Holiday Retail Darling 2.0 - Mobile Commerce

"In 2008 and 2009 , mobile started out as a science project. It's accelerated so fast that it's becoming more mission-critical for retailers to deliver a mobile experience in a professional way."  

- Dave Sikora, Digby

In our 2009 post-holiday blog we declared online shopping as the holiday retail darling of the holiday season. But this year there' s a new darling in town - it's that handy portable device we call a mobile phone. Mobile commerce, or m-commerce, made a significant contribution as the new tech trend for the holiday season as more shoppers were going online than ever before.

People used their phone just like their computers at home for online shopping: comparing prices, purchasing items and finding the nearest store location as well as inventory in stock locally.


Retailers hopped on board as they invested in m-commerce to prepare for the holidays. That's a smart move considering how m-commerce promotions encourage impulse buys, and knowing the exact location of shoppers lets merchants deliver coupons and offers to users when they're most likely to spend. Mobile apps like Foursquare  encourages consumers to "check in" and retailers took advantage of the information. They offered the ability to scan barcodes or get discounts on their mobile device while out shopping. With moves like that, retailers presented a seamless shopping experience online and offline.


M-commerce expected to triple this year, and double again next year; but US lags behind others

• m-commerce is expected to triple to $3 billion in the U.S. this year and reach $6 billion next year
• However, U.S. consumers are still behind foreign consumers in terms of purchasing with a mobile phone
• 7.9% of U.S. consumers have bought something with a phone vs.
• 32% of consumers in Taiwan have bought something with a phone (This tops the list of major industrialized countries (per IE Market Research Corp)
• About 13% of consumers in Finland have bought something with a phone (#1 European country)

M-commerce played a significant role so far in the 2010 holiday online shopping experience

• Almost 60% of mobile consumers expect to use their phones to help with shopping plans and holiday celebrations this season
• Nearly 4% of all Cyber Monday shoppers used smartphones and other devices to make their purchases
• According to research data from Google/OTX:
• 52% of U.S. smartphone users plan to use their phone to compare prices during the holiday shopping season
• 40% plan to use their phones to read product reviews
• According to the 2010 eholiday pre-holiday survey from National Retail Federation
• Shoppers using smartphones will account for at least $127 billion, or 28%, of the $447 billion the NRF predicts consumers will spend this holiday season 
• Over one quarter of consumers said they definitely planned to use their smartphone to research or make holiday purchases

Are you planning to ride the m-commerce wave this holiday season? You won't be alone!

Image: Carlos Porto/freedigitalphotos.net 

Sources:

7.9% of U.S. consumers bought item on smart phone, SFgate.com, 12/3/10

It's a holly, jolly (mobile) Christmas, shop.org, 12/2/10
Best Buy, Amazon.com Try to Reach Shoppers Through Their Phones, businessweek.com, 12/2/10
U.S. Online Sales on Cyber Monday Climbed 16%, ComScore Says, bloomberg.com, 12/1/10
Cyber Monday sales hit record $1B, bizjournals.com 12/1/10

Retailers Seeing Green on Black Friday Weekend

Several predictions for the 2010 Black Friday weekend came true! 

1. There were more shoppers in stores and visiting websites over this Black Friday weekend 
2. More money was spent than a year ago  
3. Shoppers purchased more fun gifts (jewelry) instead of practical gifts (coffee makers)  

But hold on! Black Friday 2010 weekend looked good, but consumers are still concerned with the economy, so retailers are urged to continue their low pricing and can't-pass-up offers.

"As retailers look ahead to the first few weeks of December, it will be important for them to keep momentum going with savings and incentives that holiday shoppers simply can't pass up."

Matthew Shay, NRF President and CEO

By The Numbers...

• 212 million shoppers visited stores and websites over Black Friday weekend, up from 195 million last year
• The average shopper this weekend spent $365.34, up fro last year's $343.31
• Total spending reached an estimated $45 billion
• The number of people who shop on Thanksgiving day, both online and in stores, has doubled over the past five years, from 10.3 million in 2005 to 22.3 million in 2010

Consumers clad in PJs visited stores earlier than ever

• The number of people who began their Black Friday shopping at midnight tripled this year from 3.3% last year to 9.5% in 201
• By 4 a.m. 24% of Black Friday shoppers were already in stores

Some purchasing highlights

• The number of people who purchased jewelry over the weekend rose from 11.7% last year to 14.3% this year
• Gift cards rose from 21.2% last year to 24.7% 
• Toys came back from 32.2% to 33.6%
• Books and electronics rose from 40.3 last year to 42.1%

Department stores saw increase in traffic
Both department stores (52% this year vs. 49.4% last year) and clothing stores (24.4% vs. 22.9%) saw an increase in traffic while the percentage of people who shopped at discounters declined 7.2% from 43.2% last year to 40.3% this year

Retailers paid more attention to online deals, and shoppers responded
The percentage of people who shopped online this weekend rose 15.2% from 28.5% last year to 33.6% this year

Image: Simon Howden/freedigitalphotos.net 

Sources
NRF: Black Friday Weekend Sees Bigger Crowds, $45 Billion in Spending, nrf.com, 11/28/10

Fast Fashion's Appeal. It's "safe" fashion.

