Strategy versus Execution at Macy’s, Farfetch, and Beyond – WWD

Have seen the destination – and then will get there.

It’s a distinction that becomes increasingly important as fashion and beauty companies move into a new world and begin to make increasingly dramatic changes.

When Gordon Von Bretten, chief conversion officer at Coty Inc., took the stage at the New York Stock Exchange for corporate investor meeting Last week, he revealed a bit of C-suite truth when describing the company’s “All-To-Win” plan that deals with “costs, cash, growth, and strategy.”

“Conversion is probably 80 percent execution and 20 percent planning,” said Von Bretten, a veteran of major transformation efforts at private equity giant KKR. “So to create this kind of overview or something a consultant can do in 15 minutes, but that’s not all. Planning is 20 percent and execution is 80 percent. And that’s where most businesses fail.”

While Coty is going all out to reinvent herself in the beauty business, selling the rest of Wella and expanding with the Kardashian family, it’s also an important message to others in the industry right now. now.

Followed by a lot of topics travel in retail department stores as people watch Saks Fifth Avenue, has spun off its brick-and-mortar business from its web business and is now eyeing an initial public offering of e-commerce. Hopefully the parts have a much higher overall value than the whole as Wall Street seems willing to pay for e-commerce and a little more.

The move – seemingly welcomed by many in the investment group – goes against a decade of omnichannel hype that has seen retailers do everything they can to get their clicks and blocks in. closer to each other.

Saks’ ambitions are clear and echoed by companies across the country. These days e-commerce companies are having crazy valuations in the market, why shouldn’t the bigger, better-equipped and better-reputed players get their own crazy pricing? ?

That strategy – to separate the e-commerce business and reap the big rewards – is simple, but execution is another thing, requiring multiple contracts that act as the connective tissue to the business. The retail and web businesses are still operating together.

Initiated by activist investor Jana, Macy’s Inc. is now exploring a similar move and has hired AlixPartners to weigh the ramifications of the split, tapping the consulting firm that helped Saks map out its plan.

“We considered the costs, benefits, implementation risks and [potential] of additional shareholder value unlocked. We’ve been working with our board and our advisors on this for a while,” Jeff Gennette, Macy’s president and chief executive officer, told WWD.

If there’s an opportunity to sell part of one’s business for more than it’s worth together, the CEO of any public company must take legal action.

But can it really be pulled out?

The division between strategy and execution is also being emphasized because FarfetchJosé Neves of José Neves is looking at Johann Rupert’s enduring call to create a luxury-neutral e-commerce platform. Farfetch is in talks to link it closer to Rupert’s Compagnie Financière Richemont and its Yoox Net-a-porter division.

Both Neves and Rupert are great thinkers and visionaries, but they still face the hard work of not just seeing the future, but building it. In this case, that seems to mean taking on the big job of building consensus.

Lorenzo Bertelli — the son and apparent successor of Prada CEO Patrizio Bertelli — doesn’t rule out the idea of ​​entering an open e-commerce platform.

“I think we can expect them to come and talk to us, we are their partners, but it’s too early, they haven’t even finished the conversation,” Bertelli said. “We are always open to any opportunity but the scenario is not clear enough to give an answer.”

The opportunity here is strategic. The answer – if the team’s open platform can “yes” – is enforcement.

And that seems to be 80% of the work to be done.

More words In fashion:

In fashion: Supply chains shut down, launch and reinvent

In Fashion: Controlling the Freaky Next Generation with a Dream

In Fashion: A Direct-to-Consumer Mirage?