If there is one word that I hear over and over again since the “great recession” started, it is VALUE. Value was always important but not nearly as much as when trying to convince frugal, crafty shoppers to invest in your product.  I do not use the word “invest” lightly here since value implies a return expected on that investment. As a retailer, you are responsible for establishing the value proposition as part of your brand image. Very possibly your brand image has revolved around what is new in fashion.  Ask yourself, “Is that still working for me now?”

 

For those of you who answered that question with a resounding yes, STOP. No need to read further.  Find a reliable host or blogging account and begin your own blog to share your wisdom.  Please include a link to this blog as well!  For those of you whose answer was somewhat shy of shouting out YES, read on.

 

 

We have had many recessions before this one and there have been some lessons learned in those. This blog will serve the purpose to make you think in some different ways and consider some new approaches for your business.  None of these are proven to work every time, in every case or in isolation.  Finding the right mix for your store is your challenge. Just keep in mind that if what you are doing now is NOT working, you must search for alternatives that will work.

 

 

One observation is that people are still searching to fill their dreams but their dreams become more realistic and practical. Instead of a new dress, they might buy a new sash to change the look. Instead of a new pair of shoes for work and one for the party afterwards, they might look for a pair that can fill both purposes. Fashions tend to change at a slower pace during a recession which means that clients may be able to wear an item for a longer length of time and that means that quality construction is more important. Even if that quality costs a little more, the value is there. Value might come from being closer and more convenient which saves time, gas, wear and tear in addition to hassle.  Value might come from promotions where a purchase ALSO buys admission to an event. (Remember, people have stepped their entertainment down a notch so an added event becomes value added!)  Certainly markdowns add to the value but at great expense to the retailer and also the brand image for upscale retailers. Some, like Louis Vuitton, have determined that their value comes by refusing to cut price thus protecting the exclusivity to only those people who feel they have not been tainted by the great recession. The point here is that every retailer should be re-evaluating his or her business to determine how to offer more value, promote that value proposition and establish that value proposition into the brand image.

 

 

Being from Cleveland, I always pay attention to Allstate commercials. The reason is that they star Dennis Haysbert who also played Pedro Cerrano in “Major League”, the classic fiction movie about the Cleveland Indians winning the World Series in my lifetime. (For non-Clevelanders, he also played president Palmer on “24”.)  One recent commercial reminds viewers that Allstate has been in business for 78 years and has seen no less than 12 recessions. The observation is that “after the fears subside, a funny thing happens: People start enjoying the small things in life. It’s back to basics and the basics are good.”  This whole recession is, in great part, about getting back to basics. Your job as a retailer is to define how you fit into the basic lifestyle of every prospective customer and your target audience.