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Rebuilding retail after the pandemic

To help retailers understand the new normal, Zebra Technologies has identified the pandemic-related industry changes as the 3 Waves. This outlines the recovery process of most retailers, spanning the immediate changes that ensured stability in the early days and the longer-term, strategic changes that will become institutionalized.

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Photo by Kaique Rocha from Unsplash.com

The pandemic has caused a noticeable change in consumer behavior, which in turn necessitates a corresponding change in every retailer’s business processes. As the Philippines reopens its economy, businesses are reassessing their strategies and recovery plans differently. In fact, about 45% of business owners are hesitant to resume their operations, according to a survey by the World Bank, National Economic and Development Authority and Department of Finance.

Retailers are used to reacting to evolving market demands, and they understand that the pandemic’s impact on the industry is likely to be long-lasting, even after a vaccine is found. To help retailers understand the new normal, Zebra Technologies has identified the pandemic-related industry changes as the 3 Waves. This outlines the recovery process of most retailers, spanning the immediate changes that ensured stability in the early days and the longer-term, strategic changes that will become institutionalized.

WAVE 1: MAINTAINING BUSINESS STABILITY

Wave 1 started when global economies began to shut down in early March 2020, and many retailers were forced to stop operations in response to quarantine protocols. Many had to cut back on costs to stay afloat. Those that kept their operations had to optimize resources and labor hours while ensuring employee health and safety.

When panic buying started to strain supply chains in the early months of the lockdown, retailers realized that conventional demand planning models no longer worked. They had to find new ways to meet consumer needs without compromising their employees’ safety or incurring greater costs.

Retailers immediately started investing in technologies that could give them a crystal-clear picture of what was happening within their four walls and their supply chains. Many retailers increased their use of mobile computing and scanning solutions, helping boost their capacity to replenish orders, speed up end-to-end fulfillment and accommodate customers’ basic needs and wants both in-store and online.

Based on the collective feedback from retail leaders and store associates, the biggest lessons during Wave 1 were the importance of:

1.  Real-time operational visibility

Retailers should invest in technologies that improve their capacity and speed in managing their inventory to cope with the demand, while providing them with real-time visibility across the supply chain at the same time.

According to Zebra’s APAC Shopper Study, 88% of retailers agree that maintaining real-time inventory visibility is a significant challenge. And up to 85% say their companies need better inventory management tools to ensure accuracy.

Having access to data on operations in real time will help retailers to address consumer needs immediately and avoid either under- or over-inventory situations. This enables retailers to ensure operational efficiency and business resilience even amid pandemic constraints.

2. Distributing actionable intelligence to store associates and supply chain partners

In any given day, especially during the pandemic, store employees and supply chain partners face challenges in assisting customers. Retailers must provide them with the right tools to attend to customers’ needs by swiftly locating inventory within their stores and knowing how much inventory is left so they can get it replenished. This prevents loss of sales and translates to greater customer satisfaction thereby improving business outcomes.

This is where prescriptive analytics, intelligent automation, wearables and handheld mobile computers become exceptionally handy.

3. Overcommunicating with customers, especially when you aren’t going to be able to deliver what they want on time or at all

When stay-at-home orders were issued, many consumers had to stop going to physical stores and relied solely on online shopping for their groceries and other essentials. Being unable to see store shelves, consumers had to rely on real-time stock inventory information presented on the website or mobile app to know whether an item was available.

According to a study conducted by Nielsen during the Enhanced Community Quarantine, 27% of Filipino consumers switched brands in certain categories because the products from their preferred brands were out of stock. In such cases, the lack of communication about what is available and the inability to provide alternatives to consumers created frustration among consumers. This compromised their trust in the retailers’ capability to meet their demands and needs.

4. Prioritizing worker and customer safety above all else and compensating associates for the risks they’re taking on the front lines

Some retailers provided financial aid to their employees to help them during the pandemic. But beyond the monetary assistance, store associates are more inclined to come to work and give their 100% when they feel they are being taken care of and are physically protected. Employees expected and appreciated efforts by retailers to maintain strict social distancing and sanitization measures, especially during the early months of the quarantine when paranoia about the virus was so high. These measures included frequent disinfection of shared scanning and mobile devices and the investment in “personal” protective wearables. 

