I have just read an article written by Ricky Blank and Jessica Yun in the Sydney Morning Herald about how iconic surfwear brand General Pants has lost millions and is on the brink of receivership following the demise of
- Glue stores ,
- Jeanswest,
- Mosaic brands including Rivers, Millers, Noni B, Rockmans, Katies, Crossroads, W.Lane, Beme and Autograph
- Lincraft restructure
- Barbecues Galore entering administration
- Betts, Ally Fashion and countless others where hundreds of stores closed and thousands of jobs have been affected.
which leads me to the question
Is retail where people go into stores - dead ?
The answer in my view is no. Poor retail is dying.
Great retail is evolving.
I will never forget how David Shein (who sold his business over 20 years ago for over $600m -and is now a prolific investor in the innovation space in Australia - sharing with us at one our BBGForums
- Netflix didn’t win because people loved DVDs or streaming technology. It won because it eliminated the pain of driving to the video store, late fees and inconvenience.
- Uber disrupted taxis because it removed uncertainty—you could see your driver, know the fare, pay automatically and rate the experience.
- Amazon has disrupted retail as it made buying almost effortless with search, reviews, one-click purchasing and fast delivery.
- Apple didn’t invent smartphones. It created an ecosystem and experience people loved.
- Nespresso haven’t killed cafes - coffee is still being sold for $6.50 because people are buying more than caffeine!
What is this telling us?
Customer Experience becomes the differentiator.
People remember how you made them feel long after they’ve forgotten what they paid.
People don’t care how much you know until I’ll they know how much you care !
The future belongs to organisations that obsess over the customer.
In a world where products are increasingly similar and technology is available to everyone, customer service, customer experience and genuine human connection are no longer “nice to have.” They are the strategy.
Retail is still viable in Australia.
People still go to shopping centres, sporting events, restaurants, casinos and entertainment venues. They still spend money on experiences they could often access more cheaply or conveniently elsewhere.
The real issue is not whether physical retail can survive.
It is whether a business can create an experience strong enough to compete for a customer’s attention, loyalty and habits.
That is the challenge facing retailers.
The General Pants lesson
Retailers often focus on products, stores, systems, stock and pricing.
But customers experience none of those things in isolation.
They experience the whole journey.
How they are greeted.
How easily they find what they need.
How staff make them feel.
Whether the brand understands them.
Whether the experience gives them a reason to return.
Retailers should perhaps ask different questions.
Not:
- How do we sell another shirt?
- How do we discount more?
- How do we cut costs?
But:
- How do we make customers smile?
- How do we surprise them?
- How do we create anticipation?
- How do we create belonging?
- How do we make leaving the house worthwhile?
Maybe we should look beyond retail and study organisations that have mastered repeat behaviour:
- Apple (stores as experiences)
- Costco (treasure-hunt shopping)
- Mecca (service and community)
- Disney (emotional storytelling)
- Starbucks (the “third place”)
- Sporting clubs (tribal identity)
- Casinos (variable rewards and anticipation)
- Social media (recognition and social feedback)
- Referron ( the platform for trusted introductions )
Not to copy them—but to understand the behavioural science behind why people come back.
What is the habit loop, emotional rewards, ethical gamification and the psychology of trusted introductions?
Maybe this is the onion worth peeling. Somewhere beneath customer experience, behavioural psychology, trust, community, recognition and purpose is the repeatable habit that could make your business indispensable.
How does this relate to your business ?
How do people feel when they interact with you and your business?
Somewhere in this mush mush of ideas lies the core nugget:
the customer experience that makes people feel good, creates genuine value and gives them a compelling reason to return tomorrow.
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