look into the future
TRANSCRIPT
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a Look into the Future…
Changing jewelry retailing by incorporating state-of-the art technology,
captivating new customers, creating a destination
that generates excitement, and a customer experience with
differentiated edge from competition.
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the Landscape…
• Economic Downturn shoppers seek value, now more than ever
• Shopping = Entertainment even in a recession, shoppers seek pampering, a place that’s inspirational, elegant, exotic
• Weak jewelry shopping experience findings
• Women & New Millennial consumers
(SOURCE: JW Thompson presentation to WJA’s Women in the Know Conference, March 2009.)
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JWT Research Findings
• Compared to wide range of other retailers, jewelry shopping rated “middle-of-the-road”
• Increasingly high consumer expectations
• High turn-off rate. 30% who visited stores said would never go back.
• Feel most jewelers are unaware of shopping experience quality & don’t really care.
3 (SOURCE: JW Thompson presentation to WJA’s Women in the Know Conference, March 2009.)
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Jewelry Stores Can be Boring
Very few find jewelry shopping:
• Fun (7%) • Innovative (4%) • Welcoming (1%)
4 (SOURCE: JW Thompson presentation to WJA’s Women in the Know Conference, March 2009).
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Same Ol’ Same Ol’ - All Look the Same
• Customers can’t tell one store from next, especially in mall.
• Sea of sameness depresses interest in jewelry & weakens consumer loyalty.
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(SOURCE: JW Thompson presentation to WJA’s Women in the Know Conference, March 2009.)
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No Jazz - Décor Not Priority
• Jan’09 National Jeweler study showed only 22% used professional to design store.
• 64% only change interior @ 5-10 years.
• 93% spend <$5000 for store appearance @ year.
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(SOURCE: JW Thompson presentation to WJA’s Women in the Know Conference, March 2009.)
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Best Jewelry Shoppers are…
• Homeowners vs renters
• Married consumers
• College graduates vs less education
• Professional, technical, & construction occupations
• White & Asian vs other ethnic groups
• Suburban dwellers & urban vs rural shoppers
• Shoppers in the western U.S.
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(SOURCE: Ken Gassman presentation “The Millennial Consumer: An Overlooked Market Segment for Jewelers” at MJSA Expo, March 2009.)
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Best Target Jewelry Customers are…
• Female self-purchaser
• Women control up to 85% or more of the wealth in America
• By 2050, there’ll be 60MM more women in U.S. than there are today
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(SOURCE: Ken Gassman presentation “The Millennial Consumer: An Overlooked Market Segment for Jewelers” at MJSA Expo, March 2009.)
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Self-Purchasing Women
Have different shopping needs than men.
• Like shopping
• More relational
• Design-oriented
• More interest in ambiance, décor, fashion
• Browsing is critical
• Seeks more information & options
• Seeks optimal item, perfect answer
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(SOURCES: JW Thompson presentation to WJA’s Women in the Know Conference, March 2009. Marketing to Women by Marti Barletta, c. 2006, Figure 6.1, “The Spiral Path.”)
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Women Want More Information & Options
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(SOURCE: Marketing to Women by Marti Barletta, c. 2006, Figure 6.1, “The Spiral Path.”)
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a Linear Purchase Path = MEN!
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(SOURCE: Marketing to Women by Marti Barletta, c. 2006, Figure 6.2, “Mission: Go to Gap, Buy a Pair of Pants.”)
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New Millennials are…
• 1979-1998 (kids of Baby Boomers)
• 80+ million
• Great shoppers
• The “clickeratti” (technology savvy)
• The Ritalin generation
• Age in 2009 = 11-30
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(SOURCE: Ken Gassman presentation “The Millennial Consumer: An Overlooked Market Segment for Jewelers” at MJSA Expo, March 2009.)
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Millennials Have Di$cretionary Income
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(SOURCE: Ken Gassman presentation “The Millennial Consumer: An Overlooked Market Segment for Jewelers” at MJSA Expo, March 2009.)