WAVE 2: A NEW RETAIL NORMAL

As operations started to stabilize, essential retailers were able to focus on institutionalizing new ways to engage customers with online and in-store experiences. Retail leaders made efforts to get people in and out of stores as quickly as possible. They ensured physical distancing through several measures, such as limiting the number of people allowed in the store at any given time, setting up directional flow lines and installing dividers to prevent contact. Temperature checks, regular disinfection and other cleaning regiments helped provide a safe environment for both shoppers and store associates. 

Even when the pandemic quiets down, retailers will still take precautions to maximize the health and safety of both customers and employees in stores, corporate offices and warehouses. Services such as “buy online, pick up in store” (BOPIS) with curbside pickup options, contactless purchases and increased integration between digital and physical experiences will become the standard means of engaging with customers.

WAVE 3: LONG-TERM TRANSFORMATION

At some level, the long-term transformation in Wave 3 should occur simultaneously with Wave 2. The pandemic is accelerating retail digitization by several years. As retailers prioritize new technologies and solutions to ride the tide of increased online shopping, such new approaches will be part of efforts to ensure retail business viability moving forward.

Retailers have no choice but to accelerate planned efforts to increase product sourcing diversity, leverage intelligent automation and scale e-commerce fulfillment capabilities. As such, businesses should consider prioritizing increased product sourcing diversity, intelligent automation and optimizing last-mile delivery to achieve greater resiliency and backend efficiency.

When demand for certain non-discretionary products spiked as news around COVID-19 broke, Philippines’ Department of Trade and Industry imposed limitations on the purchase of basic commodities to prevent supply shortage. Many retailers, however, have not yet diversified their product sources to a point where backend shortages remain “invisible.”  This reinforces the need for product sourcing diversification to ensure enough supply. 

The combination of artificial intelligence (AI) and robotics can bring data-driven approaches to supplier quality, merchandising, distribution, and logistics and fulfillment, giving retail leaders the insights necessary to maximize value capture. Instead of reacting to external forces and rapid changes in consumer behavior, intelligent automation creates opportunities to operate more proactively.

As the pandemic emphasizes the need to improve e-commerce and logistics capabilities, retailers are realizing the need to enable and optimize last-mile delivery to satisfy customer expectations, reduce marginal costs and improve overall efficiencies. To optimize last-mile delivery, retailers can provide flexible delivery options based on delivery method and location, create a collaborative network with suppliers to maximize visibility on the backend, leverage brick-and-mortar stores as fulfillment centers and use technology to maximize the value of delivery routes. All these will help ensure a safer and more efficient business flow that minimizes the impact of the pandemic while positioning the business for future success.

The pandemic has stressed the need for retailers to reassess their business processes and study the importance of innovation. Understanding the industry and choosing the right combination of solutions will assure business continuity for retailers, and service reliability for their customers. Retailers that can strengthen their digital capabilities and ensure a better online shopping experience will gain end-user trust and encourage more online transactions. This translates to greater business success not just during the pandemic-recovery phase but also in the future.

BizNews

Women more likely to choose wine with feminine labels

The more strongly the participants identified with other women, a phenomenon called “in-group identification,” the greater this effect was. A feminine label also influenced their expectation that they would like the wine better.

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To appeal to the majority of consumers, winemakers may want to pay as much attention to what’s on the bottle as what’s in it.

A three-part experimental study led by Washington State University researchers found that women were more inclined to purchase wine that had labels with feminine gender cues. The more strongly the participants identified with other women, a phenomenon called “in-group identification,” the greater this effect was. A feminine label also influenced their expectation that they would like the wine better.

With women representing 59% of U.S. wine consumers, the male-dominated field of winemaking might want to pay attention to the perceptions of this understudied group, said Ruiying Cai, lead author of the paper in the International Journal of Hospitality Management.  

