MONDAY, MARCH 6
State of Retail Dr. David Szymanski, Director, Center for Retailing Studies, Texas A&M University
In his estimation, consumers are more analytical then ever when it comes to making purchase decisions, and are in “multiple speed zones” during the buying process. They are getting more and more into self-customization of products and make “group” decisions—getting input, sometimes cross-generational, from family or friends before making a purchase. And in regards to the phenomenon he called “pets are people too,” Szymanski described how consumers are forming deeper emotional attachments to other living beings, like pets, and he notes that this could even extend to a non-living entity if it’s personalized (like a Build-A-Bear toy). Szymanski noted that customers need to be engaged, cautioning, “Customers can be highly loyal and not be engaged.” Engaged customers are ones who know everything about their products, and are full-time evangelists. Customers also need to feel connected, and retailers should give people an opportunity to connect with each other in a store setting. The customer pace should also be considered, determining whether a shopper is “methodical,” “on-the-go,” “intellectual,” or “driven.” This would allow a retailer to target products to different groups. In addition, Szymanksi encouraged allowing
customer customization, and acknowledged the need to keep an eye
on emerging perspectives, such as the cult-like devotion some consumers
have for specialized stores, or the success of foreign competition
like IKEA and H&M on domestic soil.
Spotlight on
Innovation Anna Wintour outlined four ways that Vogue maintains its authority. She was adamant that Vogue must not cheapen its brand identity, informing the audience that Vogue consistently aims very high. And that goal extends beyond fashion coverage. For instance, she said that when Vogue covers politics, no expense is spared. The magazine currently has a writer in Chile interviewing the President. For her third point, Wintour revealed that Vogue tries to have fun. In the April issue, the magazine features women’s shape and includes photographs of pregnant celebrities. Finally, Wintour told the audience that Vogue keeps its influence by exercising it. For example, the magazine dispenses private fashion advice to famous people who ask for suggestions. Wintour also discussed Vogue’s
successful brand extensions, including Men’s Vogue
and Teen Vogue. “We can put out a teen magazine without
being trashy,” she said.
Spotlight
on Innovation: The Process
Curt Carlson spoke about the importance of innovation, citing it as the deciding factor that separates companies that succeed in the long term, and companies that fail after their initial success. Carlson suggested that innovation is the primary means of growth, prosperity and quality of life in what he called “the exponential economy.” He cautioned that historically, innovation had only been possible in times of abundance, and that these are such times. Using landmark examples of innovation in the supply chain, manufacturing and design from the 20th century, Dr. Carlson illustrated the importance of innovation as the key factor that propelled companies ahead of their competitors. Carlson concluded that innovation is the key to keep a company from failing after critical elements like marketing, brand recognition, distribution and sales mechanisms are in place. It is the key to succeeding in the “world of abundance” and thriving in the “exponential economy.”
If
I Knew Then What I Know Now
Moderator Panelists
Magazines are a great category. But they
have to be promoted internally at the retail level. Robin Gelly, Lowes National Account Manager, concurred. “When you walk into Loews the first thing you see are magazines and books. That shows the value of the category,” she said.
New Title Launch Martha Stewart, Founder, Martha Stewart Living Omnimedia
Everyday Food, which launched in 2003, was described by Stewart as a “wonderfully supermarket-geared magazine for the home cook.” It features everyday ingredients shoppers will find in their supermarkets. Another success, Body + Soul, was the first publication MSLO purchased, and it was relaunched in 2005. Stewart said they targeted women interested in healthy living and eating. MSLO’s newest title, Blueprint, which will launch in May 2006, features stories on home decorating, fashion and beauty. “It’s practical and really cute,” said Stewart. “Every retailer should be looking for this.” Stewart stressed that MSLO is constantly innovating and evolving. “We want to span the ages,” she said. Stewart also jokingly referred to her prison term as “my sabbatical.” “It doesn’t seem like it was real,” Stewart said candidly. “I came back (to work) refreshed and ready to go.”
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