From December 2007

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Exclusivity Meets Authenticity
Consumers are tired of seeing the same thing from one store to the next. Look for exclusive brands, partnerships and the like to reach critical mass in 2008 as retailers look to break free from the boredom of sameness, delivering exclusive products and fostering partnerships that set their brand apart.

Target started the trend with precisely timed offerings presented from up-and-coming designers. Macy’s has been carving its niche with a commitment to celebrity brands and recently announced an exclusive partnership with Tommy Hilfiger. And Wal-Mart is the exclusive retail distributor of The Eagles’ first CD of new music in 28 years.

Private brands returned in a big way in 2007; now the challenge is for retailers to make sure shoppers know how special these collections are.

Exclusivity doesn’t have to occur solely within the four walls of the main store: Safeway quietly opened a restaurant called Citrine earlier this year, and American Eagle is dabbling in the lingerie specialty arena with aerie, a spin-off of one of its private brands. Shoppers are always looking for something new, opportunities abound for businesses willing to step outside their comfort zones.

Whatever retailers and marketers do, they need to keep it real – or, to borrow the buzzword of the day, “authentic.” Shoppers are way too savvy to lap up a phony marketing facade, and they’re already becoming skeptical of online reviews and blogs.

Strip away the noise, provide expert information structured in a usable way – and be brave enough to add other authentic voices to the mix. Today’s consumer looks for brands that share her passion – whether it is for a charity, a lifestyle or some other cause. That’s why the Dove marketing campaign resonated so strongly with women; it’s also why a chain like Trader Joe’s has managed to cultivate such unshakeable customer loyalty. Its employees live and breathe the brand’s equity, and shoppers get that.

Born in the USA Redux
Springsteen’s familiar anthem had nothing to do with products manufactured in the good ’ol USA, but expect Americans – wary of tainted toothpaste, lead-laden toys and contaminated foods – to make it a rallying cry in 2008.

While there’s little evidence that “Made in the USA” will make a stunning comeback anytime soon, there are clear signs that Americans are paying more attention to where goods are sourced, where ingredients come from and how products move through the supply chain.

As shoppers become more discerning, opportunities intensify for retailers to deliver the information shoppers want. Make it easy for pet owners to identify where the food they’re about to buy was manufactured. Tell them where the seafood you’re selling comes from, and assure parents that the toys they’re buying aren’t colored with high-lead-content paints.

Retailers and manufacturers that source products locally – such as Whole Foods’ commitment to local farmers, and a handful of apparel manufacturers that continue to make goods stateside – are likely to see a surge in business as shoppers become more aware of these associations and respond favorably.

Waiting to Exhale
Know anyone who strolls the mall these days? Probably not. Shoppers’ opportunities to buy a new shade of lipstick or a fetching pair of pumps are likely to be sandwiched between a doctor’s appointment and their kid’s soccer game. Since Americans young, old and in between are busier and more stressed out than ever before, it’s up to retailers to ease tensions associated with shopping.

How can retailers cater to consumers who don’t linger long enough to look over all they have to offer? The answers vary depending on the store, but how about:
• Offering shoppers a small bottle of water
• Making sure signs are clear and your stores are easy to navigate
• Never allowing a checkout line to get more than two deep before opening another register
• Offering shoppers standing in line a sample of a new food item, or a coupon for 10 percent off one item.
• Do something that tells the shopper “your time matters to me” – or risk having them drop their purchases in a heap and head for the door.

Look for curbside delivery by quick-service restaurants to snowball to other food retailers. Expect a proliferation of retail spa services to spring up at the mall. Watch for an explosion of health clinics in drug store settings as Walgreens, CVS and the rest use their keen location strategy to simplify treatment of minor ailments and deliver a healthy dose of goodwill.

Finally, efforts to simplify and multi-task at the same time (there’s that paradox again) will be rewarded. Think of the success of lifestyle malls. They provide shoppers a chance to pick up jeans at the Gap and buy a gift from Pottery Barn before relaxing for an hour at Cheesecake Factory.

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