Based on Doug Steven’s article How Fashion Can Fight Amazon we believe that small retailers can compete with Amazon and do so by creating an amazing experience and story.
Staggering Growth
In a recent article on the Business of Fashion website, futurist and author Doug Stephens writes, “How Fashion Can Fight Amazon.” The article begins by stating Amazon’s rapid growth with its eighth consecutive quarter of growth, showing no signs of stopping. The first quarter had revenue growth at 23 percent. Their streaming service Amazon Prime grew to over 80 million members, well on course to catch and perhaps surpass Netflix. Not to mention Alexa Voice Service and Echo the digital assistant. The company also has a cloud computing division which provides cash to fuel the company’s constant innovation. With the company growing to become a behemoth retailer, can small retailers even compete? Doug Stephens argues that they can compete, but that they must go down the road of customer experience if they are to succeed and not try to beat Amazon at its own game.
Strictly Functional
With all of Amazon’s success, Stephens remarks how he has never heard the adjectives such as “fun, beautiful and joyous” associated with an Amazon shopping experience. No one ever talks about their Amazon experience as being pleasurable. The author writes, “Amazon is a passionless yet wickedly effective means of consuming.” Efficient yes, and for restocking household goods such as toilet paper, and laundry detergent no experience may be warranted. However, for other areas of retail, people enjoy experiences. Humans are social animals and it is this social need and enjoyment that small businesses can capitalize on.
Amazon has created a mathematical formula for shopping. To compete, retailers need to realize that most current retail experiences aren’t amazing wonderful experiences. Malls used to be great social experiences, but they are no longer popular for a reason. They are not meeting a social experience need anymore. In order for stores to be successful according to Stephens, stores need to build better stories around unique brands and create shopping experiences that are similar to performance art.
Customer Experience as an Advantage
To build a strong base of customers stores need to create small communities, where members can share their taste and passion through the store. This needs to be personalized for the individuals. Give them a reason to support you and your business. Stephens writes that businesses that outperform their competitors on customer experience can enjoy a 35% revenue lift. Amazon can be rivaled by building a strong story, that focuses on a core group of customers upon which you seek to build community with, and whom you create a great interactive experience with. This interaction should be happening between both you, them and the brands you sell.
Insightrix Community software allows you to understand your customers and build a strong community. First members fill out a profile survey, which helps you understand who your customers are. Then you can begin interacting with them through qualitative research projects such as the online diary, discussion threads, and through smaller quantitative surveys. The goal is getting to gather information that you can practically use to build a better business. If you would like to find out more how we can help you with your business please contact us.