With spending down and earnings slipping, how can brands entice youth to buy? To better understand the problem and source solutions, we repeated our retail priorities study and investigated retail in many of its forms – across categories and (physical or virtual) locations.
2. Introduction
With spending down and earnings slipping, how
can brands entice youth to buy? To better
understand the problem and source solutions, we
repeated our retail priorities study (previously
conducted in 2008 and 2010) and investigated
retail in many of its forms – across categories and
(physical or virtual) locations.
4. TOP 10 RETAIL PRIORITIES: 2013
Young consumers are
looking for distinct
relevance and advantage
– Consumers’ biggest
concern is safety
– Their prioritization of Quality,
Reputation, and
Cleanliness reflect a focus
on safety and hint at a next
era that highlights trust
Read our original post
here
5. TREND WATCHING 2008-2013
As the pace of growth in the market declines, brands need to take the
opportunity to develop a deeper relationship with consumers. Eager brands
are still zooming in on China and hunting to expand their presence but
despite enthusiasm, we see retailers confronting significant problems.
Check out our 2008 results in Women’s Wear Daily and 2010 results
in AdAge
7. THE OPPORTUNITIES OF E-
COMMERCE
Independent B2C has increased its
share from 6% in 2011 to 22% in 2012
in online apparel spend
A slow execution across the board in
digital performance (site, social media,
mobile, and digital marketing)
– Not one brand from L2's study earned the
“genius” rank yet
– The study's estimation of fashion brand' IQ is
down 12 percent from the 2011 index as
brands have been slow to localize content
and launch e-commerce
L2’s report on fashion brands’ digital performance in China 2013
8. THE RISE (+ FAIL) OF ONLINE RETAIL
The Rise: Unique Brand and Offering
Ex: Neiman Marcus’s online
presence hopes to bring in the next
wave of luxury and designer marks to
an audience eager to stand apart
– NM Edits includes trend reports, guides to
mixing & matching patterns and colors,
introductions to designer brands, and an
interesting “affordable luxury” section.
The Fail: Cumbersome Payments
Ex: Lane Crawford slows down
purchases
– Consumers need to be over 18 years of
age
– Customers can not pay via Alipay and are
charged delivery fees
– Sales terms and conditions are issued in
English.
Read our original post here
9. GOURMET EXPERIENCE STORE
Starbucks’ 1st gourmet experience store opened in Beijing's Oriental
Plaza
– 17 freshly made bakery items and meals exclusively designed for the store
– A coffee flavor lab with special coffee containers, coffee beans, and coffee plants
– Regular lectures given by baristas on origin, breed, tasting and other expertise
– Customers’ orders are delivered by baristas to tables
Read our original post here
10. DIGITIZED RESTAURANTS
Popular Sichuan restaurant chain
Spicy Joint is finding ways to enhance
diners’ in-store experience
– Launched an app that allows users to
reserve tables, order food, download
coupons, and get updates on wait times
– Creates magazine-like menu monthly
– Allows customers to take the menu home
after the meal
Read our original post here
11. IMPORTING UK HOUSEWIFE
CULTURE
Cath Kidston adds credibility to
growing housewife culture in China
– Everything is British and unabashedly
vintage – Including London metro maps
and British royal guards
– Adding credibility, the label on the back
of table cloths shows a UK phone
number
– Cook books and other how-to
homemaker guides allowing
consumers to walk the walk and well,
cook the cookies
Read our original post here
12. Young assistants act as
models for the brand
– Mainland Chinese assistants
from Rope Picnic are given style
training to best represent the
brand's aesthetic
– Shop assistants serve as
models for the brand online
Read our original post here
Check our earlier post on
shop brand
ambassadors: Japanese
brand create mini celebrity
sales forces
ASSISTANTS AS BRAND
AMBASSADORS
14. Established in 2006, The Bergstrom
Group has developed a reputation for
providing vivid customer immersions for
brands and agencies. We began our
commitment to China by focusing on
young consumers.
Based in Shanghai but spread across
China, our on-the-ground team of subject
matter experts, researchers,
trendspotters and creatives is dedicated
to telling the story of new China in a way
that is both authentic and actionable.
OUR STORY
15. OUR BOOK
ALL EYES EAST:
Lessons from the Front Lines of
Marketing to China’s Youth
By Mary Bergstrom
+ Top 5 Marketing Books of the Year
by Expert Marketer