March 24, 2008

Weekend Wrap-Up

A few items in the weekend editions of The Toronto Star and The Globe and Mail caught my eye.

In the Globe, Toronto color and design consultant Janice Lindsay extolled the power of grey in her Colour Watch column. She reports that paint companies across North America and Europe are offering all shades of grey as their new neutral palettes. But these greys are not the cold, institutional shade that is the result of mixing black and white, she writes. Instead, they are complex, "muddy" greys "that mingle and blend well with every color." Lindsay explains that unlike white walls, which "make any color look like a very loud guest," grey "makes all color look beautiful." This interest in grey was something we saw at the CGTA Gift Show and have been seeing a great deal of in fashion. It's definitely a color you should consider incorporating in your store's product mix, and when creating new displays or repainting.

In the Sunday edition of the Toronto Star, writer Leslie Scrivener did a piece titled "Sustainable Design." It showcased the work of five students from the Ontario College of Art and Design and Sheridan College. Challenged to create furniture from recycled materials these designers of the future offered chairs, tables and a lamp, all of which demonstrated how much can be made of reclaimed, recycled items. There's a video of the Sheridan design students at www.thestar.com.

On the economic front, The Star proclaimed on its front page "Five Reasons to Start Worrying Right Now." This article by David Olive explored how the deepening U.S. credit crisis could impact the Canadian economy. His list includes U.S. consumer fatigue (exports and tourism down); corporate expansion stalling (job losses); loss of trust in banking institutions (Bear Stearns); bank paralysis resulting in credit drying up; and tanking commodities as 2008 progresses. It's a sober analysis that gives one lots to think about. But, as always the consumer remains the wild card in the economic game.

Posted by Lori Smith at 11:31 AM | | Comments (0) | TrackBacks (0)

March 20, 2008

Failure to Sell

This morning I picked up my new laptop computer. Last week when I bought it, I asked the salesperson if there was anything else I should get to go with it as I had always had a desktop computer before. He thought a moment and said, "Maybe a great bag." No, I said, I have a bag. Then he asked, "Well, what else would you like to get?" "Maybe some good headphones," I answered. He produced a great pair and -- well, that was the end of the sale. I didn't come up with anything else and he didn't suggest anything else. The whole episode got me thinking about how little actual selling goes on in much of retail today.

It's becoming an increasingly rare experience to go into a store and have a "salesperson" actually "sell" you something. By this I mean have a salesperson ask about what you want and then progress from there to items that might complement what you want, or be something you might want to buy because it's on sale, or the perfect color for you, or the right cut for you, or just a really great product. Occasionally, in a department store, the cashier will tell me about sales on products as he or she rings up my purchase. But at that point, it's unlikely that I will go find the item and then line-up again to pay for it. The sales pitch is just plain coming too late, if it every comes at all.

Here's the question I think every store owner should ask: Is your staff selling or are they really clerk/cashiers? There's a big difference and it could be having a dramatic effect on your store's bottom line.

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February 19, 2008

Trends Tipped Over?

The February 2008 edition of Fast Company features an article that presents a rebuttal to Malcolm Gladwell's" best-seller, The Tipping Point.

In Is the Tipping Point Toast?" writer Clive Thompson explores the work of Duncan Watts, a network-theory scientist, who conducted "a series of controversial, barn-burning experiments challenging the whole Influentials thesis."

Watts' experiments disprove Gladwell's assertion that a group of "Super Influentials" are "the spark behind any successful trend." In fact, Watts' work shows that any average Joe or Jill can spark a trend if the conditions are right. Thompson explains Watts' theory of "Accidental Influentials":

Watts's theory says the emergence of a trend depends not on Influentials, but on the susceptibility of the public to the "virus." Social-network effects are so complex, he says, that trends are basically random.

This pitting of "viral marketing" against old-fashioned mass marketing is fascinating. Read it if you have the chance.

Posted by Lori Smith at 11:45 AM | | Comments (0) | TrackBacks (0)

February 15, 2008

Does Made in Canada Matter?

Today a new press release from Unity Marketing came across my desk. For those not familiar with Unity Marketing, it is a boutique market research firm in the US "specializing in consumer insights for marketers and retailers that sell luxury goods and experiences to the 'masses as well as the classes.'" The new release revealed that more that two-thirds of luxury consumers surveyed say that the place of manufacture is an important part of their buying decision. "Made In" matters, the company reports.

But does "Made in Canada" matter? It should. This country has excellent manufacturers of nearly all product categories: furniture, accessories, gourmet foods, bath products, and more. The design is excellent. The quality is superb. And, we know that the people producing these goods are receiving a fair wage and working in good conditions. In addition, a shift in consumer thinking is underway. The two largest factors contributing to it are: One, consumer concerns about products made in countries where there is no way of checking whether quality controls are in place or being implemented and two, the increasing consumer awareness of the environmental and human rights impacts of consumerism. Buy local has become a mantra for more consumers, and fair trade is now a consideration in the purchase decision for many people.

