WHY SOME RETAILERS HAVE SUCCESS AND OTHERS....OR LETS CALLED 'THE ART OF BEING CHOSEN'

Probably one of the best books about in-debt retail behavior and a must, to understand why customers choose one retailer over another.
Martin Butler, a more than experienced retailer, marketeer and writer has shown with above, some key points to understand the success of some of the key international retail players.

Remarkable...

.....THEY ARE BEING CHOSEN....



A 2 years worldwide retail study, interviewing retailers around the world, asking all..'what was the most important key to obtain above positive result', Martin Butler came to some important conclusions.  Successful retailers have a company mindset of being chosen and are.....

BEING DIFFERENT

Being different is the key to 'stand out of the crowd'. Being different can be in your complete marketing mix offering a unique product, concept or service and a way to be successful. 
Often, being different, are outstanding details. (not always big differences...)





BEING TRUSTED

Trust in a company can come from customers previous experiences with your company, but also  its behavior towards the society in general. A proud and loyal employee reflects trust,...a correct and honest marketing and price policy,...
Being trusted is an action you control. It is a like longterm relation.  Something you build up.  Todays social media is a vital way to distribute above trust. 
Being trusted is something you have to earn. Trust is the way, the people, perceive your company.

VISIONARY THINKING AND CREATING IDEAS

Visionary thinking is the art of looking in front, without seeing the sky. 
Thinking, imagining, creating ideas, visions and projects who one day... will be reality.
Apple would be nothing with the visions and illusions of Steve Jobs.
Often, visions are simple and can be find around the corner. They are the key, consumers choose them.


SHOW THE STAFF HOW THEY APPRECIATE THE JOB DONE

A key to your company success is the appreciation from and towards your staff.  Knowing how and when, to motivate and appreciate, for the work done, opens the door to self motivated staff members, reflecting the trust and satisfaction, as a red line through out your business.
A motivated staff member is a happy and satisfied client.



What have above successful companies en common!

The key of success and challenge start in the mind...lets called it 'THE SUCCESS MINDSET'.

It is all about broadening your imagination. That what, we really believe, most often comes reality. Not be afraid to think bigger, even if we have fear, doubt or compare it with other peoples previous failures or situations. 
Some key factors are needed to succeed.

1. PASSION 

You just have to love what you do.  If you don't enjoy your job, product or service, how can you convince somebody else, to love it and at the end to buy it.  Passion is the thing you could talk about for hours, what you find easy,...what you really want to do....there is no time limit...So,..never go into a business or career, you don't really love! (should be a key definition and a standard question to all young people, BEFORE electing there future study orientation.  
'WHAT DO YOU REALLY LIKE TO DO,...WHAT IS YOUR PASSION'


2. TOTALY SERVICE ORIENTED

The key to success, especially in retail is good service and the base to build up trust and a longtime relationship with your customers.  All todays successful retail companies started small and managed to convince their consumers about their good intentions. The 'good service' principle is the key angle of their business.
Just apply 'personal excellence' to everything as a standard rule.


3. LEARN FROM THE MISTAKES

If you are afraid of making mistakes, your are paralyzed.  Making mistakes is human and the only way to learn and to do it better next time.
All mayor inventors have tried a lot of times, before getting the right result. All mayor retailers have made a lot of mistakes, but have learned to adapt them on time, on the different market situations.

4. GO STEP BY STEP

The key to success is going 'STEP BY STEP'.  About building a successful, profitable and sustainable business.  Often, growing fast is the beginning of the end.  Going step by step, is keeping control on your situation (mainly financially, as often it is the reason why companies lose control about there actions and own decisions)

By analyzing all successful retailers, you will find common points in all.  They had a dream, a lot of passion, made clear goals, supported by a clear action plan and a super motivated staff.  They are persistent and maintain the focus on what they do de best.  They are never ignorant, always open to learn, recharge and know how to adapt themselves. 

'They just invest continuously, to become better in all ways.'

NEW YORK...PROBABLY FIRST PHYSICAL AMAZON STORE CITY.

NEW YORK GET THE FIRST PHYSICAL AMAZON STORE. 

As already informed in our previous posts, Amazon has plans to open its first physical store in Manhattan, close to the famous Macy's.  This kind of showroom, warehouse facility will offer, its, mainly own high tech products like Kindle e-readers, tablets, smart phones,..next to some key other branded products of the Amazon catalog. .(the ones we like to see, try and touch before buying them), offering a 24hours quick delivery same day service.  The store would also function as a pickup and product return  base for the internet orders.

