The dawning of a new era.
As consumers, commerce and communities emerge from over three years of COVID lockdown, they are awakening to a new landscape.
Explicit, implicit, profound and subtle changes are omnipotent. Pronounced changes in consumer and client perceptions, preferences, purchases and buying decision criteria are themselves necessitating changes. The alert, discerning and responsive are alive to the need to reinvent, reposition and repackage.
These refinements extend beyond structure, operations, product/service ranges, merchandising layouts, advertising, skills, expertise, experience, supply-chains, and distribution networks. At the forefront is the need for strategic alignments of philosophies, missions, purpose, goals and culture.
In many instances, collectively, these essentials are not rebirthing initiatives, but rather are birthing rights. That’s right, a reason for celebration, sharing and nurturing.
The case studies are enlightening.
DO-IT-YOURSELF
Bunnings has declared itself to be in a new, broadened phase. The categorisation of hardware has been extended to lifestyle.
The focus remains on and in the home. Man-caves have lapsed from isolation to inclusion. Families are foremost, and that includes pets, fur-babies if you will.
Their needs, indulgences and well-being have been recognised, analysed and are now, and will increasingly be, available from the shelves in Bunnings warehouses.
References to dogs, cats, birds and small pets have been integrated into the company literature.
Long-established, recognised, respected and preferred pet industry brand names are profiled.
In a nice twist, Bunnings is providing existing and prospective customers DIY (do it yourself) ideas for “furry friends” (family members).
This is one sector that is exhibiting all the characteristics of essential staples. No suggestion of heightened discretionary purchases. The unconditional love of pets is being reciprocated with unconditional buying patterns.
The regular, tight and recuring purchase cycles are appealing. The prospects for income enhancing product adjacencies seem boundless.
Pet insurance is doubtlessly on the list and Fly Buy reward points are available now.
REINVENTION KEY POINTS
· Increased brand name relevance and resonance
· Enhanced warehouse visitations
· Complementary purchase opportunities
· Broader, in-family customer profiles
· Stable, regular buying patterns
POST FITS
Post Offices are also being subjected to makeovers. Some would say, being dressed up.
Fitting rooms are being introduced to a small, select but increasing number of outlets to enable garments purchased online and delivered by Australia Post to their onsite “community hubs”, to be tried on, accepted, or returned.
The initial orientation will be to rural and regional communities.
It is further recognition that post, mail and Post Offices are evolving. The typical Post Shop has some 1450 products and services available. Around 17 relate to postal and philately products and services. That parallels to the number of SKUs (stock keeping units) available in an Aldi supermarket.
Banking and public utility payment fees are generally thin and need to be complemented.
Creating, maintaining and promoting communal hub facilities can be, and is, an emotive, social service.
One key issue which does not appear to have been addressed is branding. The word “Post” seems misplaced, misleading, irrelevant and obsolete.
HERE IS THE NEWS
During the 1960s, 70s, 80s and possibly the 90s retail newsagencies were a popular investment for transiting middle-aged and older individuals and couples who were essentially buying a stable income, with the potential for a later sale to establish a retirement fund.
In the slower moving analogue era it appeared to be sound logic and financially prudent.
The arrival of digital changed commerce, retailing in particular. Online transactions reduced the need for local bank branches, police stations, corner stores and countless smaller operations. The composition of High Street precincts changed and contracted. A coffee culture was insufficient to compensate for all the losses of the local physical presence of many categories.
Today, Lotto and like gambling services represent 75% or more of the revenue of many newsagencies. The threat of a paperless future still looms.
Easter, Mother’s Day, birthday and greeting cards seem to be quaint memories from the past – all typically purchased from newsagencies.
Store branding, premises sizes, product ranges and possibly store integrations are each strategic issues that need to be addressed-and soon-for the reinvention of newsagencies.
INSIDE OUTDOORS
Demand for and the sales of outdoor furniture have traditionally been highly seasonal. Revenues increase and peak in the period between, and including, November and March.
Late spring, summer and early autumn are nothing if not seasonal. Lifestyles and outdoor furniture usage are determined and adjusted accordingly.
A little reinvention and rebranding to alfresco enhances and extends the relevance, appeal and use of furniture, barbeques (alfresco kitchens), bars, refrigerators and entertainment features (often centred on big flat-screen television sets).
Home redesigns readily accommodate the reinvented environment and life-experiences.
Alfresco lifestyles have year-round appeal, and associated demands, sales and profits.
IT ALL ADDS UP
The trend to reinvention is not limited to retail. Services too are being recalibrated.
Accountants, who are protective of and territorial about client bases have in recent times contended they possess skills in recruitment, law, advertising, marketing, strategic planning, graphic design, financial planning, demography and of course auditing. Significantly, the major global accountancy practices are increasingly dissembling their own-created monoliths. Specialised skills are sought and needed by discerning existing and prospective clients.
Moreover, overriding corporate cultures are determined, managed and maintained by tax compliant and conforming philosophies can be noticeably limiting in the other creative and innovative disciplines. Risk taking is abhorred by many conservative accountants.
ENTERTAINING SHOPPING
Shopping centres are quickly recognising the need, desirability and advantages of reinvention. Tenancy mixes are being changed substantially, often driven by the reality of vacant premises from departing retail operations.
The drive toward greater entertainment and experiential retail is not without challenges. Spaces, area configurations and viable rentals need to be addressed.
Outlet agencies must also be considered and accommodated. Increased emphases on health, well-being, in-centre dining and interactive merchandising like Lego, contribute to changes in customer foot-traffic flows. Hours of trade and peak trading periods often differ.
Access to parking areas are key, and rental influencing factors.
Colours, lighting and audio dimensions are other variables that must be refined to achieve optimal ambiences for discrete arcades, precincts and premises.
At present there is considerable talk and declarations being made about retail entertainment and experiential merchandising. The onsite impacts appear marginal, with low registers of recognition among consumers.
Effective reinvention often requires more than formulas. Engaging all senses is an artform. So too is contemporary retailing.
NEVER-ENDING PROCESS
Reinvention is a never-ending process in commerce. It is in reality increasing in rapidity and is happening around us.
Obsolescence and irrelevance inevitably leads to uncompetitiveness.
The need for and nature of reinvention need to be recognised, respected and embraced … not occasionally, but constantly.
There is a better way –
FIND IT
Barry Urquhart
Business Strategist
M: 041 983 5555
E: Urquhart@marketingfocus.net.au