Watch out! Don’t get too close! This is CONTAGIOUS! Is this about a disease or germs or anything like that? No! Not at all! It’s about ideas and products and a great book that describes why some things become very popular and others die before anyone notices.
Jonah Berger explains in his book Contagious that there are 6 STEPPS that make things popular or go viral on the internet. See how you can use them for your messages.
Retail is changing! In her blog post on June 6, 2016 Jennifer Marks with Home &Textiles Today quotes the last WSL Strategic Retail Survey (”How America Shops Mega Trends”), that 55% of women said their top spending priority is paying off dept, followed by saving (48%) and vacations (35%). Jennifer Marks concludes consumers are losing their interest in accumulating “stuff”.
On the bright side Deloitte found out (Retail Volatility Index 2016), that small and mid-sized retailers are taking market share away from traditional retailers (also see Disruption in Retail). That’s mainly because small retailers can offer niche products and experiences that big retailers can’t offer. These small companies are well informed, prepared and adaptable, so they stick out from the competition.
I was blessed to be able to attend the opening session of the High Point Market in spring 2016 with Polly LaBarre (The Mavericks at Work) discussing “Reinventing Retail and Design”. Polly described in her sweeping half hour talk what it takes to make a difference. The following are her key points of her presentation:
Successful companies differ from the competition in their core values. Some may be specialized on a certain product group others may serve a certain customer group but every company has a mission and values which it stands for.
Successful companies develop their strategies together in a bottom-up atmosphere. It is an open and honest discussion where all team members participate equal.
Successful companies not only have an open working atmosphere (internal), they are also opening up to the world outside. They are very interested in the opinion of their customers and also take criticism serious.
Because of the open internal and external atmosphere, hierarchic structures or military style management forms are missing. Everything is in a steady flow. The loss of control is accepted.
Successful companies know that the world today is changing faster than ever before. Being on top of the development is crucial to maintain the lead long-term.
Certainly this sounds easier than done. But young organisations like Jazzy Jobber don’t have a past to which they are connected too. They are also not connected to expensive inventory or other assets like buildings and machinery. There are also no management structures that could block future development. These are only a few advantages that give organizations like mine a little head-start. Time and effort will show how to benefit from it.
The next big idea; Jennifer Marks; Home&Textiles Today; 2016
Customers are enthusiastic about shopping, independent of where they go to. It can be the Internet shop, the social networks or in the brick and mortar store. With consumers increasingly becoming more experienced with the internet, retailers need a solid “cross-channel” strategy. The search for product information, the sales initiation and the sales incentive often take place in other channels than the actual purchase.
Retail of tomorrow means that one thing cannot be done without the other. While some of the customers are happy to receive in-house advice and then shop online, other customers inform themselves online and then buy in the brick and mortar shop. In addition, very often the Internet helps to find the best offer.
This development offers many opportunities for retailers. Companies should find out how to reach their target customer with different sales channels to gain new customers and keep them loyal in the future. An important part here is the emotional connection of online customers with their favorite online shop.
But who exactly is the customer who buys through these different channels? Roland Berger Strategy Consultants , has specified the following purchase types:
For a long time the advantage of leading retailers was their size. They were able to buy goods cheaper, because they bought large volumes. They had lower overhead costs because they operated many stores with centralized structures. They had large marketing budgets to run expensive advertisement with a lot of it on TV. Their sales were continually rising.
But suddenly the party was over. Much smaller retailers are snatching away market share from the big guys. According to an article in the Economist, large consumer packed companies (CPG) lost 3% market share between 2011 and 2015. What happened?
All this has provided a big opening for smaller firms. The retail industry seems to enter a new world. Now there are multiple opportunities to navigate around the competition for brick and mortar stores as well as online shops.
The key for retailers to take advantage of these opportunities is to be brave enough to put everything aside that was once important and rethink and redefine the business completely. Last month Target announced that it will commit more than $7 billion to adapt to the rapidly evolving customer preferences. Everything from pricing models and store design to the retail experience and customer relation needs to be questioned. Standing still is not an option and boldness in this marketplace will be rewarded. Jazzyjobber will be part of this journey and welcomes everyone to join in.
