A friend of mine recently said something along the lines of, "I'd rather have more job security than a $5 shirt at the Gap."
We all have friends in our industry who have been laid off and we continue to see job cuts. Retailers continue to erode their margins in a need to push through high inventory levels and create demand. As shoppers, we might enjoy the deep discounts and promotions but it is going to be a tough reality come January 1st. It is time to change our approach.
In a declining economy, the landscape changes and new opportunities arise. Consumer behavior has changed for the long haul. Even the wealthiest consumers are more value-conscious. How are you changing your marketing and merchandising strategies based on a new consumer mindset?
A few questions to ask yourself:
> What are our customers willing to pay now for our core items vs. what they used to pay?
> Is there real value in what we offer and if there is, are we communicating it effectively?
> Where are our customers shopping now vs. two years ago?
> What are our competitors - from low ticket to high ticket- charging for the same product?
> Why should our customers continue to shop with us?
> Do our marketing programs effectively reach those consumers who are actually shopping with us?
> What new marketing and merchandising opportunities should we be considering, assuming it will take a long time for consumer confidence and spending to recover to previous highs?
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