Why The DJs/Myer Battle’s Good For Agencies (But Why The War’s Lost Anyway!)

Why The DJs/Myer Battle’s Good For Agencies (But Why The War’s Lost Anyway!)
SHARE
THIS



Department store giant Myer’s decision to cull over 100 of its popular brands today sends a strong message to rivals that it’s back in the game, while any simmering retail war with  competitors should result in a positive uplift for agencies.

Myer today announced that it had followed David Jones’ lead and culled a large number of brands primarily in the fashion, footwear and homewares space.

Reports say the struggling retailer wants more mid-range brands at the expense of the cheap or the expensive and will favour the likes of Country Road, Marcs, Calvin Klein and FCUK.

The move is largely seen as an attempt to re-establish its core market and compete against its more up-market rival DJs and the plethora of overseas players – H&M, Zara and Uniqlo – that have arrived recently to grab a large piece of the local retail pie.

A criticism of both department stores is that they carry far too great a range for the foot traffic their stores receive. It’s also doubtful that brands that have been punted from the department stores and don’t have their own retail networks will find a home anywhere else.

One agency boss who spoke to B&T on the guarantee of anonymity (one of the players is a major client) agreed Myer had to do something. “You just get no confidence from what Myer is trying to do in the market at the moment,” he said.

“DJs appears to have a better vision where the market is at. Myer have been beaten into the middle-ground and that can be no-man’s land. You’re not budget or not upmarket and you don’t have a very clear positioning. David Jones has always had a more premium approach and that’s starting to show some green shoots for them and they have their digital game face on, and it feels like they’re doing a better job.”

And could any pending war in the retail space translate to added spend for media agencies?

“The two majors will continue to spend money… they’ll continue to go head to head,” he said “How that plays out exactly for agencies remains to be seen. Will it increase spends? It could do, yes.

“The said, fashion brands in Australia have never been great spenders. It’s certainly not like the FMCG brands that are just a much bigger business than fashion ever has been. Fashion brands typically use design companies over ad agencies in any case.

“I don’t think this will have the impact (on Adland) that the supermarkets screwing their FMCG clients on price has had on their marketing spends.”

But is a tit-for-tat war between DJs and Myer a misguided one when the real enemy appears to be these new budget-priced interlopers that have arrived on Australian shores recently? It’s much like the Coles and Woolies stoush in recent years where the two have only recently woken-up to the fact the real enemy has been ALDI all along?

“Wars between whoever aside, I think the two should just deliver what their customers want. I think you’re in trouble when your decision making is based on what your competitors are doing.

“There’s been some great retailers who’ve been able to transform themselves. Think John Lewis in the UK or any number of retailers who’ve managed to remain relevant despite all the changes in technology and different brands and different models coming into their space. There’s still a role for these big department stores, they just need to have an experience that’s worth going into the store for.

“But I’d be more fearful for where Myer is going than DJs. DJs just seems to have a better grasp on where it wants to go strategically than Myer. You just don’t get that sort of confidence from what Myer is trying to do in the market at the moment. David Jones just seems a bit more buoyant,” he said.

 

Please login with linkedin to comment

Latest News

Study: TV Ads Outperform Facebook & YouTube For Sales Impact, Regardless Of Screen Type
  • Advertising
  • Media

Study: TV Ads Outperform Facebook & YouTube For Sales Impact, Regardless Of Screen Type

New research from respected marketing science academic professor Karen Nelson-Field has uncovered new insights into how and why video advertising works for brands when viewed on mobile devices. The mobile edition of Nelson-Field’s ongoing Benchmark Series, commissioned by ThinkTV, makes a number of significant findings that are designed to help advertisers and their agencies get […]

Now Screen Repositions Organic Care Brand With New Campaign
  • Advertising
  • Campaigns

Now Screen Repositions Organic Care Brand With New Campaign

Aussie agency Now Screen has teamed up with Organic Care to reposition the brand in what has become one of the most competitive FMCG spaces. The new campaign, ‘Caring Comes Naturally’, celebrates what Organic Care has created since its inception: products that are as good for your body as they are for the environment. In […]

Can You Speak Data?
  • Marketing
  • Opinion

Can You Speak Data?

We're certainly fluent in gibberish, balderdash and claptrap here at B&T, but sadly data isn't part of the lexicon.

Opinion

by B&T Magazine

B&T Magazine
Social Change Maker Profile: Emma Heath
  • Advertising
  • Marketing
  • Media

Social Change Maker Profile: Emma Heath

B&T has partnered with UnLtd to showcase industry heroes! Well, it's arguably more heroine in the case of Emma Heath.

by B&T Magazine

B&T Magazine
Ad Fraud: A Problem We Can Solve
  • Advertising
  • Opinion
  • Technology

Ad Fraud: A Problem We Can Solve

Unlike B&T's mystery office farter, this columnist argues ad fraud is a problem that can possibly be solved.

