« Understanding Your Cycles: Men's vs. Women's | Main | Grabbing Share From Surf & Street Wear »
March 17, 2008
Mixing It Up
Dominant vendors have made life simple in that margins and sell-thru rates are reasonably predictable. But are these key vendors doing enough to keep the customers coming back? In a lot of cases, I’m not sure. Each season the mix is predictable, from vendors to colors. Innovation, such as eco-friendly, has been on the rise, but not enough to drive new traffic and excitement. Remember, increases in turnover rates are a result of customers returning more frequently and it doesn’t seem that the big box stores are giving customers good reasons to come back.
Every month and every season the mix needs to change enough to encourage more visits. If the store is consistently being refreshed it will drive a subconscious but ‘real’ concern in customers’ minds that the product won’t be available next month -- buy it or lose it! This drives sale. Right now, the Outdoor business is too predictable; there’s little sense of urgency for customers to buy now. The same product will be available in the same color for the next three months.
Maybe it’s time to mix things up, even if it means entering new markets (assuming they fit with your customer base.)
Let me give you an example. I recently spoke with a merchant who runs a successful high fashion men’s and women’s denim operation in Mississippi. You know this kind of store: it carries $200 jeans, $125 tops and $400 dresses. This merchant was shopping the Outdoor markets for products that would differentiate his operation. It seemed an obvious choice to him since a lot of the customers buying designer product are also wearing Outdoor brands like North Face and Patagonia. In fact, that very day I was wearing Diesel Jeans, Cole Haan shoes, a North Face breaker and an admittedly goofy striped sports shirt that cost me $135 (I have no idea why I own such an ugly shirt that cost that much money but now feel obligated to wear it). The point is, I understand and shop both these markets – better men’s and outdoors.
This merchant knew that he could benefit by catering to the various wants of the same customer and Outdoor stores can do the same. In fact, Outdoor stores are missing a clear opportunity by forgetting some of their “boutique” roots.
Of course the surf business can be a contributor, and no, I’m not necessarily recommending Diesel Jeans. I’m recommending brands that are distinct to you in your local competitive markets: sportswear brands, margin brands, fashion tees, sports shirts, street shoes, collections, etc. We need to look for brands in our price range that contribute to the boutique model, throw off higher margins and deliver fresh excitement. Similar to my friend in Mississippi, the Outdoor Stores need to visit other markets. For example, the Magic Show in Vegas offers countless opportunities. The brands and vision are endless and Outdoor retailers need to take more advantage of the variety.
Posted by Jason LeBlanc at March 17, 2008 09:52 AM
