WEEKLY RETAIL PRESS RELEASE

WEEKLY INTERNATIONAL RETAIL NEWS
Week 4






MEDIA MARKT LEAVES CHINA.....

What has been running as a rumor, since various months, has been confirmed.  Retail giant Media Markt (Metro Group), has decided to close his 7 stores in China.

After 2 years of trying to expand in China, they have lost the battle, to concur the biggest growing consumer market in the world. Experts talk about one of the biggest retail failures of the last years.  

The heavy local competitors and the huge increasing trend of the Chinese, to buy through E-commerce, the limited product group like electronics, next to the extremely high rental prices for spacious A1 store locations, has made it very difficult, especially, when selling at very low prices.  It is clear, that you need more than being a world leader.., to be success full in China.  Its starts, by understanding, their culture, dynamics and the very fast changing retail trends.  As explained, in previous posts, Culture-Sensitive Marketing is very important.

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MARKETING TOOLS FOR YOUR SALES POINT

WEEKLY MARKETING IDEAS, TO IMPLEMENT INTO YOUR STORE

PARAMETER 1: THE STORE LOCATION

Probably, one to the most important points, for having an successful business, is having, the right store location.  Today, in a very competitive and difficult retail environment, you can have the best price, biggest product offer, best offers,... but only,.. the exact location can make the difference.

Before launching a store, it is necessary to study in detail the exact location. 

The right store location and environment can be divided into 4 key sub parameters.  They will allow you, to detect and to measure the best new and or evaluate your existing commercial location.

However, before, it is important to consider the following 3 general questions?

- Has the city enough economical potential, in order to justify your investment?

- Did you analyze the general area and its most commercial streets?

- Did you analyze the general facts of the selected store location and its environment?

The facts, which will define your final decision, to select your store location, can be divided into:

Facts who have an input on the demand: flow of transit, possible and future turn over increase, etc..

Facts who have an input on its environment: the existing commercial offer, or services like banks, public organizations, transport...., direct or indirect competitors, urban and or architecture characteristics like easy access, parking availability, car free street,..

Facts who have a input on the building, store: visibility, access, size of front windows,...

Facts who have an input on the acquisition or maintenance: rent, fee to take over store....

Lets now start with analyzing our 4 key sub parameters.  As explained, last week, we are going to quote them form 0 until 3.  As you will remember, we described the quotes as follow:

0 = critical, requieres immediate action 

1 = not that favorable, needs a short medium action

2 = favorable, good, but needs a medium long action

3 = optimal, perfect.

The 4 parameters to analyse:

The general attraction of a commercial area: The right store location is vital, to assure the success of your business. Are you in the right commercial area? Are you in the best street?

The flow of people in that area: Strategic and very important, the exit of your results, is mainly linked with the number of people passing your store. The more people, the more possibility  that people will enter and buy.

The kind of type of street of a commercial area: The street, front store, the size, the width (min. 1.50 is needed) are very important , as they will allow your store, a better visibility and access. 

The area or environment of the store: Definitely strategic, when selecting your store location. The fact that you are in an already well developed commercial area and the wide range of existing services will generate and guarantee, an important flow of consumers.

Lets give you some examples, how to quote your parameters:

Example 1: You are in a 'out of the main commercial area' street, not visible = quote 0 (maybe you have to change your store, to a better location).
Example 2:  The flow of people passing your store, in commercial hour, is more than 50 persons, each 10 minutes = quote 3 (can not be better)
Example 3: The width of the street of your store front is less than 1m = quote 0 (will provoke bad access and visibility of your store, the minimum store front has to be more than 1,50m)

By analyzing and quoting (eventually, by making a table with all results) all parameters in detail, you will end up with a final result. It is important to analyzing with a critical eye (a SELF-critical analysis), in order to have a clear and correct view of your existing and or future store location, as big part of the success and results will depend on it.
Based on the total result, you will be able to make the right decisions, concerning your perfect store location.
My experience has learned me, that it is better to have the best commercial location and paying more in rent or buying price, than looking for a cheaper 2nd, 3rd or 4rd store location, but having few flow of people and less sales.  A good location is already the half of your success.
Lets start.....

NEXT WEEK, 
PARAMETER 2, THE STORE CONCEPT....

NOTE: Please do not hesitate to ask us, if needed, more in debt and detailed information, how to realize and find your perfect store location.

COPENHAGEN, THE CREATIVE RETAIL CITY

COPENHAGEN,
The city, that decorates itself....