HH Discretionary Income by Age
$22,426
$37,178$34,825
$38,432 $39,769
$35,465
$28,859
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
Under25
25-34 35-44 45-54 55-64 65-74 Age 75+
Source: Conference Board Demographics/Millennials/1/J14
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Experience Branding at Retail
• The brand personality and creative platform needs to come to life within store
• Branding media to include people, process and environment
• Each used to deliver experience relevant to product use & focused on creating high levels of retail satisfaction
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Why Does It Matter?
• Consumers have come to expect dynamic environments
• Successful brands captivate with sensory, emotional and interactive elements to tell a story and make the brand come alive at retail
• Here is an example…
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the Apple Store
Attributes • Invitation” Design • Demo theater • Genius bar • “Possibilities” product display
• Knowledgeable sales associates
• Wireless access • Online store • Other “Apple People”
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Power to the people through technology.
It’s about people, imagination, emotion, design & innovation.
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Drivers of Retail Satisfaction
– Satisfaction drivers (quality, service, cleanliness, value)
– Relationship drivers (perception, trust, merchandise accessibility)
– Top 5 frustrations in-store: • Getting through check-out without hassles
• Out-of-stock products
• Difficulty getting employees to answer questions or assist in the purchase
• Lack of visible prices on products or shelves
• Lack of employee knowledge about products
(SOURCE: IBM White Paper, “What Top Performing Retailers Know About Satisfying Customers: Experience Is Key”)
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Retail Store Strategy
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What Should the Store Be?
• An Experience Center – A place to learn and try
– Utilizes technology and embraces the web
– A place for events
• A Transaction Store – A place to buy and service
• A Community Hangout – Very visible in the local fashion community
– A place to exchange opinions and experiences
• A Campaign Headquarters – A place to start a new shopping movement
– A place to showcase other movements
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What Should the Experience Be?
• A “Home Away From Home” – An intersection of relaxed pleasure and the
casual shopping moment
– Where staff is proactive ensuring comfort and pleasure
– Combining private atmosphere of home and the open-ness of public space • A place where conversation flows easily
and adults can relax and interact
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2 Keys to Success!
• Identifying what the experiential brand proposition should be – Be clear about the issues that
we can uniquely and credibly champion
• The staff MUST buy into the experiential brand proposition/approach – Staffers need to passionately “live the brand” –
and this needs to be promoted by culture-change initiatives designed to turn strategic brand values into front-line behaviors
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a Look into the Future…
• Vision: Turning jewelry retailing upside down
• Mission: Change every aspect of jewelry retailing using technology, store design, inventory management, supplier relations, improved training and marketing to maximize the customer experience
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a Look into the Future… (continued 2)
• Concept:
Crate and Barrel meets The Apple Store. Strong brick and mortar concept back by interactive, web program
• Target Audience:
Self-purchasing women, new millennials, gift giving men
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a Look into the Future… (continued 3)
• Design Considerations: - free flowing traffic pattern; - high-quality first impression; - open layout without merchandise overload; - bright/light atmosphere; - inviting displays to encourage browsing; - advanced technology for: inventory management, custom designs, merchandising, security; - private consultation rooms for showing more expensive jewelry & creating custom designs
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a Look into the Future… (continued 4)
• Merchandise Considerations: fine jewelry, sunglasses, fashion accessories – necklaces/scarves (5 base items up to 8 items based on trends and seasonality)
• Inventory: lowest levels possible tied to extensive technologically based inventory shown in store, just in time philosophy combined with customizing and direct delivery
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a Look into the Future… (continued 5)
• Sales Training: revamped from existing programs strong incentive for service equal to selling, enhanced tech skills
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a Look into the Future… (continued 6)
• Marketing: It’s a Fashion Business! • Other factors:
- In-store merchandising - Obvious pricing of items - Web program - SEO program - Social media program - General awareness ads – TV/web - Outdoor for location - Strong cooperative program with vendors/designers - Use of web meeting technology - Improved community relations program/PR - Research for continuing adjustments to concepts
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Possible Floor Plan
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