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
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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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