Company president and CMO Nick Woodhouse emphasises that it is more important than ever to focus on the customer to keep up with rapidly changing consumer preferences and technology.Inside Retail: What were the biggest highlights of last year for Authentic Brands Group?Nick Woodhouse: Authentic Brands Group had a monumental year. With the Boardriders acquisition, wewelcomed seven new brands into the portfolio, each with distinct identities and global footprints. We also completed the purchases of the British heritage brand Hunter, contemporary luxury brand Vince and footwear pioneer Rockport.This year, one of the ways we are thinking about growth is by rallying around key business verticals, including lifestyle, entertainment, studios and marketplaces, to name a few. Last year, we soft launched Authentic.com, which is a centralised hub, or marketplace, where consumers can access all of our brands and the perks our global ecosystem has to offer. From early access to new collections and discounts to loyalty rewards, Authentic.com creates value for our customers by connecting the dots across our portfolio and global network.IR: What are your expectations for consumer sentiment and spending in the year ahead?NW: Although consumers remain resilient, they are approaching spending with more caution andthoughtfulness in the face of economic uncertainty. While the rise of payment trends like “buy now, pay later” has boosted sales, we’re expecting a slowdown in spending overall this year. Also, there is a superabundance of Products in the marketplace, which is ultimately leading to consumer fatigue. To combat this, many retailers and brands are taking steps to right-size their offerings to makethem more appealing and eliminate clutter.IR: In January, Authentic Brands Group announced the acquisition of Sperry for its already impressive portfolio. What factors determine a brand’s potential for success in the retail world?NW: If a brand can transition onto the Authentic Brands Group platform, it can be set up for long-term success. Our acquisition strategy focuses on brand identity and its resonance with a diverse global audience, a quality we often describe as the brand’s heartbeat. We have developed a unique licensing model that allows us to transform brands with challenged models into thriving businesses. Weleverage our expansive network of category experts, brand operators and leading retailers to pinpoint sustainable growth opportunities for each brand.IR: What new or emerging technologies are you most excited about at the moment?NW: AI is the buzziest topic in business right now. Along with the rest of the industry, Authentic is testing new ways to activate AI to streamline aspects of the customer journey across our brands’ e-commerce and social media platforms. Authentic.com offers shoppers several avenues to discover our brands that are powered by AI, including a ‘Be Authentic’ style quiz, Fashion Finder and ‘ShopTok’. When it comes toAI, we are learning in real time and will continue to assess where it adds value to our business.IR: What are the biggest challenges on your radar in 2024? And how will you navigate them?NW: Our proven playbook has equipped Authentic with a strong foundation for navigating challengingeconomic conditions. The model generates multiple streams of guaranteed royalty revenue across variousbusiness verticals, including consumer products, content, events, and experiences. As many consumers have been affected by inflation over the past year, spending has slowed down, directly impacting some of our licensing partners. In response, we provide access to the Authentic platform to support their businesses through various expertise, including brand, business, marketing and digital. We are also constantly evolving and diversifying our offerings to create even more value for them.IR: What are some of the retail fundamentals that you think are worth remembering?NW: Retail has transformed with technology and evolving consumer behaviour, but the core principles remain the same. We must continue prioritising our customers’ experience above everything else. To achieve this, we need to embrace omnichannel strategies that seamlessly integrate online and offline channels to reach our customers wherever they are. It’s crucial to understand that our customers’ preferences and attention spans are changing faster than ever before. To stay relevant, we need to be in tune with them constantly and keep pace with their evolving lifestyles. Ultimately, product is the heart of every brand. If it isn’t compelling, your efforts in other areas won’t move the needle.IR: Are there any quick wins that you’re targeting for growth? NW: In our business, quick wins are a mirage. When looking at Authentic’s acquisition trajectory or the sheer number of places our brands show up every day, it may seem effortless. The reality is that our teams invest tirelessly behind the scenes to set our brands up for success so that we can quickly seize opportunities as they arise. Our brands operate on five-year plans to achieve their growth milestones. Reebok is a great example of this approach. As a global powerhouse, it has achieved its growth milestones faster than we expected. This has given us the opportunity to accelerate its growth timeline and set even loftier goals. This story first appeared in the March 2024 issue of Inside Retail US magazine.