Thursday, October 21, 2010

Wondering about Wonderland

The word “Wonderland” evokes many things.  Alice comes to mind for most. I'm involved in a project here in central Ohio called Wonderland Columbus. It’s a not-for-profit (’m on the board) that is operating the building and programming. 

Wonderland is a catalyst of economic and cultural development for the creative community.  In the great tradition of things like KEXP (www.KEXP.org) it’s a place for the creative community to work, grow their businesses and for all to experience the results.

We are doing this in the old Wonder Bread factory in the Short North.  The space will have artist studios and production space, a recording studio and rehearsal space, performance space, exhibition space, retail, restaurant and office space. 

We are developing programming that will inform, enhance and encourage cross-disciplinary collaborations.  We believe that working interdependently yields things none of us can imagine.

We have received up to $800,000 in federal and state historic tax credits, hired our executive director, Columbus College of Art & Design alum Adam Brouillette and established a solid board of directors.

This is and will be a multi-million dollar project that will be self-funded and self-sustaining.  It is our business model.  In order to make this a reality we are developing a diverse portfolio of revenue and funding streams.

For example, we are up for a Pepsi Refresh Grant of $250,000.  That money will help with making the building what we need it to be.  We need you to VOTE TWICE each day--online and via text.  Go here now: http://www.refresheverything.com/wonderland .

To learn more about Wonderland go here: http://www.wonderlandcolumbus.com/  or http://www.facebook.com/#!/WonderlandColumbus .

Thanks for wondering about Wonderland.

Chuck Palmer

ConsumerX

customer-centric retail strategy

Posted via email from ConsumerX: cXChuck's Stuff

Wonderland Food Cart Food Court

<p>Wonderland Food Truck Food Court from Mike Beaumont on Vimeo.</p>

I heart Wonderland.  Wonderland Columbus (www.WonderlandColumbus.com) is a mixed use place for the creative community to work and grow their businesses.  It’s a place for all to gather to experience great stuff and meet up.  Check out this video from SpaceJunk Media’s Mike Beaumont.   It perfectly captures what we are building Wonderland to be.

Posted via email from ConsumerX: cXChuck's Stuff

Saturday, October 2, 2010

The Customization Experience: Industrial Design in Everyone's Hands

http://youtu.be/oSc8IDgCoTI?hd=1

Frank Tyneski, vice president of design strategy and new product development for San Diego-based Skinit, admits to having "almost a perverse fascination with buying behavior...why people buy products and what draws them in." Tyneski is a superstar designer with an award-winning track record.  He talks about the movement of design becoming a baseline expectation in consumer products and how important customization is to building the consumer’s experience with your brand.

Posted via email from ConsumerX: cXChuck's Stuff

Wednesday, September 29, 2010

Culture Junk: The Experience of AndrewAndrew



The closing night of the Portland Institute of Contemporary Art’s Time Based Arts festival—TBA:10—featured iPad DJs AndrewAndrew. To call them DJs or even iPad DJs doesn’t begin to describe the experience. They crafted a crazy mix of social commentary, music from all over the spectrum and technology that wow’ed us.



These guys are smart, funny and pretty snappy dressers.  Learn more about their multi-talented, multi-faceted lives here: http://www.andrewandrewdotcom.com/.  Be sure to check out the iPad interface and the Neil Diamond and Beyonce cuts they use and of course the parallels they draw between 1970s German terrorism and the current state of the world. 

It was the best time we’ve had in a long time.

(Special thanks to our friend Kim W who curated our weekend in Portland O.)

Saturday, September 11, 2010

Introducing Culture Junk: Inspiration Anywhere

Inspiration is up to you.  Are you curious?  Do you seek new ideas?  How do you do that?  Do you allow yourself to be inspired by things, places, experiences you wouldn’t normally engage in?

When ever I travel, I take lots of pictures (and now video).  I refer these images to provoke memory.  I do this for my clients in order to indicate and communicate strategic points or encourage action.  While at some level it is a creative influence, it is more significantly, a specific tool that I use to deliver on my promises.  I have tons of this stuff and I’ve compiled my first Culture Junk video.

The idea of Culture Junk is to collect and share inspiration and influence.  From Anywhere.

Walking through Brooklyn, I saw and experienced lots of great stuff.  I know there’s more, but this is what made it through.  I hope you enjoy it.

Posted via email from ConsumerX: cXChuck's Stuff

Problem/Solution? No. Opportunities + Pathways? YES

You may or may not be familiar with the idea of ‘open source’.  Its one of those things (like design thinking) that came from somewhere else and is picked up and embraced.  The trouble is that the original idea can be muddied or watered down.

