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April 6, 2009

Do Consumers Care About Quality?

In Saturday's edition of The Globe and Mail, lifestyle writer Karen Von Hahn penned a column titled Time to lose the subprime shopping habits. In it, she proposed the following "radical new austerity measure":

"Instead of throwing our money away on the immediate gratification of something for next to nothing, how about investing the same attention to quality in what we choose to wear and furnish our homes with as what we choose to eat?"

Von Hahn concedes that her proposal is "hardly a new idea." Quality is, she points out, something our grandparents actively sought when they made a purchase.

The call for a return to quality over price has been sounding in parts of our industry for the last few years. "We can't afford to buy CHEAP things" proclaimed a sign at the entrance to Amsterdam-based designer Satyendra Pakhalé's Personal Shopper display at the 2007 edition of Tendence Lifestyle, Messe Frankfurt's annual fall consumer show. Pakhalé explained that there should be a greater emphasis on quality over quantity; that we should cultivate a culture of creation rather than a culture of consumption; and that we need to have sustainable design.

Pakhalé said that his participation in the exhibition presented him with the opportunity to review "our way of living, looking at our consumption patterns, habits and above all at our global industrial culture." Unfortunately (or maybe in the long run, fortunately), the global recession is forcing us all to take a hard look at the way we live, consume and use the world's resources. Von Hahn writes: "…as the current crisis reveals--and we've learned when it comes to food--there are social costs to our consuming choices. By refusing to pay what it really costs to make anything properly, let alone here in North America, we have successfully shopped ourselves out of work, while delivering the coup de grace to the dying art of craftsmanship."

This is all true. And, I suspect that if you asked anyone in the street whether they valued quality, the answer would be a resounding "Yes." But, as in so much of life, there's no doubt a gap between what people say and what they actually do. In fact, I'm not sure that the younger generations, recognize or value quality in a lot of goods. All they've ever known is quantity. What's happening in your store? Do your customers care about quality?

April 13, 2009

The Retailer Need for Exclusivity Versus Supplier Need for Sales

For the last few weeks, I've been interviewing retailers for a couple of the articles I'm preparing for the May/June issue. In the course of the interviews, I've been asking what suppliers can do for retailers to help them successfully sell the particular product category we're discussing. Frequently, at least part of each retailer's response centers on the lack of product exclusivity and the difficulty of selling something that every other store in town is stocking. This is one of the industry's long-time conundrums. To be successful, independent retailers have to sell interesting, unique (at least to their area of operation) products that differentiate their stores' product mixes from their competition--other independents, department stores or big boxes. But, the suppliers' success rests on their sales reps being able to place the company's products in as many retail outlets as they can. What's the solution to this conflict? Has anyone found a middle ground?

April 20, 2009

In Global Context Canadian Consumers Doing Well

Today's edition of The Globe and Mail features a special report on the state of the global consumer. Jennifer Well's article, Canadians frugal, but less fretful, details the findings of the Boston Consulting Group's study of the buying intentions and consumer sentiments of 13,000+ people in 13 countries. Its conclusion? Canadian consumers are being thrifty but are less anxious than their counterparts in other countries.

Where do Canucks fall in this global analysis of "frayed economic nerves"? According to BCG, 46 percent of Canadian respondents said they were anxious. European Union consumers came in at 60 percent; U.S. consumers at 63 percent; Russian consumers are 71 percent; and Spanish consumers at 84 percent. In addition, only 39 percent of Canadians expect the economy to get worse in the next year compared with 60 percent in the EU and 56 percent in the U.S.

In the article, Wells talks to Cliff Grevler, partner and managing director of Boston Consulting in Toronto, who explains the study's findings. Here are a couple of the things he says:

"Canadians are actually doing very well. When I say they're doing very well, they're doing very well compared to two things. One, the trend line we established in the fourth quarter. And two, compared to all Western counterparts."
"We're much more optimistic about the timing of the recovery. We are extremely conservative last time. But I think after three months of reading about this Canadians are looking at themselves and saying 'I don't feel we're as badly off as others around the world."

Right or wrong, Wells' article on the study, which is being released later this month, makes interesting reading. In addition, the special report has four related articles worth checking out. They are: Households find ways to cut their budgets by David Ebner; Fatal flaws of managing through a downturn by Cliff Grevler; How Canadian shoppers buck global trends by Jennifer Wells; and How recession has changed green marketplace by Jennifer Wells.

This week's home page-enewsletter poll question: How do you think the economy will do in the next year? Better? Same? Worse? Let us know what you're thinking!

About April 2009

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

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