ASB MAGAZINE: Covid 19 has forced all business to innovate. Traditional approaches to the sales and indent period are out the window. Buoyed by outstanding May sales up 72% all categories and June already showing double digit growth circa 65% all categories, the question on everyone’s lips is whether this is a Job Keeper fuelled bubble? No one has a crystal ball for the future, and amidst the backdrop of a global recession, that makes going ‘all in’ on the next order window daunting, even for the most seasoned surf retailer. If you are risk averse like me, ordering closer to the season is a much safer, smarter way to do business. For brands, the ability to pivot, not pause in the current climate is critical. Over the past three years, Rhythm has deliberately focussed on reengineering the traditional way that suppliers, brands and retailers work together. Rhythm’s initial focus was to shorten the ‘concept to delivery’ lead time by introducing an industry first speed to market collection delivering product to the market in as little as 30 days.
Read our Professional Edition interview with Josh Barrett on Rhythm’s speed to market platform here.
According to Rhythm’s Global General Manager Joshua Barrett, during this process Rhythm started to understand the power of digital communication for their B2B partners (not just B2C) and with the recent improvement the company has made their business more reactive with the elimination of certain unnecessary costs.
“We are excited to announce that from our Jan 21 Collection that retailer margin will increase from 50% to 55% on all genuine digital sales. This represents a 10% discount to all retailers who step into the digital realm,” Barrett told ASB.
“In the current economic climate, we hope that this offers both excitement and relief to retailers who are emphatically relying to find new ways to keep their business profitable,” said Josh Barrett.
In the seasons to come, Rhythm will be continuing to refine its business practices so they are not only offering an aspirational digital brand experience, but one that also carries huge benefit to the environment through a more sustainable approach to how they service the market.
Watch our interview with Rhythm stockist Regan Luhrs on their approach to packing (at 14 mins) above.
“Outside of the economic and timing benefits going digital will bring, our digital approach will see Rhythm’s carbon footprint reduce dramatically through reductions in wastage, travel and consumption of unnecessary raw materials. Internally the eco-friendly advantages are what makes this transition so exciting to our team who genuinely love living the lifestyle our brand represents,” continued Barrett.
As Rhythm become more experienced in the digital realm, the company anticipates that the need for face to face selling will naturally decline.
“There will always be value and focus on tangible relationships and in no way intend to remove this from our brand or the way we interact with retailers around the globe. There will of course be further improvements and change, of which we anticipate will benefit everyone we work with and who we care very dearly about,” said Barrett.
Rhythm are encouraging all retailers to embrace their digital journey and share the same excitement in partnering towards a more sustainable and profitable partnership and embracing the brands ethos of ‘the sound of change’.