Why turn to Amazon instead of ordering products from specialty brands you love? Trust. By now, you probably trust Amazon. While they don’t sell everything, they very likely sell something close at a few different price points. Amazon has found a way to be at the front of the consumer’s mind before they even consider the next purchase. Not to mention the convenience of research experience and fast, cheap (or free) shipping.
These factors contribute to the surprising fact that 58% of people make the majority of their purchases with Amazon.* So what is a specialty retailer to do?
Adrien Nussenbaum, the U.S. CEO of Mirakl, digs into this for an article on Chain Store Age. He reminds us of ways that specialty brands with physical stores can gain an edge with their customers against the giant, Amazon.
Specialty brands should remember the importance of leveraging brick-and-mortar as an asset for opportunity, instead of a liability of overhead.
Brands need to be inventive to establish stores as a destination. They can do this by offering the customer a bigger reason to visit that doesn't hinge on simple "product for price" transaction. Nussenbaum explains that tying this approach to location to online community of people with lifestyles relating closely to the brand can create a “network effect.” Customers connect with each other at the store and share a connection with the brand. This leads to brand loyalty and involvement among individuals but also anchors a community.
Specialty brands are much better positioned to connect to passionate and interested people in niche communities. Open-minded leaders in niche retail must find the right mix of resources and strategy using location and experiences to connect with customers. And more importantly to connect customers to each other through the brand.
Here are a few examples of specialty, niche or hyperlocal brands making it work:
Lululemon offers their customers in-store yoga flow classes on Savasana Sunday.
REI encourages their people to "Opt Outside" and offers a variety of “skills classes."
Sur La Table offers cooking classes that are searchable by location and culinary styles
• Richmond’s own Carytown Bikes offers community rides every week at two different levels of intensity.
All of these examples allow customers some flexibility to join an event that fits their life and connect with the community and the expertise of the brands.
*Mintel — Online And Mobile Shopping, US
Emily Mondloch
Market Research & Insights
Jeff Smack
Director of Interactive Media