Category: Retail

We are so lucky that we can buy nearly anything we want online. If we want, we can stay at home and wait to get a new pair of shoes, a replacement phone protector, toilet paper even… Why do we still bother to go to actual stores?

I read a great article about the whole “is retail really dying” question, and depending on your school of thought it may or may not surprise you. Retail is growing! But not everyone is so lucky. We have our winners and losers and they’re not all expensive stores, or even thrifty ones.

The common denominator is that they share the philosophy of giving their customers what they want, or surprising them with things that match their personality.

Who can we thank? Amazon.

Whether we agree with their principles or business, Amazon has changed how retail operates. How can you compete with a website that has everything you could ever want? You surprise and delight your customers.

I live around a lot of cute boutiques in a very hipster neighborhood, and they thrive because they stock what people want or expect. I’ll casually walk into a shop when I don’t even need to buy anything, but I do anyway because I am delighted at what I find.

The same can be said for the other retailers that are doing well: Dollar General, Tiffany & Company, my favorite shop down the street where I bought my “plant mom” iron-on patch.

This is exactly what we believe can save retailers, or frankly, any business competing with a big market leader. It’s not always a price war.

When businesses figure out what their purpose is, and who their customers are, they win. It goes beyond demographics and dives into personalities, motivations, hopes and dreams even. You don’t need to be the biggest, you just need to be the best for the people who mesh well with you.

Written by Madelyn Skinner.

In 2017, Americans spent $130.6 trillion and names like Target, Lululemon, and (no surprise) Amazon saw increases in sales from the last year. The winners are no doubt impressive, the big question is how will retail adapt? What are the next steps? Is it too late? Absolutely not.

Recently, we heard about Kohl’s plans to partner with grocery stores. How should they, and similar retailers choose who to partner with?

First, retailers need to see who is in their geo-fence to see who their customers are. What retailers make sense to include?

Next, these partner retailers should place products appropriate to the location.

Finally, after you geo-fence your customers, get to know when personally. What are their temperaments? Personalities? What kind of products match the personalities of the best customers?

Don’t average and aim to make everyone happy. When you do that, you make less people happy. Delighting your best customers means positive word of mouth, whether online or social. People trust their peers.

It’s an interesting time for retail – we see some clear winners and we see a lot of closures (think about Sam’s Clubs). We are confident we have the key to winning.

It’s not just that online commerce is taking sales away from retailers. Well, it is, but it’s far more than a one to one ratio. The problem is not that Bob Smith bought his comforter set from Amazon and therefore Target lost out on the sale of a comforter. What’s really happening is that every online purchase is actually one less human being that walks inside your store. Why does retail not innovate around this problem?

Think about this: when’s the last time you found something really new and amazing while shopping online? Have you ever gone to Amazon to order, say, a case of this delicious Trident gum (Peach Mango) because you can’t seem to find it in stores anymore, only to discover an EVEN BETTER flavor of gum? No. You search for the gum, because you know you already like it, and at best you’re going to see that other people who searched for this item also looked at different flavors of gum.

Online shopping is too often about direct response. You search for something because you already know you want it, and so you go online and type it into Amazon or Google.

But how did you know you wanted it in the first place? You had to discover it first.

I definitely didn’t discover the (sadly) soon-to-be-discontinued Peach Mango flavor of Trident because I was doing literally anything on the internet. Shopping or otherwise.

No. I discovered it because I was in the checkout line at the grocery store, and it caught my eye. I bought a pack, tried a piece, and realize I’d just discovered my absolute favorite new flavor of gum. (This rarely happens — most of the time trying a new flavor of gum leads to reactions ranging from slight disappointment to mild disgust to WTF was I thinking when I put a piece of ham flavored bubble gum in my mouth.)

Impulse purchases. Serendipity. Discovery. Surprise. These things do not happen often enough in online stores. They happen in real life.

This seems obvious to me now that it’s been pointed out, but how often do you search for something you don’t already know? Never. Right?

Search is a very specific tool, that has more limited application than I used to think. Most of the time I find myself using Google as a handheld dictionary (define: obsequious) or as an argument-settling oracle (Wikipedia says lobsters DO come in both red and blue).

You can’t search for something if you don’t know it exists. So how does discovery happen in a post-Amazon Prime world?

I invented a technology for the purpose of bringing that offline experience of discovery and surprise to online retailers. And likewise, bring the online to the store. Disruptive technology can’t replace the kind service staff nor can it replace the charm of a well done shop in Mayfair, Union Square or the niche beauty of Royal Street. Hopefully we find a balance and realize, one day, it’s not us vs them. Both can and should support each other. Both must understand the customer far beyond clicks, cookies and coupons.

TOP 20 occupations who buy F150

Farmer/Dairyman
Pilot
Laborer
Electrician
Mechanic
Plumber
Army Credit Union Trades
Driver/Truck Driver
Construction
Medical/Paramedic
Carpenter/Furniture/Woodworking
Foreman/Crew leader
Driver
Maintenance
Welder
Repairman
Operator
Machinist
Firefighter
Supervisor

BOTTOM 20 occupations that don’t buy F150

Clerk
Psychologist
Secretary
Student
Legal/Attorney/Lawyer
Teacher
Pharmacist/Pharmacy
Social Worker/Case Worker
Therapists/Physical
Insurance/Agent
Nurses Aide/Orderly
Nurse/LPN
Medical Doctor/Physician
Real Estate/Realtor
Sales
Cosmetologist
Manager
Retired/Pensioner
Homemaker
Nurse (Registered)

I created a simple way to predict which business types will do well over the next 5 years. Looking at the results does line up well with retail news. For example, cosmetics and shaving contact lenses, contraceptives, hair loss, anti-aging, and skin care all fit well into a self-focused category. These businesses are predicted to do well and challenger brands, as well as market leaders, appeared to be holding their own. Some of the large incumbents are also a challenging the status quo and redefining how these products are sold.

While some of the categories at the bottom of the list are challenging, no one is immune to disruption or opportunity. Such topics as luggage, socks, and bedding all face uncertain futures. For example, bedding is ripe for disruption once distribution is solved for the better. Furniture feels like a difficult topic on many levels. Some of the market leaders are not performing well as lifestyle habits change in America.

While this data is not conclusive or tactical it may give insight into where to place bets for venture capital. Who is weaker could be disrupted with the technology core or investing in the top of the scale can see big revenue opportunities where are you see gaps in the market.