Opinion

by B&T Magazine

B&T Magazine
Why We Pivoted Our ‘Specialist’ Agency Five Times In 15 Years
  • Marketing
  • Opinion

Why We Pivoted Our ‘Specialist’ Agency Five Times In 15 Years

In this opinion piece, Gavin McDonough (pictured above, co-founder and managing partner of Urban, shares through his own experience some valuable advice for independent specialist agencies. In November 2017, my brother Ryan and I celebrated 15 years in business. We started business out of my front room in Melbourne in 2002 – not with any grand […]

Opinion

by B&T Magazine

B&T Magazine
W+K’s Susan Hoffman Chosen As 39th AWARD Awards Chair Of Judges
  • Advertising

W+K’s Susan Hoffman Chosen As 39th AWARD Awards Chair Of Judges

Susan Hoffman, co-chief creative officer at Wieden+Kennedy (W+K), has been appointed chair of judges for the 39th AWARD Awards. Known to challenge the status quo, Hoffman is behind some of W+K’s most memorable and game-changing ads, including Nike’s ‘Revolution’, Old Spice’s ‘The Man Your Man Could Smell Like’ and Chrysler’s Super Bowl spots starring Eminem and Clint […]

Experiential Agency Kreate Gets Bought Out By Staffers
  • Marketing

Experiential Agency Kreate Gets Bought Out By Staffers

Leading experiential marketing agency, Kreate Australia is embarking on an exciting growth strategy following its purchase by three of the agency’s existing management team from its UK founder, Steve Evans.

Hurry! B&T 30 Under 30 Entries Closing Friday!
  • Advertising
  • Marketing
  • Media

Hurry! B&T 30 Under 30 Entries Closing Friday!

This is a clarion call for B&T 30 Under 30 entries, although it's probably more mariachi band than angelic harbinger.

by B&T Magazine

B&T Magazine
The Hit Network Chooses Comedian Tanya Hennessy To Host Weekend Breakfast
  • Media

The Hit Network Chooses Comedian Tanya Hennessy To Host Weekend Breakfast

Southern Cross Austereo’s Hit Network has announced that rising radio star and comedian Tanya Hennessy will take over hosting duties for its weekend breakfast slot in 2018. Hennessy will bring content to the airwaves each Saturday and Sunday morning from 7am to 9am with a regular rotation of guest co-hosts. The self-described talker, not walker […]

Straight Up PR Wins Five New Clients
  • Marketing

Straight Up PR Wins Five New Clients

Health, wellbeing and lifestyle PR agency Straight Up PR has welcomed Changing Habits, Unichi Wellness, enerGi, SleepX, and Healthie Hampers to its client portfolio. Straight Up PR’s projects will include bespoke PR services and influencer marketing packages specifically focusing on communications strategy and execution, media and influencer relations, PR launch events, product seeding and gifting, […]

March One Creates ‘Cheese For Change’ Fundraising Campaign For White Ribbon Australia
  • Advertising
  • Campaigns
  • Marketing

March One Creates ‘Cheese For Change’ Fundraising Campaign For White Ribbon Australia

Independent creative agency March One has developed a new fundraising event for White Ribbon Australia that turns a social moment into a social movement. Starting on Thursday 22 March and going until Sunday 25 March, Cheese for Change will ask Aussies to create a cheese platter that matters by gathering friends, family or co-workers together […]

Sixth Annual IGN Select Awards Winners Announced
  • Marketing

Sixth Annual IGN Select Awards Winners Announced

The winners of IGN Australia’s sixth annual Select Awards were revealed during a huge special event at the Australian National Maritime Museum in Sydney on Friday, February 16. Some 225 Media & Game Publishers alongside 320 IGN Community Gamers attended the annual event. 2017 was absolutely crammed with terrific games and several categories were extremely tightly-contested. The top […]

Meet Your Mentors For B&T Bootcamp 2018!
  • Advertising
  • Marketing
  • Media

Meet Your Mentors For B&T Bootcamp 2018!

When it comes to an industry "who's who", you'll find there won't be too much who-ing with this impressionable lot.

by B&T Magazine

B&T Magazine
ANZ Unveils Its 2018 GAYTMs
  • Marketing

ANZ Unveils Its 2018 GAYTMs

Mardi Gras is only weeks away and B&T has already hoisted the mirror ball and donned the hotpants to bring you this.

International Creative Services Redesigns Business Model To Broaden Talent Offering
  • Advertising
  • Marketing
  • Media

International Creative Services Redesigns Business Model To Broaden Talent Offering

Marketing consultancy International Creative Services has announced a new roster of diverse creative and production talent to provide a fully integrated solution for advertising and branded content. The roster includes a broad range of global and local directors, animators, illustrators, motion designers, visual artists, light projectionists, photographers and cinematographers – many of whom Australia will […]