Not to get too “meta-idea” but THAT IS the idea of open source.  Concepts, structures, ideas are picked up and run with and made into something new.  It is a fascinating cultural and psychological phenomenon. 

In the article “Forking is a Feature” by Anil Dash http://bit.ly/9LY4PT we learn of the idea of developing many responses to particular situations.  Linus Tovalds, in developing an open source operating system—dubbed Linux, not by Mr. Tovalds, but by its users—created what Dash believes is his most lasting legacy.  That is plurality trumps duality.  We are more and more, embracing and/both thinking rather than just either/or. 

Dash’s opening point about Torvalds legacy it true, I believe. I know little of the world Mr. Torvalds has built, but the idea of open-source and the use of what comes of it pervades my world. 

At ConsumerX we work with retailers and consumer products companies to build "culture" around their brands.  The idea of "forking" (if I understand it correctly) makes a great deal of success in my work.

You see, much of my world has been consultants (designers, architects, advisors) like me developing a solution to a problem when the reality has been a that a complex situation warrants a set of responses, often times, each with a significant investment necessary to execute.

When we allow ourselves to be inspired by ideas such as open-source we develop structures akin to language.  (And subsequently, grammar, and perhaps even poetry.)  Just because the words are out there, don't mean nobody knows how to use 'em right.

So, yes the legacy is there.  We see it today with the most sophisticated (big and small) companies being open with their culture (that means they need to nail down their purpose) and allowing their customers to make new things.  Facebook is the best example of everyday people taking bits and pieces and making new value for themselves and those in their orbits.

This construct actually liberates us from the duality of problem/solution and gives us a plurality of opportunities/pathways.  The trick is and always has been, deciding what to do then.

Posted via email from ConsumerX: cXChuck's Stuff

Monday, August 30, 2010

Observation vs. Inference

There’s a lot we can learn from basic science.  Be certain you know the difference between an observation and what you think it means.

Thanks to my eighth-grade daughter’s science class.

Posted via email from ConsumerX: cXChuck's Stuff

Friday, August 27, 2010

More Tech in Stores! Better Consumer Experience or More Clutter?

Product. Price. People. Place.  In that order.

Maybe it's the "Back To" season that's gotten me thinking this way, but let's look at the basics.  Each purchase decision has it's own set of criteria; various points along the rational-emotional continuum. 

Consumers don't like shopping in stores as much as they once did and that's a problem for retailers with most of their dollars invested in brick and mortar outlets.  According to The Wall Street Journal, shopper satisfaction at retail stores is declining upwards of 15 percent a year, based on ongoing research by Interpublic Group (IPG) of more than 10,000 North American shoppers.

Why do we find in-store shopping increasingly dissatisfying?  Because we are emotional beings and seldom is the shopping experience (In line OR online--online is mostly about procurement, after all.) engaging or compelling or lasting.

IF these technologies enhance the shopping experience AND help move more merchandise then they may make sense.  Right now it seems like a lot more clutter and confusion. 

Big Win: Sunglass Hut’s in-store/social media mash-up makes shopping fun and plays on the emotional drivers of the product.

I love contemplating the possibilities for company and consumer alike. One of my favorites to date is Sunglass Hut's in-store/social media mash-up. http://bit.ly/dcSidM

Is it moving more sunglasses?  That remains to be seen.

More retail experts’ opinions at RetailWire: http://bit.ly/aVWzmO.

Posted via email from ConsumerX: cXChuck's Stuff

Sears & Kmart: Time to Clean Up the Subways

Today’s RetailWire discussion is about Sears Holding’s hiring of David Friedman, most recently president-Americas at Razorfish, to run marketing at the company's Kmart and Sears units.  While I don’t usually comment on breaking news here, the saga of Sears & Kmart is a significant American business story.  Here’s a link to the original piece http://bit.ly/a64YvI.



Mr Friedman has a significant opportunity for innovation here.  He needs to send clear and authentic signals that he's doing something compelling; "cleaning up the subways" from "The Tipping Point http://amzn.to/bPFcRz by Malcolm Gladwell. 

He has heritage (which SH unfortunately ignores) established platforms (in line and online)and lot's of experiments & failures in recent years he can leverage.   


While SH has a track record of rapid prototyping, it has shown little evidence of learning from and leveraging their innovation process (if you can call it a process-see above).

By now, we should have seen significant and relevant reasons to believe from MyGopher and Layaway or the multitude of store format, in-store web kiosk, or web experiments.

At the end of the day, it's about moving the merchandise.  Have you shopped their stores or websites lately?  Yikes.  Have you bought anything?  At all?

