We Don’t Spend A Cent On Advertising: Cotton On

If you’re a doomsayer for the future of retail in Australia then here’s a yarn that may well restore your faith in old-school bricks and mortar. It’s the Cotton On chain of stores that started life as a market store in Geelong in 1991 and is now slowly conquering the world one store opening at a time.
And its success, it must be said, is at odds to popular marketing opinion – a strong focus on retail outlets and barely a penny spent on traditional ad campaigns.
The privately owned business is famously coy about its plans and profits, but from humble beginnings it can now claim 646 stores across Australia and some 1000 stores worldwide. The brand includes Cotton On, Cotton On Kids, Rubi Shoes, Factorie and Supré among others.
What started as one store selling cotton basics a quarter of a century ago has transformed into, what its head of marketing and ecommerce, Col Kennedy, calls a global streetwear fashion brand.
Along the way, the Australian operation has continued to take a significant chunk out of far more fancied rivals such as Kmart and the struggling Wesfarmers’ Target operation.
“We don’t really think about them to be honest,” Kennedy said of the competition. “We’re far more focused on what we do, internalising what we do about our community and our customers.
“The marketing mantra at the moment is all about how you make a difference in people’s lives, that’s the reason why we exist. When it comes to our competitors we don’t even look. It’s not like the (Australian) grocery market were they’re constantly fighting over who’s cheapest in that space. For us it’s all about ‘is this the right price for our customer in our community?’ – we never talk about our competition.”
As for traditional advertising – TV, outdoor and the likes – Cotton On hasn’t ever touched it and Kennedy doubts ever will. He says the Cotton On brand is a “two engagement with customers rather than that broad approach of ‘hey everybody, here’s our brand.’
“But we haven’t nailed it, we’ve still got a long way to go, and even though (the company) is doing really well, it’s always about what’s the next opportunity and how do we do it now,” he said.
Despite the allegiance to bricks and mortar stores, Kennedy says online increasingly plays a significant part in the business. And rather than one cancelling out the other, he believes digital and retail stores will complement each other.
“Click and collect will continue to grow,” Kennedy said. “You’ll buy online and pop out at your lunchtime and pick it up instore. Digital and retail will merge much more; this idea that you’ll get the product posted to your home or work I think will change, the store will have a huge role in that. I think there was a while there where everybody was predicting that it would all go online, but I don’t see that, I see them (store and digital) getting more and more connected.”
Kennedy agrees that Cotton On is part of the current global retail zeitgeist – think H&M and Zara – doing “affordable value pieces that allows people to update their wardrobes on a regular basis”. He says their success is similar to what’s been going on in the travel sector for the past 15 years – it’s all about customer word of mouth.
“It’s an exciting time to be a marketer no matter what sector you’re in at the moment,” he said, “and, no, you won’t always get it right; we make mistakes all the time. But if you never make the same one twice and learn quickly and adapt then that’s the key.
“Marketers these days are bombarded with options, they don’t always know what to do and it’s about prioritising, discovering what’s moving the needle, and if you put the customer and the community in the heart of what you do then you won’t go too far wrong.”
Col Kennedy will be speaking at the Online Retailer Conference & eCommerce Expo in Melbourne from 22-23 July 2015.
Latest News

Why Advertisers Cannot Overlook The Benefits Of Generative AI
Are you a little late to the generative AI party? Well, pull your popper & toot your whistle to this essential read.

Marc Collister: AI & Automation Set To Revolutionise Creativity In 2024
Marc Collister (pictured) of P2 Content Creators spills the beans on his 2024 predictions drawing from two decades of experience in the advertising, film and television industry. I’m certain it will come as no surprise that in 2024, we can expect our industry to move at breakneck speed again. With even more rapid shifts in […]

Reddit Recap Reveals That Aussies Went Nuts For The Tillies, Eurovision And, Erm, Finance
Reddit’s annual Recap report has revealed the issues and moments that captured Australia’s collective mind over 2023 with, naturally, the Matildas featuring high on the list. The inaugural Australia-hosted Women’s World Cup saw Aussies glued to the footy (or, indeed soccer) with one enterprising user capturing the moment that Cortnee Vine scored the winner against […]

