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March 2009 Archives

March 2, 2009

Resetting the Economy -- Keep Calm and Carry On

Over the course of the last two months I've had many conversations with suppliers and retailers during which they decried the media coverage of the current economic crisis. If only, they said, the media would let up on the "doom and gloom." However, the dire coverage has continued unabated.

Last week, as I read through the reports on the decline in advertising--car companies used to advertise a lot--and the subsequent impact that decline has had on the revenues of all media outlets, it occurred to me that it must be difficult not to feel doom and gloom when the economic wolves are at your door. CanwestGlobal, Torstar, CTV, the CBC, Rogers and more are in real trouble. In fact, it looks as if the media landscape of the country will be changing dramatically in the coming months. Perhaps, I thought, these circumstances have colored the reporting of the economic crisis.

But, it turns out that there's much more to the doom and gloom than that. In an excellent article in Saturday's Globe and Mail, award-winning feature writer Ian Brown examined the "boom in doom." His article, Divas of Doom Find their Fame in Peddling the Direst of Fortunes to Pessimistic Masses, concluded that "what doesn't sell is being in the reasonable middle." Economists and experts such as Paul Krugman, Nouriel Roubini and Niall Ferguson have added to the feeling of great calamity with their dire predictions. And, the ordinary citizen contributes to the doom too. Brown quotes Vivian Rakoff, professor emeritus in the department of psychiatry at the University of Toronto. She says. "There is a peculiar human need to contemplate disaster. Because there is a sense that if it gets bad enough, we can start over again."

I thought this was interesting in light of the popularity of newly-elected U.S. President Barack Obama, a man who embodies--and wrote eloquently of--the "audacity of hope." Does he represent a starting over? It also brought to mind an interview on CBC Radio's The Current that I listened to one day last week while I was driving to work. Richard Florida, the academic behind the concept of the creative class, was being questioned by the show's guest host, Gillian Findlay. In the course of their conversation, Florida made the point that economic crises of the sort we are in "reset" the culture. We change the way we do business, the way we live, where we work, and more, he said. In other words, we start again. But, it strikes me that it's not a start like at the beginning of a race; it's not a fixed line. It's an evolution.

How do we survive this evolution? I think with hope and pragmatism. Brown's article had this snippet in it: "In England, storekeepers are posting a sign in their windows: Keep Calm and Carry On, it reads, a slogan revived from the Blitz." Keep Calm and Carry On--that strikes me as excellent advice for the times. You might also ignore the direst of the doomsayers and instead pay attention to the more positive forecasts. Perhaps the media will start to do the same.

March 9, 2009

Open Less to Sell More?

Today's edition of retailwire.com's e-newsletter featured an interesting discussion on whether "closing down a store a few days a week to bring in lower prices the rest of the week" was a survival strategy worth pursuing.

The article, "Survival Strategy: Cutting Store Days" by Tom Ryan, examined the actions of Kitchen Kaboodle, a five-store kitchen products chain in Portland, Oregon, which has recently gone from being open seven days a week to being open four. Here's part of the article:

…The owners figure that with consumers only buying on sale, the cost savings from closing the doors on those days will enable the company to bring in lower prices on the other four days of the week.

"What our customers want and what everybody wants is lower prices," John Whisler, a co-owner of the five-unit kitchen appliances chain, told the Portland Business Journal. "We were thinking, if that's the 'new normal' and everybody wants everything on sale, we as a retail business , and locally-owned one, feel we need to get people what they want."

If the store just slashed prices across all days, it would lose money. Monday, Tuesday and Wednesday have long been the stores' slowest days. The savings come mostly in labor costs.

Mr. Whisler admits the idea is a "bold step" but is really a logical reaction to the marketplace.

"I think we all, in any business, get invested in how we've done things. You think we'll just tough it out and trim here and cut here and hold the line on this expense. But after a while in this economy it's pretty challenging," he said. "We don't want to be just limping along. We want to be seen as the place that gives people what they want."

The comments that follow are nearly unanimously against the idea, with one commenter opening up with this salvo: "There's bold steps and then silly ideas. This is one of them…" The lone exception calls the reduction in days open a "bold move" that "makes sense, at least in the current economic climate." What do you think? Is this a survival strategy you'd consider for your store?

March 16, 2009

Are You Tweeting Your Customers?