Defining Fast Fashion

Do you know what Fast Fashion is? We asked a group of women who shop fast fashion concept stores (Uniqlo, H&M, Zara, Forever 21, etc.) and most were not familiar with the term. No biggie. The term is more industry jargon than a consumer-facing moniker.  Fast Fashion takes runway trends and quickly (and inexpensively) turns them into merchandise for trend-seeking consumers. 

The Appeal of Fast Fashion

Besides the obvious cost-savings and desire for trendy items, what is the appeal of these stores? Here's what women told us: 

• It's a safe way to try new trends. Let's say you're eying a one-shoulder, brilliant blue mini dress (a la Katy Perry) and you have quite a lovely badonk. Fast Fashion offers a cheap way to try out a trend and see if it actually "fits." Sometimes we women need to try an outfit out in the real world to decide if we like it, badonk or flat bottom. Better that "trial" item be something inexpensive according to Lori from California, a 30-something stay-at-home mom and budding fashion blogger. Lori tell us, "I enjoy toying with fashion. But I don't want to empty my wallet to do so." 

• Feel less guilty if it doesn't work out. If the brilliant blue mini dress gets positive feedback from the people who matter (namely, other women) then it's a go. If we hear crickets instead of compliments? The blue mess will get relegated to the Good Will pile. Who cares? It was only $20, and now it's a donation. As Lauren, a digital marketer in her 20s points out, "If I don't end up liking the outfit...I won't be upset because it didn't cost me as much money." 

• Less worry about ruining or losing items. Let's take our brilliant blue dress again. Say we get tagged by a lit cigarette. That's just the way it goes because "there is always a risk of it getting ruining while out," according to Emma, a 20-something creative. According to Emma and others, there's much less drama in ruining this dress than say, that JCrew number.

Quality/Risk Equation in Fast Fashion

Speaking of risk, women who shop fast fashion understand the potential quality discrepancy in these items. They realize that lesser quality fabrics, and stitching is probable when the costs are so low. However, many women like Samara a 20-something Media person, feel they can mitigate the risk by being selective. "I have had stuff from Forever 21 that falls apart in 1 washing. Then again, some stuff I've had for years. You have to be careful."

The Fast Fashion Controversy

It's not all just fun and cheap fashion with these retailers. The high-end fashion crowd (fashion designers, editors, industry vets) look down on these stores for their lack of quality merchandise and so-called knock-off designs. It doesn't stop with the bad opinion either: In the past few years Anthropologie, Diane Von Furstenburg, and Anna Sui have all taken retailer Forever 21 to court for copying their designs. 

In addition to the above allegations, some question how these inexpensive items can be made in a responsible manner (that is, fair pay, decent working conditions, non-hazardous materials, etc.). Fast Fashion retailers need to take notice on this specific issue because of the younger adults they target -- specifically the Millennial generation. Millennials tend to be more attuned to fair business practices than the generations before them. They might be lured in by cheap prices, but their conscience might keep them from buying. 

"This is always a sticky subject for me...the merchandise is mass-produced in low or no-pay sweatshops," posts kelseaalexis in response to an article in nymag.com. "However, since I am only 15, I don't exactly have the funds to buy the 'real' things all of the time, so I just resort to Forever21."

Fast Fashion's Cousin: Designer Collaborations

Designers Collaborations are exactly what they sound like: A known (or in some cases, an unknown) designer teams up with an established retailer like Target, H&M, and Kohl's and creates an exclusive collection for that retailer. Karl Lagerfeld tipped this trend back in 2004 with his H&M collection that had fashionistas flocking to the store for the limited edition designs. Other designers, like Vera Wang for Kohl's, have been lending their design cred for years. Even mainstream Macy's is getting in on the action with their latest announcement to bring these types of fashions into their stores. 

While Fast Fashion may have it's albatross, it seems that Designer Collaborations enjoy a much better reputation. Everyday women enjoy the access to these designers and consider these collaborations unique and original. They enjoy the ability to afford a designer label. Plus, the designers gain points for making their fashion more accessible. 


Fast Fashion makes sense with today's economic sensitivities
Fast Fashion has it's place in the retail world, especially as we are experiencing a renewed sense of frugality. There will always be a segment of people including Millennials and trend-seekers of all ages who will want up-to-the minute trends at a tremendous bargain prices. Low price drives the benefits we discussed earlier (safe way to try trends, less guilt, less worry). The additional benefit is that the low price of Fast Fashion also makes consumers feel like smart shoppers.    

It seems that Designer Collaborations will continue to have appeal as well and show no signs of slowing down. Designer Collaborations can provide Fast Fashion concepts more "legitimacy" as a fashion destination by providing a real designer behind the merchandise. 

[Image: Tom Clare / FreeDigitalPhotos.net]

"I'm Dreaming of a (cautious) Christmas"

While retailers experienced a decent back-to-school season this year, experts warn not to expect too much for the holiday season. Sales are predicted to be up, but experts say consumers will shop with caution and wait until the last minute to shop for the best deals.  They advise retailers to offer promotions, rewards and coupons to draw in consumers. Why? Consumers are expected to do even more comparison shopping and purchasing online than last year. Although the high unemployment rate (holding at 9.6%) continues to put a damper on retail sales, positive September sales for department stores and teen retailers (discount retailers struggled!) might give a glimmer of hope for the holiday retail season.