The main idea is getting more detail feedback on its products from the consumers, responding at the same time to a quiet big part of consumers, who buy still more emotional. (like to see and touch, before buying)

Considered as a test case, according to the results,..several similar sales points are planned.

Where Amazon, have shaken up completely, the classical retail market, offering lower prices, buying online, downgrading the physical store to merely, a showroom. (as clients try the product in the store but buy it online), today we see a swift towards a needed physical presence in the market.  Today,  most physical existing retailers have adapted there strategy and offer at the same time a sales point (with well prepared sales staff and good personal service) and the facilities to buy at home through there own website. (but never forgetting there core business strategy,..the physical retailing).
As already mentioned before,...they are fare more ahead ....than Amazon.

The 'Pixmania' experience and failure in Europe, has shown, that selling online, at much lower prices than your physical competitors, having at the same time, a kind of store, showroom in a quiet expensive A1 location,...is not profitable and most of the time fatal for above strategy and or company. The obtained retail margins (due to the selling at very low prices and the tremendous extra costs of the 'return goods' service) does not allow any mayor costs.

Often, the consumer gets confused and you will perceived, as neither good at both.  As always, it is important to stick to what you know the best.
  
At the end you always win, when you do, what you know.

HOW TRADITIONAL RETAILERS CAN COPE WITH THE UPCOMING ONLINE COMPETITORS BOOM.

OR HOW CONSUMERS ARE USING ALL CHANNELS TO OBTAIN THE BEST DEALS.















In a todays international retail world, where online business is de talk of the town, offering the most growing double digits and fasted future perspectives for your possible retail expansion plans, where we get drunk from the tremendous expansion hunger of the Amazon, Alibaba, Zalando,Vente Privee, etc...selling in one day (the famous Black Friday or Cyber Monday sales) more than the year turn-over of an average street retailer, we are forced to jump on the online fast train, in order to be with the leaders of the crowd.

Suddenly, the traditional retailers are old fashion and the most interesting growing area is the above online business, forgetting often the values of quality and service.   Or lets call it VALUE FOR MONEY.
So... lets focus on online and forget our current retail business......or...maybe...not???

HOWEVER, BELIEVE ME,..TODAY,..PHYSICAL RETAILERS HAVE THE BEST FUTURE!

Let me explain you...with an example.

Last month, we bought our ink for company printer, for the 2nd time with Amazon, as we until that time, were quiet satisfied with the delivery time and selling price.  Where the normal delivery day would be 3 to 4 days (depending the delivery choice you can make,..so faster..more expensive..), this time,we had to wait more than 14 days.  After trying to find out(various calls and emails), what was happening to our ink, we were informed that we actually, had bought a sub brand, through a sub supplier of Amazon and that above supplier is fully responsible for the delivery and that Amazon, can not do anything.  We had to deal the problem with the sub supplier. We did, however order and pay in advance to Amazon and had no idea or knowledge of the other sub supplier. After one week, of calling and emailing, (we were send from one to another, without knowing exactly, when we would receive our so needed ink). we decided to cancel the order and return to our specialized ink retailer with a physical store around the corner, who delivered us in only one day, the missing ink. 

Obviously, this is only an example, but what I like to show you here, is some of the current and future problems of the big online retailers.  Once you understand their organization problems, you, as physical retailer will be able to adapt yourself, offering quick answers and solutions, where above often are failing.  By implementing all multi channel tools, you will able to be more competitive than the major online international retailers.

Why?

Mayor international online companies, have based there huge aggressive expansion plans, on being the first on the market, opening markets worldwide, forgetting often the logistic problematic and needs of each market.  Most of above companies, are investing tremendous amounts of money to be operative, supporting heavy losses for the coming years.  (so..no clear profit previsions)

In order to be competitive...and be able to offer lower prices,...they are forced to have a lot of products in stock, expensive distribution centers around the globe, paying low salaries and offering pessimistic working conditions (ex. lately in Germany) in order to lower the overhead costs to its minimum. (with as result, a often horrible service)  They are in front o a big duality, as, when they start working with sub suppliers, often depending on the un-controlled delivery delays and existing service capacity of above. (you can have the best intentions.., but when the rest does not follow, your whole system is able to collapse).