Driving to work this morning, I had the opportunity to listen to a segment on The Current about how the social networking web site Twitter is affecting politics. The show's host, Anna Maria Tremonti, interviewed experts who acclaimed--or declaimed--the use of a medium that gives people 140 characters to express their opinions. Regardless of how they viewed its efficacy in the political realm (U.S. President Barack Obama used it to good effect in his campaign for the White House; members of Canada's Parliament have been prohibited from "twittering" when the House is in session), all the experts acknowledged that it is a technology that has been embraced by the younger generations.

I am not a native to the Internet. I am part of the generation(s) regarded as immigrants to technology. However, when I am visited by my nieces and nephews, who range in age from seven to 19, I am struck by their tech fluency. Text messaging, Facebook, MSN Messenger, and using functions like Twitter are as normal to them as breathing. They have grown up with instant access to information. And it used to be that they would have to sit down at a computer and surf the web. Now, the information is available on their phones, wherever they may be.

I have noticed the same ease and facility with all things tech and web related in my under-35 colleagues. As a result, I've been wondering how retailers are--and will be--reaching this new breed of consumer. Has anybody offered their customers the option of being "tweeted" about upcoming sales, special promotions, or new products? Does social media have a place in your marketing plan?

One last note: The March 23rd, 2009 edition of Maclean's has a feature article on the economy called "The Case for Optimism." I hope you read it. Its authors make a good argument in favor of being cautiously hopeful.

March 17, 2009

Who's Tweeting Now?

Today's edition of the National Retail Federation's (NRF) SmartBrief e-newsletter referenced an article on social media marketing research on adweek.com. It looks at a new report from Forrester Research that explores the role social media is currently playing in the mainstream marketing landscape. In doing so, it provides some answers to the questions raised in yesterday's blog.

March 24, 2009

New Products and New Ideas for a New Economy

I spent the last few days covering the International Home + Housewares Show in Chicago and I'm happy to say that there's lots to report on. Not only did the industry's manufacturers and suppliers step up with loads of new products but the show's organizer, the International Housewares Association, put together a seminar program that offered retailers (and members of the media) new insights and analysis into market conditions, consumer behavior and leading trends. Here, in no particular order, are just of few of the products I liked and some of the things I learned at the fair.

After checking in at the Press Room on opening day, I attended a seminar called "Generational Expectations: Eating vs Cooking, Shopping vs Networking" at the show's Housewares Design Theater. Tim Woods of Michigan-based management consultancy PocoLabs shared the company's 10 years of research into how technology has changed the way we live and buy. Much of the information centered on how different the next generation of shoppers will be because of their innate use of technology. But one of the key takeaway facts for me was Woods' information about women and technology. He reported that in 2000 company research showed that the vast majority of women said that it was the men in the household who made all the technology related decisions. A mere five years later, their research showed that the majority of women now considered themselves as the technology decision maker in the household. Considering that women are the gifts and housewares' industries customer base, this rapid evolution is worth considering when you're thinking about how to communicate with your customers.

After the seminar, I took a few minutes to go through the Design Directions: Going Green exhibit. Sustainable products, packaging and manufacturing continue to be an important movement in the housewares industry. Eco-friendly products are now available across all of the show's categories. These eco-goods range from cleaners to air filtration systems to household goods such as Jamie Oliver's new selection of recycled glasses and accessories, which was showcased at the Danesco booth. Danesco%20Jamie%20Oliver%20Recycled%20Glass.JPG
One interesting new item is Ecologic's line of dinnerware, the pieces of which are made from reclaimed coconut shell (mocha color) and rice hulls and bamboo fibers (natural color) blended with earth-based resins.Ecologic%20Tableware.JPG
The line is endorsed by Sarah Snow, "The Queen of Green." Snow,Sarah%20Snow.JPG
who is a chef and host of Get Fresh with Sarah Snow on the Discovery Health channel, appeared at the company's booth during the show and signed copies of her soon to be released new book, Fresh Living.

Across the aisle from the Going Green exhibit was a display of the newest color palettes from the Pantone Color Institute. I had the opportunity to sit in on a seminar called "Color & Design Trends: De-Mystifying Future Forecasts," which was given by Pantone's executive director, Lee Eiseman. She explained that as a result of the economic downturn, color trends aren't changing quite as quickly as they were. What consumers are looking for, she said, is innovative combinations of colors--new colors that work with colors they already have in their household palette. She also said that high definition TV is changing the color expectations of consumers. Brighter, clearer colors are now the norm.

