Have we simply become overwhelmed by technology and connections?
Nothing seems simple anymore. It's amazing how complex our lives have become with the technology that was supposed to simplify our lives! As I was trying to confirm flights for my departure for China, I was talking on Skype, another person was texting me, my cell phone and land line were both ringing off the hook (yes I'm that old that I still have a land line). It made me wonder if brands and retailers understand what life is like for consumers in this connected world where everyone is shouting. Maybe less can truly be more. And, maybe it's time to simplify … both in business and life.
Marketing 101 classes are being rewritten by consumers
Anyone who has taken a marketing class or attended a business seminar can probably recite the 4 Ps of marketing: Product, Price, Promotion and Place. Prior to the internet, consumers literally had to go shops to purchase anything. The best merchants in this product centric world thrived if they mastered the 4 Ps. Today, the 4Ps are far less relevant in a consumer centric world, where you can shop any place, anytime from anywhere. Traditional retailers clinging to the 4 Ps are in trouble. To thrive in today's marketplace requires at least investing in the 4 Cs.
No birthday card from Amazon, but a "Tree of Life" from an Indian hotel?
Today happens to be "blog writing" day … and my birthday. After spending six decades on this planet, you do not get overly excited about celebrating your birthday. I celebrated the fact that I was able to get out of bed, even if I had to get up and write. I opened email and found expected email birthday wishes, Facebook posts, and a cute video from the grandkids. And … there it suddenly appeared … a birthday messaged from the Leela Hotel in India. How is it that an Indian hotel, where I stayed one time, can send me personalized birthday greetings and US retailers don't seem to know that I frequently shopped in their stores?
Can the "Blue Light" specialist even begin to compete with Amazon?
Kmart is actually the third largest mass merchant retailer in the US. It still has over 1,000 big box style stores, offering everything from groceries to electronics. But, its legacy was greatly tarnished when it filed for bankruptcy, only to be purchased by Sears, another retailer struggling to survive. While the press is full of headlines on Amazon, Walmart and Target, Kmart has literally faded from the US retail scene. That was until one single video went viral. Could "Ship My Pants" be the "Gangnam video of retail? Does it signal Kmart's comeback?
You can see the future of retailing today … at Walgreens, not Walmart
When you specialize as a consultant, it is a mixed blessing. On the positive side, you gain deep knowledge about an industry. After working in the field of technology and retailing for 30 years, I've accumulated a wealth of experience and first-hand knowledge of the challenges and success factors for retailing technology products. The danger of specialized focus is that you can completely miss trends in other areas. Frankly, I was shocked when I started poking to find just how far "drug store" retail chains have come. The most innovative, consumer centric retailer in North America starts with a "W" … but it is Walgreens, not Walmart.
How one three letter word can create a personal buying experience
Much has been written and continues to be written about the battle between online ecommerce and retail stores. If it is only about lowest price, game over. Online wins IF you, the consumer, already know what you want. Online retailers are really efficient at helping you find the "what" at best price. The real potential of bricks and mortar stores is being able to address "how" to help you buy a better solution. "How can I help you" is the foundation for stores to offer personalized service required for the consumer centric world of today.
Dealing with the reality of consumer centricity requires a new mentality
A hundred years ago, retail was all about individualized service. The small, local corner shops only survived based upon the personal relationships they built. In the Era of "big box" retailing, success was redefined in terms of "scaling" the size of stores to deliver goods more cost effectively. The retailer's focus shifted to growing sales and taking market share. In a new era where the consumer is queen, things have come full circle back to relationships with consumers. Sustainable profitability is now a byproduct of pleasing people.
The secret sauce of Walmart is "enslaving" vendors to manage inventory
Amazon and omni-channel are sexy topics that grab a lot of retail press. But at the end of the day, Walmart is the largest retailer on the planet, and the second largest company in terms of revenue. To continue to grow and remain profitable is a remarkable feat given the size of their worldwide operation. And, Walmart is never one to rest on its laurels! We've posted previously about Walmart's Lab, ventures in social media, and its own initiatives in "long tail" ecommerce. Yet, if there is a secret sauce that makes Walmart successful, it is mastery of using data to hold suppliers accountable in managing its inventory and in stock rates for them!
Are traditional retail stores dead … or being invented in the lab?
You only need to peruse the headlines to see the stats on the phenomenal growth of online retailers, while retail stores are flat lined or declining. Indeed, some are predicting the traditional retail store will be dead in 20 years as consumers go ecommerce.
To paraphrase Mark Twain: "predictions of death of the retail store might be premature". Some of the largest and well known retail brands have purchased or created innovation labs. What are retailers cooking up in those labs that will get us, as consumers, back in store?
Maybe the newest member of the C Suite needs to be a Theater Director
One only needs to peruse the retail headlines to see the wide ranging discussion on the importance of customer experience in retail. In IMS Retail University we make the case very bluntly: "Differentiate or Die". If it only comes down to selling at lowest price, game over. Online and the largest retailers win the price battle, and Amazon wows consumers with both service and price. So, how do you create and sustain experience consumers will value? Retailers would do well to borrow from the playbook of Disney who understands a high quality experience is all about "theater" … and requires a blend of Stage + Actors + Script.
