Retail is one of the most dynamic and closely watched sectors of the world economy. Consumer spending underlies American gross domestic product growth. It all comes back to the stores -- what drives us to spend our money? Why do we choose to shop here, or there? What can store owners due to elevate the experience?
1. What retail trends are you seeing today?
Retail will always be a force on the avenue. Today, the best stores impart an experience that ties a customer to their brand and collection that evokes a lifestyle. Transforming textiles into fashion is more than design, sewing and distribution. The best retailers elevate their work to trigger emotions. Bricks or clicks, whatever your fix, it's the creativity that makes this business come to life.
2. What is the biggest misconception people have about retail?
The biggest misconception about retail is based on not understanding how much work goes into finding, bidding, leasing, designing, building and opening a new store. It is a lot of work. There are many professionals involved at every level, and everything needs to come together correctly for it to work well. In terms of the business of retail leasing, the biggest misconception is really from the residential brokers -- retail real estate is a totally different beast.
3. Who is doing brick and mortar really well?
The in-store experience is best when shopping can really become its own event. Saks Fifth Avenue is doing something really special here -- where the idea of personal shopping is being brought to the nines with all of the pampering and attention within the store. What Saks is also testing now is 'The Personal Shopping Experience,' where an 8-person team of stylists, tailors and jewelers come to you in a van complete with an edited wardrobe. At Saks, it's about the service and the selection.
4. Can you please speak a little about brick and mortar vs. digital.
Brick and mortar versus digital is a big misconception right now. It's not either or, but both. The best brands are loved by their customers because of how they deliver products and services to enhance our lives. It does not matter if the product is being bought in the store or online, because we do both, sometimes even in the same day. One really interesting example is from one of the country's biggest landlords we work with: there was a medium-sized store that grew a big online following. They closed the store, because they thought the online business would be enough. The online following just started to disappear. Physical and digital are the two faces of the same coin in the retail business, and we want that coin spent on our brand, in person or online.
5. What are some of the challenges with digital shopping?
There are three big challenges for digital shopping. We lose the ability to touch, feel and try on in the moment. And, as for the moment, we miss out on the in-store serendipity -- I came in for a blouse, but saw this skirt, and bought them both. For me, the third challenge is the loss of the magic. The in-store experience is about imbuing a space with what the brand represents, achieving a look and feel that translates into a lifestyle. It's like the difference between being in someone's beautiful home, or just seeing a photo. I think Ralph Lauren is a world leader in everything he does, but, would you want to shop his brand online, at a department store or discount retailer, or in the Ralph Lauren Mansion at 72nd Street and Madison Avenue? You already know my answer. If you've never been, that corner actually has three of his flagships, for women, men and children. It's divine!
6. Can you speak briefly about the "Amazon effect"? How is Amazon affecting various online industries?
Online, Amazon is the elephant in the room. The question for every consumer who wants to order anything online in this very moment, once Amazon carries it, the price will be lower and the delivery faster than any other website. The secret there is economies of scale. Amazon generates $130 billion in revenue, and its profit margin is a tiny 2 percent. That was also a long time coming. In 1997, Amazon shares began life at $1.50 and, nearly 20 years later, they’re trading close to $800. Two years ago, the shares were only at $300. The point is, if you have 20 years, and the ability to reach scale before having to turn a profit, you could become the next Amazon, too. Most businesses do not have that luxury. So, the question becomes how to bring a new and interesting idea to the market, how to keep costs below the price your customers will pay, make it sustainable, and then scale up. That's true for brick and mortar and online stores.
7. Where do you see the future of retail?
Retail is now all about the experience. We're seeing a lot more focus on in-store amenities, on the idea of art and creating a performance in the space, and, of course, service, where we're seeing a focus on providing what definitely cannot be gained online. Growth is also about convenience -- a Starbucks on every corner, a bank branch everywhere you need it. Online, the future is definitely Amazon for mainstream purchases -- why buy laundry detergent every now and again when Amazon can have it at your door for the same price or less in 48 hours? But also, all of the great ideas that humanity can invent, package and sell to us, available for browsing at home or on the go, with new products always there to tantalize. What I mean to say is that we need not fear this giant shopping monopoly, but let it take up the monotonous parts of what we need to buy, allowing us more time to be creative, to discover and to support young artisans with their tiny online shingles in cyberspace.
8. What advice do you give to an entrepreneur looking to sell something?
Do the thing better and cheaper than what the market offers, or more elaborate and extravagantly, but with the same eye towards what the customer really wants, and delivering. Focus on the simplicity of your idea, reduce needless features and understand your competition. In the online world, venture capitalists want to see solutions that are 10 times better, because they know how hard it can be for consumers to appreciate your improvements. If your widget is a mouse trap that catches 10 times as many mice as the other guy's, it becomes an easy sell.
