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Merchandising Trends for
Holiday 2016Catalog University Pub Talk
Larry Shaw, Dean of MerchandisingMarch 24, 2016
Who Am IDean of Merchandising at Catalog UniversityFounder and CEO of Merch Success, a full-service merchandise
solutions company for retail, catalog, and e-commerce companies
Merchandise strategic planning and analysis, and finding, developing, and curating new unique and interesting products for catalog, retail, e-commerce companies
25 years executive merchandising and marketing positions at leading companies, including Southern Season, The Vermont Country Store, and Nordstrom
What Will Be CoveredEight key trends that will impact Holiday 2016
MerchandisingWhat each trend means for you and how to
leverageQuestions and Answers
Key Trends
Trend: (Continued) Aging of Audience• Catalog customer files and
prospect lists aging by 1-2 years each year• Items that skew older will
increasingly drive more sales• drive new items selection, pickups,
inventory buys, sizes purchased• Baby Boomer tastes and wants
driving Senior Market products• adult coloring kits, DIY, experiences
• Profile item sales by customer age
Trend: Decline in Traditional Gifting• Under 65 audience is lot less formal
• rapid decline in Christmas cards purchased and sent
• People want to create their own new traditions• Elf on a Shelf
• Products that once were big sellers are now trending downward• except for oldest segment of audience
• Over 50% of customers likely to buy 1+ gift cards for Christmas• Business gift giving continues to be down
• more companies donating to charities instead
Trend: Amazon and Marketplaces• Increasing sales volume happening
across Amazon and other Marketplaces• Younger and more mainstream audience
than catalog• Each has different model, algorithm,
way to merchandise• Common elements of success across
marketplaces• Your customer service and operations ratings• Customer feedback• Ability to get the “Buy Box”• Product Sales Rank
• Merchandise for each marketplace including Marketplace specific items
Trend: Increased Shift to Mobile• Fastest growing digital channel for all age groups
• approximately 30% of e-commerce sales in 2015• Convey what item is in just small image and
headline• Merchandise for youngest, most forward thinking
part of audience• Key 3-6 items per category with less info, not depth
of category• “TenBestification”
• “Immediate Reaction Items” that drive action• Real-time situational merchandising
Trend: Emotional Personalization• Not your grandma’s personalization
• can’t just slap person’s name or initials on product or ribbon or card
• “Emotionally Resonating” between gift giver and recipient a big plus• Customers want to have control and
create a version that works for them• Spreading across all categories
• Art, Home Décor, Food, Wallpaper, T-Shirts, Socks
Trend: Products with Function• Customers spending more
disposable income on entertainment, so other products need to have more purpose• “Dust Collector” items shrinking in
popularity, as low perceived value• “Demonstrable” items drive higher
growth with digital channels
Trend: “Better For You” Products• Trend towards less purchases, more
scrutiny and higher threshold for purchase• People want to feel good about what
they are buying• Artisan/not massed produced• All natural/vegan/better ingredients• Social cause• Local• Handcrafted
• Customers also want to feel good about companies they support
Trend: Make It Myself/DIY• Personal fulfillment of making something by
hand• Social activity• Having control of ingredients, packaging,
taste profiles• DIY cocktail mixes, cheeses, hot sauces,
chocolate, candy• Ties in with Makers Movement and Artisan
Handcrafted trends• Customers willing to pay same price or
higher for DIY kits than completed item
Questions and Answers
Key InfoContact me with feedback or questions
Sign Up for Classes at Cat U: http://cataloguniversity.com