The huge online return policies, (en case of Zalando, more than 50% of some of the product groups are returned), is forcing above online retailers into heavy extra costs.  

Also, the recently collapse on the deliveries (UPS), where the delivery company, with the lowest price offer gets the order, but unable to offer good service, as agreed.
The recent urgent need of physical sales points (Amazon is planning to open various, around the globe, in order to show there mainly more technical products and Zalando has planned to open it outlet stores in some major European capitals) or the so called 'showrooms, shows the need of the consumers towards something physical, real and secure.
By analyzing the online business, often we enter in circle of the  'the lowest price business' and probably, one of the biggest mistakes of many of the existing current online giants today.  You will always find somebody more cheaper....and to obtain the lowest price,...everything has to follow and be adapted, to, exactly obtain this price policy. (even if you have to cut into service, quality,...or people management)

Final,...do we really know, if above companies are profitable,..as most of the time, they are not very keen in informing about there operations costs and eventual profit margins.

Today the consumer is looking for ' VALUE FOR MONEY'.  Although low price is the main drive of customer to buy, finally, they value quality, service and innovative brands, before taking the final decision and here, the traditional retailer has a big opportunity ahead.

By implementing a multi channel retailing, you will be able to offer your customers a wide range of ways to inform, purchase, return policy,.. or just offering the best pre or post sale service.  This can be through your store, website, by phone (app), mail our home catalogue.

*Your store is the base and reference for your consumer. It will provide security and trust and a kind of repeated customer behavior.   Everybody still prefers to shop in a physical store.
*Your website is a tool, to distribute your products around the globe.  To inform, to sell, to handle and to show your image or what you have today or in the near future to offer. A way to attract the consumers to your store.
*Your catalogue or leaflet is your face and a way to be looked at the home of your client, the latest offers, creating a permanent interest for your products.  A tool to attract consumers. A leaflet, to take home, in order to remember your store or products.  We always we like to look into a leaflet. 
*The mobile (app) and use of digital marketing is a way, to reach your consumer permanently,where ever they are, in order to inform and guide them to your store.
*'Click and Collect' will permit your clients, visit, inform and order from their  home, office, etc... and pick up the goods at one of your physical sales points.

Just have a look and click on enclosed very interesting video, of one of the leading European retailers, in order to understand the importance of cross channel retailing.

CROSS CHANNEL RETAILING







As you can see, by adapting your retail business according to the latest trends, using a multi channel policy, you will be able to compete with the mainly online focused business and competitors.  As retailer with physical sales points, you have the tremendous advantage of using your existing retail network, combining it with all other possible channels, in order to satisfy your consumers and increase automatically your business turnover.
Your current retail position is far more easier than you think and you are miles ahead of some of the major online companies, as you control and own your sales and distribution channels and you possess the long lifetime trust of your clients.  At the end, they know who you are....you are local player.

...SO JUST BECOME AN OTHER EXPERT IN THE REST!

GOOD LUCK.

Latest...
Amazon is planning to offer a cooperation with local retailers, in order to plan a 'Pick up' and 'Post Sales' (clients can return back the goods through above) network. This way, they hope to find a easier way to distribute their products and solve their post sales problems. Amazing how some internet companies, first have tried and trying to kill local physical retailers, with a heavy low price policy and now try to look for a cooperation with the same retailers, to solve their logistic problems.  (probably also offering a very low cost fee...for the work done....)

SEASONS GREETINGS.

We wish you and your family a Merry Christmas and a very Happy New Year.

 

BACK TO THE ROOTS,..OR HOW RETAILERS ARE REINVENTING THE TRADITIONAL RETAILING.

BACK TO THE ROOTS.

How retailers are getting back to the traditional retailing, to reinvent their staggering retail concepts.

What does Carrefour, Tesco, Lidl, Mercadona, etc...have in common, to have been changing drastically there existing boring basic discounter retail concepts into a kind of new lifestyle experience.  Today, the hiper and supermarkets are presenting a new brand business model, using the old traditional ways of retailing, maintaining strong competitive price levels.
Last week, the big boss of Mercadona, a leading food retailer in Spain, admitted openly his failed marketing strategy of dropping a few years ago the fresh food concept and announced the immediate creating and formation of 21.000 professional shopkeepers. (like the you can find them in the little neighborhood stores,..the real specialized retailer....)
In the meantime, Lidl is leaving aside, its pure pallet image, by offering more branded products, better presented and showing tendencies of a real convenience store, offering daily fresh, in the store made bread and even in some cases, a coffee station, (offering, to take away hot drinks) or fresh seafood.

