Marshal Cohen: Retail's New Rules
LAS VEGAS—Retailers have been faced with a number of setbacks over the last few years, but innovation, customer service and incorporating new technology will help them survive, according to Marshal Cohen, chief industry analyst for The NPD Group Inc., a market-research company.
quot;It is about learning to adapt to the consumer rather than expecting the consumer to adapt to you,quot; said Cohen, who was the lead speaker at the sixth annual SDI Logistics and Supply Chain Forum.
Shifting buying habits and retail strategies will have an impact on logistics and supply-chain suppliers. Technology is making the retail world move even faster. quot;We are really going to be in a place where mobile technology will rule the roost,quot; Cohen said, noting that retailers will have to communicate and deliver product at lightning speed.
Computer technology is facilitating the quick design and execution of new products. quot;We are going to enter a decade of innovation and empowerment,quot; he said. quot;The consumer will be telling you what they want before they buy the product.quot;
However, we have not entered into a new economy but have adopted a new era of consumption. Shoppers are no longer conspicuous consumers but calculated consumers. quot;They go into a store and say, ’If I buy this, what am I not going to buy?’ The consumer is asking themselves what do they need.quot;
Retailers are discovering that small is beautiful or less is more. Packages are shrinking as well as the content inside the packages. quot;The prestige beauty business declined 10 percent last year, but the growth in 1-ounce-or-less bottles of perfume grew 8 percent,quot; Cohen said. quot;It is all about smaller packages.quot;
And customer service is king. quot;Service is going to be the greatest differentiator. It is going to determine why the consumer buys from you as opposed to somebody else,quot; he explained.
Recently, 71 percent of consumers said in a survey they hated Macy’s customer service, Cohen said. Now, Macy’s is ramping up a customer-service initiative to keep customers coming through the doors.
For manufacturers, innovation is going to drive growth. Take the compression shirt, a tight-fitting top rolled out by the sportswear industry. It makes people look fitter than when they wear a traditional cotton T-shirt. quot;What are you doing to market your product to drive innovation?quot; Cohen asked. —Deborah Belgum