My advice: spend the first year shopping the stores (in line and online), getting to know the customers and staff and explore what has worked and what hasn't.  Then throw it all away and develop fresh new reasons for us to pay attention again.

Wednesday, August 25, 2010

Experience Audit: PacSun BTS 2010

PacSun

Tuttle Mall Columbus Ohio

August 24, 2010

While it seems no two of their stores are alike, they seem to have gotten away from the racks and racks approach and matured into a real specialty shop.  Hurley, Billabong, Roxy, Zoo York all have their own brand presence but work well together.  A refreshing alternative to the others in this category.

http://shop.pacsun.com/brands/ (Sorry, no video, we were too busy shopping!)

Product: Well mixed range of brands.  Nice balance of trend and basic pieces.

Price: Higher than competitors, but quality of brands and BOGO offers made it ok somehow.

Place: Sophisticated California modern.  The store design is mature and authentic without it being contrived.

People: Eager to engage and help; asked, listened and directed.  Attentive without being hover-y.  Fun, nice, accessible.  Very on-brand while still attending to shopping needs—selection and speedy checkout.

Experience: Loved it.  Key pieces from Pac Sun made into the First Day of School Ensemble (caps intentional)

Posted via email from ConsumerX: cXChuck's Stuff

Experience Audit: PacSun BTS 2010

PacSun

Tuttle Mall Columbus Ohio

August 24, 2010

While it seems no two of their stores are alike, they seem to have gotten away from the racks and racks approach and matured into a real specialty shop.  Hurley, Billabong, Roxy, Zoo York all have their own brand presence but work well together.  A refreshing alternative to the others in this category.

http://shop.pacsun.com/brands/ (Sorry, no video, we were too busy shopping!)

Product: Well mixed range of brands.  Nice balance of trend and basic pieces.

Price: Higher than competitors, but quality of brands and BOGO offers made it ok somehow.

Place: Sophisticated California modern.  The store design is mature and authentic without it being contrived.

People: Eager to engage and help; asked, listened and directed.  Attentive without being hover-y.  Fun, nice, accessible.  Very on-brand while still attending to shopping needs—selection and speedy checkout.

Experience: Loved it.  Key pieces from Pac Sun made into the First Day of School Ensemble (caps intentional)

Posted via email from ConsumerX: cXChuck's Stuff

Experience Audit: American Eagle BTS 2010

American Eagle

Tuttle Mall Columbus Ohio

August 24, 2010

American Eagle, the also-ran that came out of the teen-apparel outdoor wars of finds its own voice in the new normal.  The place was abuzz.

Product: Nice assortment; deep, not too broad.

Price: Thoughful pricing with engaging promos.

Place: Energetic without being off-putting; “College Radio” with accompanying video support deepened the experience.  Who can resist Salt-n-Peppa’s Push It?

People: Nice enough, but didn’t really help with selection or purchase, lots of maintenance and discussions about schedules.

Experience: Found some good stuff and enjoyed our time there.

Posted via email from ConsumerX: cXChuck's Stuff

Experience Audit: American Eagle BTS 2010

American Eagle

Tuttle Mall Columbus Ohio

August 24, 2010

American Eagle, the also-ran that came out of the teen-apparel outdoor wars of finds its own voice in the new normal.  The place was abuzz.

Product: Nice assortment; deep, not too broad.

Price: Thoughful pricing with engaging promos.

Place: Energetic without being off-putting; “College Radio” with accompanying video support deepened the experience.  Who can resist Salt-n-Peppa’s Push It?

People: Nice enough, but didn’t really help with selection or purchase, lots of maintenance and discussions about schedules.

Experience: Found some good stuff and enjoyed our time there.

Posted via email from ConsumerX: cXChuck's Stuff

Experience Audit: H&M BTS 2010

H&M

Tuttle Mall Columbus Ohio

August 24, 2010

Product: Rather ordinary, a bit of fashion.

Price: On the mark.

Place: Devoid of interest or even branding.

People: Didn't engage.

Experience: Left us flat.

Posted via email from ConsumerX: cXChuck's Stuff

Experience Audit: H&M BTS 2010

H&M

Tuttle Mall Columbus Ohio

August 24, 2010

Product: Rather ordinary, a bit of fashion.

Price: On the mark.

Place: Devoid of interest or even branding.

People: Didn't engage.

Experience: Left us flat.

Posted via email from ConsumerX: cXChuck's Stuff

Monday, August 16, 2010

What is Your Favorite New York City Experience?

What’s your favorite New York experience?  I’m always on the lookout for those really great, off-the-grid experiences that haven’t made it to the “it” lists yet.  Be it retail, dining, hospitality, cultural what is memorable for you? What’s the first thing that comes to mind?