By reorganizing the store concept into various attractive 'boutique' areas, like a food court (where all food products, like fish, meat, bakery and grocery are presented and made on a very artisanal tradition), fashion corner (all items are well presented, like the way you can only find them into a high end fashion store) or the multimedia products presented in a high tech environment and managed by specialized trained staff.

The key is specializing and bringing a new buying experience, by offering a good service, wide range of products, fresh and in front prepared foods,...in house courses and or product presentations.  The whole, presented in a clear visual easy to understand attractive animated and well presented concept.
Shopping becomes again a unique experience, it has to be easy, comfortable,....
So more appealing stores are needed...

Have a look to the interesting opinions of the consumers (what drives them..) after visiting the new 'Tesco' store concept....

It is clear that few businesses will survive, staying sticked with their existing business format.  As consumer tastes, wants and needs are changing rapidly, each retailer has to adapt them to the new trends.
Where in the late 2005 / 2006...the key business slogan was standardize and in advanced prepared products, in order to reduce costs and create a easy high rotation of products and sales, today we go back to the good old school where 'Small is again Beautiful'.

The economical difficult situation (less income, so less buying power), the new forms of family (more and more single living persons, an increasing senior population, more fast food and already prepared meals) and changes in buying habits, have forced the retailers in offering small quantity product offers and more competitive prices.  (today your local supermarket is full of 1€ pack offers and today you can easily buy just one piece of fruit from the vegetable stand or just two slices of you favorite cheese in the cheese section).
By having smaller quantity of products, prices looks more interesting for the consumer.  (however not always more cheaper than bulk packs, where you get more value for your money).
The recent confession of Tesco, that it has generated more than 30.000 tones of food waste in the first 6 months of 2013, has created an strong reaction and motivation for retailers to push strongly into above small quantity product policy.  (so more benefit, less waste...)

By combining above new product and pricing policy, offering a more personal shopping experience into their store spaces, creating a kind traditional local market atmosphere, above retailers hope to turn there staggering sales turnovers, competing again with the local small retailer.
As mentioned already in my previos posts on 'small retailers' and the 'empty shopping street' problem, the key of success and survival is specializing and being different.


Just have a look to some of the above concepts like Carrefour and Tesco....and the motives for their changes.

Not only food retailers are getting back to the traditional roots of retailing.  Above strategy is implemented  in a wide range of concepts around the world.

Just have a look, how they changed a classical garden center in Alberta, Canada..to the 'The Enjoy Center', where the garden center and greenhouse are the anchor, completing it with a central market place, with a home decoration and kitchen store, a deli with local food specialities, a wine store, a spa and even a restaurant.
The marketplace is mainly used to present events, product presentations and or trainings and has become the principal public attraction and a motor for selling its products.
Like its name,...you come to enjoy...

Just have a visit...at this amazing concept.

http://www.enjoycentre.ca/

Today, by analyzing above movements of key world retail players, reinventing the past, we can only confirm that the concept of the local small neighborhood retailer is fashion, hot and back.
Maybe they never have gone...

Above operators can reinvent, copy and create an perfect atmosphere or store concept,...but the major challenge will be definitely, the creating of a high level competitive retail 'detail' sales staff, like you often can find them, in your small neighborhood store.

THE IMPORTANCE OF STRATEGIC POSITIONING.

OR HOW YOU,..RETAILER CONTINUOUSLY  HAS TO
ACT, IN ORDER TO STAY ON TOP.











In a todays difficult market, where every retailer looks with a pessimistic feeling, towards the future (especially after more than 5 years of tough economical crisis), it is more than time for each store owner, to revise their positioning strategy, in order to survive or prepare themselves for the future to come.
It is clear that by maintaining the existing midlevel segment (by trying to keep a balance between price and quality), few interesting growing perspectives will exist.  

So,..'DON'T GET STUCK IN THE MIDDLE'..and focus your business and become more aggressive.

Start to revise your strategic positioning.  This position is something very fluctual and has to be revised permanently, in order to be or stay on the top.  Don't forget, the market is changing permanently. 

-How do you want, that you clients see you?
-What is the difference between you and your competitors?
-Why clients buy in your store and not with your competitors?
-Where can you be different than your competitors?

