Back when it launched, Kikki K was innovative. Built on the back of carefully selected products from quality brands, the business was known for curated stationery related gifts. A year or so later, the brands were replaced with house brand products. A beautifully designed and thoughtfully curated range continued at a premium price but direct sourced by the company.
In the years since, Kikki K has played the same game – beautifully designed and thoughtfully curated products direct sourced to maximise margin.
Once mass retailers entered this space, K Mart and Typo in Australia and similar overseas, Kikki K needed to change, to differentiate from what had become a crowded marketplace with downward pressure on margins.
Kikki K didn’t change direction. On a retail innovation tour 18 months ago some of us were talking about Kikki K and the store we had just seen, commenting that unless the company reinvented itself it would not last. Product designs had a sameness look and feel. The pricing model remained expensive with a value offer for volume. Mass retailers nearby could beat them easily.
The other challenge for Kikki K was it was built on a kind of influencer model in an era that pre dates influencers. The issue with influencers is they have a limited shelf life before another influencer gains attention.
While current retail challenges may have sped up the bringing in of the administrators, it is not the cause. The case rests with those in control of the direction of the business over the last 10 years. They did not innovate, they did not act for the company to offer a unique value proposition. Immediately the Kikki K offer was joined by mass retailers with excellent design departments and better direct sourcing the company needed to move. It did not.
It frustrates me that news outlets will point to the appointment of administrators as another example of their often talked about retail apocalypse. The Kikki K story is not that. If only news outlets would do better research.
If Kikki K stores close there is good opportunity for innovative newsagency businesses nearby. Their closure could be good news for our channel.
My advice to newsagents is to not feed off the retail apocalypse nonsense in plenty of news stories out there.