From a rebranding to more M&A news, here’s what happened in the news this week.
In one of the bigger ad campaigns of the year thus far, IHOP changed their name—although apparently just temporarily—to IHOb. With the “b” standing for “burgers,” the chain has taken a decidedly different direction in their offerings. The change stems from many things, including recognizing that the younger generations are moving away from carbs and the fact that savory food widens their product range. The returns have already proved to be effective as the company’s stock rose 2.6% after the announcement, with a spike in price between the teaser campaign and final name reveal.
The rebranding points to changing aspects of business, especially in regards to the growing number of younger consumers who are beginning to drive serious business decisions and make a greater impact than ever before. As business becomes more globalized and moves at a faster pace, innovation comes in many ways beyond just going digital.
In the age of Netflix and Uber, the next industry that is being reinvented with the mindset of sharing is fashion. Rent the Runway, a Concord customer, is leading this charge with a subscription service for clothes. For a monthly fee, customers get sent a collection of clothes of their choice. The company started out renting only formal dresses for special occasions and quickly saw the appeal of being able to wear high-end everyday fashion without the larger investment. Rent the Runway’s 9 million customers throughout America now use it largely for work clothes, some even picking up their outfits on the way to work.
Rent the Runway’s co-founder and CEO Jennifer Hyman is looking to completely disrupt the industry: her goal is to make large retail stores obsolete. That may be a ways away, but with the success of the business model so far, she’s on the right track. While there are many things that have helped their outcome to date, good contract management can never be underestimated when building an innovative enterprise organization.
Microsoft recently announced of their acquisition of the code-sharing platform Github, continuing the strong year for M&A, as predicted. Github joins acquisitions this year such as Ring and Glassdoor to put the 2018 tally up to just over $20 billion in disclosed-price purchases. This brings the total dollar amount this year to about 80% of 2017’s acquisition numbers. Only five months into the year, the trajectory suggests that this year will far surpass last. As companies gather information about the growing number of younger consumers, M&A is a strategic way to expand and better target this new audience.
Business continues to change and companies are adapting, whether it’s through research on consumers, a rebranding, or new acquisitions. Ensuring every aspect of business is using the latest tools, whether it’s contract management or simply interoffice messaging, will help companies keep up and be able to make strategic decisions as they adjust to the new landscape.