From The New York Times:
Consumers Find Ways to Spend Less and Find HappinessReally interesting article on the shift from conspicuous consumption to calculated consumption and its effect on our sense of happiness. Instead of buying "things," people are investing in memories, i.e. trips, concerts, French classes, vacations, staycations.
There are some important implications for retail here. Back in the day, shopping was more of an experience. Today, with the ubiquity of credit cards and the instant access the Internet provides, that experience is practically gone. However, some of today's most successful retailers have gone above and beyond to create experiences for their consumers that add value - from Apple and its classes to Best Buy and their Geek Squad to independent boutiques and their in-store events.
Happy customers = good customers, right?
For a retailer like PacSun, this signals a distinct opportunity to create and maximize experiential touch points for consumers not only in store, but also in other areas of their lives. The PacSun Ballyhoo was a great first step.
An excerpt:
The recession, however, may force retailers to become reacquainted with shopping’s historical roots.
“I think there’s a real opportunity in retail to be able to romance the experience again,” says Ms. Liebmann. “Retailers are going to have to work very hard to create that emotional feeling again. And it can’t just be ‘Here’s another thing to buy.’ It has to have a real sense of experience to it.”
Industry professionals say they have difficulty identifying any retailer that is managing to do this well today, with one notable exception: Apple, which offers an interactive retail experience, including classes.
Marie Driscoll, head of the retailing group at Standard & Poor’s, says chains have to adapt to new consumer preferences by offering better service, special events and access to designers. Analysts at the Boston Consulting Group advise that companies offer more affordable indulgences, like video games that provide an at-home workout for far less than the cost of a gym membership.
Mr. Cohen of the NPD Group says some companies are doing this. Best Buy is promoting its Geek Squad, promising shoppers before they buy that complicated electronic thingamajig that its employees will hold their hands through the installation process and beyond.
“Nowadays with the economic climate, customers definitely are going for a quality experience,” says Nick DeVita, a home entertainment adviser with the Geek Squad. “If they’re going to spend their money, they want to make sure it’s for the right thing, the right service.”
With competition for consumer dollars fiercer than it’s been in decades, retailers have had to make the shopping experience more compelling. Mr. Cohen says automakers are offering 30-day test drives, while some clothing stores are promising free personal shoppers. Malls are providing day care while parents shop. Even on the Web, retailers are connecting on customers on Facebook, Twitter and Foursquare, hoping to win their loyalty by offering discounts and invitations to special events.
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