companies now face higher expectations when operating outside their home markets.

Winning in 2025 and beyond will require multinationals to localise more deeply—tailoring products, sourcing locally where possible, and making portfolio choices that reflect local consumer needs.

5. Consumers Are Redefining Value

Rising prices remain the number-one concern. Consumers are adapting by trading down—but not always in predictable ways. They’re willing to shift across categories, rethinking what’s essential and what’s worth paying more for.

Simple assumptions about category loyalty or price sensitivity no longer hold.

What does it mean?

Get closer to the consumer: Sentiment and spending patterns are increasingly disconnected. Brands must dive deeper to truly understand what drives decisions today.
Invest in data-led pricing and promotion strategies. Consumers are savvier, more price-conscious, and are making more complex trade-offs.
Tailor your brand portfolio for growth. Rethink your go-to-market models, including e-commerce strategies and market prioritisation.

Would you like to shapen your growth strategy with a consumer-first approach? Let’s connect!

Source: McKinsey 2025 Consumer Trend Report

Strategic Customer Experience Trade-offs

Heike Linnemann — Thu, 20 Mar 2025 18:20:33 +0000

When businesses face challenges, the default response is often to cut costs across the board. However, this approach can erode brand equity and damage your customer experience. Drawing insights from “Uncommon Service,” I believe this is a useful framework for business transformation or likewise identifying how to fund your growth acceleration.

The Strategic Service Framework

Successful turnarounds require thoughtful choices rather than blind cost-cutting. Consider this three-step approach:

Identify customer priorities through research and data analysis.
Make strategic choice by determining where to excel and where to deliberately cut effort.
Reallocate resources to strengthen differentiation and operational efficiency

Real-World Application

In one business transformation I led, the company initially aimed to match premium brands across all touchpoints—an unsustainable goal given their resources. Through customer research, we discovered:

Product design was non-negotiable for customers
Merchandising and in-store materials could be simplified without affecting satisfaction
Customer service costs could be reduced by using automated emails and an online help centre vs. call centre agents

By seeking to reduce merchandising costs, the team identified a new solution that didn’t compromise the perceived premium. For customer service, the self-help and automated emails were even preferred vs. speaking to an agent.

If your organisation is struggling, start by asking these key questions:

Where should we outperform? (What do customers genuinely value?)
Where can we strategically underperform? (What activities aren’t driving growth?)
How do we align our operations, people, and brand around these priorities?

The Uncommon Difference

The principles of “Uncommon Service” extend beyond customer experience—they provide a blueprint for sustainable growth, enhanced profitability, and strengthened brand equity.

Making these deliberate trade-offs is what ultimately separates businesses that struggle from those that thrive in challenging environments.

Would you like to discuss how this applies to your business?

Let’s connect