Posts Tagged ‘shopping trends’
Mob Shopping: Is America Ready?
Tuesday, February 19th, 2008
Are you?
Mob shopping, also known as team buying, is a consumer buying tactic originating in China, that involves gathering a group of people together in-store to drive a bargain with the seller. There are many websites and forums (TeamBuy.com.cn ) that facilitate the time and place. The popularity of these events is mostly due to the cultural ideology that no price is set in stone and that bargaining is a way of life in China. And consumers are seeing results. While many sellers do not particularly like this new tactic, some are embracing it and even setting up events themselves so that the teams who are willing to buy right away will get a discount.
The internet is a large part of the success as the instant communication is vital to organizing these sometimes spur of the moment events. Also, the with internet’s world wide reach more and more people are becoming exposed to the idea… and it’s catching on.
So what do you think? Will this shopping craze work in America? As a store owner, would you be willing to bargain with these groups of people in order to move more product?
Tags: E-Commerce and E-Business, Generating More Sales, Marketing Your Business, mob shopping, Rebecca Button, retail trends, shopping trends
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Product Life Cycles: How to Keep Picking the Winners
Tuesday, December 4th, 2007
You have your business concept, the product you are selling, suppliers are lined up and you know how you are heading to market. All you have to do now is sell right? While this is the approach of many small and large companies this vision can be a bit short sighted and lead to difficult times down the road. To be competitive and ensure your company is well positioned in the market, you have to know what products your customers want and how that demand changes.
Without ongoing market research and product sourcing, your business will begin to decline. No matter how hot a product is at a given time, it still has a limited life span. Video games are an excellent example of this - what sells at a premium today, may not be worth hardly anything tomorrow. That’s why you need to continually analyze your products and where they are at in their life cycles.
Track how products are performing
In the beginning phases of a product’s life, demand is through the roof while supply is low, so prices are high. It will be difficult for you to get these products in this phase as this is the competition phase where most sellers make their money. Once the competition begins and the supply rises, usually the demand stays the same and prices begin to wane slightly. As demand begins to fade, the prices will fall and the product is in a declining stage. The steepness of the declining stage depends mostly on the product. Demand can rise and fall off for many reasons - a product may be going out of style or out of season, or the competition may overproduce the product and flood the market, driving prices down so low that you can’t compete without a loss. When you observe products moving into the declining stage, you know it’s time to close out with that product and offer something else.
Keep both eyes on the data
Controlling your product offering begins with market research. If you are going to provide a product or service to people or businesses, you have to know what they want. We have all heard the saying about selling freezers to Eskimos and while that is a great story about sales, but what does it say about the market research of the company he or she sold freezers for? What does it say about the business that sent a freezer salesman to the frozen tundra?
Monitor product demand
To understand a product’s demand, you need to analyze the number of people searching for that product, the number of sales it have in a given period of time, and how much it is selling for. In other words, find out the average selling price. Research resources like Hammertap, KeywordDiscovery, Google’s Keyword Tool, or eBay’s Pulse and Marketplace Research can help you find the data you’re looking for and help you evaluate just what all the different numbers mean.
Determine where the demand direction is heading
Understanding the direction a product’s demand is going will enable you to identify where it is in its life cycle. It is critical you stay ahead of this part of the game. You don’t want to be sourcing inventory on a product that is seeing demand and pricing drop off. Make sure you are watching your numbers over time, longer than a month. Track the trend data as long as you can and for products you have seen through a life cycle, then study the life cycle post mortem and utilize the data on similar products you are currently offering. While they may not behave exactly the same, at least you will have some sort of a benchmark to base your offering and your sourcing strategy.
Keeping a close eye or two on your product life cycle and understanding where each product is at on that life line will help you keep your business profitable. While you may be selling so well you could move freezers in the frozen tundra, even that market will change over time. Staying ahead of the market, or at least current with the market, is the key to profitability and success.
Tags: Generating More Sales, larry Slusser, product life cycles, Product Sourcing, retail trends, Sales, shopping trends, source, trends
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Selling Trends: Top Products of 2007
Wednesday, October 17th, 2007
As 2007 comes to a close, people are scouring the stores, the Internet, and their crazy friend’s craft shop for that perfect Christmas gift. This is the time of the year when sellers become psychically tuned to the state of the world and decide what the hot ticket item is for the year. Filling the requests of millions of holiday shoppers is a big task, but if anybody is capable of making consumers happy, resellers can.
What are the most popular products for the 2007 holiday season? Technology seems to be the key.
