Remember when the Paradox of Choice was published? Sociologist Barry Schwartz's thesis was that consumers were stunned by the sheer staggering number of product category options, and thus defaulted to making no choice. Scores of CPG clients began the laborious process of attempting to re-rationalize SKUs, until "cease and desist" orders were issued internally. The shelf space strategy was to edit the number of offerings to mitigate the paradox of choice syndrome, until the impact on slotting fees raised its ugly head. Shopping vs Buying The …
Experience
Where Curbside Pickup Goes Wrong
Curbside pickup at many major retailers isn’t all it’s cracked up to be. Yet this hasn’t prevented customers from using the service during Covid-19. The allure of allegedly “contact-less” shopping is more than most can resist during a pandemic. In fact, the number of orders placed online and picked up at stores surged by 208 percent in April alone. But many retailers initially had to scramble to implement curbside pickup while being simultaneously understaffed, underfunded, and under inventoried; and this led to many a catastrophic pickup …
The In-Store Dining Experience: At Risk
Much has been written about the gradual demise of the golden era of department stores. With the growing monopoly of e-commerce and the added catalyst of a pandemic, the future of brick-and-mortar stores looks beyond grim. Much has also been written about the pandemic’s other victim, the restaurant industry, similarly suffering a blow that it may never recover from. But no one is talking about the retailer-eatery union, the long legacy of restaurants nestled inside department stores, a symbiotic relationship that was envisioned as contributing …
Fashion Moves Out of This World
The pandemic continues to unravel both our social lives and social fabric, but changes are not limited to the corporeal; our social media lives are changing too. Gaming has become global, communal and interactive. An August 2020 eMarketer survey pegs the number of digital gamers in the United States at 174.7 million or 52.5 percent of the population. Amazon just introduced a gaming platform called Luna which will stream more than 100 popular video games and will integrate with Amazon-owned Twitch, the live-stream gaming platform. Stastia breaks …
Finally…The Death of Fast Fashion
Fast fashion was the trend that wouldn’t die. While consumers were concerned about product quality, as well as the environmental and ethical issues surrounding the apparel production process and lifespan of a single garment, the treasure hunt experience was still too enticing to for many to ignore. The pandemic has been called “The Great Accelerator.” This is especially true as it pertains to the fashion industry’s burgeoning moral compass, what consumers expect from the purchasing experience, and the attributes they look for from the products …
AEO: Laser-Focused on Gen Z…and Winning
Consumer-focused would be an understatement in describing American Eagle Outfitter's huge competitive advantage. It's the major reason they are doing so well, even in the malls and during the pandemic to boot. AEO is parent of American Eagle, Aerie and newbies Unsubscribed and Offline. Let's say laser-focused on the Gen Z cohort, the oldest of whom are in their mid-twenties, and whose spending power is estimated to increase by 70 percent by 2025, according to Boston Consulting Group. Overall apparel sales in the US tanked by 79 percent in …
Best-Selling Product Categories of Conscious Capitalism
Need something to restore your faith in humanity during this time of global chaos? You might be surprised to learn that data from research firms such as Accenture and McKinsey points to a rise in conscious consumption during Covid. In fact, McKinsey reports that concerns such as “how companies take care of the health and safety of their employees” and “sustainable/eco-friendly products” have reached all-time highs in the U.S. and/or Europe. This is happening on both a consumer and personal level. Individuals are gravitating towards concerns …
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Is Experience Worth Investing In?
Many of the newly launched retail experience formats we celebrated at the beginning of 2020 have been shuttered by the pandemic, leaving the industry to question how to deliver experiences that align with consumers' Covid-19 evoked emotions. With social gatherings off the table for now, how can brands, retailers and mall operators respond to desired social connections in a no-touch world? The Consumer Mindset Navigating the global health crisis "stay at home" directive has been extremely stressful, especially for those in urban areas. Initial …