For the past few days, Roam Mobility has been at the 2010 LLHA show in Toronto.
The show covers luggage, leather goods, handbags and fashion accessories and takes place over three days at the Toronto Convention Centre. On Monday morning, attendees were treated to an informative session from NPD Group’s Marshal Cohen titled “Beyond the Data: Accessory Review 2010″. Marshal Cohen is also the author a book titled “Buy Me! Ways To Get Customers To Buy Your Product and Ignore the Rest.”
This talk was of particular interest to the team at Roam Mobility, as many of our retail partners sell our products as part of their travel accessory product offering.
The bulk of the message was that the retail landscape has changed and now is the time for retailers to start innovating. While other industries are moving quickly to adapt to the new economic reality, the accessories market seems to be lagging behind. In fact, as Marshal pointed out, the accessory business has been using the same tactics and messages for over a hundred years.
We were shown a number of different ways in which retailers can innovate:
- The Message: Retailers need to embrace the rising use of Social Media by customers. We saw that 73% of customers who commented on purchases did so regardless of whether or not the message was positive or negative. The key point being that customer are talking and as a retailer, you need to be aware of the conversation and what is being said.
- The Product: Accessories are now becoming increasingly linked with technology and aren’t simply secondary items but primary drivers of image.
- The Measures of Success: Retailers need to think about new ways of measuring the success of their business. Gone are the days of 8% growth in sales… we are currently seeing growth in the 2 to 3% range. Retailers need to think in terms of “better” and not “bigger”.
- Pricing: People aren’t shopping during the week unless they have a specific reason, they are shopping on weekends and with family. Retailers can use innovative pricing strategies such as weekday sales in order to stimulate mid-week demand.
We were also shown some emerging trends in the accessories category:
- Distinctive Conformity: Everybody wants products that are similar yet distinctive to their generation. Mothers and daughters want similar goods that have been customized and targeted towards their specific demographic.
- Widening Gender Gap: The way in which men and women shop is growing increasingly different. Women are slower and more methodical. Men are quicker and “laser focused”. Perhaps more important though are that woman affect close to 76% of all household purchases… even if they aren’t doing the actual purchase transaction.
- “Act Now” is Big: Retailers need to be aware of the need to encourage the conversion from considering to purchasing. Prompt consumers to make a purchase today instead of waiting for tomorrow. We are starting to come out of a few years of careful purchasing. It’s time to take the training wheels off retailing and promotion and encourage sales.
- The Definition of Value has Changed: Value isn’t just a simple cost benefit analysis for the consumer, it is a careful considering of all of the product attributes. Retailers need to think about and auxiliary services built around products as part of the product itself.
- Sunset on Discounts: Retailers are realizing that they can start to ween consumers off discounted products. As the economy starts to come back (and it will slowly) consumers should be weened off purchasing products at steep discounts. My personal input on this: instead of discounting, think about bundling products together.
- Choice, to a Degree: Consumers need to be given choice, but not too much. Retailers should have the ability to offer a selection of products but keep the layout simple. For example, display only a few units of each product instead of large quantities. You are still showing that you have selection without overloading the consumer’s senses.
Final Impressions: I have to say that this was a great presentation. It was well paced and delivered in an informative way with many supporting data points.
Other News: Congratulations to Journey’s Travel Gear, our retail partner in Winnipeg on being named Retailer of the Year at the LLHA awards show last night. I had the pleasure of spending some time with the Journey’s team today and couldn’t be happier for them. Read more on their blog.
Here are a few pictures from my day on the floor.
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