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Tag Archives: retailing

Retailers use innovative response to arrival of Amazon…

07 Thursday Dec 2017

Posted by Malcolm Auld in Advertising, Branding, Customer Service, Digital, Digital marketing, Direct Marketing, Marketing, Sales, Sales Promotion

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Amazon, catalogues, digital marketing, letterbox, marketing, online retail, retail marketing, retailing

The arrival of Amazon in Australia has created a bit of a media frenzy. Some of the over-reaction would have you think the world is coming to an end, as Chicken Little believed centuries ago.

Amazon is coming, the end of retail is nigh…

Yet a day after the announcement that Amazon was open for business, some media turned against Amazon. Apparently the prices Amazon is charging for many electronic goods are way more than competitors are offering both in-store and online. Amazon is not the cheapest in many categories.

This is a reflection of how online stores like Amazon are damaging brands by commoditising them and reducing them to compete mainly on price, rather than other differentiators. But that’s another discussion.

However, there is a group of retailers using innovative technology to combat Amazon. Though the cyber-hustlers would claim the retailers have lost their mind. After all, this is the digital world.

These retailers are using printed catalogues delivered directly into letterboxes to generate Christmas sales. Many of them are also advertising on television and radio, as well as in press (inserts and ads).

What are they thinking?

Here are the brands that have reached my family’s letterbox in the last two days:

  • Woolworths
  • Big W
  • Coles
  • IGA
  • Supercheap Auto
  • Repco
  • Priceline Pharmacy
  • Harvey Norman
  • Officeworks
  • Target
  • Bunnings
  • Bing Lee
  • Pillow Talk
  • Zamel’s Jewellers

Retail catalogues in my home…

I wonder, given the whole world has gone 150% digital, why retailers would use the technology that impacts all five senses (print), rather than the technology that only impacts three senses (digital)?

Maybe it’s because online sales in Australia will only be 7.3% of all retail sales this year? Or to put it another way, 92.7% of all retail sales will not be online this year. So digital marketing is the equivalent of playing in the kiddies pool in the big game of marketing.

Maybe it’s because they know that as a result of looking at printed catalogues, people shop online, as well as directly in-store.

Maybe it’s because they know catalogues and inserts work, as they are the secret weapon of digital start-ups.

Maybe it’s because they listen to customers rather than cyber-hustlers when it comes to running a profitable business?

Who knows?

But I gotta go now and do my Christmas shopping – where are my catalogues?

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Successful retailers prefer paper to pixels for profit…

11 Thursday Sep 2014

Posted by Malcolm Auld in Advertising, BIG DATA, Branding, Digital, Direct Marketing, Marketing, Social Media

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Tags

advertising, bookbook, digital marketing, Ikea, omnichannel, retailing

My recent rant about Omni-channel created some interest. Like me, most marketers cannot understand why common sense needs a buzzword.

It doesn’t matter if you’re selling stuff in the analogue or digital world, you always ensure consistency of imagery, message and service. It is common sense to do so – and doesn’t need a label like Omni-channel for digi-sake.

Most of those who relish digi-buzzwords also naively claim any media channel that existed prior to the arrival of the internet, no longer works, or is irrelevant – some pompously call these channels old-fashioned.

Imagine if these digi-tossers consulted to Ikea – one of the world’s most profitable marketers (they made around 4 billion Euro last year). If Ikea listened to these digi-spruikers they would be out of business.

There’s hardly a person in the first-world that has not seen the printed Ikea Catalogue – it has almost reached icon status. And it’s the key to the company’s marketing success.

ikea 001

A quick background – the 2013 edition was more than 300 pages, with 12,000+ products. It was printed as 62 different versions for 43 countries in 30 languages.

Like many successful retailers, Ikea understands the power of paper over pixels. They also understand how to use pixels to make their paper work even harder. The brilliant Ikea Social Catalogue is one example.

Ikea invited their social media Followers, to upload a photograph of the page in the catalogue with their favourite product to Instagram, for a chance to win the product. Thousands of pages were uploaded and within 4 weeks every product in the catalogue had been photographed and posted.

They call it the Social Media Edition of the catalogue and all it costed was a few weekly prizes and some head hours.

And recently Ikea launched the amazing new bookbook – which they have trade marked. It’s already had around 10,000,000 views online. This incredible piece of technology has no internet or power cables and the battery lasts a lifetime.

The content is pre-installed with 328 high definition pages featuring thousands of products. And navigation is easy – just use your fingers. You can bookmark favourite pages and share the bookbook easily with others.

Yes dear reader, you’ve probably already guessed, the bookbook is the 2015 Ikea Catalogue, hot off the printing press.

Ikea 1

Ikea 2

Once again it will help them sell billions of dollars worth of products – and it will be supported by digital and analogue channels to create even more sales.

And continuing on my fashion retailing theme – here and here, the Sportscraft catalogue arrived in the mailbox this week, complete with VIP offer. Another smart retailer using paper for profit.

Sportscraft 001

Sportscraft 002

So if you suffer from a digi-spruiker trying to convince you the only channels you need to use are the digital ones, here’s a suggestion.

1. Take one Ikea catalogue (bookbook)

2. Hold it just above shoulder height near said digi-spruiker

3. Whack them once on the side of the head with the catalogue

hit in head

You can then leave them the catalogue, so they can do some virtual shopping.

After all we’ve been virtually shopping by catalogue since the mid-1800’s – how terribly old-fashioned of us.

 

 

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