Talking about Copenhagen, is talking about decoration. It can be considered like the world capital for all those who love to decorate their homes, being creative, trendy but still unique.  The vibrant Danish capital, has all what you need, to restyle or decorate your house.  Surrounded by beautiful old harbor port buildings, along the various canals,  mixed up with spectacular contemporary architecture, each corner of this historical trade city will surprise you. 

Although the main commercial 'Stroget' street, homes major retail chains, in it near surroundings you will find a lot of little streets full of lovely shops and outlets, offering a wide range of lovely products.

To find the more creative area, just cross the bridge across the harbor and visit 'Christianshavn', a melt pot and the home of artists, architects, writers and creatives.  A beautiful historical 17th century neighborhood, full of old townhouses, warehouses, modernist apartment blocks, full of shops, restaurants and bars, divided by canals.  The nearby Royal Opera House, in the 'Holmen' district, along with the various academies of arts, film and music, are creating a young bohemian lovely atmosphere. 
You feel like learning everything about the Danish architecture and urban design culture, just visit the Danish Architecture Center, situated in beautiful historical building.  You will love it.

www.dac.dk

For those who like to see, the latest on Danish design furniture, just drop in 'Vestergaard Mobler'

or for fanatics of retro, visit Retro Villa....with its amazing wall paper collection.  

www.vestergaard-moebler.dk

                                               www.retrovilla.dk

Or just jump into 'Kirk', for a wide range of accessories for your home....

...and do not forget 'Frizsche Glashandel', one of the oldest craft glass stores in the world for beautiful in blown glass or the famous Norman designer store. (like already described in on of our monthly retail concepts)

www.frizsche.dk
normann-copenhagen.dk

For a nice breakfast or lunch, just go to 'Café Wilder', a french style, very popular café.....

www.cafewilder.dk






.....or do you feel like having a good beer, you still have one of the oldest taverns of Copenhagen, the 'Eiffel Bar'.

www.eiffelbar.dk

....and do not forget 'Noma' the best restaurant of the world....

www.noma.dk








As you can see, there are so many things to see, try and enjoy in Copenhagen.  This, is just a little glimpse of what, this exiting, cosmopolitan, but human city has to offer.
O.. by the way...do not forget to use the bike, as it is the perfect way to discover this lovely place.

So,...well known, for their hospitality...'Nyde Dit Ophold'....

www.visitcopenhagen.com
www.copenhagen.com

OUR WEEKLY RETAIL VOCABULARY LESSON

OUR WEEKLY VOCABULARY LESSON
Week 4









Basic Stock Method : A kind o inventory planning tool, in order to maintain a continuous level of stock, most of time more than you expect to sell in a specified period. Part of the never-out-of-stock system.  Mainly used for basic high rotation items.

A Category Killer Store : A term used for a kind of store type, mainly large and specialized in one group of products, selling mostly at low prices. A store concept with a lot of future.  Sometimes, it is better to be the best in one product group, offering a wide range of items in this specific area, with the best service and with the most competitive prices instead of trying to sell everything, but be average in your offer.

Non- Store Retailing : A form of reaching and selling to your consumers through other ways than your usual store.  Can happen through direct selling, vending, direct marketing,...Could be complementary to you actual store business and a good tool for incrementing your turn-over.

DOES THE USE OF SINGLE MINDED MARKETING STRATEGIES STILL WORKS ?

THE NEED OF CULTURE-SENSITIVE MARKETING







As mentioned in my personal introduction, during my life, I have been living and traveling in many countries and have learned about different cultures.  Today, in my daily business, as Belgian, working already more than 10 years in Spain, I see so many differences, between the local people and my own Flemish culture. 

When I setup my second furniture store in Madrid, I had been operating for more than 5 years in Barcelona and thought, that by using the same products and collection for the store of Madrid, it would be as successful as Barcelona.  Wrong....the consumers in Madrid were looking for a different product.

The culture and what happens in the hart an minds of people in Madrid is different of those in Barcelona, Santander, Sevilla....Brussels or what ever place in the world.

Where we are used, to follow the classical marketing and have a very single minded ( the Kotler theory) idea of product and or advertising management, I do believe, that we need to take a different view on the above and re-analyse above theories. 

Do, consumers around the world, behave the same ?  Certainly.. yes... Consumer 'needs', are most of the time the same and universal and the drive, to obtain them, is very similar.  The marketing and media gurus know, how to use this common 'all together feeling' very well.  However,..what about the cultures?  Are the people from New York, having the same family values as the habitants of a village in Texas? Does Flemish people think the same as the habitants of the Walloon region (French speaking region)? Are the Parisians dressed up the same as the Berliners? Are people in Holland, more house birds than the Spanish people, who like to enjoy, being outside?......