I still love the energy of 5th Avenue and Times Square, and a friend recently reminded me of the fun of Canal Street, but  Matise’s “The Dance (1)” at MoMA (http://bit.ly/96OzCk) and Cucina Di Pesce  http://bit.ly/aQw7Nx both hold very special memories.

Posted via email from ConsumerX: cXChuck's Stuff

Tuesday, July 27, 2010

The Double Bottom Line: "Unbanked" Consumer Experience worth $106 Billion

In one of the best retail-izations of a marketplace opportunity I’ve seen in a long, long time, mPower Labs Inc. of Austin Texas debuts the Mango Money Center.  According to the Brookings Institute, one fourth of American households are “unbanked”.  These consumers do not use traditional deposit accounts at traditional banks. The market amounts to an estimated $106 billion.

I was fortunate to work with mPower Labs on the initial consumer experience strategy and concept designs for the first store.  We worked with their very dedicated team to understand the opportunity and embed the key consumer drivers in the design of the experience.  The idea of the “double bottom line” permeated everything we did.  The double bottom line posits that in addition to creating new financial value, a company can—and should—create new social value.  When executed properly the two are interdependent and make each other grow.

Early concepts developed under contract with Fitch.

We came to understand the distrust the unbanked have for the financial system, mostly because their experiences have been riddled with inflated fees and prison-like architecture.  They have been treated poorly and mPower Labs set out to create an ideal experience for these people while making a healthy profit over time. 

We found when these consumers felt a company was loyal to them, they stayed loyal to the company.  We looked at world-class retailers to benchmark the elements that signaled to the consumer that Mango respects them as much as Apple or Starbucks does their customers.  We shopped and spent time in the places they did in order to develop the right sense of place.

The main idea of the engagement strategy was to encourage Mango customers to “Learn, Do, Be”.  This emphasized the prime directive of consumer-centricity: shared responsibility.  The experience of the brand across all the touchpoints needs to create pathways to possibilities by providing transparency, education and empowered self-service in a safe, community-dependent environment.

Mango is the brainchild of mPower Labs led by Roy and Bertrand Sosa who founded NetSpend, Inc, one of the first reloadable debit card providers.  You can hear about Mango and their approach in their own words in this clip.

Mango reportedly plans to open more stores in Austin and then expand to every major U.S. city within three years.

Related Links

Mango: The Prepaid Card That Works With Your Mobile. http://bit.ly/cfka7g

MPOWER Labs - New Businesses Helping The World's Underserved http://bit.ly/bdkFO3

Mango Financial, Inc. Debuts First U.S. Store in Austin, TX /PRNewswire/ -- http://bit.ly/bmwNVr

Bringing Unbanked Households Into the Banking System - Brookings Institution http://bit.ly/b5Ku9s

The Mango Store Lets You Bank Without Commitment | Fast Company http://bit.ly/csaF2A

Mango Financial @ Bercy Chen Studio: Architecture + Construction http://bit.ly/9MR1SZ

MPower Ventures throws Mango Financial to public - Austin Business Journal http://bit.ly/aP7eNM

Posted via email from ConsumerX: cXChuck's Stuff

Thursday, July 15, 2010

Victoria's Secret to Offer Halloween Range.

Would you go to a Halloween party full of sparkle and angel wings?  While I’m sure there are plenty that happen every year, Victoria’s Secret would like you to buy your costume from them this year.  Tim Feran of The Columbus Dispatch asked me to comment on Victoria’s Secret’s recently announced move.

Halloween isn't just for kids anymore and Victoria's Secret is looking to get in on the fun with a line of costumes for the holiday season.

As a Columbus Dispatch piece points out, Victoria's Secret will be following costume shops, Frederick's of Hollywood, Playboy and others in getting in on a big business opportunity.

"Halloween has become much more of a grown-up activity and there are all sorts of merchandise product opportunities," Chuck Palmer, owner of Consumer X Retail and RetailWire BrainTrust panelist, told the Dispatch. "I'm not surprised Victoria's Secret would want a piece of that."

Numbers from the National Retail Federation show sales of costumes to adults and older teenagers began growing in 2005 until being hit by the Great Recession. Young adults spent just under $70 per person on Halloween last year versus $80 in 2008.

Victoria's Secret has not provided details on what its Halloween line will look like, but Mr. Palmer expects they'll avoid getting too risque.

"They'll probably be more fantasy-oriented, like you see in the runway show, and maybe play off the angel wings," he said.

