Focus determines Reality
This WSJ article is an insightful read, one that parallels our own business model, particularly in how we work with the two major players in our ecosystem: Brands and Retailers.
Years ago, Coca-Cola spun off its bottling and distribution operations to focus more on what it does best—product development, brand-building, and marketing. PepsiCo, in contrast, chose to keep its bottling and distribution in-house, which added layers of operational complexity.
The contrast is clear: Coke’s leaner model has led to higher margins, stronger brand focus, and market share gains. Meanwhile, Pepsi’s beverage margins have slipped and its complex operations are weighing on performance.
We see the same dynamic play out in our BrandMX world. Brands that stay focused on innovation, product development, and brand-building, while relying on BrandMX for omni-channel distribution and retail channel execution, are better positioned for profitable growth. For Retailers, our “asset-light” model means higher margins, an expanded online offering, and no inventory—can keep focus on the changing dynamics of the end consumer—planning, buying, stocking, and weaning inventory can be a significant distraction, and we help alleviate that burden for online retailers.
Coke didn’t reinvent the model; it just stuck to what it does best and partnered smartly. The same applies for brands today: partner well, and let distribution be a strength, not a distraction.