Omni channel, product catering to millenniels, social media brand-to-consumer marketing…are among the key strategies we would most likely hear from CEOs of today’s strugggling brick-and-mortar retailers facing the disruption by e-commerce juggernaut Amazon.
Doug Stephens attempted to convince us none of the aforementioned strategies will rescue the battered industry; everybody else is desperate to catch up with Amazon, while Amazon is like a chess master, staying several moves ahead.
He laid out his vision on the retail renaissance, driven by the exponential growth of technology--a utopia that made me dizzy!
• Alexa or Amazon dash buttons will fulfill our everyday shopping needs for commoditized products, and have them automatically delivered.
• We can shop, with our trusted shopping buddies through virtual reality, in the comfort of our own home.
• Technology will be able to simulate the look and sound of a physical store, the texture of a cloth, the fragrance of a perfume, and even the smell of gourmet cooking.
• Physical stores will no longer be pretty warehouses that stock on best-selling commoditized products, instead, it will become a yoga studio, a rock climbing wall, or a design lab.
• Ephemeral stores, some are on the wheels roaming on the streets, can shapeshift every day to showroom different products or brands.
• We will use 3D printing to design or even manufacture our products.
• Wholesalers will be the thing of the past, brands/manufacturers will sell directly to the consumers.
Stephens pointed out the pitfalls of today’s retail revamping strategies, namely outdated productivity benchmarks (sales per square foot, same store sales etc.), focus on sales rather than customer experiences, channels instead of specific moments during customer’s shopping journey (discover, try, inspire, and buy).
The therapies he prescribed including encouraging innovative ideas regardless of immediate financial benefits, letting go futile attempts to create product scarcity, extending consumer-to-consumer marketing, generate alternative revenue source from consumer data, among others.
Stephens’ Sci-Fi vision were well-argued, but his recommendations are more applicable to emerging brands starting from scratch. The painful reality is we have way too many stores; shopping space measured by square-foot per person in U.S is at least twice as much as that in Europe. Store closing and bankruptcy are among the fastest ways to trim the excess. The incumbent retailers have neither time nor cash to engage in “reengineering, as long as Wall Street is the Big Brother, and stock price determines executive compensation.
So in my mind, the industry will get much worse before getting better. But maybe retailers who are more futuristic, and who can escape Wall Street's stranglehold will have a better shot of survival.