September 30, 2017 § Leave a comment
Beyonce’ may have had a hit with Put a Ring on It but there is a growing consumer trend among young adults who are not married, not living with a partner and are without children. These women are “single indies” and they are an emerging consumer segment buying their own rings – and everything else.
There are some 31 million “Indie Women” constituting about a third of all adult women; they tend to have more disposable income than other women, spending $1 trillion each year — $22 billion on vehicles (five times more than independent men), $20 billion on entertainment, and $50 billion on food; they over-index for television by 12%, watching 15% to 64% more late night programs than average women; and they are multi-screen users.
They are also more socially engaged online both as info seekers and as advocates, being 6% more likely to pay attention to online consumer ratings and reviews, and 12% more likely to say their friends ask them for health and nutrition advice. And they are 10% more likely to say they are pretty much first among friends to shop at a new store.
And they are successful, being the first generation of women to reverse the ceiling in school and at work. They are 57% of undergrads, 59% of masters degree holders, and 52% of managerial positions. The appeal of this market is beginning to grow among brands seeking to reach the younger audience.
2014 was the first year there were more single American adults than married ones in the U.S.
One of the interesting purchase trends is jewelry. A study on jewelry purchases by the market research firm Mintel, conducted in 2012, showed that more than half of the women who bought for themselves did so simply to treat themselves. Occasions for women buying jewelry for themselves include marking an important life event such as birthday, career success or certain occasion, a bonding experience with someone like a friend or child, or anniversaries like surviving cancer.
And back to Beyonce’ — it seems that women are really buying diamonds for themselves instead of waiting on a groom. The disposable household income of the independent women buying diamonds is more than $90,000.
The idea of “Treat Yo’ Self” was born out of a 2011 Parks and Recreation episode in which Tom Haverford (Aziz Ansari) and Donna Meagle (Retta) spend a day celebrating themselves by buying stuff like “clothes, fragrances, massages, mimosas, and fine leather goods.” When it aired, the “treat yo’ self” catchphrase immediately became part of millennials’ vocabulary. So now advertisers have used the phrase to connect with this self-purchase trend.
Marketers are developing new approaches and new language for self-purchasing women, trying to appeal to them.
April 18, 2016 § 1 Comment
The mall is no longer the cultural center of consumerism. The crown jewels of mall shopping like Macy’s, J Crew and Sears are suffering. Some predict 15% of malls will fail or be converted into non-retail space within the next ten years. In 2015 major retailers saw sales move away from brick and mortar stores while online giant Amazon increased sales 97%.
There are many reasons contributing to this decline but most importantly, there is a new savvy shopper out there who wants or needs new experiences.
- The mall as a hangout or destination is no longer necessary. Young people used to go to the mall to see and be seen. Today, social media, text messages and video chats replace some of that social activity. Movies can be downloaded. And goods are accessible online. So, the number of retail visits continues to fall. Time saving is paramount for many.
- The middle class shopper has moved on. Only upscale shopping centers are surviving. The affluent are keeping luxury brands in business, but middle class shoppers have left semi-luxury brands in favor of cheaper alternatives. The middle class shopper is less financially able to shop malls. Upscale malls in “super zip codes” are doing well, but the middle class mall is suffering. Middle class shoppers are seeking out dollar stores and stand alone retailers like Walmart and T. J. Maxx.
- Savvy shoppers are in control. Educated shoppers know where to get the best deal. Shopping decisions start online with price comparison. Some 87% of smartphone and tablet owners use a mobile device for shopping activities according to a Nielsen report. While 59% said online shopping was actually their favorite way to shop, many still prefer going to a store after checking prices online. Purchases are moving online, particularly with the prevalence of free shipping at many online retailers. Purchases are going to mega sellers like Amazon, department store online shops, boutiques, designer sites and buying clubs like Gilt and RueLaLa. With this type of price scrutiny, retailers have moved to heavy promotional selling.
- Fashion is moving to more year-round clothing. Traditional seasonal shopping has been replaced by just-in-time shopping to more closely follow current weather patterns. Year-round shopping and the prevalence of discount fashion like H&M has changed patterns and total expenditures.