September sales soar...for some
September sales for many retailers show a light at the end of the recession tunnel, especially departments stores and teen retailers. Surprisingly, discount retailers did not fare as well.

Here are some highlights:
Teen retailers

• Abercrombie and Fitch posted an increase total comp store sales of 13% vs. an 18% decrease from last year
• American Eagle Outfitters, Inc. posted an increase in comp store sales of 4% compared to flat from the year before

Department stores

• Macy's same store sales increased 4.8% vs. a 2.3% drop from last year
• JC Penney Company, Inc. reported a 5.1% increase in comp store sales vs. a 1.4% decrease from last year
• Limited Brands comp store sales rose a whopping 12% vs. a 1.7% decrease from last year

Discount stores

• TJX Companies posted a 1% increase in consolidated comp store sales vs. a 7% increase from last year
• Kohl's reported only a 3% increase vs. a 5.5% increase for the same period last year
• Ross Stores, Inc. posted same store sales of 2% vs. an 8% increase from last year
• Although Walmart doesn't report monthly sales any more, they have posted five consecutive quarters of negative same store sales.

What does this shift foretell? Perhaps just having low prices isn't enough - retailers may need to show they have the right merchandise to bring consumers into their store.

Overall Holiday Sales Predictions from the Experts
Deloitte predicts that retailers can expect about a 2% rise in sales, beating last year's 1% increase, and most of the boost will come from non-store sales such as catalog, interactive television and online. In fact, Deloitte expects a 15% jump in non-store sales, nearly two-thirds of which will be online and the rest of which will come through catalogs and television.

"Online activity may also influence in-store shopping this holiday season, as social networks and mobile applications are playing a more prominent role in the shopping process."  

-Alison Paul, Deloitte Retails Sector Vice Chairman

Kantar Retail calls for fourth quarter retail sales to rise 2.5% better than the 0.5% gain from the same period a year ago. Although they predict the holidays will be a soft spot, Kantar says it's not an indication of a double-dip recession. The slow-rising economy, though, will keep consumers in a thrifty mode, which means consumers will be looking for discounts and deals, as well as shopping at dollar stores and small-format value retailers. Kantar found that one-third of consumers plan to comparison shop online before heading to the stores, and that one in every 20 customers will bypass stores completely.


National Retail Federation expects holiday sales to rise 2.3% over last year and that sales will reach $447.1 billion, the biggest increase in three years in part because of more aggressive pricing. This would be a vast improvement over lat year's 0.4% rise and the 3.9% holiday sales decline in 2008.

"Though the retail industry is on stronger footing than last year, companies are closely watching key economic indicators like employment and consumer confidence before getting too optimistic that the recession is behind them." -NRF President and CEO Matthew Shay

The International Council of Shopping Centers released its forecast Tuesday with the most optimistic predictions of an increase in holiday sales landing between 3% and 3.5%

What are consumers thinking?
Kantar Retail's September ShopperScape survey shows early spending plans by shoppers.

• 7% of shoppers are planning to spend more for the holidays vs. 9% from last year
• 19% of Gen Y shoppers plan to spend more - the strongest among all generations
• 38% of shoppers plan to spend less on holiday gifts vs. 40% from last year
• 42% of Baby Boomers plan to spend less - representing the greatest cutbacks between all generations
• 49% of shoppers plan to spend about the same compared with 46% from last year
• 55% of seniors are most likely to hold their holiday spending steady

Although the retail industry experienced a good back-to-school season and many stores saw positive September same store sales, with nearly 15 million people out of work, and until unemployment changes, retailers may not see a strong holiday season this year. Sales are certainly expected to be up, especially compared to the last two years, but the recession continues to have an effect on consumer spending. The holiday season shouldn't be completely dreary though, as long as retailers offer discounts and promotions, the consumers will shop.


Image: dream designs/freedigitalphotos.net


Sources:
September Retail Sales Lift Holiday Sales Expectations, 123jump.com, 10/9/10
Employment Situation Summary, bls.gov, 10/8/10
September Same-Store Sales Grow Slightly Slower, Kantar Retail Reports, retailforward.com, 10/7/10
September Retail Sales Rise; Holiday Looks Happy, multichannelmerchant.com, 10/7/10
Retailers' Holiday Hinges on Discounts, wsj.com, 10/6/10
Retailers Need 'Promo Mojo' to Survive Holiday 2010, cnbc.com, 9/30/10
Deloitte: Online will drive small uptick in holiday sales, bizreport.com, 9/26/10
Retailers Cautious As They Hire Holiday Temps, npr.org, 9/19/10
Analysis: As school starts, retail thoughts turn to holidays, reuters.com, 9/3/10

Frighteningly Empty Stores for Halloween, or a Bewitching Economic Rebound?