Maybe brands have the intention to globalize too fast the world as equal, as one big consumer market, but what about each culture?  What happens in the hart and mind of each consumer? Can we globalize cultures?

Can we eliminate or forget the 'unconscious' of those groups of people, their collective behavior, their religions... that has been there for so long, from generation to generation,...

Are the values of life and the way each one of this cultures understand and feel them, not important?

It must be clear that the value and perception of a product or service is different between regions  and  countries.  The last years, with the failure of many international food retail chains, trying to implement their single consumer minded world strategies, in all regions and or countries, we have learned that you can think globally, but it is needed to act mainly locally. If you want to act successfully locally, adapt yourself to their culture, feel it, taste it,..and adapt your product to the needs of that culture. Use local marketeers. Do not just implement your own 'My product is the only one and the best' strategy.  Re-evaluate your marketing strategies and become and think as a local.  
So, just become cultural sensitive.....

RETAIL IS JUST DETAIL, IDEAS TO SELL MORE

SIMPLE IDEAS TO SELL MORE INTO YOUR STORE
Week 4







Internal system, idea 3

Put your priorities en order.  Sometimes, we have the intention to organize our priorities always in line with our most urgent matters or when something happens.  Managing a store, is managing your priorities in order of importance. Priorities general depend most of the time of the retail calendar. (ex. the priority in sales period, is having the much goods in the store,in order to try to sell the much possible) Some priorities are sometimes not that urgent, but could have a mayor importance on the results. So make a priority classification in your store.  This will allow you, to act  automatically and very fast, in case of unprovided situations.  It also, will avoid discussions of who or what...has done right or wrong.  Important that your staff knows this priorities. Priorities can be organized by year, month and or week and by one time or repeated tasks.

Clients, idea 4

Do not allow, that your clients leaf you.  As already explained before, you have to take care of your clients continuously.   This you can do, by creating a membership.  Those clients, generally represent a big part of your clients and business volume.  Al lot of those clientes,  however, disappear after a while, as they need a permanent attention and the feeling of belonging to something.  So, reward those clients by offering better service and sometimes bigger discounts, in line with the time, they are client of your store.  A good repeated communication is vital.  Try to know, what they permanently think (via blog, opinion polls,..) or what they like or not like of your store.  It will allow you, to adapt your store very quickly to the todays needs.  It will also maintain your clients.  Do not forget,....it is always easier maintaining clients than making new clients.

Products, idea 2

Always prepare your store, upon receiving of your products.  Always try to avoid, to fill your store with new stock of products during opening hours, as it always will disturb your clients and distract your sale staff.  All the time, that they are occupied with the filling of the goods into the shelfs, they can not be with the client.  It has also been proven, that mayor errors in stock inventory happen during reception of the goods.  So, by making your priority list, adapt you employees working hours, the way that some, can do the reception of the goods and its register in the computer system before opening the store.  It will save you a lot of errors.

FANGSUO COMMUNE, A DIFFERENT CHINESE BOOKSTORE

FANGSUO COMMUNE  
GUANGZHOU, CHINA

OR HOW A BOOKSTORE CAN BECOME A TRENDY PLACE....

In line with our monthly special store concepts, we like to talk you about Fangsuo Commune, or  lets called it the real oriental spirit.  From its design, using mainly natural materials like wood, bamboo, steel and stone, its 2000m2 store is bringing a total new way of bookstore.  Actually, using the image the typical old bookstores with high selves, it combines the selling of books, clothes, different unique household International designer items and handcraft made products, presented in a new modern very attractive designer atmosphere.  The warm colors of the natural materials, the shapes, like the 100 meter long and 3 meter high library, full of books or the remarkable entrance door and the special store furniture are creating a unique feeling.  By offering various expositions of art and culture events in their adjacent gallery, they create a continuous flow of movement into their store. Centrally, you can find a lovely coffee shop full of orchids.  On the walls, you will find daily new poems, created by the staff.

The use of warm natural materials, the smell of wood, the music,..are creating this oriental timeless and peace full atmosphere.

By offering a wide range of limited and special books, combining designer decoration, household art, clothes and all aspects of art, Fangsuo Commune, has created a kind of unique atmosphere.  It has become a kind of culture center, a place where people meet each other, enjoy art, books and the peace.

It is like entering in an other world.  The world of being different and unique.

e.weibo.com/fangsuocommune