9. Are self-selling sites like Etsy good vehicles for distribution?
Etsy's brand started with the artisans and craftsmen out there, and I see that as a strength. When looking for an artsy purchase, why not go to Etsy? I've known people to find artists, calligraphers, specialist jewelry makers and antique restorers at Etsy, and that is great. As a sole distribution channel, that might be OK for a small artist who makes every product differently, but I don't think it's so great for selling a manufactured product with a national distribution. If you try it and get sales, great. If you can expand your network onto channels, even better. If you can augment online with your product on the shelf of every Macy's, brilliant. If you expand your line and have enough product to take your own store, all the better! If one store is performing wonders, open more in the same city. If that works, certainly, take it national and then global. It all comes back to what you're making and the customer's response.
10. Please speak a bit about technology in brick and mortar. How is it evolving?
The biggest technology changes within stores is that computers can track the movement of inventory better than ever. We know where every box is in the warehouse because of serial numbers or RFID tags -- that's Radio-Frequency IDentification. New middleware programs make sense of all of the back-end, tying together all of the programs stores use. We control the inventory, the shipping, and the direct delivery to the stores. All of that continues until the POS -- point of sale -- cash registers -- now sometimes even cashless, just iPads, credit cards and signatures. This is evolving the same way "Internet of things" in the home -- once it can all be connected, everyone wants to, never mind the cost. The challenge, of course, is that big operations can benefit, but, in your smaller boutique or only shingle, all of this might be overkill.
Sometimes the person you have to stand up to is you! There I was, rewatching the Miss Universe 2019 competition. Which I do for inspiration from time to time. (No, seriously!) There is something about seeing women on stage, in full-on glam mode, and speaking with confident assuredness that really lights my fire!
I have seen this Zozibini Tunzi of South Africa win this crown so many times before, but something about this particular viewing, her delivery or her words, touched something inside me a little differently. At that moment, I truly believed, with complete conviction, that she lives what she speaks.
The announcement was made, the audience cheered, and the crown was awarded. The light was dazzling,, she looked stunning, almost blessed. The judges made the right call with 2019's queen.
Reflecting On Myself
Suddenly, the YouTube video ended. And I was left looking at a black screen. In the darkness of that screen, I saw my reflection and I began assessing what I saw, asking myself, "What have I been doing with my life?" It may seem like an overly dramatic question, but at that moment, I had to ask myself seriously… What have you done? The fact that I couldn't come up with a solid, confident answer gave my inner-cynic license to quickly spiral into self-criticism.
This went on for quite some time, until I got up. I stood up and walked to my mirror to have some serious one-on-one "Queen Talk." I needed to get out of that self-critical mindset, and I know that physical movement is something that help disrupt a way of thinking. I needed to remind myself of who I really was. The negative feelings I was experiencing at that moment were not reality.
Here are a few reminders for whenever you need some Queen Talk!
1.) Comparison is truly the thief of joy.
This saying feels like a cliché. That is, until it's applicable to you. At that moment, this "cliché, becomes self-evident. Comparing myself to someone on a stage with years of experience in an area I know nothing about is not only unfair but straight-up mean. A part of my comparison comes from me wondering, "Would I have the ability, if put in that position, to perform at such a level?" The answer is totally and without question, yes. I excel in the field I work in now, and I know that if I put that same energy towards something else, with practice, I could do just as well. No joy can come from comparing yourself to someone in a completely different field!
2.) Never forget the blessings that have been bestowed upon you.
Every single day, I am blessed to have the opportunity to wake up with all ten fingers and toes and choose to create the kind of life I want to live. There is so much power in that alone, but sometimes it's easy to take it for granted. Let us not forget those who are unable to make that same decision every day of their lives.
3.) Appreciate how far you have come!
I've been very intentional for some time to be kinder and gentler to myself. I need to realize that I am human. Being human means that I will not know everything, and I will continue to make mistakes.But I must let go of the need to always be right. I feel empowered when I can see the growth that I've made, regardless of the mistakes that may come in the future. I don't react to every little thing that bothers me, because I have learned boundaries when it comes to dealing with others and myself. I truly value my time and my energy, and, for that, I am proud.
4.) You Can Be Who You Want To Be
If you can see it in your mind, you can achieve it in reality. I saw myself when I looked at the women on stage, when she smiled, the way she talked, her elegant walk. For a moment, in my self-criticism spiral, I forgot that we are all connected. Debasish Mridha has said "I may not know you, but I don't see any difference between you and me. I see myself in you; we are one." I will not sit in the mentality of lack, there is more than enough opportunity and good fortune to go around for everyone. Her win was not a loss for me, but it can be a nudge from the universe for me to go ahead and dream big!
This Queen Talk was not easy. There may have been some tissues and tears involved but giving myself an honest yet compassionate talk is sometimes what I need to bring myself out of some bad head space. In these moments of doubt, you truly need to be your own best friend.When times get rough, criticism won't always come from outside sources. How you speak about yourself internally is crucial to how you see and feel about yourself. As Beyoncé once sang, "I've got Me, Myself, and I." We must put forth every effort to be there for ourselves. I look forward to more Queen Talks when some negative emotions arise. I am grateful for the person I am today, but I am excited to see the women I become.