WHAT'S NEW



It’s all about LEEDing Retail


We all know that the drivers of retail start with location and retail mix. If it is close to where I live then I will shop there, and if it has the right retail mix, I am even more likely to shop there. According to Dr. David Huff of the University of Texas, the key theory to shopping centre attraction is location and centre size. The closer I live to a centre the more likely I am to visit, and the larger the centre the stronger the attraction. It is all very logical. I love shopping at Chadstone Shopping Centre but I live in Sydney….that makes visiting weekly very difficult…or very expensive!

But in today’s modern society other factors beyond location and centre size and mix are now coming into play. These other factors are also quite logical. I am time poor, what are my chances of getting a car park – a key driver. I have a young baby, what is the quality and cleanliness of their parents’ room. I have a four wheel drive with roof racks – can I make it into the car park without ripping them off? And so it goes on.

Developing shopping centres around logical benefits is very important, having the right retail mix -a butcher, a supermarket, a discount department store, supporting specialty retail are all obvious issues in shopping centre design and management. The logical theory largely holds true for the primary trade area, and the secondary trade area accounting for around seventy percent of trade..… location and retail mix are the key drivers most of the time. But what about the thirty percent or so of customers from beyond the trade area? What about the other times for the main trade area when logic goes out the window? ... Read More


Where do we go after stainless steel appliances and Caesarstone?


Residential property development has certainly become sophisticated in terms of the range of product for multiple lifestages, each one concentrates on a different lifestyle promise. This could be the village lifestyle for first home buyers, the community appeal for families and the leisure offer for retirees or empty nesters.

For the best part of a decade the marketing language has focused on the design materials or appliance brands. Whilst residential product has become extremely sophisticated with the inclusion of Euro appliances, CaesarStone, seamless indoor outdoor entertaining areas this has also become the norm rather than a competitive advantage. Naturally energy efficient designs will continue to have a role in design and such benefits will be exploited by the marketers.

But where does product innovation come from in the future. We need to rely on Architects and Designers to drive some of that innovation of course. Another source of innovation should be the potential buyers themselves, they should be at the heart of the design and planning process.

We should be aiming to design houses that express the values of individuals and communities. We know there is a rational checklist that includes criteria such as proximity to transport, shops and services, but what sort of life do they really want to be living. Perhaps we should be asking the question ‘what do they want their home to say about them?’. Collecting insights on the emotional drivers can only enhance the design brief and inspire architects and designers.

Directional Insights through its innovative qualitative techniques contributes to clients’ understanding of the logical, emotional and egotistical drivers of residential environments. If you would like to discuss this further please feel free to call Kylie Newcombe, Principal Consultant on 02 9418 6644 or email kylie@directional.com.au.


What do Social Networking and Nostalgia have in common


Why customers want to see yesterday in a new way…
Increasingly during customer discussion groups run by Directional Insights across the country, we hear customers reminiscing about marketing activities they used to enjoy when in shopping centres when they were young; activities such as face painting, children’s shows, school performances, fashion parades, talent quests, free carousel rides and train rides around the shopping centre.

Basically, what they are talking about is the industry label of the dog and pony show. But why? In a more sophisticated technologically driven society why aren’t these customers saying I want hologram catalogues or on-line fashion parades or DVD catalogues by direct mail. Why are they going back to what they enjoyed in their youth? Well it all revolves around nostalgia and the history of shopping centres ... Read More

 

Survey Spot


The results will be published on our website soon, but in the meantime, we’re interested to see how you think the industry voted.

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Green Reveal Update

Source: Planet Ark.

In the May – June edition of eDirections we discussed the work we have undertaken with Planet Ark on their introduction of Carbon Reduction Labelling in Australia.

But in the meantime Planet Ark has just announced that Aldi has become the first Australian company to join Planet Ark’s Carbon Reduction Label Program – read more at this link http://www.foodweek.com.au/Default.aspx?tabid=53&ID=7532

 

 

 

 

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The Buzz

Retail World 2010 Melbourne


The Retail World Conference was held in mid June in Melbourne. It opened with Bob Every Chairman of Wesfarmers talking about Coles, the Past, the Present and the Future and included two days of some retailing giants talking about retailing in Australia and Overseas including The Just Group, Luxocttica, Harvey Norman, Crate and Barrel and Woolworths to name but a few. I thought I would share some of the collective key take outs that I thought were of interest. Overall the main themes of the conference we directed towards being Customer Centric, Living Values, Innovation, Value Propositions and embracing Technology.

  • Some retailers discussed head office as now being a store support centre, supporting the stores. Start with the customer and put head office last.
  • Customer fulfilment not category fulfilment within retail stores. Identify who your customer type is and provide that customer type with all their needs within your retailing category.
  • Many spoke about putting customers first. How do you increase market share "put your customer learning into action quicker". Listen, hear your customer, and then change
  • Cultural imperatives around retail operations was also a big theme, identifying them and living them. "Culture is important to any company's success"
  • Continued investment in capital to drive strong store returns
  • Gift cards providing over 200% return for some retailers, a $100 gift card spend in store would be accompanied by an additional $70 to $230 spend.
  • A strong staff discount ensured staff wore your merchandise and advertised in-store the range available
  • Making retailing exciting with great merchandising were common themes as seen as areas of opportunity in Australia’s market place
  • Giving back to the community was also a common theme
  • Embrace the digital future - Increasing use and awareness of social media audiences, being aware rather than trying to control seemed to be the primary lesson
  • Innovation takes time, the Smiggle Soccer Ball which has been a huge success took 6 months to get right - it takes time and planning to deliver innovation.
  • Redefine and reinvigorate mature brands
  • Develop entirely new growth paths for your brands
  • Having a relationship with your customers that is real is a competitive advantage that can never be copied!
  • If customers have the experience that warrants the price, then customers will pay the price
  • If you are in the commodity business someone else is always going to have it cheaper – give the customer value not just cheap
  • Don’t just know what your customers do, know WHY they do it
  • Make the internet work for you in every respect, sales, social networking, customer contact
  • Authenticity is critical in being a great retailer.
  • And finally the ringing cash register is the applause that you are doing a good job as a retailer!

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eDirections Archive

Click here to see What's New May-June edition
Click here to see What's New March-April edition


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NOTE: This is general information only and does not constitute advice nor take into account any individual’s or company’s specific requirements, and should not be relied upon as such. Readers are advised to seek specific advice. Directional Insights makes no representation nor gives any warranty as to the accuracy of future forecasts. This information is not intended as investment advice or other advice and must not be relied upon as such. You should make your own inquiries and take independent advice tailored to your specific circumstances prior to making any investment or other decision. To the fullest extent permitted by law, any conditions, warranties or liabilities implied by law into these conditions are hereby excluded. All copyright resides with Directional Insights Pty Ltd.