If it doesn’t plug up, use batteries or have a remote, it’s not worth the time. The most popular products include the following:
1. Apple iPod touch: This has been advertised heavily since it came out. Its “touch-does-everything” process attracts people from every age group. As Christmas approaches, sales and profits come easily. One selling point with the iPod touch is a built-in Safari web browser with built-in wireless access to the web. And since including music is a must for any new technology, another point of sale is immediate access to the iTunes Wi-Fi Music Store, where consumers can browse and buy the hottest music with a simple tap.
2. Nintendo Wii: People have to have their games. The proliferation of game sites such as Pogo and YahooGames has made that apparent. The Nintendo Wii is both one of the newest and most interactive video game systems available. Selling games along with the system can add hundreds of dollars profit to the mix. What makes the Wii so popular isn’t the advertising that the company spent millions of dollars to produce, but the interactive quality of this system. With a combination of infrared detection and accelerometers, the game controller senses where in space it is, which means that a simple hand gesture can control the game. A cool aspect to add to sales would be the introduction to PlayStation Home, an online community that can take gamers completely out of the real world and stick them in a virtual apartment.
3. Digital camera: The digital camera is facing stiff competition from cell phones, which has only forced camera developers to come up with more things to add to the package. Now they’ve added more storage and movie capabilities, which can almost turn it into a cheaper version of the camcorder. For the family set, there’s a kids’ version that has become a popular gift since it came out last Christmas, the Fisher Price tough digital camera. This camera, which sells at around $60, boasts the same picture quality and storage capacity as the adult version, but includes an impossible-to-break outer shell.
4. Flat-screen HDTV: No one really knows why they want it or how to use it, but they all have to have HDTV, and not just any HDTV, but a flat screen version. For those who don’t like the clunky picture-tube televisions, this is the first alternative. Expect HDTV sales to increase as cable stations across the country switch completely from analog to digital service by 2009.
5. Laptop: Laptops have been around forever, but they are only now becoming affordable enough for the average consumer to consider purchasing. They have the same (and sometimes better!) storage capacity as the larger desktop versions; but with the added benefit of portability, laptops have come into their own. Add to that the fact that many areas now offer free or low-price Wi-Fi Internet access, and it’s easy to convince buyers to go mobile.
6. GPS navigation unit for the car: Getting to a destination has always been half the trouble, especially for stubborn men who don’t want to admit they’re lost. Now, GPS units are included in most luxury cars. But with more exposure are more features and a lower price, the perfect combination for sellers. Now they are becoming more and more portable, with which consumers will be thrilled. At a retail price of $500-$600, even a small markup means big profits.
7. Blu-ray or HD-DVD player: The potential replacement for the DVD player, Blu-ray discs have a lot more storage and a lot more strength. Whether they will stay in the limelight for long depends on what happens over the next few months; but for now, they are in high demand. Movie production companies have already converted some 300 movies to Blu-ray format, and if the trend continues, there will be plenty of selling opportunities for years to come.
8. Disney merchandise: This is really a combination of products, but if you can get the license to sell it, there is no limit to potential profit. The High School Musical movies and Hannah Montana series are both very popular with kids, and the stores are showing that with posters, dolls and games.
9. Cell phones: Everyone has to have a cell phone, and now there’s no reason not to have one. The age of cell phone contracts is long gone. Now that there’s the prepaid option, even those with the worst credit can get a phone (and in many cases a rather nice one at that). The style and price of cell phones varies so much that resellers are free to focus on finding the right phone for the right person.
10. LeapFrog Fly Fusion Pentop Computer: This may be geared for the student, but quite a few adults could get some use out of this newcomer. This pen “translates” handwriting into digital words on the computer. It also has games, translating ability, an MP3 player and some special little surprises. A double market for the same product - can’t beat that!
Tags: Generating More Sales, jennifer ratliff, product trends, Sales, shopping trends, top products of 2007, trends
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More Retailing Tidbits - August 2007
Tuesday, August 7th, 2007
Social Retailing
Here’s a new term that retailers will soon learn! Bloomingdale’s is trying to reach out to teens and young adults, so in its flagship store in New York City, it offered an interactive sales-floor mirror that let shoppers view themselves in outfits as well as comments - and images of alternate garments - sent to the mirror by their online friends!
If the shopper liked the look of the dress suggested by a friend, she can touch the mirror to make the image of the dress appear life-size, and then stand in front of it which will allow her to "try it on" in virtual reality. This is now social retailing…web-based social networking in a traditional retail environment.
The product is called the "Magic Mirror" produced by IconNicholson and is expected to be rolled out to several retail stores later this year.
Web and Traditionals Not Connecting
A recent study of 100 of the fast-growing publicly held retailers in the United States shows that less than 25% consider seamless web-integration as a top priority. Of the retailers that were operating websites, over 40% didn’t have any integration between store and website and only two-thirds gave customers the ability to purchase a product on the site.
