At first people thought it was only the discount chains like Wal-Mart and K-mart that were closing down stores in record numbers. Companies that had dominated retail for decades were downsizing even though less than 2-3 years before they had done major expansions. Analysts scrambled to figure what was happening in the consumer atmosphere that was driving down profits for these types of retail giants.
Then BOOM ! A bomb was dropped when Macy’s announced they were closing 15% of their stores, and Nordstrom’s followed less than 18 months later. Now The Limited, Sears, JC Penney, American Apparel, and BCBG have announced shutdowns to either the whole chain, or a number of their stores. It was one thing for low budget chains to face a decrease in sales, but now there was a trickle up effect to the heavy hitters after some of them had recently made major changes to their marketing, merchandising, and inventory. The luxury market had finally been affected by the current state of the economy, and even more than that, it had been effected by a shift in consumer behavior.
79% of Americans do the majority of their shopping online versus 15% over 10 years ago. Whether they click a link on their laptop, tablet, or phone; more purchases are being made online than ever before. Consumers want the convenience of the ability to buy anything with a simple click and having it delivered straight to their doorstep. This is great news for the shopper but bad news for the traditional brick and mortar. The customer just goes to the mall or “store” much less than they use to. Shoppers are unemployed, underemployed, or just plain tired of shopping. Spending money has become part of a long thought process, where the consumer has to find more value in an item before they will make a purchase.
So what does that mean for the entrepreneur? Great news guys, it’s our time! As a luxury brand TSX Design House targets and caters to the customer that requires more value in the investment of their wardrobe and accessories. Where the old retail platform sees despair, the online retailer and small luxury brand see opportunity: seize the moment.
- Polish the Website
If you haven’t launched a website, launch one. If you already have one polish it by reviewing the content and updating where it’s needed.
- Update and Upgrade Inventory
Check the trend reports, and update/upgrade your inventory. Add some new product to attract new customers and keep the old customers coming back.
- Increase Marketing
Review your marketing strategy, plan, and budget. Increase your marketing efforts by 100%.
- ReBrand Yourself
Evaluate your gains and losses. Stay true to the integrity of your brand but if neccesary re-brand yourself.
Stay Tuned MUAH aaaaaand Scene……
TSX Design House………Transcend the Trends, Beyond New Style Where Fashion is Art in 3d