The possibilities to sell goods to customers have never been easier and numerous than today. eBay, Etsy, Amazon, Craigslist, online stores, mail-to-order, garage sales, flea markets, auctions, product parties and pop-up stores are just a few alternatives to the classic physical store. This huge selection enables customers to shop according to their preferences.
In times when one food scandal chases the next one and when the news is covered with reports about miserable working conditions and accident disasters in various countries of textile and furniture manufacturing, consumers are increasingly unsettled.
“Good” products are no longer measured by their attributes, but by the stories they tell and their socio economic footprint. Trust is not a given fact, but has to be developed continuously and through transparency companies can establish confidence among their customers. What emerges is a new type of critical customer that knows his power in a world of sharing and social media. The closer a product is to the body, the more sensitive the customer reacts.
The movement of “Fair Trade” is growing globally. It is the need for certified products in which people can believe in. On the one hand, because it is important where products and their components come from. On the other hand, it also matters that there was value added in the region of production. Environmental protection, resource efficiency and corporate social responsibility change the economic system in the long term. Growth in the future will be generated by a new mix of economy, ecology and social commitment. Certainly this also opens a multitude of possibilities for cheating and the fake environmental promotion (Green washing). That subject will be left for another post here on Jazzy Jobber.
For a long time Fair Trade products were limited to crafts and coffee, but as the Wall Street Journal recognizes in an article in 2015, “Fair Trade becomes a Fashion Trend”. And by the way, it’s not just fashion, but also home decor.
For companies in the Home Decor industry working with fair trade products may be a way to be different from the competition. It also shows that the company cares about social standards and sustainability. This can lead to gaining new customers who appreciate the added value of Fair Trade products. Last but not least, Fair Trade is an interesting growth market and the demand for fair trade products is rising.
Sources:
https://www.zukunftsinstitut.de/artikel/fair-trade-von-der-nische-zum-trend/
https://www.wsj.com/articles/fair-trade-becomes-a-fashion-trend-1436307440
During the last recession a lot of people got worried about their financial future. For some peple this changed their lifes for the better. They have learned to live within their means. Don’t live in a house that’s too expensive for you; don’t get into debt for spending too much. Always pay your bills. Make life much simpler than it used to be. Appreciate the people around you, enjoy the beauty of nature and find time to do the things you are passionate about.
In short: Live a better quality life without the hassles of buying and spending. This can be considered a “Minimalistic Lifestyle”. Here are some benefits of this lifestyle:
Your self-worth is not connected to your belongings anymore. You are valued as a personality and not as an owner of things. You escaped the cycle of debt and overwork and you live relaxed.
Since you are not constantly maintaining, fixing and storing your possessions, you find time to play with your kids and visit friends and family. You may also be able to volunteer in your community and be grateful for what it offers to you.
You become aware that cheap manufacturing is at the cost of those in poverty working overtime under unbearable conditions. You are choosing your purchases wisely respecting the work of others.
Your lifestyle saves energy, water and resources. You are aware of the destructive powers of industrialization. Your lifestyle contributes to the use of renewable energy, sustainable grown wood and responsible agriculture.
Your lifestyle supports local businesses and communities. You are an active part of your community and you exchange your gifts and talents with the people around you. You are accepted and you enjoy the fruits of the community.
On my search for ways for companies to connect better with their customers, I stumbled over the book “Emotional Branding ” by Marc Gobé. Even though it is a couple of years old, its “10 Commandments” to improve customer relations are still inspiring:
Instead of trying to win over a customer create a win-win situation. For example instead of pushing someone into a deal, develop a mutual agreement. The customer may appreciate your approach. Instead of waving a sales sign “valid only today”, ask your customer to show you pictures of the room to be designed. Then develop design solutions together.
Offer more than just price and convenience. Arouse the imagination of the customer and turn “needs” into “”wants”. Add emotional relevance to your product. The age and smell of a chair for example could relate to historical events.
Top your best practice policies by eliminating risks for the customer. Generous return policies are great as well as products on trial.
Offer more than the competition. How is your product outstanding? Sell what others don’t have.
Think of telephone companies. Just because everybody knows you does not mean everybody likes you.
American Airlines has a strong identity, but Virgin Airlines has personality.
