Jim Dion was a featured speaker at the National Retail Federation conference, offering an encouraging word to independent retailers in his presentation "Going From Gloom to Boom". It was a special time set aside in the valley of looming retail giants just for indies. And the way this internationally renowned retail consultant sees it, independent retailing is just as poised for success in the economic recovery as mega-retailing. Indie retailers just need to think differently ... and act differently.
He quoted Procter & Gamble Senior VP Lou Pritchet to introduce what retailers must do to think and act differently: change. "When the rate of change outside your company exceeds the rate of change inside your company, disaster is imminent," Pritchet said. Retailers especially must understand the quick shifts and subtle turns their customers always go through as life overcomes them. Be connected to them to know which way they're going.
Judging by what's ahead in new consumer attitudes, technology advancements, economic realities, and retailing itself, inside change will continue to be a mandate. That's not to say that great and established retail disciplines aren't still important -- even critical. It is to say how you engage your customers -- more than ever -- must be relevant to what they need and want.
Dion says pay attention to two key "I" words: Impulse and Investment. It's not all about mindless consumption any more, but value is key: product value, company values, and value-driven spending. Which for Christian-store retailers means to work out a way for customers to purchase because it's a smart investment (on several levels) not just a good price.
"Only rich people can afford to buy cheap products because they're the only ones who can afford to replace them," he said.
How does that translate into a Bible purchase, for example? Why buy quality leather or comprehensive study guides? The value lasts a lifetime. (Remember when families recorded genealogies in their Bibles?)
Dion says sell fewer, better things to overcome pricing pressures, and become up-sell experts to meet customers' total needs.
See Jim's website: www.dionco.com. Check out CBA Connect e-learning at http://www.cbaonline.org/CBAConnectHome.htm.
I can say that it is important to look for what your customers are buying, not what your vendors are selling. As an online Christian Retailer, and someone that provides websites to retailers that want to sell online, we see first hand the mistakes that are most commonly made. And selling items based on your personal taste, and your perception of what people are going to pay is a huge mistake. We regularly sell jewelery items that are worth more than $50 - and those products outsell the cheaper items that sell for $10. So we have seen for ourselves that customers are looking for value and value does not necessarily mean cheap.
I can share that in persuing this strategy, our sales are up over 200% on same time sales last year, and we are experiencing unprecidented growth, even in this challenged economy. In fact, all we can say is bring it on! Because adversity creates an atmosphere where you have to think strategically to survive.
Posted by: Bill Goodyear | January 21, 2010 at 02:29 PM
Vendors caught handing out plastic bags face losing their business license.
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