About 148 million Americans are expected to partake in some sort of Halloween celebration, and according to National Retail Federation's Halloween Consumer Intentions and Actions Survey, people will be spending considerably more than they did last year, perhaps even back up to the levels of 2008. That being said, 30% of consumers say that the condition of the U.S. economy will still influence their Halloween plans. Total spending for the holiday is expected to reach $5.8 billion.
For some people Halloween is not an "all-out" spending holiday, with people doing the same thing from year-to-year regardless of the economy, certain spending boundaries remaining of course. Costumes appear to be where the most money is spent, and is not necessarily affected by economic circumstances while  decorations don't really come in to play regarding the economy. The state of the economy seems mainly to affect those throwing a party, forcing people to pull back on certain provisions.


Costumes - clearly the crux of the holiday
Consumers are expected to spend $23.37 per person on costumes this year
Spending on costumes might be the least economically affected aspect of Halloween this year, which seems to demonstrate that costumes are the nucleus of the holiday. While parents probably don't want to spend a ton of money on a costume their child will most likely wear only for one night, parents might pay anywhere from $10 at Sam's Club to $50 or $60 at Target or a Halloween pop-up store.

Married couples without children might spend $40 or $50 on an outfit, but they may recycle one or two pieces for an outfit the following year. Younger folks just out of college will head to thrift stores such as Goodwill or even look for accent items in their closet. Overall, costumes seem to dominate people's wallets with minor thought to economic conditions.

In fact, of those from NRF's survey:

• 40.1% of consumers are planning to wear a costume, up from 33.4% last year
• 69.4% of 18-24 year olds say they will dress up, the highest of any other age group

Decorations - reuse and recycle
Consumers are expected to spend $18.66 on decorations this year and 50.1% of consumers will decorate their home or yard
Halloween decorations seem to be something people don't buy every year, unlike Christmas where maybe new ornaments or bulbs are purchased yearly for a tree; therefore decorations don't appear to be a factor when people consider what or if they are going to cut back on in terms of spending for Halloween.

Some might bargain shop for decorations or pick up one or two new inexpensive items if they happen to see it in a store (like Target or Big Lots), while others might use what they have accumulated over the years. Some people agree that decorations can get expensive and money is better spent on costumes or parties.


Halloween Parties - I wanna party like it's 2008
Halloween parties might be the most affected aspect, in terms of spending, regarding the state of the economy. Perhaps those who went big the previous year, particularly purchasing alcohol, might scale back and instead have a BYOB party. Economic conditions may not completely stall someone from throwing a party, but it might be a more prominent factor from year-to-year.

NRF's survey revealed:

• 33.3% of people will attend or throw a party
• 55.4% of young adults are more likely than any other age group to throw or attend a party

Still Cutting Back
Although some say their Halloween spending will not change, or perhaps they will cut back on one or two aspects, 86.8% of those surveyed said they will spend less overall.

In addition...

• 45.1% will be buying less candy
• 30.7% will be using last year's decorations and not buying new ones
• 18.5% will be using last year's costume
• 19.5% will be making a costume

While some of those in NRF's survey say they will be loosening their wallets, there are still those who will continue to watch their spending. Perhaps this holiday season will be filled with cautious optimism where some party-goers and throwers will pinch their pennies where they can.

Image: Simon Howden/freedigitalphotos.net

Sources:
After Spooky 2009, Halloween Spending Bounces Back to '08 Levels, According to NRF, nrf.com, 9/23/10

Back-to-School 2010 - A step in the right direction

Overall back-to-school sales for 2010 were up compared to sales from last year. Oppressive heat drove people inside to air conditioned stores that not only had severely  discounted merchandise (as much as 50%), but were discounting as early as July. In addition, some states had tax free shopping weeks. Although sales are up for back-to school this year, they are still below those of 2008. With consumer confidence up for now (barely), retailers hope the positive back-to-school sales will be a good sign for the holidays.   

A Few More Predictions

• 2010 Consumer Intentions and Actions Back to School survey found the average American family will spend $606.40 on clothes, shoes, supplies and electronics, compared to $548.72 last year, and close to the $594.24 in 2008.
• Total spending on school-aged children in grades K-12 is expected to reach $21.35 billion.
• Combined K-12 and college spending will reach $55.12 billion.

What Really Happened

Reuters tracks same-store sales for a group of 27 national retail chains, the following results are based on the information they gathered

• Retailers posted a 3.3% gain in same-store sales for August, ahead of the 2.5% rise that analysts projected
• This follows a 2.9% drop a year ago and a 2.7% rise in July
• Among the clear sales winners in August were clothing and stores catering to teen and young adult shoppers
• Electronics sales rose a modest 2.3% from the year before but were down 9.9% from two years ago
• 67% of the retailers that reported same-store sales beat expectations, with mass merchants and apparel retailers doing so by the widest margins
• The last week of August was particularly strong
• Spending on many non-essentials like fashions are still below 2008
• With high unemployment and weak consumer sentiment*, shoppers were still focused on low prices when choosing what to buy
• *An index of consumer confidence released the last week of August by the Conference Board, a private research group, rose just 2.5 points in August, to 53.5
• The International Council of Shopping Centers said forecast September sales would rise 3%

