BORROW THIS, LOSE THATLessons From the Competition

Ethan Smith

Creative Director Gorilla

David Petersen

V.P. Retail and Brand Development Stanley Furniture Co., Inc.

What’s happening today?

What's Different About You?

Dyson

Tom’s Shoes

What's Your Story?

American MuscleLush Cosmetics

Set Purchase Expectations in Advance

Northern Tool

Engaging the Ever-Connected Consumer

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Active Evaluation

Loyalty Loop

Post-Purchase Experience

USE

TRUST

EVANGELIZE

FRIEND

GET HELP

SHARE

PERSONALIZE

SEARCH RESEARCH

COMPARE

DECIDE

PURCHASE

DISCOVER

Forrester

Creating a stronger digital presence and melting it into the overall omnichannel experience are key components for future retail growth, and the winners will be the ones that focus more on customers and less on channels.

M I K I B E R A R D E L L I , TO RY B U RCH CM O

N E W YO R K FA S H I O N W E E K 20 13

“

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Design for Context | Common Business Model

PRODUCTTAXONOMY

RETURNS

RETURNS

WEB STORE

MOBILE SITE

/ APP

RETAIL STORE

USERS

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Design for Context | Aligned Business Model

A B C

RESPONSIVE WEBSITE USER PERSONAS STORE LOCATOR RETAIL STORE

RETURNS

PRODUCTTAXONOMY

Allow People to Purchase on Their Terms

Trek Bikes

Sonos

Conversion isn't always Add to Cart

Subzero/Wolf

Shure Axient

Conversion isn't always Add to Cart

The Federal Savings Bank Stihl

Facilitate Post Purchase Action Online

Britax Zappos

Background•Young America needed web presence

to NOT sell online

•Independent retailers need online presence to reach prospects

•Target consumer considers offer online, concludes purchase in-store

•Independent retailers presume the worst of a manufacturer’s website

•Retailers equate online retailing with price competition

Background

•Very few retailer distributed brands in home furnishings online

•No closely allied brand examples to borrow from

•Principal competitors have vertical models

•Verticals are more transactional with broader merchandise assortment

Background•Challenges to making the website

the center of the universe - from scratch

•Furniture manufacturer established in 1924

•Previously pure B-to-B marketing – retailer responsible for consumer engagement

•No organizational experience with online marketing/ retailing

•Consumer brand story not previously told – strong trade brand history

•Retailers and field sales organization are very skeptical

Background•Imagined a website as the principal brand

medium for Young America

•First consumer contact with brand online through search/ referral

•Products intensively researched

•Relatively short purchase cycle for capital

•Extended family involvement in purchase

•Participate in event purchase – with retailer acceptance

BORROW this

Involve the retailer upfront in the website centric strategy

•Get permission to take charge of front end of purchase process

•Take responsibility for pain points - building store traffic

•Leverage website to give retailer access to online presence

Proactively manage retailer concerns of channel conflict •Ask for permission and get involvement

of retailer

•Show them project in process – give them a visual

•Create price incentives for consumers to buy through retailers

Celebrate the retailer through dealer locator

•Make the locator prominent

•Make locator decisions important – think about the prospect

•Create over-the-top referrals to retailers Celebrate the retailer through dealer locator•Make the locator prominent

•Make locator decisions important – think about the prospect

•Create over-the-top referrals to retailers

Involve the retailer•Put the website in the retailer’s store

•Create co-operative web-based marketing - online advertising

•Share creative content with retailer for their banner campaigns and website

•Build trust and commitment by making the brand website invaluable to them

•Encourage retailers to develop their own website strategies

Look to Allied Industries for Inspiration - Consumer Capital•Companies face many of the same challenges

•Consumer behavior is similar

•Distribution issues are similar

•Allows for a sober appraisal of challenge and opportunity

LOSE thAT

Emulate transactional strategies of verticals•Imagine Internet can’t support alternative strategies

•Chase typical website strategies

•Race into broader merchandise strategy

•Lose sight of supporting principal distribution channel/revenue streams

•Resist temptation to ask consumer to order

Make big plans for immediate direct-to-consumer revenues•Opportunities to expand direct business will come

later

•Online retail takes time to develop

•Early traffic exists because of your retailer’s activities