As mentioned in previous posts,..it is the art of being different, that will position your company or store out of the crowd.
So a perfect 'Brand Positioning' is needed.  

Here a small example of the local grocery store?

Imagine you have a small grocery store and next to your store they just opened a big supermarket with extensive grocery department.  How can your reposition yourself and be different ?

By  'SPECIALIZING'.  

Did you make a deep analyze of your position towards above competitor?
Did you analyze, where you can be different than above competitor?
Did you make your strength a weakness analysis?

Maybe you could do the following to be different:

- Home delivery.
- Prepared vegetable and or fruit salads. 
- Specialize in more exotic fruits and vegetables.
- More personal service.
- More flexible shopping hours.
- More fresh and ecological vegetables.
- Client loyalty card.
- Special personal offers.
- Small quantity packs (a quiet abandon segment for the increasing single alone living market)
- Etc....

As you can see,..you have to be creative, know how to analyze your market, asking your suppliers and clients their opinions and be willing to change and adapt your business very fast.
By using a value curve,... (see example 'The Blue Ocean Strategy'), you will be able to position the current situation of your store or brand.  By implementing different actions, depending the brand position you want to obtain,...you will receive a clear plan and a guideline to undertake action.
If you have a grocery store..or even if you are the owner of Zara,...a permanent revised strategic position is key in order to be successful.

Have a look to the following case of the 'the Cirque du Soleil'

As you can see in above curve, you will understand why 'Cirque du Soleil' is so successful.  They are just completely different than the average entertainment attraction.  They bring something completely new. (example. no animals but yes a amazing unique venue and always different amazing themes)
If you want to learn more about this curves...just visit  http://www.blueoceanstrategy.com/.

Positioning your company, can be done into a 'Low-cost Strategy' or a 'Differentiation Strategy'.  Both are valuable and can be successful. 

In a 'Low-cost Strategy', you will lower all extra costs on product, marketing (design, packing, etc...) and produce mainly into low salary countries.  You will offer a quiet basic product with a very low cost production and strong selling price.  (example retailer 'Primark').

In a 'Differentiation Strategy', you will create a unique image and or value added idea of your product.  Something your clients are willing to pay for.  
Production quality, brand image or name, design and product quality features, service, innovation exclusive retail channels,etc.. are some of the keys elements, to implement into this strategy.  (example retailer 'Abercrombie')

As you can see, as soon as you know your target group, you will be able to develop a clear strategy and quality service, allowing you to stick out of the crowd.
Just lets start changing our company and putting it on a curve. It is the beginning and a  perfect guideline to your successful future.

Just have a look to this very interesting video of Brian K. McCarthy about positioning, differentiation and value proposition.

 .

DE KRINGLOOP WINKEL, A WAY OF SOCIAL RETAILING.

Talking about the 'de kringloop winkel' is talking about an other form of retailing.  The more social retailing.  The kringloop concept you will find mainly in the Flemish part of Belgium and also in Holland.   However, they do work completely independent.  

'USED THINGS HAVE A STORY, OUR PEOPLE TOO' is the slogan used by above social organization, trying to create on a social economical way, activities in order to:

-Create quality, durable jobs for people, who, for various social reasons are excluded in the society and have it difficult to find above.

-Create more social jobs, offering services at various social economical organizations like hospitals, elderly care or unemployment organizations, immigrant integration groups,..etc...

-Offer valuable products and services through there 2n hand stores.

-Be part of the recycling and regeneration of used products and create a better environment, protect our natural resources and improve our quality of life.

-Offering an added value to our society.

The core business of 'de kringloop winkels' are the retail stores.  It is the engine of the whole organization. 

As 2nd hand stores, you can find a wide range of various items, like clothing, furniture, books, household, etc... at very competitive prices.   The organization offers a service, to collect all 2nd hand products from the people who want to get off there used products (you can also bring and deposit them yourself ).  

If needed, items like furniture, etc,... are repaired and refreshed, to give a new life.

Next to the 2nd hand stores, there are an other wide range of services offered, in order to create employment.

Services which go from washing and ironing for the local hospital or elderly home, to a complete furniture repair workshop or studio, offering all kind of repairments, etc...

The social idea still will dominate and be the red line throughout the company and its activities.

Just have a look to one of there stores and concept.

Or have a view to this funny presentation.

As you can see, a very interesting concept, focusing on a merely social and environmental policy.  Just a other way to be different.

www.dekringloopwinkel.be