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

QMS Goes West With ‘The Leeder’
  • Advertising
  • Media

QMS Goes West With ‘The Leeder’

QMS Media continues to expand its digital portfolio across Western Australia, switching on an iconic billboard in the heart of Perth. Following the launch of two new digital billboards in the major WA regional centres of Bunbury and Kalgoorlie in recent months, ‘The Leeder’ further delivers on QMS’ digital expansion strategy out west. Positioned at […]

PR Firm Text100 Wins NetApp Account For APAC
  • Marketing

PR Firm Text100 Wins NetApp Account For APAC

Global marketing communications agency Text100 has announced it been appointed by data management company NetApp to drive its brand transformation effort across the Asia-Pacific (APAC) region. Following local competitive pitches conducted across the region, Text100 has been appointed as the APAC lead agency out of Singapore, and as the local agency of record in Australia, […]

MFA Awards 2017 Winners Revealed!
  • Advertising
  • Marketing
  • Media

MFA Awards 2017 Winners Revealed!

B&T once again donned the tux, applied the Brut, and primed the liver for last night's MFA Awards in Sydney.

Concrete Playground Launches Voice-activated Nightlife Guide With Google Assistant
  • Media
  • Technology

Concrete Playground Launches Voice-activated Nightlife Guide With Google Assistant

Digital publisher Concrete Playground has unveiled a new app that helps Millennials plan their night out using voice control – the first of its kind to become available in Australia. Concrete Playground’s Guide to Tonight now works with Google Assistant, making it available on a range of Google devices and helping people to decide what […]

Digital Agency Inlight Secures Two Key Client Wins
  • Marketing
  • Technology

Digital Agency Inlight Secures Two Key Client Wins

Independent agency Inlight has announced it has won the digital account for Benetas, a not-for-profit aged care provider in Victoria. Following a competitive pitch process, Inlight was chosen to handle Benetas’ new website design, build and ongoing optimisation. Richard Barker, marketing manager at Benetas, said: “We wanted an agency that could be our true digital […]

AMI Awards 2017 Winners Revealed!
  • Marketing

AMI Awards 2017 Winners Revealed!

With almost 30 awards handed out, B&T predicts plenty of numb bottoms at last night's AMI Awards in Melbourne.

Clems Sydney CEO Andy Pontin Quits
  • Advertising

Clems Sydney CEO Andy Pontin Quits

Sure, B&T flashed the news of Andy Pontin quitting this morning. White lies aside, he's actually still got six months.

by B&T Magazine

B&T Magazine
Adobe MAXes Most Creatives In A Room Record
  • Advertising
  • Media

Adobe MAXes Most Creatives In A Room Record

B&T's journo is reporting live from the annual Adobe Summit in Vegas. Although, "reporting" is somewhat of a stretch.

Opinion

by David Hovenden

David Hovenden
Digital Women’s Network & The Australian College Of Marketing Unveil Latest Short Courses
  • Marketing

Digital Women’s Network & The Australian College Of Marketing Unveil Latest Short Courses

The Australian College of Marketing is collaborating with the Digital Women’s Network to bring new short courses aimed to provide the latest skills across all aspects of the Digital landscape, kicking off in Melbourne and Sydney in 2018. Course content will focus around various topics related to the digital marketing landscape. All courses will run […]

Man working at office desk, looking at computer and scratching head
  • Technology

Where Are Digital & Tech Skills & Salaries Headed?

The rapid pace of technological change in the digital sector is seeing demand for those with the right skill sets outstrip availability, both locally and globally. The individuals who have kept their skills up to date are being well-rewarded financially. Now, Digital + Technology Collective’s expanded annual Skills and Salary Survey will put some numbers and context […]

Disney & ESPN Unify Sales & Partnerships Teams
  • Advertising
  • Marketing
  • Media

Disney & ESPN Unify Sales & Partnerships Teams

Disney and ESPN have formed an even closer bond, announcing a new alignment of the two properties through their media sales and partnerships teams. Instead of entering through three doors, Disney ESPN Media Sales & Partnerships will give media buyers and marketers a refined, singular point of entry for Disney, ESPN Digital and Maker. Nik […]

by B&T Magazine

B&T Magazine
Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends
  • Advertising
  • Marketing

Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends

Sydney-based adtech start-up Muzaara has announced a new strategic partnership with performance marketing platform Commission Factory. Together, Muzaara and Commision Factory are providing SMEs with a secret weapon to skyrocket their online brand visibility and effectively manage and maximise their online advertising campaigns. This partnership will allow both online marketing companies and their impressive roster […]

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard
  • Campaigns
  • Marketing
  • Technology

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard

Breakfast cereal manufacturer Kellogg’s has joined forces with Shazam and digital agency Orchard to deliver a first-of-its-kind augmented reality (AR) Halloween Trick or Treat experience for families. The campaign, which leverages Shazam’s visual recognition platform and recently-launched AR platform, sees Kellogg’s pilot the replacement of physical gifts in cereal packs with a digital experience that […]

Kraft Heinz Appoints Cummins&Partners As New Creative Agency
  • Advertising

Kraft Heinz Appoints Cummins&Partners As New Creative Agency

Kraft Heinz today confirmed the appointment of Cummins&Partners as its new Creative agency after an extensive pitch process. They will be responsible for brand strategy and integrated creative across the expanding Kraft Heinz portfolio including Kraft, Heinz and Golden Circle. A Kraft Heinz spokesperson said: “After an exhaustive search involving a competitive pitch, we have made […]

Patrick Delany (CEO, Fox Sports), Hugh Marks (CEO, Nine Entertainment Co), Miranda Devine (Columnist, News Corp), Michael Miller (Executive Chairman, News Corp Australasia), Grant Blackley (CEO & Managing Director, Southern Cross Austereo) at Radio Alive 2017
  • Media

Media Bosses Weigh In On Ten-CBS Deal

Do you enjoy articles featuring industry big-wigs? Well, it doesn't come much bigger and wiggier than this, we say.

by B&T Magazine

B&T Magazine