Clothing

• Limited Brands posted a 10% surge in sales last month, beating analysts' estimates for a 7.3% increase
• 40% discounts at Abercrombie & Fitch jumped 6% in the month, passing estimates for a gain of 5.7%
• Note: In August last year, when Abercrombie was holding on to its "no discounts" strategy, sales sank 29%
• Wet Seal reported a 1.1% sales gain vs. estimates for a 3.5% decline
• Macy's 4.3% gain in same-store sales was ahead of projections for a 4% rise
• Possible reasons: 1) Macy's shift to tailoring merchandise to local tastes and more centralized operations that allow quicker decisions. 2) A strong reception to merchandise such as the new Madonna-inspired Material Girl line
• Kohl's Corp. also had a solid showing, with a 4.5% increase in same-store sales, when 2.6% was projected
• TJX Companies posted a 2% increase in same-store sales, just missing the 2.4% expectation
• JC Penney Co. had 2.3% rise that beat analysts' expectations for a 1.6% gain
• American Eagle Outfitters Inc., reported a 1% comparable-store sales gain when analysts' projected a 1.1% rise
• Only Aeropostale Inc.'s same-store sales fell 1% for the month, compared with expectations for a 1.2% rise and a 9% gain a year ago

Discount Stores

• Overall, discounters saw a 4.3% increase, compared with expectations for a 3.1% gain

Walmart Stores Inc., among other retailers reported rising inventory levels as part of their quarterly earnings in August, a sign that they may be forced to mark down merchandise more than anticipated in order to clear stocks.

• Walmart Stores Inc. has posted five straight quarters of declines in U.S. comparable-store sales
• Target Corp. reported a 1.8% gain in same-store sales for the month, falling just short of expectations for a 2% increase

Why?

• Pent up demand

• Mike Gatti from National Retail Federation says that "People may not have bought new shoes last year, so this year there's a bit more of a need."

• Coupons, sales, promotions

• More families this year say their school purchases were influenced by coupons, sales and/or promotions. 17% of families with children in grades K-12 say 100% of their purchases were influenced by bargains and coupons, up from 14.7% of families last year
• The level of back-to-school discounts, as much as 50% off, was the highest seen in a number of years
• Sales also came much earlier than usual as retailers were cutting prices in early July

• Weather

• Consumers sought shelter in the air conditioned stores
• August 2010 was the warmest since 1983 and second warmest in 50 years
• Off-price retailer TJX Companies Inc even said its sales were hurt slightly because it did not have enough summer clothes in stock

• Economics 

• Tax-free shopping weeks in several states, designed to boost school-related shopping in the month, likely boosted traffic and purchases in stores

Winners of TV

NRF's latest Back-to-School/College Consumer Intentions and Actions survey showed that...

• The top ten back-to-school commercials came from Walmart, Target, Staples, JC Penney, Kmart, Kohl's Old Navy, Office Depot, Office Max and Sears.
• 27% of families say the commercials from those retailers influenced them to shop at that particular store

Data from Ace Metrix revealed...

• A Kohl's ad promoting a "Vote for Your School" contest tie-in with Facebook is the early winner (614 out of 950)
• Target has been the most active back-to-school advertiser with 13 national breaking ads, they are also running the worst scoring ad, "The Roommate and her Gathering" (355) also featuring a Facebok tie-in
• Target had just one ad in the Top 10 retail back-to-school ads
• Walmart ran three back-to-school ads with one, "Last Night of Lightning Bugs" making the top ten, yet the overall number of ads was down from last year
• Interesting to note that both the highest scoring and the lowest scoring ad feature a tie-in with Facebook 

September Predictions

Although the monthly figures are on par with those posted in the beginning of the year, when people were starting to feel good about the economy, retailers will endure an uphill climb in September as they will be facing comparisons against positive same-store sales results for the first time in a year.

Image: Maggie Smith/Freedigitalphotos.net 

Sources:

Discounts, heat fuel August retail sales beat, reuters.com, 9/2/10

Limited Brands, Abercrombie report solid sales gains for August, dispatch.com, 9/2/10

Retailers Show Surprising Strength in August Sales, wsj.com, 9/2/10

Back to school sales get an A, cnn.com, 9/2/10

Retail Sales Prep: Back-to-School Edition, cnbc.com, 9/1/10

Back-to-School Shopping Bust Heralds Holiday Woes, wsj.com, 8/31/10

Who's Winning the Back-to-School Television Advertising Battle? Businesswire.com, 8/19/10

Average Family Has Completed More School Shopping Compared to Same Time Last Year, nrf.com, 8/19/10

Modest Rise in Back-To-School Spending, brandweek.com, 8/10/10

Back to School Sales Up As Parents Replenish Children's Needs, According to NRF, nrf.com, 7/15/10

Generation Meld: Mothers and Daughters Swapping Closets.

"Mom, have you seen my red dress?" 

"Er, um, no Ashley...I haven't." Cut to mom shoving worn red dress into dry cleaning bag. 


Mothers and daughters are not only dressing similarly, but they are also swapping wardrobes and they actually enjoy *gasp* shopping together. We're dubbing these women part of Generation Meld: The melding of Gen X moms and their Millennial daughters into one fashion-loving congregation.