Many retailers have made some multi-channel progress including integrated return policies, gift card policies, pricing and promotions. It does appear that many of the retailers efforts to use internet marketing is disjointed from their brick and mortar stores.
This recent survey explains that in order to meet customer expectations, your channels and your brand must all work together seamlessly to afford the customers a rewarding shopping experience. This is something that is not being accomplished by most major retailers.
Retailing Tidbits
PERSONALLY I never liked Starbucks coffee, but I was surprised, considering their popularity, that blue ribbon for best coffee went to McDonald’s (which was also the cheapest). Perhaps this is why Starbucks has started selling CD’s and other merchandise.
…WAL-MART’s campaign to sell energy efficient light bulbs is to be applauded. However, typical of the giant, they formed a power company called Texas Retail Energy to supply electric to their stores. Perhaps they’ll start retailing it also - kilowatts in aisle seven!
…SMALL retailers take note: Skateboarding is STILL big! Kohl’s is planning a line of
clothing and JC Penney is teaming with Tony Hawk for a footwear line that they say will be the biggest brand launch ever. Follow the leaders!
…QVC officially shipped its 1 billionth package in the United States. They ship 12,000 packages an hour and 3.4 packages every second in the U.S.! Wow!!
Tags: Product Sourcing, retail, retail business, retail trends, shopping trends, source, tips, trends
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Retailing Tidbits - August 2007
Monday, August 6th, 2007
JUST back from Toy Fair in NY and it seemed like there was some business going on the first day. One vendor hawking his products to us boasts that soon it will be in Wal-Marts. As a small independent retailer do you think that is what I want to hear? So I can take my profit margin and slice it down the instant it hits the box store. What are some vendors thinking?
COLORS are important in your store. At Children’s Place stores they changed to blacks and browns. Said it was more sophisticated. Yes, of course, a sophisticated three-year-old! Rule #1: Market to your client. Maybe the little tots wear suits and ties when shopping there and I’m off on this one!
THE top items from the CES Show that wrapped up are PC’s, accessories and digital imaging devices. Steep price declines in plasma and LCD’s flattened the marketplace on that category.
Tags: Product Sourcing, retail, retail business, retailing trends, shopping trends, source, trends
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Retailing Tidbits - June 2007
Tuesday, June 5th, 2007
Pacific Rim Liquidated
THE thirty-year-old gift and home decor company Pacific Rim which went into bankruptcy earlier this year completed the last step of their sad tale, complete liquidation. This once extremely popular gift company succumbed to the pressures of the changing marketplace and unable to sustain, filed for bankruptcy protection with the hopes of finding an adventurous suitor to continue its legacy.
UNFORTUNATELY there was no knight in shining armor and early last month the company went into liquidation mode. Handled by the national liquidation company, Great American Group, lots both large and small hit the auction block in Seattle and there was rapid fire bidding to liquidate over $18 million worth of product and assets. Auctions were held both on-site and on-line as the rich history of one of our industry�s leading suppliers made the pages of businesses of the past. Buyers will notice the empty showrooms during market week as well as no new lines from this once brilliant supplier.
Vegas Has High Demand For Retail
NOT everything revolves around cards and dice in Las Vegas! The city has shown a high demand for retailing which has sparked development which have sent retail vacancy rates plunging and rental prices to all-time highs.
WITH a near 300% increase in population over the last two decades, Las Vegas ranks among the nation’s fastest growing cities. The retail market in Vegas ranks number four in the United States and has been enjoying an annual growth rate of 7%, well above the national average. In fact demand is so great that vacancy rates have dipped to 4.2% last year and new retail properties are sprouting everwhere you turn.
THE only downturn for retailers is that the higher rental prices have created lower yields for store operators and real estate investors. Fueling the retail market 39 million visitors to the city last year doesn’t hurt sales and this number is expected to climb this year.
Bling Blink
A new agreement between eyewear maker Kuxottica and Tiffany will bring eye
bling to the masses. This agreement marks the renowned jeweler’s entrance into the lucrative eyewear market. The offerings will include sunglasses as well as prescriptives and hit the stores early next year.
WAL-MART wants to own it all!
They have filed an application with the Patent office that would secure the exclusive use of "EDLP" (Every Day Low Prices) and "Rollback". Supervalu and the National Grocer’s Association among others is challenging the application claiming the terms are generic and descriptive and used widely throughout the retail industry.
Money Matters
The treasury Department spent over $4 billion changing our money and is now being challenged by the Council for the Blind saying it is too difficult to distinguish the bills.
Tags: Product Sourcing, retail, retail trends, shopping trends, source, trends
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