Zeno Group Australia Bolsters Client Offerings With An Expanded Creative Services Portfolio & New Senior Leader
Zeno Australia has announced expanded creative design capabilities and the appointment of Jim Michell (lead image) to its senior leadership team. The new moves support strong growth in the region. Zeno Australia’s clients, including Abano Healthcare, Motorola and Yorkshire Tea, can now tap into a suite of creative design services to augment the agency’s work […]

Spikes Asia Announces Its 2024 Jury Line-Up
Spikes Asia, APAC’s most prestigious and sought-after Award for creativity and marketing effectiveness, has revealed its 2024 Jury line-up today. The 93 industry experts from across 18 markets represent APAC’s leading talent from a diverse range of disciplines. 2024 sees the highest representation from brands, including Budweiser, Procter & Gamble, Unilever and, for the first […]

Assembled Media Inks TikTok Creator Campaign for BIC
Assembled Media, is drawing upon the creative power of TikTok Creator Marketplace to help generate unique, impactful content for iconic stationery brand, BIC. The social activation campaign titled ‘A Pen for Every Side of You’ promotes the flexibility of BIC’s 4 Colours pen and is active nationwide on the BIC Stationery TikTok account. The campaign […]

Wednesday TV Ratings: Aussies Sign Up For Taronga Zoo
With animals proving a ratings winner for the networks yet again, we're expecting odd marsupial cooking mash-ups soon.

If You Can’t Beat The System, Cheat The System: Hardhat Launches ‘Cheat Codes For Challenger Brands’.
Independent creative and CX agency Hardhat has launched an Australian-first suite of growth accelerators; ‘Cheat Codes for Challenger Brands’.

Melinda Petrunoff: Pinterest Predicts Is A “Cheat Sheet” For 2024
Pinterest reckons jellyfish & moody cowboys will be big in 2024. Refused to be drawn on the return of shoulder pads.

IAB Launches Fourth Module In Its Marketing Measurement Innovation Series
IAB Australia has launched ‘Evolution in Market Mix Modelling’, the fourth module in its Marketing Measurement Innovation Series, which has been developed by IAB Australia’s Ad Effectiveness Council. The module explores what is driving the increased use of MMM and how the technique is evolving with advances in computing power and machine learning to provide […]

Scope3 Expands Carbon Measurement Capabilities To Include DOOH Advertising
Scope3, the collaborative sustainability platform leading the decarbonisation of media and advertising, announced the addition of digital out-of-home (DOOH) to its emissions measurement. With DOOH ad spending predicted to grow from $17B in 2023 to nearly $24B by 2028, measuring this channel brings us one step closer to understanding the total impact of digital advertising […]

VOZ Enters Final Phase Of Total TV Viewing
This headline can be made so much more appealing by reading it with a Darth Vader-like inflection.

Selfies! Swipes! Scrolling! It’s The Best Of The Best Social Media Directors, Presented By Finecast, Part Of GroupM Nexus
Social media's far more than faffing about with videos of the office dog, as these digital maestros attest.

Thinkerbell Unveils Pringles “Shoot From The Chip” After Winning Competitive Pitch
Other than heroin, nicotine and Sex In The City re-runs, is there anything more addictive than the Pringle chip?

Now Open For Registration – NRF 2024: Retail’s Big Show Asia Pacific
NRF 2024: Retail’s Big Show Asia Pacific, is now open for online registrations for the main conference. Jointly organized by the National Retail Federation and Comexposium, Retail’s Big Show Asia Pacific will take place from 11 – 13 June, 2024 at the Sands Expo and Convention Centre in Singapore and is expected to draw thousands […]

“He Cannot Die Without People Knowing What He’s Done”: Alan Jones Accused Of Indecently Assaulting Young Men
As sad as it is to say about these unsavoury allegations, why does it not come as any real surprise?

