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