A number of factors play into this trend.

Mass marketing and media bombardment

• Today's generation of moms are among the first to incur the inundation of mass marketing, making them more brand literate and aware of fashion than previous generations
• Daughters view their mothers as well-versed in fashion and look to them for fashion advice

Celebrity and youth obsessed Culture

• Evident in the New York Times bestselling book titled How Not to Look Old (aimed at Boomers)
• Offers style tips to look "Y&H" (young and hip) vs. "OL" (old lady)
• Women don't want to suffer from "mom jean" humiliation (a la Jessica Simpson)
• Wearing their daughter's clothing makes them feel young

Trend-inspired mini-me kids outfits

• Increased availability of mini-me outfits make fashion easy to follow for both mother and daughter
• Websites such as matcheez.com and footstepsclothing.com offer matching outfits for mother and daughter
• Piperlime carries a sandal called "Like Mother, Like Daughter" from BC Footwear

Shopping together is fun!

• Daughters no longer shy away from the obligatory shopping trip with mom, they enjoy the bonding time
• Katie Holmes and Suri Cruise as well as Madonna and Lourdes are two examples of celebrity mothers and daughters setting this trend 
• Not only do Madonna and Lourdes shop together, but they have started their own clothing line

What can retailers do to tap into this trend? Here are a few ideas: 

• Encourage the relationship between mom + daughter by hosting events, promotions, and sales that embrace them as a team.
• Tap into mom's need not to feel old by offering age-appropriate, stylish options that look Y&H, not OL. Provide online opportunities to share their experiences. 
• Showcase "regular" moms + daughters in advertising. 

Image: Suat Eman/ FreeDigitalPhotos.Net

When Did it Become Cool to Shop with Mom? Huffingtonpost, July 26, 2010

Sharing a wardrobe? For some, a perfect fit/Mothers and daughters find it suits them just fine to bond over clothes, sfgate, May 13, 2007

Like mother, like daughter, sheknows, 2010

Have You Heard The Hottest New Fashion Trend? Mother-Daughter Matching Clothes!, footstepsclothing, 2010

Smart, savvy, and saving money: The New Consumer habits.

An interesting thing happened on the way through the Great Recession: Consumers got smarter; a whole lot smarter. Oh, don't get me wrong, they were plenty smart to begin with, but their spending habits became so well-thought and calculated in recent years that not only are consumers receiving a financial benefit to their savvy ways, but an emotional benefit as well. Looks like saving money boosts your self-esteem as well as your bottom line. As a result, these new behaviors are expected to remain. 

The Today Show featured a segment with their resident money guru Jean Chatzky and main man Matt Lauer where the two talked about new behaviors brought about by our country's recent economic struggles. Their learning came from a just-released study called "The New American Pantry Study" released by the Deloitte and Harrison group. 

It looks like folks are being smarter with their spending (vs. just reacting to a bad economy) and these new behaviors are expected to stick around. After all, the last time we went through something like this (i.e., the Great Depression) America's good savings behavior lasted about 40 years. 

So what behaviors are we talking about? Specifically, we are engaging in these 5 ways of saving: 

• Gratification management. This is the act of "waiting it out" to gain a financial savings on an item. For example: If the Gap has skinny jeans that I want, I don't get them right now at full retail price. I wait until they go on sale. Simple enough. There are plenty of deal-watching websites that can help you do this, too. Of course, there is some risk in the item not being available in the options (size, color, etc.) you want once it goes on sale, or sells out completely prior to a price reduction. 

• Private label experimentation. Folks seem more willing to give private label items a try. Where they find comparable quality, they will switch from brand name to private label. Where they see a significant decrease in quality, they will remain with the original brand. I call this reverse behavior the "Oreo-effect." Seriously, can ANY private label sandwich cookie taste as good as the original Oreo cookie? I think not. But I digress.

• Cooking from scratch. This is more than just cooking at home. This is going back to REAL cooking from scratch that mom used to do. Bulk items are the key ingredient (pun-intended). They offer great savings and are long-lasting. 

• Using loyalty cards more often. New? No. But what is new are the people who are finally adopting the behavior in droves -- men and kids. 

• Extreme couponing. As the name suggests, this behavior is the act of aggressively pursuing savings online, in-store, and in paper to receive the maximum savings benefit. These coupons are used in conjunction with store promotions to get the most savings possible.

Bottom line is this: Being smart with money makes people feel good about themselves, and this behavior is expected to stick around for a while. So what can marketers do? Join the bandwagon. Help your consumers be the smart, savvy savers that they want to be by pointing out how your brand helps them save. And then reward them for being loyal. Maybe with some Oreo cookies. 

Image: FreeDigitalPhotos.net

The New (Healthier?) American Diner

Healthy dining for Americans has changed over the last few years. "Diet" and "healthy" used to be dirty words conjuring images of bland food and incessant hunger. Today, those words are no longer taboo to consumers, as some people opt for lighter more healthy items without sacrificing taste and hunger. Although when dining out, health may not be consumers' number one priority as cost and the desire for taste satisfaction become major factors. Not only that, but the definition of "healthy" varies for different demographics, carrying more weight with the younger generation as opposed to families with kids. Either way, health seems to be on people's mind as well as creeping on to more menus.