“When you look at the market segments, women are actually purchasing a lot of wine. They are a large group,” said Cai, an assistant professor with WSU’s Carson College of Business. “We found that feminine cues speak to women consumers. They have more favorable attitudes toward the label and the wine itself. They were also expecting their overall sensory experience to be better, and they were more likely to purchase the wine.”

Gender cues often rely on stereotypes, and in initial tests for this research, a group of 90 women rated wine labels as more masculine when they featured rugged animals like wolves and stags as well as portraits of men. They designated labels as feminine that had cute animals, flowers and female portraits. Labels with castles and bunches of grapes were seen as neutral.

In two online experiments, a total of 324 women were shown fictitious wines with labels designed with these gendered cues. The participants showed higher intention to buy wines with a feminine label, such as a woman holding flowers, as opposed to a wine with a masculine label, such as a bulldog in a spiked collar. When asked about the expected sensory experience, they rated their liking of every sensory aspect higher, including the color, taste, aroma and aftertaste.

The participant’s level of wine expertise moderated their taste expectations but surprisingly, not their purchase intentions.

“Whether they were knowledgeable or less knowledgeable about wine, when they saw those feminine cues, they had a higher intention to buy the wine. The gender cue influence was so strong, it trumped the effect of that knowledge,” said co-author Christina Chi, a professor at WSU’s Carson College of Business.

A third experiment with another set of 138 women involved a taste test—also with a surprising finding. Researchers gave bottles of the same red wine with one of the gendered labels. More women who tasted the feminine-labeled wine ranked it higher in fruit flavors such as red current and blueberry than those who tasted the same wine with a masculine-cued label—and despite the fact those flavors were not dominant components in that particular wine. Women connected more mineral flavors with the masculine-labelled wine.

However, the participants who tasted the feminine-labelled wine reported liking it less than the women who tasted the masculine-labelled wines. The authors said this could be a result of the incongruence between the expected flavor influenced by the feminine label and the actual taste of the wine sample, which had a medium body, tannin and alcohol level.

Few studies have focused on the perceptions of women wine consumers in a field where 82% of the winemakers are men. That lack of perspective is very apparent on wine aisles, said Chi, noting that many vintners seem to favor masculine imagery like stallions, bulls and roosters–and one brand even features a prisoner in a jail cell.

“When designing the labels, winemakers should involve more women in the process, and it’s highly advisable to pilot test the labels among consumers for gender cues,” she said.

In addition to Cai and Chi, co-authors on this study include recent WSU graduate Demi Deng now at Auburn University and Robert Harrington of WSU.

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Strategies

Tips that businesses should consider during the holiday shopping season

Highlight your strengths—whether it’s one-of-a-kind products, exceptional offerings, or a strong local connection. Design your holiday strategy around what sets you apart and amplify these messages through social media and your marketing materials.

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As the holiday shopping season approaches, small businesses are gearing up for one of the busiest times of the year, from Black Friday to Small Business Saturday and beyond. 

SCORE, America’s largest network of volunteer, expert business mentors, offers entrepreneurs practical advice to make the most of the season.

Plan for the Holiday Rush

Reflect on last year’s performance. Did you meet your sales goals? Use your previous data to forecast sales, set promotional strategies and manage staffing needs to provide for outstanding customer care.

“It’s about more than just sales; it’s a powerful opportunity to connect with your community, attract new customers and reinforce relationships with loyal ones,” explains SCORE mentor Lizz Smoak.

If you plan on extending store hours during the holidays, communicate these updates with your team early so you are prepared to handle increased sales traffic. Ensure that employees are aware of the holiday schedule and have submitted any time-off requests to avoid last-minute scheduling conflicts. 

Create an Experience for Customers

“Engagement is key when customer traffic spikes during the holiday season,” notes SCORE mentor Christy Jones. “Consider offering curated gift guides or exclusive bundles to simplify decision-making for your customers, especially as you compete against large retailers like Amazon.” Plan a special event or connect with other local businesses to promote shopping small.

