Lean(er) Retail

Is it me, or does holiday shopping feel noticeably different from the past 3-4 years? I’m not a big shopper, but it feels like a small surge in consumer purchasing fueled by some smart, savvy online retailing will probably create some larger trends for the next few years. Retailers like Zappos, JCrew, Brooks Brothers, LL Bean, and a few others feel like their approaching the online experience fundamentally differently. I sort of hate myself for saying this, but the online portion of these businesses really feel like they’ve been pulling pages from lean start-up strategy. (I know, I just threw-up in my mouth a little too…anyway, here’s the thinking.)

Selling when people are buying
Traditionally, the only time retail puts anything on sale is after they’re sure the majority of people don’t want it anymore (after the holiday has ended). In 2009, when the financial crisis hit, companies staged pre-holiday sales as a means of self-preservation – everyone was sure sales were going to be soft and retailers were doing anything possible to clear pre-recession inventory levels. That tactic was really all about “the business”, the consumer just happened to benefit (if they felt like buying).

This year, there’s clearly a different strategy at play. This year, if people are in the mood to spend, retailers have a sale for you. And it’s usually online, it usually lasts 3 days, it usually includes free shipping, and it’s usually a percentage of your order. All those things drive more sales volume, which compensate for selling at a discount. The tools and methods are familiar, but the big idea here is that this is approaching is retailing centered on the purchaser. The retailer is having a sale BECAUSE the customer is wants to buy, versus having a sale when the season’s over (and the retailer can’t command full price.)

Release early and often
Based on how the world works today, I’m not sure there are four solid fashion seasons anymore; maybe it feels more like eight. I’m noticing early fall, late fall, early winter, and so on. Retail isn’t different from other experience based businesses- new experiences and new options drive interest and engagement. Very much like the tenant of a new start-up, retailers are taking the core audiences they have and they’re constantly pushing updates, inviting people back and spurring conversation.

Codes as currency
Start-ups use beta codes and early invites all the time, it’s an engagement tool. There’s something ephemeral about a coupon code, and there’s something elite about an early invite. Sure retailers have used online codes for a while, but if you notice they’re using them differently. Most of the time the sales last for a very short period. Retailers are staging multiple sales over shorter periods of time. Each sale pulls a different lever (shipping, specific items, volume discounts.) Through this constant campaign, traditional retail is starting to make good on the promise of being as dynamic as the web will allow it to be. I’m waiting for the next step where retailers break into using one-time use codes that have Easter egg discounts or other crazy interactions. (This will happen at some point, trust me.)

Built on buzz
A sale is a way to generate buzz; no news there. But through the use of codes, and releasing often, it seems like shoppers are visiting online stores from new directions. I haven’t been alerted to any of this online retail 2.0 through the traditional spammy email. Sites like Svpply, Pintrest, and this crazy advent of menswear blogs(?!) are creating new conversation and appreciate for clothing.

Much like a new venture, these retailers aren’t resting on their brand hoping that people will buy. They’ve gotten scrappy, they’ve found influencers, and they’re trying to build buzz in every non-traditional way possible. I’ve seriously witnessed bros trying to help bros make the right decision about which “semi-casual suede boots to buy”…and they’re sharing coupon codes!! I swear I’m living in the twilight zone. (related story here.)

So, we’ll see. I have no doubt I’m late to the fashion party, but I have a feeling some of the things these retailers are trying will probably stick with us. It also feels like maybe online retail is finding a new footing. Maybe these retailers are finally letting the shopping experience be as dynamic and fast-paced as the web wants it to be (as opposed to trying to serve a traditional channel through a digital experience). I hope so – I’m definitely not paying full price or shipping for those brown brogues I’ve been eyeing.