But, there's always a gap between what we say we'll do and what we actually do. Are your customers looking for the Made in Canada stamp?

Posted by Lori Smith at 5:28 PM | | Comments (0) | TrackBacks (0)

February 11, 2008

Will Quality Make a Comeback

Is a new breed of consumer coming? The Saturday edition of The Toronto Star featured an article on how consumerism will change as baby boomers retire and the new generation of shoppers comes to the fore.

In the article Graham explains Nazareth's central idea: That the next generation of consumers--Slackers, Gen X and Gen Y -- will value free time more than material possessions. As a result, he writes, a new parsimony will be seen in the retail world. He explains that this new frugality will result in a renewed interest in quality goods; that "well-made, reasonably-priced goods will replace merchandise at both ends of the cost spectrum. Quality merchandise will fare better than cheap and disposable. It will also perform better than high-priced, high-fashion luxury goods."

This idea of quality making a comeback was a theme I saw explored at the 2007 edition of Tendence, Messe Frankfurt's autumn consumer goods show. As I wrote in my review of the show (Innovation and Sustainability, September-October 2007) Amsterdam-based designer Satyendra Pakhalé created a Personal Shopper display that celebrated quality and design sustainability over the current "culture of consumption." It'll be interesting to see if this new wave of shoppers really will embrace conservation and put quality ahead of quantity.

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January 23, 2008

Croc Attack!!!

I was enjoying reading Marketing magazine's new "Pop Culture Blow Out" issue until I came across ad guy Scott O'Hara's cry for the demise of Crocs (see page 26 of the January 28, 2008 edition). O'Hara, who is the managing director of GMR Marketing in Toronto, completed the sentence "The hot thing in '07 that's now so over is…" with the following:

"I can only hope it's the ugliest shoes I've ever seen, Crocs, and the kings of jock rock, Nickelback."

I don't have an opinion either way on Nickelback but with regard to the "ugliest shoes" he's ever seen I'd have to say, don't knock'em until you've walked a show or ten in them. For a long time, like O'Hara I was deterred from donning Crocs because of their less than lovely appearance. But, after watching retailers and suppliers comfortably walking the halls of gift shows in them for a couple of years, I finally gave in and bought a pair myself. They are show-shoe heaven. I don't care what they look like. This summer I walked the Toronto shows and then some of the European shows in them. Not a peep from my feet. No tired legs. Crocs are a fashion sacrifice worth making.

So, far from being a trend that should end, I hope Crocs are here to stay. I've been walking gift shows for a long time and my feet have never been happier.

Posted by Lori Smith at 5:12 PM | | Comments (0) | TrackBacks (0)

January 21, 2008

Entering the (Inflated) Expectation Economy

Trendwatching.com's latest newsletter hit my desktop today. It delivered the news that we are now entering what its authors call the "Expectation Economy," a consumer mindset that they're seeing in "mature (and rapidly maturing) consumer societies." Here's how they define it:

The EXPECTATION ECONOMY is an economy inhabited by experienced, well-informed consumers from Canada to South Korea who have a long list of high expectations that they apply to each and every good, service and experience on offer.
"Their expectations are based on years of self-training in hyperconsumerism, and on the biblical flood of new-style, readily available information sources, curators and BS filters. Which all help them track down and expect not just basic standards of quality, but the 'best of the best'."

Reading the report, I wondered how people knew something was the "best of the best." Yes, word-of-mouth is effective and influential. I do recognize that. But if you haven't actually experienced (or purchased) something yourself, all you're doing is taking someone's word that a product or brand encompasses everything that would make something the best of the best to you. It seems to me to be a mindset at odds with customization and individuality.

Then there's the fact that expectations have always been part of human behavior. The change is that we are now in what I would call an Inflated Expectation Economy. People expect great products at low, low prices and then are upset when they fall apart. Everyone thinks that they should have big salaries, corner offices and lots of holidays. Marketers make grandiose claims for products (anti-aging? age-defying?) that we buy in to continuously with the expectation that they will work. We expect to have great social services and tax cuts!! Expectation inflation is rampant. If you don't believe me, just try getting through the day without having one big expectation of another person, or a product, or whatever. It's pretty difficult.

What would actually be new would be a shift to a "Realistic Expectation Economy." But, I doubt that will happen any time soon.

Posted by Lori Smith at 4:26 PM | | Comments (0) | TrackBacks (0)

January 11, 2008

Not all Jobs are Created Equal

Just before Christmas, my colleague Elena Opasini, the editor of Hardware and Home Centre Magazine, interviewed Will Dunning, chief economist to the Canadian Association of Accredited Mortgage Professionals. In the interview, Dunning explained that jobs, affordability and consumer confidence were the cornerstones of a solid housing market and currently, Canada had all three. Elena took him to task on the "jobs" issue, a part of the good-economy discussion that I'm also having trouble with.

