Tag Archives: Retail

FMCG ‘old biz’ categories are- surprise! -increasingly shopped online

Omnichannel shopping. If you’re in FMCG marketing and believe that “online is a ‘future’ factor”, you’re already wayyyyyy behind, according to Nielsen.

http://www.nielsen.com/us/en/insights/news/2017/us-fmcg-trends-to-watch-in-2018.html

Amazon finds Key To Rebecca…and Rita & Jake & Jamal &…

According to updates from RetailWire, Amazon ‘Key’ delivery service aims to offer:

  • more convenience than some other models eg BufferBox, or pickup/drivethru at Loblaws- and
  • more security  protocols than some other cheap & available home delivery models- a certain Mass Merch behemoth delivering via cheapest, no secuirty cleared driver- and
  • more gegraphic reach than the market-specific icons eg Longos.

Should be interesting to check in on its acceptance and return customer rate.

Amazon to begin making in-home deliveries in 37 cities

Practical Progress: converting Eco Intent vs Action

If you view my upcoming videos or have had me as Instructor in Applied Marketing Research, you will know I warn ppl against putting too much faith in respondent survey data on topics that I refer to as Survey Sirens. One of those is ‘eco-intent’.

First- TRIVIA TEST! In what year did  a nationwide USA CPG brand first launch a national eco-responsible line extension? Was it2005? 1999? 1995?

Would you believe… 1990? John Cook, Mitch Gumma, John DePaolis, Marie Blomquist, Mike Ziemke- and  I- were on Kimberly-Clark’s brand team, with tons of logistics help to coordinate 5 manufacturing facilities to source, qualify, test, contract, QA verify and –  eventually – launch Hi-DriTM Recycled Paper Towels. It was an awesome adventure, and an awesome succcess. Consumers actually paid slightly MORE PER ROLL to do the right thing.

Until 1996.

Oh yes, the recession. When it hit, the same consumers would still claim to want to do the right thing- but they looked after the household first- and pennies were pennies! Hi-Dri Recycled retreated as mightily as it began.

The Moral: Don’t always believe Consumer Intent scores about eco-solutions. Intending is not the same as Acting. Intent does not always lead to Acting. Survey respondents may answer optimistically; it validates a more pleasing self-image. And the time gaps & psychological gaps between filling out an at-home survey, and when they see the options in store at shelf – can be vast! Lots of time for cognitive dissonance- ie to escape your own self-commitment!

So it’s delightful to see savvy USA Retailers tighten that time gap & psychologcal leeway. Ahold’s Giant and Stop & Shop banners have installed powerful ‘eco-ranking’ Point-Of-Sale signage- No, sorry, even better, not ‘point of sale’, but ‘place of decision’- ie at the store shelf! Putting those eco-flags in your face, leaves you less room to wiggle out of your own commitment.

 http://www.supermarketnews.com/sustainability/turning-ethical-shoppers-buyers

Ahold- you have earned my endless respect- and let me time travel a bit back to 1990 Wisconsin, to boot! Thanks!

Steven

Online Vs Store Shopping by Generation: Assume Less!

Cool article reveals some shifts in Boomers through their offspring Generation Y. While Boomers are shopping online more, Gen Y members are increasingly shopping multiple physical stores in parts of the USA.

It’s wise not to assume too much about shoppers by age: eg avoid the trap of “old people will do/want this, and younger ppl will do/want this”; there are far better predictors of most shopper behaviours, than age.

https://www.cnbc.com/2017/09/21/retailers-dont-ditch-the-store-millennials-love-them-survey-finds.html

SL

 

How many #trends can you spot?

A fine CSA article calls your attention to several trend-worthy #retail concepts.

http://www.chainstoreage.com/article/now-trending-eight-clicks-bricks-retailers-keep-eye

Feel free to make your own notes on which particular ‘macro’ trends are driving or supporting each of these retail concepts eg CSR (charitable or community involvement), transparency, authentication, customized, artisan or locally crafted, VIP treatment, etc.

If that challenge seems like too much work (or if you’re on a NoThinkingRequired sabbatical), then maybe this article will be less taxing; just two of the above listed trends are driving this new Roots foray:

http://business.financialpost.com/news/retail-marketing/cabin-chic-new-roots-concept-will-customize-your-jacket-and-monogram-your-purse

Steven

Oslo & Steady wins the race

3 new sources of insight on #Retail trends fyi!

