Retail Environment 1990 – 2000

Retail Environment, 1980 – 1990
January 18, 2012
Retail Environment – Early 70’s
January 18, 2012

Published by jkbuller January 18, 2012

 

The World/Social Trends     –    The 90’s was such a hodgepodge
–     Think of the shuttle launch into space with the Hubble Telescope, then of the war in Iraq and firing rockets
–    The first Gulf War was, for a generation of Americans, the first war they can remember
–     It was a huge victory for the U.S. because we accomplished our mission
–     President Bush got widespread praise, then lost the election to an obscure governor from Arkansas just a year later
–    “I still believe in a place called Hope” said Bill Clinton
–     A huge generational change – the first real baby boomer to go into the White House
–     The Monica Lewinsky controversy, Clinton impeached but not convicted in the Senate
–     “Pretty Woman”, “Home Alone”, “The Simpsons”, “Cowabunga”, “Seinfeld”, trash TV shows, memorable TV commercials
–     “Grunge” look – no fashion sense whatsoever
–     Excess was out, simple and casual were in – so were comfort and bright colors
–     The Internet began to sprout
–     Nelson Mandela freed
–     Rodney King incident, racism and violence reared its ugly head
–     Oklahoma City federal building bombing – the first time that we felt domestic terrorism like that
–     The U.N. delegation’s fact-finding trip to Bosnia
–    Princess Di met a tragic death
–     The World Trade Center bombing
–     Yitzhak Rabin shaking hands with Yassar Arafat with Mr. Clinton looking on – only to be assassinated when he returned home to Israel
–     The O. J. Simpson trial
–     Columbine – just say the word and people shake their heads
–     What was the impact of this decade?  It’s difficult to gauge, to put in proper perspective.  It’s still very recent history.
–     Y2K impacts the mind of the world – some believe it is the end of the World

Comments taken from CBS “The Early Show” aired on November 13, 2008.

_________________________________________________________________________________________

The Baby Boomers hit their 40’s – there is a large Baby Boom echo – the gamers hit 20.

The Merchandise     –     Lots of people still working – work clothes and top Brands are still the main focus in retail
–     Though, once again, the young consumer grows tired of “cool” branded clothes
–     At first the labels move to the outside of the garment – then it becomes cool to not wear Brands and the Grunge look became the fashion

Key Items     –     Now individuals start to develop their own cultural clues
–     The Home Store Business still is exploding – with more and more items for specialty cooking at home from scratch, threat counts on sheets increases, home entertainment and leather keep growing
–     Midway through the 90’s, things changed – the concept of “business casual” became real
–     Safeco Insurance removed the White Shirt dress code – so defining what Business Casual meant took over two years
–     Casual Fridays became the norm
–     So people were working hard and playing hard – and from Clothes, your Home, your Car, your Activities – everything tuned to your individual taste

Production     –     Production of merchandise continued to move to the country that provided the best price, as the quality of the production seemed to have a world standard
–     The major element was the concept of “slave wages” and the backlash of the University students about Nike and Starbucks production
–     Concepts like Fair Trade, especially as the concept of Free Trade expanded

Focus of Meetings     –     There was a continuation of the use of data/scan technology that made the traditional Merchandise Buyer become more and more a Technology Planner

_________________________________________________________________________________________

Communication Strategies     –     The 90’s continued to watch the Promotional Calendar grow
–     By 1995 I was doing a concept of “manage the message” as for 52 weeks a year there were 3 communication strategies per week:
o    Sunday-Monday, Image and Fashion
o    Tuesday-Thursday, Loyalty Discounts for Credit Card Holders
o    Friday-Sunday, couples shop together to buy at the Best Prices of the Week

Marketing     –     There was a continued focus on use of the Credit Card to ensure the ability to use the customer database to promote sales through Direct Mail
–     Events were 1) the extension/expanding of the Brands factory discount malls and Costco, and 2) the extension of on-line merchandise sites

_________________________________________________________________________________________

The Positioning Factors

Quality    –     –     Stylish and unique
–     Fashion quality was easy to understand

Value / Price    –      –    Sale, Sale, Sale

Selection    +     –    Selection was everywhere – Amazon, Costco, Factory Outlet Malls

Service    +      –     Service became a professional standard

Image / Cool    –     –     Many different styles – Geeks, Grunge, Professional, Business Casual, Tommy Bahama

_________________________________________________________________________________________
Customer Service     –    As the 90’s went on, more of the traditional consumer Loyalty’s were changing the growth in overall Retail:  The Big Boxes, the change in lifestyles, the change in the workplace dress code – everyone working, lots of kids, loss of time, and living in the suburbs
–     Customer Service became a professional standard and Loyalty turned into bonus discounts, points and mileage

_________________________________________________________________________________________

What was Loyalty     –     In other words, we became loyal to special deals.
–     At the same time, a new factor started to become a value – and that was a cause.
–     In the late 90’s, Saving the Plant, Organic, Fair Trade, Living Wages, and Find Cures – all became an addition to the Brands and messages
–     This factor started as being cool, but quickly moved into a requirement and social responsibility