Today's newspapers are all carrying the results of Statistics Canada's latest data on jobs. The agency reports that in December the economy lost 19,000 jobs following seven months of gains. It is the largest monthly loss in three years. Here are some other figures from the report:

* The manufacturing sector has dropped 33,000 jobs.
* 10,700 public sector jobs were created
* 21,900 were added to the ranks of the self-employed.

Statistics Canada says that job growth for the year is 2.2 percent (370,000 jobs). In 2006, job growth was 2.1 percent. What the facts don't reveal is information on the quality of jobs being created versus the quality of the jobs lost. When a plant closes down are its employees finding work with comparable compensation and benefits? Or, are they moving to lower-paying employment in the service sector or "self-employed" sector (What are they self-employed at?)? Not all jobs are created equal and that impacts a family's income and what they spend in your store.

Here's a link to the video of Elena's interview with Dunning. The job question aside, he thinks it will be another good year for housing resells and renovations--and we hope, redecoration.

Posted by Lori Smith at 4:10 PM | | Comments (0) | TrackBacks (0)

January 10, 2008

It's the Thought that Counts… No Really, It is

My inbox filled up with all kinds of interesting items on retailing while I was on my Christmas and New Year's holidays. The first piece that caught my eye was an article called "Re-Gifting to Re-Homing," which came my way via the very good email newsletter from www.retailwire.com. Written by Bernice Hurst, managing director of the Fine Food Network, the article described how close to a million items were listed on eBay between December 26th and 30th. Here's part of what she wrote:

New listings rose by about a third after the company [eBay] introduced a discounted rate in the UK of 10p, giving the original recipient not only a chance to make someone happy but also the wherewithal to purchase something they themselves wanted.
An estimated £1.2bn was spent on unwanted gifts in Britain this Christmas with hundreds appearing for sale on the Internet within 24 hours. The average cost of the "turkeys under the tree," as The Guardian said they have been dubbed, is £20 a person, according to a survey by YouGov for eBay, the auction site.
Richard Kanareck, spokesman for eBay.co.uk, was quoted as saying, "Whether it's the wrong size, you have it already or it's just not for you, re-homing a present means it will find a new owner who will really appreciate it."
Some unopened gifts were hyped with assertions that the givers were likely to have spent generously, according to The Times. As one seller said, "this is a pot luck lucky dip. I do not have poor friends so the gifts should be good." Another rejected something from his father, saying that knowing him, "it will not have been cheap." Yet another seller said an easy-to-knit scarf kit was "a lovely idea [but] I cannot knit and really don't have time to learn." And a father was selling a mobile telephone given to his son that was just "too complicated."?
Re-homing means that unwanted, unloved gifts become wanted and appreciated. Friends and relatives can stop dreading re-gifts and both original and new recipients can enjoy the gift giver's largesse. Happy ending or what?

The article is followed by a discussion of how the opportunity to re-gift online changes the holiday for consumers and retailers, and whether the number of returns to retailers have been reduced. What's your experience this holiday season? Are returns up or down?

Posted by Lori Smith at 2:55 PM | | Comments (0) | TrackBacks (0)

December 14, 2007

Do Trends Matter?

The most recent issue of Canadian House & Home arrived on my desk today. Its cover story is the "Top 10 Trends of '08." These are: Forest, Jewel Box, Casino, Granny Chic, Modern Baby, Fair Trade, Neo Classical Now, Root Vegetable, Global Textiles, and Hot & Cold. As I leafed through the pages, I got to wondering how much trends matter. There's no doubt that people love articles on trends. And magazines--Gifts and Tablewares included--love to do stories on trends. They're entertaining and they lend themselves to great graphics. But, how much to they really influence the buying decisions of suppliers, retailers and consumers?

I have to be honest, trends don't really influence my buying decisions. I buy things I like. It doesn't really matter to me whether they are "in." But, if I were buying for a store, would color and design trends influence what I bought at shows? What do you think? How much do they matter to you?

One last note: I was delighted to see a special section of yesterday's edition of The Toronto Star devoted to gifts offered by independent retailers. The "Last Minute Gift Guide" looked at independents in Toronto, Pickering, Belfountain, Oakville, Port Credit, Streetsville, and other communities in the GTA and southern Ontario. It was great.

This is my last post for 2007. I'll be back in the blogosphere on January 7th, 2008. Happy Holidays and Best Wishes for a Healthy, Joyful, Successful New Year!

Posted by Lori Smith at 2:39 PM | | Comments (0) | TrackBacks (0)


Lori Smith, , Editor-in-Chief
Lori Smith is the editor of Gifts and Tablewares, Canada's premiere gifts and tablewares magazine. Written for retailers of gifts, tablewares, housewares, stationery and home furnishing accessories, its objective is to help readers increase their sales and run their businesses more profitably by providing information on new products, merchandising, small business management, customer service, consumer behavior and industry news. The magazine is published six times a year by BIG Magazines, LP, a leading Canadian information company.

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