Stand Out from the Crowd

Consider how you can make your store or service the preferred choice. “Small business owners should contact their existing customers and highlight their unique level of service,” advises SCORE mentor John Doyle.

Highlight your strengths—whether it’s one-of-a-kind products, exceptional offerings, or a strong local connection. Design your holiday strategy around what sets you apart and amplify these messages through social media and your marketing materials.

Be E-Commerce Friendly

As you roll out holiday promotions, make sure that your digital doorstep is ready, too. Confirm your hours, location and contact info are updated on your website, Google Business Profile and other local listings. Many customers will be shopping on their phones so be sure your website is optimized for mobile use and that your most popular products are easy to find. A smooth checkout process is vital for keeping customers happy and encouraging repeat purchases.

“Small Business Saturday offers a prime opportunity for small businesses to step into the spotlight,” said SCORE CEO Bridget Weston. “With a strategic approach, small businesses can leverage this season and see big returns.”

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BizNews

License to chill? Bond shows ‘regressive nostalgia’ can freeze a brand’s future

“In order to minimize the negative impact of regressive nostalgia, it is important that the brand does not pander to the nostalgia displayed by a minority of super-consumers. Brand stewards must not be swayed by these loud voices and become exclusionary.”  

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Super-spy James Bond is a prime example of ‘regressive nostalgia’ highlighting how certain consumer groups cling to idealised past versions of brands and resist attempts to move with the times, a new study reveals. 

Researchers examined the James Bond movie franchise – a cultural icon for over 70 years – and discovered that some ‘super-consumers’ react negatively to modern portrayals of the fictional British secret agent that reflect contemporary societal values.  

Whilst loyal to the brand, these consumers prefer traditional, more exclusionary, versions of Bond which most closely follow author Ian Fleming’s original 1950s and 1960s vision – characterised as an arrogant, misogynistic, and racist Imperial British male. 

Publishing their findings in International Journal of Research in Marketing, consumer behavior experts from the University of Birmingham and ESCP Business School, London note that regressive nostalgia is characterized by a preference for racial and cultural purity and heroic masculinity. The phenomenon harbors exclusionary and aggressive tendencies that pose significant threats to brands. 

The researchers have, therefore, produced a toolkit to help marketeers shield their brand’s contemporary positioning from the negative connotations associated with this form of nostalgia – allowing brands to evolve without alienating their core consumer base. 

Finola Kerrigan, Professor of Marketing at the University of Birmingham, commented: “The James Bond franchise is a perfect example of how ‘regressive nostalgia’ manifests. Whilst the brand has successfully adapted to changing times, a small but disproportionally vocal part of its fanbase is anchored in the past, highlighting the need for careful brand management. 

“These ‘super-consumers’ cling to Ian Fleming’s characterisation of Bond and the period during which the novels were written to justify their nostalgia. They actively resist attempts to modernise the franchise, dismissing as ‘woke nonsense’ recent movies such as ‘No Time to Die.” 

Chloe Preece, Professor of Marketing, ESCP Business School, London notes that these Super-consumers view Bond as a heroic, white, male icon providing a ‘safe space’ for those feeling threatened by contemporary discussion about creating a more inclusive society. The character’s ‘man-of-action’ persona allows this group of mostly male consumers to identify with the spy’s ‘heroic masculinity’ based on his ability to sleep with the ‘Bond girls’. 

While the study focuses on the Bond franchise, the researchers identify parallels with other groups’ appropriation of brand resources and associating them with anti-social causes. 

“Brands use nostalgia to connect with consumers – delighting and enchanting their customer base whilst connecting them to others – but this makes nostalgia potentially dangerous in drawing consumers to the past, when it creates a sense of loss combining a cherished past and a despised present,” said independent scholar Dr Daragh O’Reilly. 

“In order to minimize the negative impact of regressive nostalgia, it is important that the brand does not pander to the nostalgia displayed by a minority of super-consumers. Brand stewards must not be swayed by these loud voices and become exclusionary.”  

The researchers note that marketeers should be alert to the risk posed by regressive nostalgia and have devised toolkit comprising of a series of questions to help brand managers assess the level of threat.

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