Healthy - Now vs. Then

Every consumer has his or her own idea of healthy - everything from incorporating foods with added nutrients into their daily life as well as eating reduced portions or simply paying more attention to labels. Several years ago healthy meant a restrictive diet or eliminating harmful substances (i.e. - sodium) or specific ingredients from a diet. Today though, 25% of women and 17% of men say they are on a diet of some sort, which is down from 31% for women and 22% for men in 2000.


Dieting is out of style. Healthy eating is in vogue.

Restaurant and Institutions 2010 New American Diner study asked participants to rank the top descriptions they associate with healthy foods. Here are the top five:

• 36.7% Fresh ingredients  (vs. frozen)
• 35.7% Less-processed foods
• 25.4% Ingredients that offer positive benefits (fiber, whole grains, etc.)
• 24.1% More vegetables or fruits and less meat
• 21.7% Less fat

Jon Miller, director of research and development for El Polo Loco, says they see people who "come in for protein" or for "low-cal and low-fat foods." Miller says that health "has been segmented into many different buckets." Now healthy can mean eating more instead of less - more good-for-you foods and ingredients as opposed to only eating less.


Healthy Demographic Desires

These healthy buckets to which Miller refers translate into demographics as well. Consumers' interest in healthy menu items is fairly even between all age groups. Families with young children are the main exception as convenience and cost plays a larger role than health.

There is a difference between men and women as well:

• 50% of women and 41% of men are making more healthful choices
• 47% percent of women vs. 33% of men say seeing nutrition information would likely change what they were going to order.

I'll Tell You What I Want, What I Really Really Want

While some consumers say they would change their order if they were made aware of nutrition information on the menu, others want the "bad" stuff even if they are aware of the nutritional value.

A Mintel Menu Insights survey found that only 20% of diners ranked health as an important factor when ordering dinner. Fifty-one percent actually order what they perceive to be healthy menu items yet 75% said they would like to see more healthy items on the menu. Huh? It makes one wonder -- why aren't consumers putting their mouths where their minds are?

NPD, a market research group, found that although consumer interest in healthier foods has grown, the most popular foods ordered at restaurants have not changed over the last two decades. In 1984 the top foods ordered were carbonated soft drinks, fries and burgers. Guess what? In 2010 those are still the top three foods ordered out at restaurants.

Another Mintel study on Health and Nutrition Trends on the Menu, shows one of the main reasons people shy away from healthy food is that the cost of eating healthy is too expensive. A Technomic study found that while over half of consumers are more concerned about their eating habits today compared to a year ago, the recession is adversely affecting their healthy eating behavior.

• 53% claim they often purchase less helathy foods because they cost less
• 44% say their budgets prevent them from eating healthier foods

Regardless of the cost, Mintel Menu Insights found that when consumers look at a menu, 77% said taste was most important followed by 44% saying hunger satisfaction was the most important. Maria Caranfa, director of Mintel Menu Insights, says that "when it comes to dining out, most people are really looking for taste, texture and experience."

Consumers are increasingly becoming aware of healthy eating and are trying to make a change in that direction. They realize that archaic starvation diets and fads from the past are not equated with health, and better-for-you foods and ingredients are the key to a healthy lifestyle. Despite this newfound awareness, the fettuccini Alfredo may be too tempting compared to the steamed fish and veggies. The good news is this: Younger generations seem to place a higher value on health. Therefore, there is a good chance that healthy eating will become the norm, rather than an afterthought.

Stay tuned!

Meet Your New Healthcare Consumer

Who are the new healthcare consumers, affectionately known as e-patients? They are men and women of all ages. They are loved ones caring for a sick family member. They are friends helping other friends. They have acid reflux. They have diabetes. They have cancer. And...

• They want to know their results.
• They want to know their diagnoses.
• And they want to know now.

Ladies and gentlemen, this is participatory medicine, and our cyber journey is just beginning.

The internet has created a cultural shift that is affecting health care. People have access to a deeper level of information that they didn't five years ago. Not only are they educating themselves, family members and friends, but they are creating connections online through social media and forming online communitites where they can share their stories and experiences with others just like them.

Here are some interesting stats about the new healthcare consumer:

• 61% of adults say they look online for health information.
• About 20% of e-patients turn to the internet and social-networking sites where they can talk to medical experts and other patients.
• Half of online health inquiries are for someone other than the person searching.
• Women are more likely to conduct health searches than men.

Also, the people conducting these online searches are more likely to be younger while those with chronic diseases, who tend to be older, are less likely to go online.

Some people are taking matters into their own hands using websites like Microsoft's My Health Info and Google Health to enter their lab results and track changes over time (e.g. - blood pressure, cholesterol). In our world of instant gratification, where we receive update alerts every hour on the hour, patients want to educate themselves beyond what the doctors are telling them. Therefore they turn to the internet and social networking sites that allow them to put their own medical data online.

