Keeping an eye on the brand: Etnia Barcelona's retail strategy
Etnia is an eyewear brand known for its stylish designs, particularly of colorful high-quality sun and prescription glasses. After many years relying on a wholesale distribution model with a large international network of opticians, the company had launched its own retail activities in 2017 with a flagship store in downtown Barcelona, followed by an outlet store in the outskirts of the city two years after. Both stores had been successful, quickly becoming profitable while increasing the visibility of the brand - the sales of Etnia in the Catalan region doubled within a year of opening the flagship.
In the Spring of 2023, after the turmoil brought by COVID-19 was finally over, the company had now to define the retail strategy for the following years. The case presents the history of the company and its business model, its stakeholders - particularly opticians, which are the company's main wholesalers and that may see a robust direct strategy as a threat, and the nature of the Etnia brand - defined by creativity, color, and rebelliousness.
Finally, the case presents several options for Etnia's retail strategy, with their pros and cons, considering its effects on the company's growth, stakeholders, and the brand. The success of the Barcelona and La Roca stores could just be the first step of a fledging new retail strategy. But what should be the next steps?
What material is included in this case:
Description
Etnia is an eyewear brand known for its stylish designs, particularly of colorful high-quality sun and prescription glasses. After many years relying on a wholesale distribution model with a large international network of opticians, the company had launched its own retail activities in 2017 with a flagship store in downtown Barcelona, followed by an outlet store in the outskirts of the city two years after. Both stores had been successful, quickly becoming profitable while increasing the visibility of the brand - the sales of Etnia in the Catalan region doubled within a year of opening the flagship.
In the Spring of 2023, after the turmoil brought by COVID-19 was finally over, the company had now to define the retail strategy for the following years. The case presents the history of the company and its business model, its stakeholders - particularly opticians, which are the company's main wholesalers and that may see a robust direct strategy as a threat, and the nature of the Etnia brand - defined by creativity, color, and rebelliousness.
Finally, the case presents several options for Etnia's retail strategy, with their pros and cons, considering its effects on the company's growth, stakeholders, and the brand. The success of the Barcelona and La Roca stores could just be the first step of a fledging new retail strategy. But what should be the next steps?
Learning Objective
The case is designed to be used in the branding or go-to-market modules of marketing management courses or more specialized courses that focus on topics such as retailing or branding.
In particular, the case can be used to debate topics such as:
- How business decisions and actions can have an impact on the brand.
- The balance between brand perception and sales.
- How to successfully develop a brand.
- Design and product innovation for success.
- How to be unique and attractive to many.
- How to coordinate direct and third-party distribution.
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"Keeping an eye on the brand: Etnia Barcelona's retail strategy "
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