It's summer, which means that brands are firing up their most sultry retail innovations, and sweating for every consumer's attention. But like a fire hydrant turned into a makeshift water fountain, the Urbanist is here with a refreshing stream of retail knowledge.
In this issue:
– New Numbers Game in Vegas: How MGM is evolving consumer data
– Sip Coffee, Stare at Art, Don't Buy The Cadillac: Cadillac's new showroom experience
– Coming Soon: The latest appliance innovations
– Public Displays of Detection: What's new in OOH advertising
– and more
Click here to read the latest issue
— Big chains going small
— Car companies going off road
— Redoing retro
— The intel in store.
The American Customer Satisfaction Index (ACSI) recently reported declines in customer satisfaction across five different retail industries. Of those, Supermarkets registered their lowest ACSI score in more than 10 years (73). According to the report, grocery store shoppers were the most unsatisfied with checkout speed (72) and the quality of pharmacy services (76).
The ACSI also reported that, despite falling a couple points, Internet Retail earned higher customer satisfaction scores than other retail industries. ACSI concluded that shoppers prefer online shopping compared to traditional in-store experiences. This might be an overstatement, because customers could be more satisfied with their online shopping experience vs. in-store experience because they have separate expectations of each.
The highly anticipated Oculus Rift was officially released for pre-order this morning. The virtual reality headset is priced at $599 and will begin shipping in March of this year.
While this new gadget is largely purposed for gamers, its release also signifies that virtual reality is going mainstream. As the headset continues to gain momentum with larger audiences, it could very well become a popular tool for retailers to engage with their shoppers.
This Thursday POPAI is hosting its West Coast Show, the only event that takes place on the West Coast to honor point-of-purchase activity. The event features The West Coast POP Show Awards, which includes a competition, showcase and awards ceremony featuring the most creative and dynamic POP and packaging executions sold, produced or marketed on the West Coast.
The show also includes a panel conversation, titled "Branding at Retail: Now more than ever", moderated by Roberta Perry (Fresh Juice Global and Edwards Technologies, Inc.). Integer's Craig Elston will one of the panelists taking part, along side Stephen Bosch (Brand Truth, LLC), Pete Beck (IDL Worldwide) and Giovanna Dottore (Mattel Inc.). The panel promises to be a lively conversation on the role and effectiveness of branding in-store.
If you cannot make the show, or to whet your appetite, here are a few recent posts on this topic from ShopperCulture.
According to Integer's I&S Behavioral Economics report, 80% of shoppers’ time in store is spent navigating the store, not considering or buying items. And according to POPAI 2012 Engagement Study, 76% of decisions are made in-store. Thirteen percent of shoppers enter the store without a list and over 70% of shoppers make impulse purchases. The 2014 American Pantry Surveys notes that 60% of consumers say sale prices are the #1 driver for at-the-shelf impulse purchases. So why do shoppers allocate so little time to product consideration and so much to store navigation? What is causing this time delay and frustration? How do you break through the noise? What if you used images and infographics as communication tactics? Studies show that people are spending less time in the aisles focused on products so communication should be quick and easy to process.
There are a few certainties on Super Bowl Sunday, great ads and great food. Many of this year's ads had the expected (guy) humor we expect but several took a different approach, appealing to a broader audience and choosing to pull on heartstrings and emotions rather than our funny bone. This is not the first year we have seen this, but it seemed that more were partaking. Are we beginning to see a shift in Super Bowl advertising? And how is this playing out across other channels?
In store, shoppers see a range of brands trying to get their attention for the "Big Game." From soda stacked in the shape of a football to sweepstakes, discounts and specialty baked goods, there is a lot to choose from. While shopping yesterday, I saw these usual suspects as I grabbed last minute items for the game. While I didn't see anything out of the ordinary I did get the sense that many brands were marketing to the Super Bowl goers and not specifically men or women.
New technology and changing shopper behavior imposes new threats on retailers. Traditionally retailers have been looking for ways to combat those trends or mitigate their risks. That's a very defensive and re-active approach to what's going on in the market.
How about turning the threat into an opportunity and capitalizing on new trends. For example, brick and mortar retailers have always considered the online and mobile solutions as a threat. But slowly we are starting to see retailers actually take more of a pro-active approach and figure out how to use mobile and online shopper behaviors in their own favor in-store. Retailers like Best Buy have figured out ways to benefit from the showrooming shopper behavior and actually encourage shoppers to do what other retailers may be scared of. They figured out how physical stores can offer value that online/mobile cannot, and use the online/mobile behavior to drive their own sales in-store.