Don't forget about the power of the mobile device! Blackberries, iPhones and Droids (oh my!) are making health information access even easier, not only for e-patients but for everyone. In September 2009, the Centers for Disease Control developed a text messaging program that you can sign up for to have updates on health topics and health tips sent directly to your phone. In January 2010, the National Library of Medicine released a mobile version of MedlinePlus.gov which is a service that provides health information sent direclty to a mobile device.

What does this mean for the medical profession? Will doctors become insignifcant? Will the need for doctors phase out, perhaps one day like newspapers or books? Of course not.

Although people are feeling more empowered, gaining knowledge about health topics and getting confidence to ask their doctors more questions...guess what? The source patients say they trust the most? Their own doctor.

Image: Yaron Jeroen van Oostrom / FreeDigitalPhotos.net

The Holiday Retail Darling: Online shopping

Oh, glorious online shopping! How much do we love thee? Well, we love thee to the tune of a 17.7% increase in online sales in the month of December 2009. Growing comfort with online shopping, less than stellar sales and merchandise at the store level, and a winter storm that crippled the East Coast sent shoppers online in record numbers. Furthermore, online retailers are being credited for using social media in a relevant fashion to lure online shoppers into becoming online purchasers. Oh yeah, and don't forget that FREE shipping!

Speaking of comfort, that's one of the many reasons consumers told us they were going online instead of going to the mall this past holiday season. Here are the top reasons for holiday shopping online:

• Comfort of shopping from home (some, admittedly in their PJs!)
• Bigger selection of merchandise
• User friendly website experience
• Free shipping
• Ease of comparison shopping
• Saves time
• Better sales
• Saves "other" money

Saves "other" money? Yep. Folks told us that they incurred additional costs when they go to stores instead of shopping online. Gas, food and beverages, and unnecessary purchases bought out of temptation rather than true need were at the top of the list of these "other" costs. According to one shopper it's as easy as this:

"I can just click on the sale section instead of having to weave my way through the stores, and perhaps be tempted to buy other items I don't need."

It's clear that the online holiday shopping season was a success, but did you know that satisfaction levels of the online shopping experience improved as well? Not only are folks gaining comfort shopping online, but it looks like the customer service experience is gaining traction as well.

No surprise that Amazon was the big winner in customer satisfaction with a whopping 87% saying they had a good experience with the online retailer. As the good research types at ForeSeeResults pointed out positive customer satisfaction impacts future purchase intent, customer loyalty, market share, and brand image of the retailer. Positive word-of-mouth recommendations are more likely to follow.

To download a free report, see ForeSee Results Holiday E-Retail Satisfaction 2009.

[photo credit: Danilo Rizzuti / FreeDigitalPhotos.net]

Holiday 2009 Retail Review: Don't forget, '08 was a disaster!

Sales numbers for major retailers this past holiday season were decent, but let's not forget that we're comparing with last year's disaster of a retail holiday season. Our excitement over a successful holiday season is a bit tempered with this in mind.

On the consumer level -- folks said they didn't notice as many good sales as they had in years past, but thought that the rationale behind that was the merchandise wasn't "over-purchased" by the stores' buyers. In addition, consumers went online instead of brick and mortar. Here's what a couple of savvy consumers told us,

 

"I thought stuff would be marked down more than it was -- I guess retailers didn't over-order as much as they did last year." Julia, Chicago.

"It seemed a little less crazy than usual. I always go out shopping early on Black Friday and I noticed the lines weren't as long. The sales didn't seem as motivating...It seemed that the things I wanted didn't necessitate a trip to a retail store. Everything I needed could be bought online." Anne, Indianapolis.

Retailer winners included TJX (+14 vs. flat YA, year ago), Kmart (+5.3 vs. -1.1 YA) Gap Inc., which includes Old Navy (+2 vs. -14 YA) and to a lesser degree of success Target (+1.8 vs. -4.1 YA), and Macy's (+1 vs. -4 YA). Walmart no longer reports monthly sales -- results for fourth quarter are expected later this year, but early predictions suggest they may be flat. In December '08, Walmart reported a +1.7 increase.


It was an interesting surprise to see high end retailers like Neiman Marcus (+4.5 vs. -27.5 YA), Nordstrom (+7.4 vs. -10.6 YA) and Saks (+9.9 vs. -19.8 YA) recover nicely this past season. Will these retailers see a solid 2010 as well? Stay tuned. They may be headed that way.


On the sad side of retail: Abercrombie & Fitch was a wee-bit less dismal (-13 vs. -25.5 YA) than sister stores Abercrombie (-19 vs. -24 YA) and Hollister (-25 vs. -24 YA). Hot Topic was not a hot topic with a staggering decline (-10.9 vs. +4.3 YA) and other losers included Sears (-4.3 vs. -12.8 YA), Banana Republic (-3 vs. -15 YA) and JCPenney (-3.8 vs. -8.1 YA). At the very least, the latter three did less bad than last year.

Please note: All numbers are same store sales compared with a year ago (YA). 

Our friend Anne brings up a really good point about online shopping this past season -- online retailers did extraordinarily well, and consumers were quite happy with the experience. Stay tuned for our next posting on the holiday retail season online. We'll explore the reasons folks flocked to the internet this past season.



[photo credit: Suat Eman / FreeDigitalPhotos.net]