Effective Merchandising...How To Make Them Buy Now Written by Patrick Anderson
Remember promise of Internet retail, where you could access a world wide audience and offer thousands of products at incredibly low costs?Now read sentence above and picture in your mind exactly what this means. Can you put a face on a world wide audience? Can you see thousands of products, or just thousands of boxes stacked high in a warehouse? Even if you can, your customers cannot. It is proven. Offering thousands of products to faceless people yields no sales. Now look around Internet and guess what you find? Perfectly intelligent people are making same mistakes over and over, then blame Internet for their lack of sales. As old saying goes, those who don’t learn from past keep repeating same mistakes. This is part of confusion of Internet retail and it is also key to your opportunity. Consider experience of a retail store, how it is designed to introduce customer to products and how this can benefit you. ==== Give Them One Product and a Comfortable Place to View It ==== If you have ever been shopping for apparel in United States, then you already understand design of an effective retail system. For years retailers have been testing placement of products, where to put best pulling products and how to introduce you to overall purchase. For example, take experience upon entering an apparel store. Usually you have about 5-10 feet of open space after entering door, like a walkway to store, immediately available before you start seeing products. For years retailers tried to pack products into this entry point, figuring that people would want to buy most upon entering. Now you have an open entry point with one specific product line. Here’s why: 1. Retailers discovered that customers entering door were in need of relaxation. Coming from a busy highway or parking lot, rushing around with friends and family, customer simply needed some time to orient themselves. The open path is a place to greet customer, not overwhelm them. 2. Customers who did stop and look were disturbed by other customers brushing up against them, talking, and speeding by. It was like shopping in a busy tunnel; all noise and commotion irritated people. 3. Retailers discovered that placing one product line at end of this entry path helped introduce customer to buying process with a suggestive lead item. For example, I go to Men’s Wearhouse to buy a suit. Upon entering door I have my open entry point, and at end are a selection of ties. Ties are lead product for entire suit; if I see a tie I like, salesman can then guide me to suit that fits that tie. Or if they offer a pair of shoes, we can then proceed to tailor entire suit to those shoes. The entry point gives customer a place to start buying process, introduced by small, low price products (i.e., lead items) which they like.
| | Is Innovation Dead?Written by Rob Spiegel
You can tell it's quiet out there in world of new products when biggest introductions this season both come from Microsoft, X Box and XP platform. Though these new items are getting some buzz from tech journalists, coverage only comes because there isn't much else to write about. What I'm loudly not hearing is any street noise that would indicate real excitement.You can't blame this one on September 11. Even before terrorist attacks snapped us awake to dangers lurking in our world, consumers and business people alike had grown very ho-hum about tech introductions, from PCs to broadband. Have you noticed that urge to get newest, fastest computer or Internet connection is just not as pressing lately? In this drowsy period, optimistic blush has faded from Internet and from technology in general. Our expectations have moved into a long, slow decline. We no longer really expect to be surprised by reach of connectivity of by advances in quality of our life. Mostly I think we're hoping that odd, intangible decline we sense around us will not be too severe. Yet just as there was a crash hiding behind 1999 dot com explosion, there is an innovation boom growing stealth-like behind gloomy headlines of layoffs and sinking earnings reports. Ask any tech company about its design staff and you'll discover this is one pocket in corporation that is free from cutbacks and layoffs. This is not news to Gary Smith, chief analyst design & engineering at San Jose-based Gartner Dataquest research firm. "Design spending always goes up in a recession. You 'design' yourself out of a recession," said Smith. The analyst recently revealed data that shows an innovation spurt occurring as economy tanks. Innovation slacks off as spending climbs. Much of innovation that will drive coming upturn is being developed in a flurry of activity that is off radar right now. Don't let these quiet streets fool you.
|