In addition, Eiseman pointed out that there are more "kids in the kitchen," and as a result more whimsical colors are being used in many products. She advised attendees to check out Rachel Ray's new Yum-O organization, which the celebrity chef developed to "empower kids and their families to develop healthy relationships with food." The "budding chef" was also brought up in the show's early morning seminar on "Top Trends in the Kitchen." Attendees were urged to take a look at five-year-old Chef Julian on YouTube. Certainly this trend (evolution?) was in evidence on the show floor. Mastrad Inc., the manufacturers of the Orka silicone products and Canada's own Precidio were just two of the companies that introduced brightly-colored collections for kids.

The early morning seminar also introduced me to the term "gastrosexuals," which was coined to describe men who view cooking as a pleasurable hobby rather than a household chore. Generation Y and Millenial males are showing markedly more interest in cooking than men of previous generations, said the panelists.

Several of the show's seminars looked at how retailers could meet the needs of the different generations represented in the marketplace. In her seminar titled "The New Economic Reality: What Does It Mean for Each Generation?," Susan Yashinsky, a global trend specialist at Sphere Marketing, reminded the audience that Baby Boomers (44-63) and Prime Timers (64+) might feel 20 years younger but are experiencing inevitable physical changes such as deteriorating eyesight and problems with grip. Fortunately, the industry has responded to these changes with products that have ergonomic grips, assist in opening bottles and more. I particularly liked Zak's new D-Circle corkscrew Zak%20DCircle%20Corkscrew.JPG
with its magnifying glass top that eliminates the need for many of us to put on our reading glasses to read the label on the wine bottle.

So much of the innovation in the housewares category centers on solving problems--in an aesthetically-pleasing way. One of Trudeau's new products (the company is celebrating its 120th anniversary this year) is the Splash Oil & Balsamic Dip Plate. Trudeau%20%28Photo%20d%27%20am%2369B694.jpg Available in a four-piece set, this new plate features three sizes of indentations that can be used to hold oil, butter or vinegars. Trudeau's marketing manager Andre Daviault pointed out that the plates are multifunctional and can easily be used for other foods like sushi with the indentations holding soy sauce, wasabi and pickled ginger. A bonus feature is the company's new lifestyle oriented packaging.

Over in the show's Inventor's Corner I found a couple of products that would help me out. The first "would really like" item I spotted was the Dotz Cord Management System created by Micah Maraia, which allows users to easily identify the use of power cords and cables.Dotz%20Cords%20.JPG Bright, colorful and easy to read, it takes the guess work out of unplugging components. Another item I'd find useful is Toronto-based Koopeh Design's garlic mincer, "The Garlic Chop," which lets users mince garlic without actually having to touch the garlic.

The above doesn't even begin to cover the range of products and information offered at the show. Look for more coverage in upcoming issues of the magazine. However, before I sign off for this week, here are two more things to think about: One - In her seminar Susan Yashinsky said that society in general was moving from thinking of products as disposable to thinking of products in terms of durability and quality. People want more from products now, she said. Does this mean that people will spend more for better quality products? Two - She also said that historically, retail experiences a major change every 25 years. "Big boxes are 25 years old now," she said. "It's time to reinvent retail."

March 30, 2009

How are you luring customers into your store?

Last week the Los Angeles Times ran an article by the Associated Press that discussed the things independent retailers in the U.S. are doing to lure customers into their stores. The article, Independent stores pump up the perks to lure shoppers, related how retailers are "hoping special events, classes, blood pressure screenings and even career counseling will inspire shoppers to keep shopping…" One store owner interviewed for the article had hired a tarot card reader to give free readings during a jewelry trunk show. A San Francisco retailer, whose sales had dropped 40 percent, has started "throwing evening parties with specialty cocktails, live entertainment and an 'eccentric Victorian photographer' to entice customers." Another retailer is sending birthday cards with discount coupons to its customers. Are you doing anything extra to lure customers into your store?

About March 2009

This page contains all entries posted to Editorial Blog in March 2009. They are listed from oldest to newest.

February 2009 is the previous archive.

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