Getting retail right: Shifting away from discount strategies and bad habits
DDB Sydney managing director Priya Patel considers why retailers need to move away from the discount strategies and bad habits that have ultimately damaged their business model.
When the retail sector is pitted against banks, airlines and even burger restaurants, it’s not hard to feel like they’re missing a few tricks. Having led the Marks and Spencer’s account for five years in the UK, there was a lot about the retail sector that I loved, from the fast pace to the high volume and crazy mix of food and fashion. However, I didn’t love that too often ‘retail’ was reduced to price-led shouting.
Other categories have come on leaps and bounds in terms of introducing meaningful behavioural change mechanics into both their communications and operations. Yes, there are offers and discounting strategies, but they are not the premise of their business model or their entire consumer experience.
By thinking about irrational human beings first and foremost, focusing on the highly emotional path to purchase and delivering their offer with simplicity and fluency; most other categories have facilitated behaviour that makes them genuinely useful. I can check my bank balance on my phone. I can pick an aisle seat on a flight. I can build the car of my dreams before even entering a show room.
In short: make everything better without any additional cost to the consumer.
So yes Ad, the solutions need to come from the retailers.
So you led M&S! Well there’s a retailer that is not doing so well.
How do we fix it? Implement the same strategy that every ‘expert’ thinks is THE answer.
Stick to managing DDB.
Yawn says a lot about you. Anyone asking you to write articles on your point of view on any given sector? I just despair at this attitude. Come with a point of view. Keep your mind-numbingly boring personal invective to yourself.
“Anyone asking you to write articles on your point of view on any given sector” – you didn’t need to hit that low
How bloody rude some of you are. Would you speak to Priya like this if she was in the room with you? Have some respect, for yourselves also. I’m disgusted by this arrogant behaviour. Perhaps you didn’t find anything new here, or weren’t sufficiently intellectually stimulated (you little Einsteins) but making such remarks is totally inappropriate. Thanks for taking the time to share some thoughts and ideas, Priya.
Ha. It would be the last time they did if they tried!
https://www.forbes.com/sites/stevendennis/2019/02/28/macys-jc-penney-and-the-stall-at-the-mall/#a325c6016760