Being a successful retailer used to be a question of stocking the right products. Given that consumers all have their own preferences this usually devolved into trying to offer either the best or the cheapest, or products tailored to the unique needs of a specific market segment. Or, putting it another way, you could choose to sell expensive suits, cheap suits, or suits for the broad and tall.
Today – as globalisation, the internet and social media bite into retail – retailers have been working hard to build a compelling in-store experience. The theory is that by providing a pleasant and streamlined buying journey (or, at least, a more pleasant and streamlined journey than your local and online competitors) you’ll encourage consumers to shop at your store. This has driven the recent wave of investment in omni-channel, in-store WiFi and mobile apps.
The problem is that consumer behaviour is changing.The destruction of traditional retail @ PEG No longer do we identify a need and then head out to the store to find a product to fill it. Browsing is something we do in a spare moment, sitting in front of the TV with a tablet, or via a smartphone during our commute on the train. We purchase when we realise that we’ve found something we want or need, wherever we are at the time and via the channel that is the most convenient.
Building your business on the assumption that customers will come to your store looking for a product in no longer a viable strategy. It’s not enough to provide the best products or the cheapest. Nor is it enough to provide a more pleasant experience than the competition.
You need to find a way to draw customers to your store before they want to buy something. Retail must make itself part of the consumer’s identity, it needs to become one of their habits or rituals, rather than simply providing a convenient delivery mechanism for someone else’s products.
Three options seem to be emerging from he turbulent market we’re in at the moment.
- Make your business into a community hub
- Create a religion
- Resign yourself to being a commodity