Have you seen other examples of retailers capitalizing on shopper and consumer trends that may have been perceived as a threat at first? Can you think of threats that no one has turned into an opportunity yet? Share it in comments!
The Super Bowl is not only one of the biggest sporting events of the year, but also one of the biggest retail events of the year. According to BIG Research, shoppers expect to spend, on average, $79 this year for Super Bowl related items. That is a $15 increase in spending compared to just 2 years ago. Perhaps there's just a rising price to watch or maybe it's due to greater game day marketing.
It's not just for soda, beer and food brands anymore. Brands of all kinds look for ways to draft off of the excitement and spending that surrounds the big day and digital platforms like Facebook and Instagram offer easy, quick ways to get in on the action. Just today I saw a sponsored Clorox post in my Facebook feed encouraging me to buy toilet bowl cleaner for the big game. I have also seen Uber get in on the action through a game day promotion that includes bar reservations and an Uber ride.
Using the big game in marketing materials definitely grabs shopper's attention, but do you think it's enough to change shopper habits or increase spending? Which brands are true fans and which are bandwagon fans?
Photo Source: Integer ShopPicTM Library
In store, displays obviously play a fundamental role in “stop-hold-close.” For beauty, displays must do more. They must tell a seductive story to capture the shopper. Beyond the key visual, every element including graphics, materials, shapes and lighting are carefully thought out and combined to express the brand territory and personality. “God is in the detail” could be the mantra of any shopper marketer or designer when they conceive a display for Beauty brands.
On the “I love Dior” display, for example, the use of the black and gold colors, the subtle mix of sophisticated materials, the reinterpretation of the key visual with the curved shape and the glorification of the product by using a mirror, all contribute to building a story of absolute, sensual, and triumphant femininity with of course, a touch of luxurious and glamorous sophistication.
Kenzo Madly builds a story of ethereal and natural beauty for young women by glorifying the blue and the butterfly’s icons and applying them systematically on every retail tool to leave an unforgettable impression in shoppers’ minds.
Givenchy communicates the benefit of the hydra sparkling formula by immersing the consumer into a world of bubbles, water, light and transparency.
Implications: In store, beauty brands think brand story and brand experience. Their displays and retail tools are each built like a story for which emotional and sensorial triggers are key. For a beauty brand, the challenges are: beyond the key visual, how do we tell the story? How can we leverage the design to be more emotional and stimulate shoppers’ senses? When promoting multiple brands or products, how do we build a compelling story?
Photo source : http://luxemode.over-blog.com
Remember the Golden Age of Hollywood? Everything in Lights—the classic movie poster marquee fenced in illumination by those tiny circular bulbs. My mind can visualize the amimated scene strolling down Hollywood Blvd past Chinese Mann's Theater captivated by the brilliance.
Fast-forward 80 years to me bustling down a local shopping mall hallway in search of a last-minute gift and a gleam caught my eye. I swung around to behold—marquee Lights!
Adorning the window of a action sports clothing retailer was this promotion—three distinct sweepstakes positioned as the next box office smash. In the bag of retailer sales tools, the consumer sales promotion has experienced a ressurgence over the last several years. Retailers continue to gain intelligence regarding the volume of consumers making decisions at the point of purchase and the factors leading to those decisions. For this retailer, tapping into an nearly century-old jazzy tactic earned them this author's eyeballs. The question is, what other culturally sticky devices can retailers revive?
The digital and physical worlds continue to collide in new ways. By taking over empty storefronts in New York with shoppable windows, eBay has created the ultimate mobile, digital, and physical mash-up. Each shoppable window focuses on a single brand and allows shoppers to make purchases that will be delivered within the hour via courier. The first Kate Spade eBay window opens this weekend, with more set to open throughout the summer.
The new shoppable windows are similar to eBay’s 2011 storefront takeovers, pictured above; however, the new shoppable windows will do away with QR codes and physical objects in the windows in favor of large, interactive touchscreens.
Convergence is creating brave new worlds for both retailers and shoppers to explore. Will shoppers flock to new mobile, digital, and physical experiences like this, or are they simply a novelty like catalog counters of years past? Is same-day delivery the key to this convergence?
Article Source: Reuters
Photo Source: PSFK
March 2013 saw the Kaiser of Fashion unveil a brand new concept store in Paris that offers ready-to-wear collections for men and women, along with a selection of limited-edition accessories, design, and photography books.
The 200 square meter black and white shop cleverly mixes baroque-inspired and state-of-the-art digital features, paying tribute to the off-the-wall personality of the high-profile fashion designer.
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