By Steve Rowen, Managing Partner
8/26/2008
Prepping for RPW this week, I came across a number of topical stories that fall into the “look how retail is making the world smaller” category. And while it’s likely only circumstance, nearly all of those (this particular week) about US-companies pushing out to rest of the globe are wrought with “bad news,” while those from outside of the states are inspiring. For example, US brands such as Wal-Mart, Build-a-Bear, and Hanesbrands are having a hard time finding footing in India. At the same time, Mexico is taking a proactive move toward enabling more mobile functionality to consumers: Mexican telecommunication providers Telefonica and Iusacell are partnering with major banks to offer mobile payment services. As a result, Mexicans will soon have the option to pay for restaurants, taxicabs, and some retail purchases with their mobile devices. I’m guessing Nikki will have a field day with what this says about US-retailers’ current mobility stance.
But one that really jumped out at me was the announcement that the Caribbean’s leading electronics, furniture, and appliance retailer, Courts, is launching its first-ever US store in Brooklyn later this fall. Why so interesting? Because while negative press continues to flow around the difficulties that Circuit City and other players in the CE market are having staying afloat in a down economy, there has rarely been a more compelling case for the importance of customer-centricity than Courts finding enough demand for a localized CE shopping experience in New York City.
Having worked in Manhattan and commuted in-and-out of the city daily for a number of years, I can tell you that it is not difficult to find a location to purchase a digital camera, a toaster, or a small desk that takes more time than expected (and years off your life) to assemble. But Courts sees a real opportunity to tap into a large demographic of Caribbean emigrants and descendents who both a) want to buy products for themselves and b) want to send gifts to loved ones back home. Are they right? Only time will tell, but here are just a few of the ways they’re going about winning some of the available market share:
1) The retailer is participating in two major ethnic-based fairs before even opening its doors to showcase how its products differ. This coming weekend, Courts will have tents at both the West Indian Labor Day Carnival and the Irie Jamboree, both in Brooklyn.
2) At the former event, a Courts Caribbean representative will actually lead the parade, dressed as “Queen,” but also showcasing the retail chain’s branding. The purpose is to connect to attendees’ values on art, music, and culture.
3) The retailer is launching its New York campaign by using Hard Beat Communications, a minority-certified PR and AD agency that specializes in the Caribbean Diaspora and Caribbean markets.
Now, granted, this is a specialty retailer coming into a new market where it knows it will have a built-in audience. Certainly Wal-Mart could not be advised to lead the “Here Come the Americans Day Parade” through the streets of New Delhi with a giant roll-back smiley face character.
But what it does say about the US market is that localization – understanding what your customers really want and respond to – is rapidly becoming a very real cornerstone to successful retail, both big and small. We saw this need emerge strongly in our recent Customer-Centric Merchandising Report, and continue to find that for those looking to thrive, the proper use of the information asset to tailor an experience for today’s empowered shopper (in over-retailed markets) is imperative.
Besides, are any of us too proud to be reminded of valuable retailing basics lesson from a grass-roots initiative in one of the most over-retailed markets on earth?
|