I think it's interesting that the product will be in all channels. When Tim Feran of the Dispatch asked me to comment, his info pointed to just the direct channels--web and catalog. Having it in the stores adds a different dimension.

We all know consumer behavior is different in-store than it is online. I'll be interested to see how they present this in ads, promos, visual display and online.

And, yes, I'd go to that party.

Chuck Palmer

ConsumerX

customer-centric retail strategy

614.562.9315  |  cxChuck@ConsumerXretail.com

ConsumerXretail.com

Chuck Palmer's RetailWire BrainTrust Blog 

 

connect with me on LinkedIn & Twitter now

Posted via email from ConsumerX: cXChuck's Stuff

Sunday, June 27, 2010

The Lux Consumer is in for a Whole New Experience: Amazon Plans Haute Couture Takeover

Original Discussion: Amazon Plans Haute Couture Takeover - Retail News. http://bit.ly/cV0ON8 cX: Luxury's Savior?

Why haven’t Bergdorf Goodman, Harrod’s or Barney’s done this? The buyers of these and other globally respected stores have deep and abiding relationships with the best fashion houses.  Why hasn’t one of them emerged as the leader in luxury online?

The reason they have not taken advantage of the Web's reach and ability to deliver robust (even yet-to-be imagined) shopping experiences is two-fold: the luxury market thinks of online retailing as the place for remainder merchandise and secondary and tertiary labels (mass appeal=sales volume).  The second reason is their best customers have not been there.  At least that's what they thought.

As sales shrink and "traditional" retailers reconsider their sku volume, luxury brands are suddenly seeing the Web in a new light.

Amazon's opportunity here is exactly what it was with books; consolidate a fragmented business by creating value for brands and consumers alike.  After all, this is what Bergdorf's, Harrod's and Barney's does.

Amazon's challenge will be to learn about personality and creating emotional connections (ala Zappos) with their customers. The best luxury buyers and sales people know the value of a customer over time.

Selling on the Web is still about procurement.  While sites like Yoox and Net-a-Porter carry big names (the Gilt models is still about consumer manipulation), they are still showing lifeless stills of dis-embodied apparel and accessories, most of it off-season.

Take Balenciaga for example.  On Yoox, most of the product is marked down and on Net-a-Porter there are only a few accessory items.  Stella McCartney on the Harrod's site is only about intimates and the highest price point is only 230 Pounds.  If I were at Harrod's store in person, odds are I would have much greater choice of Ms. McCartney's products and they wouldn't have to ship it for free.

Amazon gets the numbers.  (I won't even start on SEO)  Now they have to get the consumer. At the end of the day, it's about moving the merchandise.  Will they figure it out?  Mr. Bezos didn't spend all that time with Target for naught.

From RetailWire

Original Discussion: Amazon Plans Haute Couture Takeover - Retail News. http://bit.ly/cV0ON8 cX: Luxury's Savior?

Amazon.com is looking to go upscale with its clothing and shoe business, staging a relaunch that has its sites set on "rivals such as Yoox and Net-A-Porter," according to a Financial Times report.

The e-tailer is recruiting software engineering talent to help it develop "great new features to change the way people shop for clothing." As it has done in other categories, Amazon is looking to set the standard by which consumers judge all others in the space.

The push by Amazon comes on the heels of the eBay Fashion (fashion.ebay.com) launch in early April. That site is looking to build on the traditional eBay approach by adding an online mall of top retailers, such as Brooks Brothers and Lord & Taylor, as well as offering flash sales.

Fashion sales at eBay in 2009 have been estimated at somewhere between $5.5 billion and $7.1 billion. Scot Wingo, chief executive of ChannelAdvisor, said Amazon's clothing, accessory and shoe sales are in the $6 billion to $8 billion range.

Amazon has apparently taken some of the tricks of its Zappos business and made them its own. The company is now offering free returns on all U.S. clothing orders over $25.

It is also looking to provide a more sophisticated visual experience with expanded viewing options and color variations that it began using in its denim store during last year's Christmas selling season.

Posted via email from ConsumerX: cXChuck's Stuff

Monday, June 21, 2010

US Retail Abroad: Is the Consumer Experience Different? Should It Be?

When I travel, I always seek out the best retail in a place.  Usually it’s a brand or a format, hotel or bistro I’m not familiar with that makes the biggest impression. So I was surprised and not surprised back in 1994 during my honeymoon trip to Paris to discover a Gap outpost at Galleries Lafayette.  (Much to my new wife’s chagrin, we spent probably a bit too much time “auditing stores”.)  That was the Gap’s first foray into international markets; today they have more than 500 company-owned and franchised stores outside of the United States.

