Thinking

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How I Enabled Luxury Brands to Generate EUR 3.5+ Billion in Value by Seeing What They Didn't

The insight. In this 108-second explainer, I share my expertise and in-depth industry knowledge from more than 100+ luxury brands and organisations that led to my breakthrough and followed EUR 3.5+ billion in value created by seeing what they did not.

It shows how it is possible to diagnoselocate and quantify the root causes of any luxury brand's revenue and value loss.

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Gain Market Share, Increase Revenue MORTEN SØRENSEN Gain Market Share, Increase Revenue MORTEN SØRENSEN

Archibald London - a luxury retailer that understands WHAT it really takes to reach Customer Excellence.

Customers strip-down luxury brands every day to highlight friction-points and lost growth. Very few luxury brands strive for 100% transparency since they fear they have everything to lose. Archibald London stands apart because they believe it is every bit as necessary when there’s so much on the line. This is Customer Excellence.

“The art of brand excellence consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.”

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Gain Market Share, Improve Margin, Increase Revenue MORTEN SØRENSEN Gain Market Share, Improve Margin, Increase Revenue MORTEN SØRENSEN

A Brand's Survival in One Lesson

Henry Hazlitt’s book “Economics in One Lesson” holds the key to any designer lifestyle brands survival and success.

Applied reveals the paradox of retail success. One brand beat a policy to double it's operating (production/transportation) efficiency metric (+10%). Tracing the unintended consequence showed a €874 million loss in group retail sales (-3% YoY). From a successful policy.

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Serial returners drive up online price tags and hinders growth

New research from Barclaycard reveals that consumer demand for free and easy returns when shopping online is placing increased pressure on retailers and impacting their bottom line.

“Today’s time-pressed shopper expects to the process to be fast, easy and free – and that applies to both buying goods as well as returning them,” said Sharon Manikon, Director of Customer Solutions at Barclaycard Global Payment Acceptance.

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The $1.75 trillion Retail Ghost Economy

The $1.75 Trillion Retail Ghost Economy - The lost retail revenue from sales returns, overstocks and out-of-stocks.

For a typical retailer, the losses are the equivalent of increasing revenue by 11.7 percent. Another way, retailers currently lose 11.7 percent of revenue due to the combined impact of overstocks, out-of-stocks and needless returns (preventable returns). Imagine adding $117 million for every $1B in retail sales.

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Gain Market Share, Increase Revenue, Improve Margin MORTEN SØRENSEN Gain Market Share, Increase Revenue, Improve Margin MORTEN SØRENSEN

ONLINE FASHION RETURN RATES OF 15-50%, BUT WHY?

At New York’s Fashion World it was discussed “Returned items is one of the biggest costs for online retailers, with return rates of 15-50% depending on the type of item, and 60% of the time that goods are returned, poor fit is cited as the reason.” 

Working with a globally recognised American fashion, apparel, design, fragrance retail company, offering consumers high end products including men’s, women’s and children’s apparel, sportswear, denim, and a range of licensed products such as accessories, jewellery, watches, fragrances and home furnishings, we worked with one full season (12 months) of their online eCommerce shopping data in its raw, uncleaned data format and solved this enigma. Read further to learn more...

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