lifestyle

Reinventing Retail and Design

Robert Borneff Marketing , , , 0 Comment
Reinventing Retail and Design

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:

  1. Stand for something

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.

  1. Do they work of art

Successful companies develop their strategies together in a bottom-up atmosphere. It is an open and honest discussion where all team members participate equal.

  1. Open Up

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.

  1. Lead without authority

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.

  1. Learn as fast as the world is changing

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.

Source:

The next big idea; Jennifer Marks; Home&Textiles Today; 2016

 

 

7 Types of Multi-Channel Customers

Robert Borneff Marketing , , , 0 Comment
7 Types of Multi-Channel Customers

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:

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Disruption in Retail

Robert Borneff Retail , , , 0 Comment
Disruption in Retail

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?

Why small retailers gain market share

  1. Online marketing is much cheaper and reaches more and more people. At the same time people are watching less TV. The advantage of big marketing budgets is declining.
  2. Through outsourcing of the production and online distribution, it’s easier for small companies to enter the market.
  3.  Small companies are often more flexible and understand better to keep up with the pace of their fast changing customer preferences.
  4. Consumers willing to spend more for a certain product tend to prefer smaller brands. Traditional big brands are the shops for basic, cheap products. According to Deloitte one-third of American consumers, would pay at least 10% more for the “craft” version of a product.

The Need to Change

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.

Source:

  1. Invasion of the bottle snatchers; Economist 2016: http://www.economist.com/news/business/21701798-smaller-rivals-are-assaulting-worlds-biggest-brands-invasion-bottle-snatchers
  2. TargetCorporate,  February 2017: https://corporate.target.com/article/2017/02/financial-community-meeting

Change in Retail – The Customer in the Center

Robert Borneff Retail , , , 0 Comment
Change in Retail – The Customer in the Center

Online shopping is booming. Big traditional retailers like Sears and Macy’s have eliminated stores and cut jobs. Amazon seems to continually grow and expand. Online shops take market share away from brick and mortar stores.  Thanks to the development of mobile devices such as all inclusive cameras, alarm clocks and communication tools with social media that we carry with us 24/7, online shopping is a no-brainer. Mobile devices become the most important shopping partner for price comparisons, product reviews and recommendations. Does that mean there will be no physical stores in the future?

Regarding indifferent commodity products like toilet paper or cleaners it is likely that these products will be bought increasingly online in the future. But what about products that need to be selected more carefully like fresh produce, fashion or higher class furniture? These products still need to be seen, smelled, or tried out by the customer. The purchase of these products itself provides an essential experience that can’t be replaced with virtual or augmented realities.

Classic go-to stores will always be there in the future. But they will probably look not like the ones we used to know. Here are some major trends for the next years:

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Snooze to be well

Robert Borneff Lifestyle , , , 0 Comment
Snooze to be well

How are you? Are you feeling good today? Did you have a good night sleep? We all know that sleeping enough is an important part of a healthy lifestyle. It can benefit your heart, your body, your mind and much, much, more. You can even learn better when you sleep enough, because your brain strengthens and retains memories that you gained while you were awake. That means the presentation or the music piece you practiced in the evening  will turn out better in the morning.  People that don’t sleep enough can even become depressive. In summary, we can say that a good day starts the night before.

But many of us don’t get enough sleep.  The days are just not long enough. Long working hours, late night travelling, personal stress, and small children are all factors that keep our beds empty at night.  Personally I am not a friend of sleeping pills and that’s why I looked for alternative ways to help me fall to sleep:

  1. Don’t push too hard

Very often sensitive and well disciplined people tend to ponder about falling to sleep.  If you think about falling to sleep, you are already standing in your own way. Just let the sandman come whenever he is ready.  This works when you are tired, but not if you need to sleep, because you need to get up early the next day.

  1. Night time routines

It may help to adapt some habits which have to be repeated every night. This way the body gets used to the ceremony of going to bed. Writing a diary could be helpful. The imagination of being at the beach or elsewhere on vacation while laying in bed may also work. Even a routine of reading before falling to sleep is helpful, as long as it is short. Works for me!

  1. Be a Night Warrior

If you have a hard time sleeping, don’t go to bed until you are really tired. With a couple of short nights you may find better sleep in a couple of days. Always a good one!

Important: No TV in the bedroom! The blue screen light prevents deep sleep.

  1. Take it as it is

Some people always sleep well, others don’t. People that accept that they are not like a groundhog often have less stress about sleeping. I have adapted to the fact that sleeping is not my favorite thing.

