Scribd
Upload
160 views

Module 3 Slides

Uploaded by

threezero456
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
160 views

Module 3 Slides

Uploaded by

threezero456
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 52

Retail Marketing Strategy: How to Win Customers

in an Era of Disruption
Integration of Online/Offline Strategies

Barbara E. Kahn, Patty and Jay H. Baker Professor of Marketing


Customer Experience

• Integration of online/offline strategies


• Digitally native vertical brands (DNVBs)
• Legacy brands and retailers
• Lessons from China
• “New retail” and social commerce
Malls are Repurposing Their Space
The Exhilarating World of Post-Pandemic Shopping

• Importance of experiential retailing


Enduring Changes to Retail Post-COVID-19

• Move to customer-centered omni-channel retailing


• Importance of creating an in-store experience that inspires trust

Customer engagement and experience delivers to these two goals


• Traditional and digital companies converge to be everywhere customers
want them to be
Brands Move to DTC: DNVB & Legacy

Product Benefits Customer Experience


Superior Competitive Advantage

Legacy

Brand Experiential
Branded Enhanced Increase
performance
DNVB
customer Trust/Pleasure
superiority experience

Low Price Legacy Frictionless


Operational Comprehensive
Eliminate
excellence, customer
Lowest cost understanding, Pain Points
efficiencies Total convenience
DNVB

Retail Proposition (Customer Value)


Retail Marketing Strategy: How to Win Customers
in an Era of Disruption
DNVBs: Digitally Native Vertical Brands

Barbara E. Kahn, Patty and Jay H. Baker Professor of Marketing


Digitally Native Vertical Brands (DNVBs)
Traditional Eyewear Shopping Experience
Warby Parker
Warby Takes Over New York Public Library
Warby Parker
Warby Parker - New Physical Showrooms
Warby Parker - At Home Eye Exam
Warby Parker - Virtual Try-on
Allbirds to Open 20 New Stores in 2020-2021

• “Post-pandemic, Allbirds plans to have its stores serve as hubs for a broad
omnichannel experience, and as places where the company can build a
sense of community for its customers.” — Jason Varney/Allbirds
Retail Marketing Strategy: How to Win Customers
in an Era of Disruption
Legacy Brands and Retailers

Barbara E. Kahn, Patty and Jay H. Baker Professor of Marketing


Brands Move to DTC: DNVB & Legacy

Product Benefits Customer Experience


Superior Competitive Advantage

Legacy

Brand Experiential
Branded Enhanced Increase
performance
DNVB
customer Trust/Pleasure
superiority experience

Low Price Legacy Frictionless


Operational Comprehensive
Eliminate
excellence, customer
Lowest cost understanding, Pain Points
efficiencies Total convenience
DNVB

Retail Proposition (Customer Value)


Lululemon’s Strategy - In-Store Experience and New Digital
Local Ambassadors for Lululemon
Lululemon Acquires Mirror
Nike: Direct-to-Consumer (DTC) Strategy
Nike: New “Live Store”
Footlocker

A project with VFiles and Fila will be


the first to come out of Foot
Locker's new incubator Greenhouse
Source: Courtesy
Eataly

• Oscar Farinetti started Eataly in Turin, Italy in January 2007


• Associated with the “Slow Food” movement — connected with many small-
scale food producers
• 90% of fresh products in Eataly establishments come from local areas —
connected with local chefs
Eataly
Pop-Up Stores
Sephora: Stores
Sephora: A Two Way Conversation
Sephora: In-Store Tech
Sephora’s COVID-19 Strategy

• AR, BOPIS, frictionless payment, client engagement


Retail Marketing Strategy: How to Win Customers
in an Era of Disruption
Lessons from China: “New Retail” and Social Commerce

Barbara E. Kahn, Patty and Jay H. Baker Professor of Marketing


Lessons from China: “New Retail” and Social Commerce

Cultural factors lead to different shopping behavior


• Chinese consumers depend heavily on product reviews and user groups
• 75% of Chinese internet users post online feedback about purchases at least
1x/month (<20% in US)
• Trust is important but difficult to establish
• Video key opinion leaders (KOLs) are reshaping the retail landscape in China
• Social commerce much stronger in China than in the US
Lessons from China: “New Retail” and Social Commerce

Cultural factors lead to different shopping behavior


• Chinese consumers love shopping and expect a treasure hunt experience
• Alibaba
• Mianzi (saving face) — implies the importance of maintaining social images and
status
• 98% of online sales in China are made on a mobile phone
Top Retailers in China

• Alibaba
• In 2019, 56% of all online retail
sales in China
• Tmall (B2C) and Taobao (C2C)
• JD
• Much smaller assortment
• 50/50 marketplace/own inventory
• Pinduoduo (PDD)
• In 2021, top of the list in number
of users
China: Customer Experience

• WeChat and AliPay


• More than just payment — social media, purchases,
book tickets, order cars
• Incredible influence of KOLs, vblogs, and live-streaming
• Little Red Book, TikTok
• Shoppertainment
• Content is key
Alibaba: Killing Time
“New Retail”

• Physical stores are connected to the online world


• Serve as delivery points
• The back of the store is for distribution and fulfillment
• The front of the store offers great customer experience
JD: Efficient Shopping/Saving Time
Pinduoduo (PDD)
Pinduoduo (PDD)
Pinduoduo (PDD)
Pinduoduo (PDD)
Pinduoduo (PDD)
Pinduoduo (PDD)

You might also like