Posts Tagged ‘Facebook Places’

Let’s Make a Deal: New ‘Sale’ Platforms Upend Retail

Thursday, December 2nd, 2010
Groupon Logo

Group buying sites are popular and seem to suggest a paradigm shift

There is a sea change under way that’s redefining one of the oldest retailing traditions: hawking the big sale.

Group buying sites, rewards-based shopping applications and social networks are redefining the art of the deal.

Consumers are being bombarded with new ways to shop for less, and it comes as little surprise.

The worst economic crisis since the Great Depression has shaken up the nation’s consuming psyche, and somehow the old-school 20-percent off coupon and buy-one-get-one free promotion just don’t rise to the occasion in the current climate, when unemployment rates stubbornly hover around 10 percent and the housing market remains bleak.

Hence, new deal-offering platforms are having more than just a moment. Their emergence suggests a paradigm shift.

Take Groupon.com, which has been in the headlines recently with Google’s offer to purchase the social buying site for about $5 billion.

Groupon negotiates substantial discounts on retail, services and cultural events to subscribers in a free daily email, which are activated when a certain number of people agree to buy. A subscriber gets a big discount while the retailer taps into new customers.

While Groupon mostly partners with local merchants, national chains are now joining up, such as Nordstrom, which is a notable sign of the times, as discounting has traditionally been counter to the brand’s DNA.

In yet another expression of the new deal, retailers can also sign up with digital outlets such as Shopkick, a location-based smart phone shopping app, which rewards consumers with promotional offers simply for visiting stores.

Even Faceook is getting into the game.

Retailers such as H&M, American Eagle, The Gap and Macy’s have signed on for the new Facebook Deals, which brings shoppers special offers when they check into Facebook Places on their smart phones.

These days, it’s not just about putting on one-day sales and offering coupons in the Sunday circular.

Are you taking part in the art of the new deal?

Barbara Thau has been covering the retail industry for 15 years, currently as a contributing writer for CNBC.com, STORES magazine and Specialty Insider Magazine.
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Right On! Retailers’ Smart Moves

Thursday, November 11th, 2010
Facebook Deals Compliments Facebook Places

Facebook Deals Complements Facebook Places

Much is written about what retailers do wrong. But a cross-section of merchants has made some pretty sound moves of late.

They reflect efforts to capture market share, tap into the phenomenal rise of social networks and exert a nimbleness to keep step with the realities of a shaky economy.

Here’s a sampling of strategic savvy among retailers:

  • E-commerce pioneer Amazon.com this week inked a deal to acquire Quidsi, which operates Diapers.com, an online baby care specialty site, and Soap.com, which sells health and beauty care products.

With this move, Amazon has tapped into the new-parents market, making a bid for shoppers at the beginning of the family life cycle.

If Amazon can capture the attention of this demographic now, there’s an opportunity to secure a lifetime of shopper loyalty.

  • Luxury retailer Neiman Marcus will open its second Last Call Studio store in Rockville, Maryland, this fall, what it has dubbed a discount retail concept for aspirational shoppers.

Neiman’s investment in a lower-priced subbrand is a clear nod to the affluent—rather than super-rich—shoppers who have been hit by the recession.

According to a recent study by the American Affluence Research Center, about 41 percent of the affluent say they will make a concerted effort to reduce or defer spending during the next 12 months. Their prime reason? Uncertainty as to when the economy will rebound.

Macy’s realized the days of one-size-fits-all retailing in the era of endless shopping choices (think Internet) are over. The department store is now beginning to reap the benefits of that prescience.

Two years ago, Macy’s began to test My Macy’s, an organizational structure designed to better tailor product assortments to the needs of local markets. It has since rolled out the concept so that shoppers in Florida, for example, find a layer of merchandise that suits their sunny tastes.

It has paid off. The retailer has been outperforming its department store brethren recently, and CEO Terry Lundgren repeatedly credits My Macy’s for much of that success.

  • Why not reach out to shoppers where they increasingly while away the hours? On Facebook. To that end, retailers such as H&M, American Eagle and the Gap have signed on for the new Facebook Deals, which brings shoppers special offers when they check into Facebook Places on their smart phones.

These merchants realize that nowadays, ignoring the social networking site as a marketing vehicle is like leaving your display windows empty.

Barbara Thau has been covering the retail industry for 15 years, currently as a contributing writer for CNBC.com, STORES magazine and Specialty Insider Magazine.

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