  1. Relax during the day

Don’t rack your brain with fears and sorrows during the day. Most likely they will follow you to bed. End your day being assured that you have done all, what you could do. For me this works only, when I am not too nervous about the challenges ahead.  What then helps me is Reiki and things are much better.

  1. Change the game – Think Positive

Switch from worrying to problem solving. When your head is busy finding solutions, there is less room for worry. The negative effect that prevents sleep gets buffered by the problem solving thoughts.

To master this switch it helps to appreciate your daily accomplishments. Regarding the undone things you should have a plan to get you in a positive prevailing mood. Don’t bring unwished business home with you mentally.

  1. Don’t drink too much

Low quantities of alcohol support sleep, but too much will prevent deep sleep and wake you up in the middle of the night. People over 40 like me should generally stop drinking before going to bed to avoid numerous trips to the bathroom.

And now it is time for

Good Night…

Source: Welt N24; So schlafen Sie abends besser ein; 07.26.2016

Hausmannskost – Cooking at Home

Robert Borneff Lifestyle , , , 0 Comment

In Germany during the 16th Century it was common that the food of the man of the house was more hearty and solid with more meat and fat compared to the other members of a household. In some areas this was usual until the 1900s. Today the expression stands for simple, traditionally made food with primarily local ingredients. I am using it here as a synonym for home-made-food.

Unfortunately, the fate of home cooking looks grim for the future. The Washington Post even titles an article “The Slow Death of the Home-Cooked meal”. All the cooking shows and celebrity books can’t change it: only about half of all dinners eaten at home in the USA are homemade and eating out is very popular.

Well, there’s nothing wrong with eating out. My family loves it! Picking a restaurant for a special occasion; enjoying vacations; trying out things you don’t cook at home. Eating out is great! Same thing with catered or processed food. Time is scarce, schedules are busy. Who has the time and the guts to stand in the kitchen every day?

But here is the thing: Eating out becomes boring, when done too often. Plus, it’s not healthy. Processed and frozen food is known to be bad for the waistline. And considered from a financial point, both eating-out and processed food is expensive. So…

I have to admit I love eating and I always have. I joined my mom in the kitchen from early on (even she did not always like it). I loved the TV shows of the French Maestro Chef Paul Bocuse.

The way he picked out his fresh ingredients on the farmers markets; the way (and speed) he sliced his onions; the amounts of wine and cognac in his dishes; unforgettable!

But the switch from just eating to actually cooking the food myself came with my family. And this is probably the most important reason why I cook: Home cooking is a group activity. That certainly sounds like everybody’s helping and setting the table and all that, but that’s not it. It’s the act of cooking for my family. Cooking what they want, when they want it, and how they want it. And the best part of it is sitting at the table together and eat.

Guten Appetit!

 

 

 

Transparent Marketing

Robert Borneff Marketing , , , 0 Comment
Transparent Marketing

In their book “Don’t Think Pink” the authors Lisa Johnson and Andrea Learned call for the need of Transparent Marketing to attract female customers. Over the last years women became the key- customer especially in the home furnishing business.

Transparent Marketing supports credibility. Credibility translates into trust; trust translates into relationship, and relationship can translate into sustained sales. The trick about this approach is to focus on the need of women without directly pointing to it. Here are some areas to emphasize on:

 

1. Focus on key customers

Instead of trying to be there for everybody, the focus should be on a specific customer group. This small group of customers will later on attract a larger audience. Choose niche marketing over mass marketing.

2. Know your customer

Find out as much as possible about your customer. Find out how they act and react. Communicate online and offline as much as you can and listen carefully. Make sure that the message you are sending online through your website and social media is consistent with your real life activities. What are the challenges of your customer? What is their motivation? What are they afraid of? What are their dreams?

3. Be present

Women are always thinking about their family, friends and neighbors. Make sure your customers can use the relationship with you to improve their social connections. Take advantage of the power of word-of-mouth-networks. Be at the right places at the right time, so that your customers always keep you in mind. Work together with other brands for common goals to reach out and explore new markets.

4. Open up

Keep improving the way you make the life of your customers better. Inform your customers about all aspects of your business. Include your customers in your decision process. Always ask for feedback. Use your testimonials to reach out to other customers. Work with referrals as much as possible.