10 new ideas or approaches to inspire readers to try new methods, service a different kind of customer, give a new kind of retail experience

http://www.chainstoreage.com/article/americas-top-10-retail-center-experiences

An upcoming ‘call for ideas’ summit on etail-retail- virtual shopping, sponsored by WalM…

http://www.massmarketretailers.com/store-no-8-thrive-global-launch-innov8-v-commerce/

Finally, an example of how to not REACT to trends, but get ahead of them by a Canadian-based retailer that’s imo a benchmark to admire.

http://www.csnews.com/product-categories/fuels/couche-tard-ceo-talks-electric-cars-fuels-future?cc=3

C-stores by definition are positioned based on “convenience” – consider how treacherous that is!  Examples:

  • when Grocery stores opened late, they lost an advantage;
  • when weed became legally available to millions of Canadian  “glaucoma sufferers” (cough cough…) C-stores Dorito & RollingPaper sales took a ‘hit’;
  • when tobacco smoking incidence fell, C-store visits fell

Again & again, C-stores adapted: seizing new opportunities to sell throwaway cellphones & phone cards, lottery tickets, decent coffee, fresh meals, last-minute gifts & cards, and more. Couche-tard is investing to test other ways to drive shoppers to C-stores in Norway, presumably a lead market for e-vehicles.

Consider: many C-stores have traditionally been linked to (located in conjunction with) gassing up a vehicle. If consumers instead charge up their e-vehicle at home at night, what’s to become of C-stores?

Couche-tard is too smart to wait & see; the savvy retailer is getting ahead by trying & measuring different approaches. As a marketer, I applaud this! As an R&D guy, I’ve mixed feelings about a country test market. The scale is terrific, however everything is oh-so-readable… to the competition. My bet is that this move hasn’t escaped the attention of Couch-tard’s global rival, 7-Eleven. Quite possible that right now, in Irving TX and Chiyoda, Japan, note-takers are busily tuning into “Lillehammer’ on Netflix- and managers are booking tickets for a prolonged stay in Norway. They simply can’t ‘affiord’ not to know what Couche-tard is trying.

SL

Ways to Grow

You can’t beat H&M or Zara at calling the trends right & getting right items to market FAST! That’s ‘Fast Fashion’: on-trend ‘durable enough’ apparel, made with ‘adequate’ construction quality. You wear it a few months, then it’s out of style AND worn out. Defacto Disposable clothing.  A trend that’s taking a toll on other fashion retailers:

https://www.thestar.com/business/2017/07/11/abercrombies-failed-deal-sign-of-retail-industry-woes.html

What’s a fashion retailer to do to compete? Well, for one thing, not everyone wants Fast Fashion. And not everyone wants ‘adequate’ durability. There are segments of consumers who are less interested in being ‘leading edge’. There are others who prefer SOME items to be ‘trending’, but others to be more lasting. eg buy a few casual seasonal clothing items in latest styles, textures & colours- but buy WorkWear that will look better, longer.

Some of you will read about A&F and wonder if they can cut staffing, cut promotion spending, possibly reduce their footprint, etc. Cost cutting is an option- one that keeps the ‘chainsaw’ firms & ‘transition Exec’s quite flush.

imo cost cutting is rarely adequate over the long term. Growth is.

the firm I’m with  http://www.spitfireglobal.com  prefers growth over cutting & hacking. Retail brands might do worse than consider their situation, resources & risk tolerance (‘fit factors’) for some ‘classic’ paths to growth via NewUsers &/or NewUses?

1. sell online.

2. umbrella several generation-specific sub-brands eg A&F for GenX; Hollister for GenY.

3. Product expansion (American Eagle into undergarments; Starbucks serving alcoholic beverages in prime ‘night life’ locations);

4. Control Label &/or Brand Exclusives (Caution: this approach is contractually tough & raises Competition Act (legal) risks!);

5. Sign an on-trend Spokesperson (Burberry w Emma Watson);

6. all-out chain-wide repositioning (new targets for J Crew, Old Spice, Harley Davidson and, more recently, McDonald’s and Axe);

7. ‘Place’/ Geographic Expansion (Buick to China, Caplansky’s Deli to food trucks, Lego & Fashion brands to Flash retail).

8 Offer Services -eg Petsmart makes good money and generates more store visits (& loyalty?) by offering pet grooming & boarding (although Sears’ expansion into Home Reno Services ages ago was poorly overseen & less than a stellar success)

9. Rethink the Business Model- retailers who followed the ‘paradigm’ to own costly real estate are reassessing. eg Banks & Department stores are leveraging REIT’s and/or (aghast!) selling off ‘essential’ downtown corners. WestElm & other upscale Retail brands are plying their brand in the CONDO market.

imo the ‘secret sauce’ is savvy objective Situation Assessment that lets a consultant recommend the right option or the right blend of these. eg Lululemon expanded its product line to Women’s ‘day-wear’ items for use outside yoga studios- it worked. They also started to target Men’s apparel- imo the verdict remains out on that.

Can A&F be saved? Despite their past unfortunate management comments & weak PR efforts? The competition is tough. Very tough. Segment leaders Zara and H&M are adept @ acquiring right items @ right time @ right cost ie predict the trends, then getting product to market fast!

