Moving Up and Trading Down
Branding isn’t just about the way products are perceived. It’s also about the way retailers – and their stores – are perceived. I mention this because of one article I recently read about consumers in India, and another about consumers in the United States.
The Hindu Business Line interview with the CEO of a store-branding company says, “All communication should be centered on showing people the value of the brand.” This is because in India, as income rises, consumers spend more on food, fashion and lifestyle products. Times are good in India these days, he says, so shoppers don’t care so much about store design and customer service. But when times go bad, consumers look for the retail brands that offer consistently good shopping experiences. That is why, he says, “Retail design is all about unlocking the energy of the store.”
In the U.S., our sour economy has consumers looking for bargains as well as nicely designed stores. This article from the Minneapolis Star Tribune notes that supermarket giant Supervalu has found consumers are now more likely to buy house-brand products instead of name-brand items. The experts call this “trading down.” Supervalu also has learned that “sales rise 8 percent in the 12 weeks following a remodel.”
What does all this mean for smaller, independent retailers? To me it means customers will continue to buy from you when you provide products with a perceived value. It also means that you need to learn how store design affects your sales. You can easily do the latter through online or in-store customer surveys. As an incentive, offer a discount for each completed survey.
Figure out how to “unlock the energy” of your store and you should be able to weather any economic climate.


Jeff Grant's Retail Blog
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