Article

GlobalShop: 'Consumerism has become activism'

Envirosell's senior vice president shares research-based insights on the new American shopper.

March 10, 2010 by James Bickers — Editor, Networld Alliance

LAS VEGAS - The "great recession" has forever changed the American consumer, who has developed new shopping and spending habits that will persist even after brighter financial days return.

That was the chief assertion of Tom Moseman, senior vice president of Paco Underhill's retail consultancy, Envirosell, at a Thursday morning session at this year's GlobalShop event. Moseman was joined by Maureen Boyer and Barry Bourbon of the retail design and consulting firm Gensler.

Consumerism is now activism, he said, with shoppers now making purchases not only to meet needs and wants but to make statements about the things that are important to them. Case in point: Many luxury retailers now offer two types of bags, the typically ornate one and a plain brown one.

"It is no longer cool to be the conspicuous consumer," he said. "It may not be cool to be walking around with a Tiffany's bag anymore."

The panel shared a video of man-on-the-street interviews conducted by Envirosell, in which New Yorkers were asked how their spending habits had changed in the past year. Overwhelmingly, they said the same things: I'm eating out less, I'm spending more time with family, I'm making do with what I have. The other common denominator: They all agreed that even when times get better, they think they will stick to the frugal habits they have been forced to learn.

"Value is not so much what we used to consider, the price-quality equation," Moseman said. "In today's world, our consumers are being driven by what it is they value in their life - things that they believe in, and they desire and need in their life. And that, of course, has to inform how we as retailers create a world for them in the stores."

Simplicity in the lives of shoppers has translated into the potential for greater simplicity at retail. Bourbon shared details of what he calls a "poster child of post-recession retail projects," the Dior temporary store on Madison Avenue.

"This store is really a reflection of the times," he said. "The design approach was to do more with less, much like most consumers are doing. What transformed here was a store in which the historic references from Dior salons were interpreted in a witty fashion, with just drawings instead of complex architectural details, and a very playful articulation of the brand. And the interesting thing is, the customer accepts this. They are completely satisfied with a Dior store that is witty and reflective of the brand, but executed in a much simpler, more cost-effective manner."

(That temporary store is now permanent, by the way – it has been open for a year and a half.)

Boyer shared an example of what she called the "destratification of consumption" at Forever 21, a trendy store built in an old banking center. That juxtaposition is mirrored inside the store, she said, with a shopping experience that allows customers to combine expensive with inexpensive, the trendy against the backdrop of the stodgy.

"The customer is empowered to express his or her brand through a store environment that really encourages the fact that nobody will put it together the way you will," she said.

Moseman talked briefly about the importance of consistency across channels when dealing with this new consumer, citing Walmart as a good example of a retailer that has delivered on the multichannel promise, despite having the nerve centers of its various channels located on opposite sides of the country, with separate management teams.

"In the mind of the consumer, Sears is still Sears, Walmart is still Walmart, even though it may be manifested by different people in these different channels of distribution," he said. "What we're looking for is a synergy, a sympatico between all of these channels."

Boyer said a world-class example of that kind of sympatico can be found at Sephora, which she said does a great job engaging the customer and asking them for permission to engage at deeper and deeper levels.

"At the most basic level, you can visit their Web site," she said. "At a deeper level, if you allow them permission, you can join the beauty insider's club, you can receive an email blast. Digging in a little deeper, you can friend Sephora on Facebook and be part of a community that shares information. It's very lively and vibrant and there's a lot of real sharing, and some of it is not so positive, but Sephora is not afraid to empower their customers."

Stats from the session:

• Women control 75 percent of discretionary spending ("And I guarantee you they strongly influence the other 25 percent," Moseman added).
• Less than one-fourth of U.S. households are "traditional" (married with kids), vs. 40 percent in 1970.
• The fastest growing single segment of the population is single dads.
• The aging boomer population controls 60 percent of society's wealth.

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