ETD: 721 Who's your competition?; Sourcing products; Museum Store Association; Antiquing On Line; Ten Retail Tactics to Guarantee a Great Holiday "Gifting" Season

E-Tailer's Digest etd_post@gapent.com
Tue, 16 Sep 2003 07:17:33 -0400


  E-Tailer's Digest --- Everything for the  Retailer
  Issue #0721                     September 16, 2003
  George Matyjewicz, Moderator         mailto:georgem@gapent.com
  Published by:  GAP Enterprises, Ltd.  http://www.etailersdigest.com
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   CONTENTS

  [1]  Greetings
  [2]  Who's your competition?
  [3]  Sourcing products
  [4]  Museum Store Association
  [5]  Antiquing On Line
  [6]  Ten Retail Tactics to Guarantee a Great Holiday "Gifting" Season

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  [1]  Greetings.
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Hi All:

Hurricane Isabel is heading to the east coast of the US and folks are 
getting ready.  Supposed to hit here Thursday.

Interesting to note the news reporting about Isabel.  One reporter said 
"the worst hurricane of this decade."  Actually he could have said "the 
worst hurricane of this century or millennium." Ah, the art of marketing.

Today we have some excellent material.  We have gotten some responses to 
"Who Are You" as posted in the last digest, and I am reporting two here 
today.  And we have a couple of posts in answer to sourcing of 
products.  Great resources.

While you may know your competition, or at least think you do, have you 
ever analyzed how to compete?  What do you do to beat the competition?

We also have information from Pam Danziger on how to guarantee a great 
holiday season.  Will you be ready?

Next week I will be in London once again.  I have one special report, and 
sure could use another.  1,500 to 2,500 words on anything of value to 
etailers/retailers.

Now, let's get to everything for the retailer.

Sincerely


George Matyjewicz, PhD
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem@gapent.com
http://www.etailersdigest.com

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  [2]  Who's your competition?
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Looks like Wal-Mart may be coming to NYC, one of two major cities in the US 
where they don't have a store (the other is Detroit).  That will surely 
affect a lot of retailers, and there are many discounters in NYC.

That got me to thinking.  Who is your major competitor?  How do you 
differentiate yourself from the competition?  What would you do if a major 
competitor came in to your area?

My favorite story for handling competition comes from list member Todd 
Mogren (who keeps threatening to write a special report :-() of Coastal 
Tool.  They sell power tools and their major competition is Home 
Depot.  They expanded a couple of years ago, and guess where they opened 
the new store?  Across from Home Depot.  Here in NYC they call that Chutzpah!

Todd said they get a lot of referrals from Home Depot.  Tools they don't 
have.  And Coastal Tool offers good service and knowledgeable staff.

Giftware manufacturers and wholesalers selling to independent retailers 
protect those retailers by not offering the same products to the 
discounters or the 800 pounders.  So, if you're looking for unique 
giftware, go to the independent retailer (a/k/a/ "mom and pop" stores).  If 
you look for price, go to the discounters.  And if you are an independent, 
tout your uniqueness.

BTW, price is not a way to beat the competition.  Once you start competing 
on price, you lose.  Eventually somebody else has a lower price, and kills you.

So how do you handle the competition?

George
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  [3]  Sourcing products
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In a study of their alliance members done by ABACUS  www.abacus-direct.com 
the largest markets for catalog and on-line spending, from 2001-2002, are 
as follows:

   1. Apparel and Accessories
   2. Home Decor and Furnishings
   3. Gifts
   4. Senior products
   5. Children's
   6. Sports, Activewear & Outdoors
   7. Electronics
   8. Tools
   9. Books, Music & Video

   The categories experiencing the most growth were:

   1. Books, Music & Video
   2. Tools
   3. Electronics
   4. Senior
   5. Home Decor and Furnishings
   6. Gifts

As for sourcing products, you can't beat the NMOA professional wholesale 
resource guide.  http://www.nmoa.org/catalog/dropship.htm Anybody 
that  retails products will find it valuable.

Hope this helps.

-- 
Best regards,
John Schulte
President and Chairman
National Mail Order Association
Email: schulte@nmoa.org
Tel: 612-788-1673
www.nmoa.org
Direct Marketing Discussions at: www.DMchat.com

+++ Next Post +++

Each week, in Gifts & Dec Online they list the top 5 list.  This week:
The Top 5 List - What's Wholesaling in the West
Sales reps and manufacturers' showrooms across the country report their 
fastest-moving merchandise. Carol Lang of California Marketing Associates 
in Los Angeles' California Market Center says her top five sellers are:

1. Demdaco home accents
2. Global Views home accents
3. Rax Imports home accents
4. 18 karats home accents
5. Crabtree & Evelyn personal care products

For reports on What's Retailing and What's Wholesaling in the Northeast, 
the Southeast, the Midwest, the Southwest, and the West, check out this 
month's issue of Gifts & Decorative Accessories magazine.