A Harley Davidson is not just a motorcycle. It’s an experience.
Quality tops quantity in advertising. Billboards and commercials are everywhere. Starbucks is at the right place at the right time.
Think of the benefits of social media. Listen to your customer.
Howard Shultz, CEO of Starbucks:”If we greet customers, exchange a few words with them and then custom-make a drink exactly to their taste, they will be eager to come back.”
How do you foster the relationships with your customers?
Marc Gobé: Emotional Branding: The New Paradigm for Connecting Brands to People; 2010
In one of my last posts (“Transparent Marketing”) I was talking about the importance of an open and honest business approach. To gain the trust and establish rapport with customer a business has to send truthfully and reliable messages to their customers.
In this post I want to show what influence the internal actions and policies of a company have on its public relations. I am talking about Corporate Social Responsibility (CSR).
A couple of years ago it was more or less up to a company how it was acting and what values it was representing. Thanks to modern communication technology everyone stands in the spotlight. Customers are rewarding companies with more sales for their social responsibility. For example in our community Kroger supports local Non-Profits and the people appreciate that. On the other hand Lumber Liquidators almost collapsed over allegations it would use wood from illegal sources.
Companies that share the the concerns of their customers have a positive impact. And it’s not just big corporations with large marketing budgets that can promote their intentions of doing good. Also small local companies can benefit from supporting a good cause. Here are some examples:
Customers reward companies that practice good business culture. Being known as a good employer for example also creates trust in customers. Companies which are thoughtful with their garbage and emphasize recycling show that the earth is important to them. This also counts for efforts to save water and energy.
Responsible companies also show that they care for their customers in offering products that are made out of environmentally friendly materials.
Customers like companies which are engaging in the local community and support organisations that provide provide assistance locally. Here are just a few organisations that appreciate support financially but also donated volunteer hours:
-Habitat for Humanity -Refugees Centers – SPCA – Schools and Day Cares
Here are four organizations in the furniture industry that stand for Corporate Social Responsibility .
The Sustainable Furnishings Council is a coalition of manufacturers, retailers and designers dedicated to raising awareness and expanding the adoption of environmentally sustainable practices across the home furnishings industry.
BBB helps people find and recommend businesses, brands and charities they can trust.
GoodWeave is helping children in the international rug industry by certifying child-labor-free rugs
The Forest Stewardship Council sets standards for responsible forest management. A voluntary program, FSC uses the power of the marketplace to protect forests for future generations.
In this context in want to close with a quote of Warren Buffet:
Look for three things in a person: Intelligence, energy, and integrity. And if they don’t have the last one, don’t even bother with the first two.
Everybody knows that the retail environment has changed in the past 10 years and will keep changing at a fast pace. The boomer generation gets older, millennials are stepping in as new customers, online shopping, constantly improving technology and so on.
What’s more is that the priorities for spending are different today. According to the WSL Strategies 15th Biennial “How America Shops Mega Trends Survey”, 55% of women said their top spending priority is paying off debt, followed by saving (48%) and vacations (35%).
WSL titled the study “Buying Happiness” and concludes that American shoppers want to be more financial responsible, have a less stressful life and spend more time with the family.
Gone are the times when whole families swarmed out on the few free days per year (mainly holidays) to add more stuff to the house. Gone is the lure of buying without paying through generous financing options. Gone is the luster of “cheap”.
Today the Happiness of Buying includes the mindful choice of a product along with a positive buying experience. People prefer ecological materials that don’t cause harm for them or the environment. People feel responsible for the way their product was created. They want to know who produced the product and how was it done. Quality moves in the spotlight for a longevity, durability and aesthetics.
Happiness does not only come from concept of “less is more”, it’s also the creation of joy, positive energy and value that comes with the purchase.
Shopping must be fun and a rewarding yourself with new things that you can afford creates happiness. There is not much need for more products unless they are either completely different from the existing ones or they are improving the life of the consumer in a new way (disruptive products). The relevance of a product today depends highly on its background. What makes a product special is often the experience the customer keeps in mind when he bought the product. Every time the customer sees his product in his home he is reminded of the story that came with the product. What a happy moment!
Source: Home & Textile Today, May 6, 2016