- The retailer options have continued to grow. Premium outlet centers has replaced the mall for many bargain seekers and sales continue to grow. But discounting by major retailers and the continued growth of online shopping may make outlet centers less attractive for savvy shoppers in the future.
April 18, 2016 § Leave a comment
Fashion house Burberry announced they are replacing a four-show season with two shows that will be more “seasonless, immediate and personal”. These fashion shows in September and February will have collections for both men and women that will be available for purchase immediately after viewing. What’s behind this trend?
A desire for immediate of purchase, the ubiquity of social media and seasonless fashion are shaping the new fashion industry.
Luxury designers like Burberry are rethinking the way they reach consumers to adapt to the world of online shopping and social media. In today’s world, the fashion headlines are daily, not seasonal, and are shaped by bloggers and celebrities, rather than magazines like Vogue. Fashion shows are increasingly seen as outdated. The daily catwalk is Instagram. And fashion is shared instantly on Instagram, Snapchat and Facebook. The time between the introduction of collections and the ability to purchase needs to be shortened from the old system of a six-month lag. The collections lose the momentum created during the runway show.
Diane Von Furstenberg skipped the runway completely this year. She presented her collection at a party in her offices, featuring vignettes with models wearing the clothes in real life situations.
Burberry has made a strong commitment to digital to create immediate gratification for shoppers. Burberry has made sure they are on all the social media platforms including smaller ones like Periscope and Snapchat.
Runway shows for fashion houses are live streamed. The exclusivity is gone. Kanye West’s opening of New York Fashion Week was watched by a staggering 20 million people via live stream, while London Fashion Week shows are apparently broadcast to 60 outdoor locations around the UK. Luxury retailers are not trying to emulate the fast fashion brands like Zara and H&M, but they are recognizing the desire for immediate purchase.
We live in a world where we spend time in artificially cold or warm environments thanks to air-conditioning and central heating and clear demarcations between the seasons are not as apparent. Climate change, a growing global market for high fashion, and travel makes seasonless fashion more important. When it’s winter in Britain, it’s summer in Australia.
Disruption has even hit fashion.
January 1, 2016 § 1 Comment
I have worked with retailers for most of my career and sharp retailers know that every single foot of store space needs to work hard. Spend some time in your store observing customers and what they are doing. And then try some tried and true store layout tips gleaned from retail consultants Kizer & Bender that might help get your stores optimized for the best selling environment.
- Allow for a “decompression zone”. When consumers enter a store, 90% will typically turn to the right. Shoppers typically don’t notice merchandising displays within 15 feet of the entrance. The first thing that customers are noticing is your general decor, your brand statement about your store – walls, flooring, accent colors, fixtures, pleasing smells and comfortable aisle widths. Your checkout should never be in the right front of your store.
- Check your Vista. According to Kizer and Bender, stand inside your front door just beyond the Decompression Zone (about 5’ inside the store) and spread your arms out at shoulder height with your index fingers extended. The space you see is called the Vista – the area that builds a shopper’s first impression of your store. The space inside the Vista needs to be clean, uncluttered and full of not-to-be-missed product. This is where you should place your Speed Bump displays. Speed Bumps are just past the decompression zone and are the place for those attractive items. Speed bumps can be special fixturing or small tables for display.
- Color is important. Neutral colors are used in 80% of all stores, with strong accent colors used sparingly. The wrong colors can change the whole shopping experience.
- Choose a story layout that fits your business. There are three types of store layouts– the Grid Layout typically used in supermarkets and big box stores, the Loop (Racetrack) layout that creates a clearly defined path through the store, and the Free Flow Layout, typically used by specialty retailers, where they find new merchandise displays at every turn. Make sure you are always leading a customer somewhere. Most stores use a circular path to get the customer to walk through the store and back to the front. But keep “merchandising outposts” in their path so they can discover items as they walk through the store.
- The Power Wall. Walk inside the front door, stop just past your decompression zone and turn right. That’s your Power Wall, the place to display important departments, new and seasonal items, high demand and high-profit items.
- Where’s the Bananas? Every store has a high volume necessity item like bananas or motor oil that customers always look for. Put them in a back place along the shopping loop that encourages your shopper to shop the entire store.