One path to growth I’d NOT recommend, is to try to mimic that strategy and hit’em head on. A&F needs to be smarter than that.

SL

 

Loyalty and Data – decisions galore!

As one of the oddballs who worked in both the ‘product’ and ‘service’ sectors on both sides of the USA-Canada border, I’ve seen many loyalty programs arrive, and others go bust. Researching what consumers want from their loyalty programs may seem easy (compelling savings rate, relevant incentives to redeem, VIP treatment, respect, easy visible point status, instantly redeemable, few ‘conditions’ or delays to redeem, etc).

Believe it or not- loyalty program design is actually fun! What’s not ‘fun’? Running one! ie if you think running a loyalty program is easy, think again!

These are LOYALTY programs- every move you make is visible to your most valuable players (MVP’s); a misstep is costly- a lesson that some Loyalty ‘experts’ seem reluctant to accept (Air Miles?). In fact, running a loyalty program is so daunting that Canada’s largest grocer, Loblaws resisted implementing one (decades after Metro, Sobeys and Safeway all had one), until their I.T. system had been upgraded and they had access to lessons learned on recently acquired (and admirably run) SDM Optimum program. Better to not launch at all, than launch badly and ruin the brand’s  relationship with MVP’s. Props for the patience and maturity to take that path on that timeline!

And now Nordstrom’s is launching a Visa-based loyalty card.

Nordstrom launches Canadian credit card with loyalty rewards

Why not start their own loyalty program, on their own? Because that would be costly in terms of resource and risk, especially…

  1. Infrastructure complexity & costs
  2. Data security responsibilities/ liability

Well, okay, so now it seems obvious that every firm should just partner up with AirMiles, or Visa or Mastercard or Amex, right? Right?

Well now consider what the downsides of a ‘private label’ loyalty arrangement might be:

  1. you don’t own the data – for modeling, or other analysis (you’re always requesting the data)
  2. you probably won’t get ‘full picture’ data (how they shop/behave across categories, payment methods, channels)
  3. you don’t control ways to access consumers

That’s a sobering list of drawbacks to going the Private Label route, as Nordstrom’s seems to have done.

Can’t really have it all, can you? But then again, decades of experience with loyalty programs teaches us that ‘easy’ doesn’t describe loyalty management, nor the decisions that accompany loyalty management programs. Tread with care!

-and a Financial Post  follow up on Loyalty Cards just a day later:

Canadians just can’t seem to quit loyalty cards, despite all of the data breaches and PR headaches

Steven Litt

Is Uniqlo unique enough to make it?

Japanese giant clothing retailer Uniqlo is arriving in Toronto’s Eaton Center.

https://www.thestar.com/business/2016/09/29/uniqlo-opens-its-first-canadian-store.html

It’ll be intriguing to see how they go about carving out a slot for themselves. Whether their USP resonates with enough customers, is yet to be verified. In the GTA, imo

  • Fast Fashion is owned by Zara and H&M.
  • Classic style by Michael Kors, The Bay.
  • Elite designer style by Nordstrom, Saks, Holts.
  • Discounted ‘badge’ apparel by hr2, the Rack,  Marshalls, Winners.
  • Men’s quality affordables? Moores, TipTop (they sell Calvin Klein!).

Uniqlo is destined to be a provider of durable, well constructed ‘new classics’ in multiple colour shades; in the GTA market, they may be in a similar space as Joe Fresh or perhaps Le Chateau. A step above Reitmans or TipTop or Moores. And what about Simons? Arriving (in Mississauga this past March) this savvy Quebec-based banner has a proven ability to offer quality in-style pieces, and decades of success servicing our (more style-conscious) brethren in so-French Canada.

Watch this market battle closely! I don’t expect Uniqlo to mess up inventory selection and logistics the way dearly departed Target did, yet, even with superb execution, Uniqlo’s success is not a foregone conclusion.

They need Marketing impact; watch for them to select homegrown Canuck celebs & to generously bulk up next year’s TIFF swag-bags. What if they were to play a role as primary investor bringing back the defunct World (formerly MasterCard) Fashion Week, to Toronto? THAT would certainly buy them some goodwill and be an attention-getting move for a style-conscious audience.

SL

 

two sides of retail

fyi – a couple thought-provoking links on #Retail and on #etail this week.

One is in Metro on Impulse shopping:

http://www.metronews.ca/views/my-money-gail-vaz-oxlade/2016/08/01/beware-of-things-that-tempt-you-into-impulse-buys.html

and a McKinsey forum on why etail hasn’t altogether replaced Retail:

http://www.mckinseyonmarketingandsales.com/discussions-on-digital-designing-the-next-mobile-experience

Enjoy!

Steven