The place I bought my khakis and t-shirts at Galleries Lafayette??  Of course, to the tourist and occasional Parisian consumer, the Gap was interesting.  I still have the classic black sweater I purchased that day.

Today, retailers from abroad like H&M, Zara, or Uniqlo are seeing the US as a ripe market for expansion.  (Take a look at those stores’ Web sites—tell me if you think their product is truly unique.)  U.S. retailers having saturated their home markets are doing the same thing—looking to the emerging middle classes of countries around the world for growth.

Partnering for Retail Expansion

I was recently asked to comment on a story for Business First  about US retail brands expanding abroad, specifically in the Mid-East.  The story by Dan Eaton points out that U.S. retail brands Payless shoes, Office Depot and Starbucks partner with companies like M.H. Alshaya Co. to make that happenIn that piece, Colin O’Kane, an executive from Alshaya, says, “A customer who has shopped at a store in the U.S. should feel at home in one of the stores we operate.”

I hope they aren’t relying on customers who have shopped U.S. outlets of these brands.  Talk about niche marketing.  Yikes.  (Of course he wasn’t; I believe his point was about the appearance and operation of the stores.)

Will that be enough to sustain growth?  What about the long-term prospects of the business on the ground?  Fueled by encouraging numbers from competitors and online sales, some retailers are reporting up to 20% of their online sales are coming from non-U.S. markets, brands are very motivated to find the right market entry strategies.

Here in the U.S. we are in a “’post-brand” environment where we need to have constant dialog and build deep connections with our customers.  The brand stance alone no longer is enough for customers here. 

Is cultural relevancy relevant?

Are these brands banking on their novelty alone?  It’s hard to argue with what appears to be pent up demand for well-known U.S. brands like Abercrombie & Fitch.  Take a look at this video. It doesn’t need to be translated to understand that A&F did a good job on opening day.  Critics have pointed out that the Japanese consumer culture is not as overtly sexualized as A&F is comfortable with in Western markets.  Did they offend?  Did it hurt them?  Most likely not.  They have enough brand equity to be themselves—for now.

But what of the lesser brands?  When Tesco entered the U.S. with their Fresh & Easy brand they found a niche between grocery and convenience to exploit—a unique and possibly a defendable position.  They are constantly tweaking it for American markets.  How will Tween Brands’ Justice fare in Dubai?  How much will they have to understand the local culture to make the product, environments and staff relevant? 

The merchant and its partners must understand consumers and markets as they balance maintaining a brand image amid the dynamics of a new and foreign marketplace. Companies like Alshaya give retailers “someone on the ground” who has that market knowledge and can manage the business day to day and at less expense than if the retailer staffed and ran the stores itself.

Each Brand Deserves a Unique Strategy

International influences have always been a part of retail.  The fresh, new, exotic are what drive attention and desire. The first department stores of London and Paris shaped the great emporiums here in the U.S.  It was the buyer’s imperative to go out and find the most unique and interesting product—still is.

It needs to be said that among the many ways to expand internationally, each brand does it differently.  Whether it is Galleries Lafayette, Collette, franchising, licensing or some combination of the above, there are many ways to expand globally.   Companies like Alshaya understand middle-market specialty—mostly apparel—brands and their relevancy to the consumers already shopping there.  Al Tayer Insignia understands luxury brands and thus has been tapped by Macy’s to help launch their first international store, Bloomingdales in DubaiWalmart is pressuring the U.S. government to help change the laws in India preventing it from selling directly to consumers.  Will Kroger or Target pop up in Tesco’s back yard?  Probably not anytime soon.

Relevant links

Original Business First article: bit.ly/cF0MDe

A&F in Japan:

U.S. Grocer Chains Eschew International Development http://supermarketnews.com/viewpoints/us-chains-home-growth-0531/

Retail - All Abroad: U.S. Retailers Set Sights Overseas - CNBC http://bit.ly/amiu3j

Industry Statistics - Even without Web sites customized for foreign markets, global sales are rising - Internet Retailer http://bit.ly/dbQSOH

US retailers, unsure about home, should look abroad - Reuters - http://bit.ly/dqXevw

A&F Canada, Europe, Asia: http://en.wikipedia.org/wiki/Abercrombie_&_Fitch#Expansion_campaign

Walmart's Huge Overseas Expansion Distracts From Its Domestic Saturation Problem http://blogs.bnet.com/business-news/?p=1191&tag=col1;post-2452

Posted via email from ConsumerX: cXChuck's Stuff

Monday, May 31, 2010

Consumer Experience Always Matters

Sometimes we get caught up—caught up in our busy lives, in our desire to solve problems or to take advantage of opportunities.  Stepping back and taking perspective is good, doing it on a regular and productive basis is tough.  It’s interesting what jolts you out of your focus.

