Many fashionistas talk about the stimulating and soothing effect of shopping when one is not feeling too fancy. The ladies in “Sex in the City” have become the ultimate symbols of this state of mind. But what happens when the carefree shopper is hit with a not so light case of dwindling disposable income and credit, as is currently the case across America. How should retail brands respond when people start putting the breaks on how much they are spending for clothes? It seems the fashion and retail categories need some retail therapy of their very own.
While a recession is not good for anyone, the limitations it engenders can motivate brands to become more focused on what they provide their consumers. By weathering the storm with a smile, a touch of class, and a lot of ingenuity, retail brands can fuel an evolution that will take them to new heights once recessionary waters subside. So retail brand managers: stay positive that better times will return, and in the meantime, work to find more creative and nuanced ways to connect with shoppers.
One of the most important lessons to remember when selling during a recession is that this unique confluence of economic variables presents a good time to remind your consumers about your unique value proposition. By doing so, you dispel the uncertainties of a recession, with the certainty of choosing the right brand for them.
Another important consumer engagement strategy during these challenging times is to present your brand as caring and understanding. Consumers at all levels are struggling more than usual to buy non-core goods. Be humble, flexible and direct in your style, tone and content. For example, highlight payment options and rewards plans that make the shopping experience less taxing and stressful. This will create an aura of trust around your brand, an important quality as economic discontent increases consumer skepticism.
Another key opportunity during these times is for retail brands to create a stronger emotional connection with their consumers by better linking their marketing initiatives with social causes that matter deeply to their consumers. This will not only connect you in a stronger fashion to the consumer but will also allow you to adopt a brand voice and personality exuding stronger leadership and vision. This quality is something people look for in times of need, and it is something they will also remember.
On a more fun note, if the retail environment is in doldrums you have to find fun ways of waking it up. An example can be revisiting the merchandising and pricing strategies to be more attuned with the times. For the more high-end department stores, for instance, this can mean introducing a lower priced yet still fashionable design line. By doing so you will be capturing something street savvy fashion consumers have been doing for a while now, mixing high and low fashion.
As I mentioned earlier, pressing times call for innovative and creative measures. This axiom also applies to how you spend your marketing dollars. You should look closely at the media mix to gauge what is providing the best results for you. Direct to consumer media including the Internet, for instance, can allow you to instantaneously track the success of consumer interactions, promotions and sales. A creative marketing idea can involve partner brands that can make a more compelling joint sale with you, at either the marketing or in-store level.
In-store marketing is an area that is underutilized and one that makes strong sense during recessionary periods when consumers tend to look around more than they buy. New technologies showcasing products and promotions along with a good old customer services and perks such as personal assistants can add much needed enthusiasm to an in-store experience that leaves a lot to be desired.
Expanding your consumer base is also a key business move when sales are dwindling. For example, globalization and the emerging international markets have provided many American multinationals with new growth opportunities. American multicultural groups can do the same for domestic retailers. These untapped groups should be seen as part of a domestic growth strategy, and a key base of new consumers in a highly saturated and competitive general market.
The recession then should be seen to some extent as going shopping with a limited budget, where looking your best is still attainable if you know where to look. Brands that will succeed during this period will be those that see this as an opportunity to stay competitive and gain new ground by not doing business as usual. That is true retail therapy.