B&T TV – Jasmin Bedir On Why Trade Media Needs To “Drop The Shade”
Much like the arrival of tequila shots, you know you're in for a rollicking good time when Jasmin Bedir gets involved.

Kmart Does Christmas Via Dentsu Creative
Kmart is always B&T's one-stop shop at Christmas. Particularly for people we don't overly like.

Wavemaker Promotes James Boardman To Chief Strategy Officer
James Boardman amps up his Dungeons & Dragons creds as he's named Wavemaker's chief strategy officer.

When It Doesn’t Feel So Good Being Bad – It’s 2023’s Top Banned Ads
Other than a Cannes Lion, there's arguably no greater honour in advertising than getting your ad banned by a watchdog.

Taylor Swift Named Time’s Person Of The Year, Beating Out Putin, King Charles & Barbie!
Did you spend 172 hours staring at your computer screen & still didn't get Taylor Swift tickets? Stare some more here.

Petbarn & Greencross Vets Create Live Parasite Tracking Tool Via Howatson+Company
Could your incessant itch & dark urine actually be a sign of parasite infestation? Mark this as a must read.

Imogen Hewitt Promoted To Publicis’ Chief Media Officer ANZ
Imogen Hewitt's ascendancy at Publicis continues apace. Not that she's to be known as Dame Imogen Hewitt.

Icon Agency Nabs Michael Knox From Think HQ
We're still three weeks off the 31st, but already it's a "new year, new me" for Michael Knox as he joins Icon Agency.

James Warburton Resigns From Seven
James Warburton calls time on his Seven career. Also refusing all calls from Rugby Australia.

DBC2 Appoints Jason Fisher To Newly Created Role Of CEO
Following a period of significant client growth, leading auto marketing agency, DBC2 has appointed Jason Fisher (lead image) to the newly created role of CEO. The appointment is part of DBC2’s long term growth strategy ahead of the agency announcing a brand refresh and expanded proposition in early-2024. As a new shareholder of the business, […]

ACCC To Crackdown On Influencers & Businesses For Misleading Advertising & Dodgy Reviews
ACCC announces crackdown on dodgy influencers and online reviews. Which, it must be said, is their job.

Alastair Baker Promoted To Havas’ National Head Of Planning
Havas' Alastair Baker has a spring in his step and a song in his heart today following work promotion.

Three New Hires At Amplify
Extra pressure on Amplify's Nescafé Blend 43 catering tin today with the arrival of three new recruits.

Troye Sivan Named GQ’s Man Of The Year
Shannon Noll once again savagely cruelled by the GQ judges as KFC work goes unrecognised at Man Of The Year awards.

Indy Clinton, The Matildas & Fitzroy Garage Party Honoured At 2023 TikTok Awards
B&T a lucky attendee at last night's TikTok Awards. Disappointed not to see any cats playing piano, however.

Digital Advertising Excellence: A Blueprint For Maximum Engagement & Sustainability
Much like the importance of daily flossing, this is a gentle reminder of the damage crap creative can do.

What Are You Waiting For?! Enter TikTok Young Lions Now!
We're certainly not young, talented and trendy but you likely are, so enter the TikTok Young Lions comp!

Boomtown’s Final Masterclass Of 2023 Attended By Almost 100 Media Reps
Don’t treat regional media as a charity, but a real growth opportunity: That’s the message from Boomtown’s final masterclass of 2023, attended by almost 100 media industry representatives from across the nation. The masterclass was part of a series of educational sessions, delivered by Boomtown, the media collective championing advertising in regional Australia. The sessions […]

Mister Cartoon & Turtle Wax Partnership Launches In Australia & New Zealand Via DIJGTAL
DIJGTAL launches ‘The Art of Car Care’, an exciting partnership between renowned LA street artist and icon, Mister Cartoon and Turtle Wax in Australia and New Zealand.

GTA VI Trailer Smashes YouTube Viewership Records
This trailer marks great news for spotty teenagers and socially awkward people around the world.