 

Recently I was organizing our archives (read: moving old piles of stuff around to get to the stuff we needed to get rid of) and came across a piece I wrote in 1995 for a newsletter for the retail design firm I worked for at the time. I nostalgically read through this and a few others, fully expecting to be embarrassed and shove them back in the box.  I was delighted to see, while dated—remember Incredible Universe?—the core ideas are still relevant (while the writing is a bit

 clunky). 

 

We have a different perspective on what’s important now, but in the end, it’s the experience that matters.  Read below and let me know what you think.

 

Remember Incredible Universe?  Customers had to be members—it was complicated and we stayed away in droves.

 

As we enter the last half of the last decade of the present millennium, how can we not look forward?  Much has been written, spoken, and videoed and typed about entertainment retail.  At the root of this is something that has been true from the beginning: the buying public wants to be engaged.  They want to be wow-ed.  Even when buying trends ebb and flow from value pricing to the highest levels of customer service or one-stop convenience, there is a common thread: engagement.

 

The customer wants to be engaged in the activity.  At one time it was the stained glass or mosaic domes of the grand palaces of retail, then it became the convenient suburban mall that soon offered the budge basement and good costume jewelry that captured the consumers’ imagination and wallet.

 

Then advent of specialty retailing illustrated what the customer was looking for: an engaging environment where the merchandise was of high quality and service was impeccable.  (Meanwhile, department stores were struggling to find direction.)  Next came the warehouse clubs, hypermarkets, superstores and category killers; customers sacrificed environment for another kind of engagement: the perception of dirt-cheap prices.  During the 80s hangover that was the recession-ridden early 90s, who didn’t hear a story about buying a case of paper towels for $5.48 or a 5lb. box of pasta for $3.28 (and those were prices before the member discount!)?

 

As our population ages and becomes more marketing savvy, the challenge to retrial is to five the consumer a substantial experience.  This takes the idea of value-added to the next level.  The value added in this case is that of a transaction that results in the consumer feeling better than they did before they walked into your store.  This is not all that new; it is just being applied in a different way. 

 

Well, here we are and now the superstores are taking a cue from the specialty stores.  Galyan’s Trading Company and Incredible Universe both use product and presentation elements to engage their customer. The climbing wall and new tech showcase invite customers to participate in the store environment.  Not just be entertained by it.

 

So, now we have 100,000 square foot stores with ambience, quality merchandise and service.  Sounds like the palaces of a century ago.  You see, the customer hasn’t changed; they are just a bit more focused.

 

Ok, it was a bit amateurish, but as I look back, the cycles are there, almost predictable, but I think what’s most important is that even when hit with BIG recessions, we all still want to be engaged.

Posted via email from ConsumerX: cXChuck's Stuff

Sunday, May 30, 2010

Monday, May 3, 2010

Online Customer Reviews Becoming Bigger Purchase Driver

According to a new survey from e-tailing group and PowerReviews, online shoppers are taking more time to read customer reviews before making purchase decisions. They are also reading more reviews to gain confidence.

Of the 1,000 respondents, 64 percent of the online shoppers spend 10+ minutes reading reviews, compared with 50 percent who did so in 2007, according to marketingprofs.com. Thirty-nine percent said they read eight or more reviews to be confident in judging a product (vs. 22 percent in 2007) and 12 percent say they read 16+ reviews (vs. five percent in 2007).

Overall, 64 percent said they consistently read online reviews prior to making product purchase decisions. When asked what website capabilities or features most influence product selection and purchase decisions, customer reviews and product ratings was the top selected answer (72 percent). That was closely followed by customer service information (69 percent), third-party buying category guides and expert opinions (64 percent). Top-rated product lists, as rated by customers, were named by 60 percent.

MY COMMENTARY:
The role of third-party opinion in human decision-making is very important. That importance increases as the gravity of the decision increases. Interestingly, it is human nature to work through levels of investigation and then seek opinion to--consciously or unconsciously--confirm what has more or less been decided.

I can find opinions about Sunday brunch spots and laptop computers. How far will I go before I make an actual purchase? That depends on a variety of values and situational attributes. Is brunch with my mom and family or is it a cure for a hangover with my buddies? Is the laptop for client presentations or gaming at home? Did I get drunk with my mom and clients while presenting on my laptop?

Seriously, my point here is that we as consumers have more purchasing confidence today than any other time in history because we have access to this information. It is incumbent on us marketers to provide as many credible and authentic ways as possible for consumers to find and use the information in the way they see fit. At the end of the day, if the offer is not competitive, it won't sell. Now, the speed to that conclusion is ever increasing.