5. Be emotional

Women like to be taken away by stories about how your product will improve the quality of life. Capture her imagination to help her understand how your product or service will fit into her life. Select images, messages and stories that will authentically reflect the values of your customers. A good story will give them the tools they need to visualize what it will be like to interact with your brand.

Apply your marketing to all senses of the customer. The customer will recognize the small things, the background music and the color of your displays and will pay more attention to the message of your store. Offer some little extras that the customer will discover herself.

Never push anyone into buying something. Be sure all questions are answered before the sale will be closed. It’s the experience with your brand that builds the bond with your customer.

6. Be Bona Fide

Your brand should be different from others and stick out of the crowd. Don’t follow your competition!

Show personality and be authentic. Be honest with the strengths and weaknesses of your brand. Work with real life situations to promote your product instead of idealized scenarios. For example showrooms must not be perfectly cleaned up as a display.

Be consistent in what you say and what you do. Two-faced messages disturb your credibility. Encourage questions and provide as much information as possible. Make sure this information can be shared publicly.

Source:  Don’t think Pink by Lisa Johnson and Andrea Learned, 2004

 

 

8 Ways Spending Money Makes You Happy

Robert Borneff Lifestyle , , , 0 Comment
8 Ways Spending Money Makes You Happy

As the saying goes, Money alone cannot buy happiness. But money can buy, what makes people happy. This was shown by numerous studies to this subject by Elizabeth W. Dunn of the University of British Columbia, Daniel Gilbert of Harvard and Timothy D. Wilson of the University of Virginia. Here are eight ways how spending money really makes you happy.

            1. Prefer memories over products

While material things are quickly perceived as boring, the memory or traveling or attending concerts last longer.

 

 

            2. Spend money for others

There is no indication that people are happier when they simply spend more money for themselves. But anyone who donates parts of his income or purchases gifts for others, is happier on average.  There is neuroscientist evidence that people who are asked to donate to a local charity, have brain activity in regions of their head that are also active when people are rewarded.

           3. Buy less insurance

The research of Mr. Gilbert shows that people deal much better with disasters than they would believe. He speaks of the psychological immune system. In contrast, buying extended insurance warranties that extend the guarantee of a product is not always useful.

           4. Pay now, consume later

Anticipation is the greatest joy! The great thing about anticipation:  It often makes you even happier than the actual event itself.

But many people pay for their purchases with credit cards. That means: Consume now, pay later.  The nuisance of having to pay is pushed into the future, which is supposedly not as bad. Experiments show that this is not the case.

            5. Pay attention to the “unimportant” things

People make poor judgments regarding their future happiness feelings of purchases and tend to overestimate some of them. In other words they think buying a product makes them happier, than it actually does. That’s why you should think about in detail how you would actually use the product in everyday life. You may be surprised!

            6. Buy many small amenities, instead of a few large luxury items

Little pleasures, great happiness:  Treating yourself to something frequently is more important than quantity, number or scope of the item. An experiment showed that people prefer short frequent massages over a few long ones.

            7. Do not compare too much

Research shows that people comparing different offers prior to a purchase mainly focus on the price. It would make them much happier to spend a little a more and get better quality. The quality difference of product is often not obvious at the moment of purchase but comes out later through the use of product. In Germany there is a saying: “ Who buys cheap, buys twice!”

           8. Follow the crowd

 Experiments show: Those who rely on the experience of others have a better chance to invest their money properly – and to be happy with a purchasing decision. The abundance of consumer reviews for all kind of products and services on the web is therefore very helpful.

Source: Sueddeutsche Zeitung; November 20, 2012: So macht Konsum gluecklich

Buying into Happiness

Robert Borneff Marketing , , , 0 Comment

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

The Future of Retail

Robert Borneff Marketing , , , 0 Comment

In 2007 PricewaterhouseCoopers did a study about the developments in the retail industry with the name: “Retailing 2015: New Frontiers”.  That study was updated in 2012 with new insights named  ”Retailing 2020: Winning in a polarized world”.

As a result both studies confirm that the retail industry is becoming more complex and changing faster than ever before. The furniture industry faces the same challenges.  A look in the retailer magazine of the North American Home Furnishing Association shows that new technology and changing customers are forcing retailers to adapt to the changing retail environment. On the other hand, new technology and a bigger variety of customers also opens opportunities in the retail market.

In order to take advantage of the upcoming changes Jazzy Jobber follows this development very closely.  The following post identifies three key developments in the retail marketplace:

  1. Changing customers and business models
  2. New technology
  3. Service and personalization

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