Quinn Halford, Editor In Chief
Matthew Kalash, Editor
www.giftsanddec.com

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  [4]  Museum Store Association
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In answer to "Who are you?", I am probably on the outer edge of your target 
audience, but thought I'd tell you about myself anyway.

My name is Amy Nichols, and I am Web Content Editor for the Museum Store 
Association.

We are a nonprofit association for managers of nonprofit retail operations 
at museums, zoos, aquariums, historic homes, libraries, etc. Association 
members use our Web site for relevant content on nonprofit retail. We also 
have vendor members who are small wholesale businesses selling to the 
museum retail market. I have next to no budget and provide new articles 
weekly on many different retail topics, geared toward this special retail 
niche.

We are the only association for museum store managers.

Founded in 1955, the Museum Store Association is an international 
organization representing museum store professionals worldwide. By 
encouraging high standards of professional competence and conduct, MSA 
helps museum store managers better serve their institutions and the public. 
A nonprofit organization, MSA is dedicated to the general welfare of the 
museum store industry. The Association provides members and affiliates with 
the education and resources they need to succeed in the challenging world 
of nonprofit retail.

Governed by a seven-member board of directors, the Association serves 
approximately 1,900 institutional members and over 1,000 exhibitor 
affiliates. A staff of ten full-time employees operates from MSA’s 
headquarters in Denver.

I subscribe to your newsletter because I am always on the prowl for 
retail-related content for our members.

Amy Nichols, Web Conten Editor
Museum Store Association
http://www.museumdistrict.com/about/aboutmsa.cfm

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  [5]  Antiquing On Line
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Following is my response to your questionnaire on "Who are you?".

I am Elaine Kula, President of Antiquing On Line.  We sell jewelry to 
compliment your style, emotions, fantasies, and best of all to please your 
senses.

The benefits you get from our products is being able to purchase a quality 
piece of jewelry that will definitely give you that dang "feel good" 
feeling! Use of our products is addictive, caution is advised. Beautiful 
jewelry always brings out the best in a woman and her wardrobe.

Quality and service are our prime concern, without it we are nothing. We 
offer a 100% "satisfaction guaranteed" money back policy.

I started this business because of my love for beautiful things and having 
too much of a good thing!  We have been in business online for the past 7 
years and offline for approximately 20 years.

We use search engines, customer referrals and an opt-in mailing list to 
promote the business.

It's easy to use Antiquing On Line.  Simply go to the web site, 
http://www.antiquingonline.com/ If you see something you like, then buy it! 
If what you're looking for isn't in the catalogue, drop a note and we will 
do our best to find it for you. Sign up for our mailing list to be sure to 
be notified of updates to the site.


Elaine Kula


P.S.  Did you wear jewelry today?
Was it gorgeous?
It could have been ... ©
http://www.antiquingonline.com/

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  [6]  Ten Retail Tactics to Guarantee a Great Holiday "Gifting" Season
==================================================================
As retailers finalize plans for their most important selling season (the 
last two months of the year typically generate from 25-40 percent of annual 
sales), holiday gift shopping will be even more important as retailers work 
to make up for the year's weak first and second quarters.

Convenience is gift shoppers' top priority this year. Shoppers seek special 
gifts that are just right for the recipient, but what they want most is to 
shop stores that are convenient and make their gift shopping experience 
quick and painless.

So gift shoppers this year will return to their favorite mass merchants, 
such as Target, or major department stores where they get the widest range 
of gift choices at the right price. From our research with highly active 
gift givers, here are some strategies for retailers to increase holiday 
gift sales.

1) Focus on enhancing the "gifting" experience, rather than on the gift:
The goal of gifting is to emotionally connect the giver with the recipient. 
The gift itself is the means to an end, and that end is an emotional 
connection between individuals. Gift shoppers will reward retailers that 
help them enhance the gifting and gift shopping experience.

2) Know qualities shoppers want in a gift:
With connecting the goal, gift-givers seek gifts that show they know the 
recipient. After finding the right item, gifters want quality and 
craftsmanship, uniqueness and an item that expresses their and the 
receivers' individuality. Giving the shopper a way to customize the gift 
and to add a special touch just for the recipient will be rewarded.