Read the original post here: http://bit.ly/aF2zYU

Posted via email from ConsumerX: cXChuck's Stuff

Brand Dilution: When the Wrong Saks Comes to Town

Yes, when the wrong Saks comes to town, Saks dilutes its brand.

FROM RETAILWIRE:
Some retailers at the Bridgeport Village fashion lifestyle center in Portland, Oregon, were happy to hear about a Saks coming to their complex but were caught off guard when they realized it was actually the luxury retailer's Off 5th discount concept.

The 28,000-square foot location, opening in September, will be the chain's 12th "in a new 'luxury in a loft' design that aims for a modern and -- without aisles -- open feel," according to an article in The Oregonian.

Fred Bruning, chief executive of CenterCal Properties, which owns Bridgeport, told the paper that the concept looks like a mini department store. Jewelry departments are similar to Saks' full-price locations; with one Off 5th store he toured selling a $20,000 piece.

"We feel this will really fill a retail gap that exists here in Oregon," said Mr. Bruning.

About 20 percent of the Off 5th merchandise is from full-price stores, another 20 percent is private label, and the remainder is especially made for the store.

"We work with brands that you would find in other luxury retailers, whether Saks or Nordstrom or Neiman Marcus. We just work with them to create a value product," Robert Wallstrom, president of Off 5th, told the Oregonian.

The 500,000 square foot open-air center is located in one of the Portland metropolitan area's most affluent areas. Tenants include the Apple Store, Container Store, Crate & Barrel, Tommy Bahama, BCBGMAXAZRIA, J. Crew, Banana Republic, MAC Cosmetics and Ann Taylor Loft. It also includes restaurants such as California Pizza Kitchen and P.F. Chang's as well as the largest Regal Cinema in the state. The move comes as Saks just announced plans to close its full-price store in downtown Portland.

MY COMMENTARY:
I think it is an exciting prospect for the luxury department stores to be developing brand extensions. If that is, in fact, what they are doing.

It is not.

Unfortunately what's really happening here is forcing old formats into new places. AND on the heels of announcing the close of their “full-price” store.  This is considered strategic?

Consumers today know and understand the game. They realize that a small percentage--in this case 20%--of product is actually "off price." Will consumers accept and buy from these stores in lifestyle centers? Probably. They will be driven by price, not brand experience.

Easton in Columbus, Ohio was mentioned above. My gut tells me the we won't see an "off price" brand there. The managers of Easton are much better editors than that. (Puma, Lacoste, Burberry are the latest additions.)

My advice is to look at proper brand extensions such as Barney's Co-Op. While not an "off-pricer," it gives Barney's new and different relevancy in different centers, appealing to different customers. Consumers get the halo effect of the master brand, but it's accessible in their neighborhoods, more on their terms.

Saks et al should be re-inventing these operations for the new normal and to complement and enhance their core brands.

Check out Off 5th here: http://bit.ly/9xKifr

Read the original post here: http://bit.ly/cAiCk7

Posted via email from ConsumerX: cXChuck's Stuff

Women Will Swap Personal Information for Personal Attention?

I say it’s not that simple.

FROM RETAILWIRE:
Some of the 1,800 women participating in a survey by Q Interactive may have taken to heart the catch-phrase from a commercial that's frequently heard on British television - "Because you’re worth it." How open are women to targeted online ads?

According to the survey, 65 percent of the participants were delighted at receiving targeted online ads, exclaiming "Cool! How did they know I wanted this?" Of those surveyed 88 percent "wish brands they trust sent them more tailored offers."

But what they particularly appreciated was receiving gifts to show they are appreciated. To build an online relationship with women, brands need to "give me something" according to 58 percent of women; "get to know me better first" for over 19 percent; and "tell me something valuable" for over 17 percent.

MY COMMENTARY:
I'm not convinced that women (or men for that matter) differentiate their acceptance of online vs. other media messages as much as, say, an interactive agency might think. (Of course, that 1800 subject sample was probably skewed toward heavy internet users.)

The quid pro quo of "giving something" is simply a barrier to entry for this level of engagement. We need to not only get their attention, but the product/service must meet or exceed expectations AND if we want to maintain an ongoing relationship, it needs to be compelling and relevant over time.

Studies have shown that multi-faceted programs of engagement work best--tailor direct communication through a variety of channels and perhaps let your customer choose which way to engage your brand. That deepens the relationship even further.

Read the original post here: http://bit.ly/9k31nO

Posted via email from ConsumerX: cXChuck's Stuff