- Store Fixturing is a tool. Keep in mind the purpose of the fixture. You aren’t supposed to see the fixture. You should see the merchandise.
- Check out should be placed at a natural stopping point in the shopping experience or path you have created. Have a counter big enough for shoppers to place their bags and/or personal belongings. Last chance for encouraging impulse or “last minute” items.
And don’t forget technology in today’s world. The technology can include digital screens, iPads to aid shopping and online helps. Does your store have WiFi? It should because shoppers are using their smartphones in-store.
November 9, 2015 § 1 Comment
It’s no secret that the average American woman is a size 14. And it seems that American fashion is beginning to take note.
Several things have happened recently to amp up the plus size movement. Project Runway celebrated its first plus size fashion designer win last week. Ashley Tipton is only the second designer on the show who has specialized in plus sizes. Her unique collection celebrated her Mexican heritage, a nod to Frida Kahlo and a fashion forward plus look. Recently Melissa McCarthy launched her own clothing line which is carried at retailers like Nordstrom’s and shopping network HSN.
According to market research firm NPD group, sales of plus-size clothes grew five percent in 2014, making it a $17.5 billion industry. What’s more the study defined ‘plus-size’ as U.S. size 18 and up, whereas in the fashion industry it starts at size 14, meaning the growth may well have been significantly larger.
Over the past two years, plus-size sales within the e-commerce category have grown 31%. Online shopping seems to take a larger share of plus size shopping. Even traditional retailers have more plus size options online.
Most plus-size women feel that their body size is not sufficiently represented in fashion and retail. A recent study from ModCloth found that 46% of plus-size women ‘never or rarely’ find clothing that flatters their body.
The online retailer surveyed more than 1,500 women to determine how they feel about the current state of the plus-size market. They found that most women are dissatisfied. Some 81% said they would spend more on clothing if there were more options available in their size.
December 16, 2014 § Leave a comment
Shopping local is more than a trend. It is growing for several reasons. Shopping local is good for business, good for the environment and good for our desire to find one-of-a-kind, meaningful products.
Good for Business
Local shopping is not insignificant. In a world of online shopping and big box retailers, the 23 million independent stores in America account for 54 percent of sales. These independent stores provide 55 percent of jobs, and 66 percent of all net new jobs since the 1970s.
One study says that local business generates 70% more local economic activity per square foot than big box retail. Keeping dollars in the local economy has been the rally cry for small business. My friend Linda Berry, owner of fine linen store Bella Linea in Nashville, Tennessee, recently shared some of the facts with her customers to reinforce the importance of keeping dollars in her community. She shared statistics showing that for every $100 spent at a locally owned store, $45 remains in the local economy, compared with about $13 per $100 spent at a big box and almost zero for online shopping.
A movement around Shopping Local has begun. American Express founded Small Business Saturday in 2010 to encourage consumers to visit small businesses in their community as part of the after Thanksgiving shopping. This year shopping local has grown double digits. A report from the National Federation of Independent Business (NFIB) and American Express – the Small Business Saturday Consumer Insights Survey – revealed that 88 million consumers “shopped small” this year, up 14.9 percent from just a year ago.
Good for Our Need for One-of-A-Kind Finds and One-of-A-Kind Experiences
Many retailers like Linda Berry also talk about the importance of meeting needs for today’s shoppers. Linda spends time traveling to find and create one-of-kind products that her customers can’t find anywhere else. Services like free designer consultation and free gift wrapping make small businesses like Bella Linea stand out among the mass marketers.
Trends like eating local and the Maker Movement also continue to provide unique goods and experiences that meet the desires of today’s consumer. The Maker Movement really captures the group of people creating individually made pieces for the home, small-batch food products, hand-knit, handmade and hand crafted items that can’t be mass produced.
Food has gone local with independent restaurants, local food purveyors, handmade food products and farmers markets proliferating. Beyond the food, food experiences have become custom as well. There are food tours, hands-on cooking lessons and small batch wine classes.
Good for the Environment
And, surprisingly, shopping local is also good for the environment. Shopping locally helps cut down on processing, packaging and transportation waste, leading to less pollution and less fuel consumption.
So, with just a few days of the shopping season left, visit a local store and make a difference in your community.