3) Convenience is key in shopping:
While gifters want a special, emotionally evocative gift, they won't trudge 
from store to store to find it. In choosing a store to buy gifts, they want 
first and foremost convenience, so they tend to shop where they shop for 
themselves and know the layout. To maximize gift sales, retailers should 
compile a list of the top gift ideas for specific relations (e.g. husband, 
wife, child, coworker) and price points (e.g. $25 and under; $26-$50; 
$51-$100; $100+) and post this prominently at the front counter, the cash 
registers, on the window to entice shoppers in for the most convenient gift 
shopping experience possible. For those with room, end cap displays or 
tables stacked with gift ideas draw crowds.

4) Gift certificates are key gifting strategy:
Gift cards, rather than cash, are preferred by gifters because they show 
the gifter cares enough to have shopped. Too many stores make their gift 
certificate or gift card program an afterthought. This misses a HUGE 
opportunity to build shopper loyalty among both gift givers and gift 
recipients. Increasing sales of gift certificates should be a cornerstone 
of a retailer's gifting strategy, since with a gift card you touch two 
shoppers, not just one. Gift cards should be appealing to give and receive. 
Generic cards are hardly enticing . Cards should connect emotionally too, 
displaying popular licensed themes, such as Harry Potter, Lord of the 
Rings, SpongeBob, or other art that the individual will want to give and 
receive.

5) Gifting goes on all year long:
Gift shopping doesn't take place only in the last two months of the year. 
Heavy gift buyers, in particular, are always out and about, grazing for new 
ideas. They buy and stash away gifts all year long, so make gifting and 
gift shopping a key retail focus throughout the year.

6) Put people back into your store:
While retailers are working to remove sales help and make the shopping 
experience do-it-yourself, gift shoppers value the personal touch. After 
all they are looking for an emotional experience in the gift they choose 
and the store they shop, and they want knowledgeable, well-trained sales 
help to guide them. They also demand that the checkout process be as 
convenient as possible. Since everybody else is depersonalizing shopping, 
retailers that put the personal back into it will be greatly rewarded.

7) Target the gifters' decision process:
Gifters have a number of critical decision points in the gift shopping 
process. They must select something that the individual wants within their 
price range. To help gifters find the right gift, prepare your staff with a 
list of open-ended questions they will help shoppers discover the perfect 
gift. Make sure sales staff know the stock and can intelligently interview 
shoppers. The goal of gift retailing is to have the right item, at the 
right price, for the right person on the right occasion.

8) Have brands and products people want NOW, not tomorrow or yesterday:
Being on trend requires that you keep up with consumer passions and 
preferences in key product categories. The Internet can be an effective 
tool to follow the latest product fads and fancies. Be on the leading edge 
in your product lines and get rid of last year's merchandise if it's still 
hanging around, so that when the holiday rush hits, shoppers won't see your 
store looking tired.

9) Presentation matters:
In gift giving, presentation counts. To maximize sales of gifts, make sure 
you offer expert-quality gift wrap services with a number of gift wrap 
options. Gift wrap can even become a new profit center, if you think in 
terms of upscale luxury gift wrap choices. And make sure your store's name 
is included somewhere in the gift package, either on the box, complementary 
gift card or gift receipt.

10) Position your store as a brand where gifters like to shop:
Today branding your store and differentiating it as a good place to shop 
for gifts is critical. Make gifting a key feature of your brand by 
enhancing the shoppers' gifting experience, e.g. convenient, offering novel 
gift ideas and gift presentation options. Understand that gifting is a rare 
opportunity for a store to touch two consumer segments — the buyer and the 
recipient. Make the most of that opportunity by building a loyal following 
among both.

A new research report is available from Unity Marketing summarizing the 
findings from eight hours of in-depth interviews with shoppers selected for 
active gift buying and high levels of spending. Called Gifting: The 
Dynamics of the Gift Giving Consumer, this concise 60+ page report covers 
how shoppers feel about gift giving and receiving, attributes of a good 
gift, how they set a gifting budget, how they select across different 
categories of products, where they shop and why traditional specialty gift 
stores don't meet their needs. Included are gifters' thoughts on 15 major 
gift categories, such as candles, baskets, boxes and tins, personalized 
gifts, licensed merchandise, tabletop and dinnerware and collectibles and 
figurines to name a few. This research is sponsored in part by the gift 
industry's most forward-thinking companies, including Department 56, Glass 
Baron, Lenox, Longaberger, and Walt Disney, among others.

To order a copy go to http://www.unitymarketingonline.com/reports2/gifting/

Pam Danziger, President
Unity Marketing Online
Author of Why People Buy Things They Don't Need.
www.unitymarketingonline.com


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