June 20, 2017
Everyone’s talking about the death of retail, and what’s next for eCommerce: AI, IOT, and so on. This, combined with today’s more brand agnostic customer, is enough to make a retailer despair. But let’s face it- people are still shopping. Retailers need to up their game to stay in it- and to avoid being eaten alive by Amazon.
While there are so many epic things on the horizon to do- there’s one fundamental opportunity that most online retailers haven’t figured out yet, and hardly anyone is talking about: immediate gratification. The impulse purchase. If we can figure out how to make that easier, faster and better- we’ll have something.
Apple pay is a step in the right direction- it makes it easy to buy from a compelling email in about two seconds. The first part of the impulse buy is there- but I still have to wait for that package to arrive.
Amazon has us all trained to expect 1-2 day delivery on everything. Forget paper towels at the grocery store on Sunday? Amazon can have those to you by Tuesday. Most retailers have followed suit with at least free standard shipping. But anything that takes 3-5 days is like waiting an eternity. I find myself thinking- didn’t I order that WEEKS ago? The new standard is fast. If I could have gone to a store to get it by now, it’s taking too long. But what if I want it today, and don’t have time to go to a store?
Back in the internet boom- Urban Fetch was a great start-up in NYC that would deliver anything within an hour- bagels from your favorite place, the book you need for your daughter’s English class by tomorrow that she forgot to tell you about…a present for a baby shower, etc. It was the best thing ever. But they didn’t survive- it just wasn’t cost effective. It’s surprising in all this time, that no one has figured out how to do this at scale for fashion- it exists for food- Seamless, Instacart, Uber-eats. But not for fashion.
If stores, every major brand, including department stores, could figure out how to deliver same day- within hours, this would create a huge paradigm shift for shoppers. Fashion brands need to be looking at how to facilitate this & stock the stores for it. If I have to go home, and think about it, or wait for it- I might change my mind. Yeah- it’s online in the end, but the stores become local points of distribution.
Everlane has it right: in NYC, they’ll deliver within an hour. BAM. I need a raincoat or a new bag? Instant gratification in 5 minutes of browsing on my phone. But who else? Even with online groceries, I have to set my delivery window 48 hours out (more on that in a future post). The model here has to change.
On a recent trip to the mall, I experienced the worst of mall madness- it was the day before Father’s Day, and it was mobbed. Every store was a mess- like Macy’s the week before Christmas. Even shopping in Nordstrom was so unpleasant, I couldn’t begin to find anything good, because the tables were a mess- it looked so junky and worked-through. I wasn’t shopping for Father’s Day, thankfully- so was able to bail, and just shop online without the stress.
Will people still go to stores? Sure. There will always be those last-minute shoppers, and the delight of discovery- finding something you weren’t looking for & didn’t know you needed ’til you stumbled across it. But stores need to get more creative about making the experience of shopping worth that effort. Burlington, VT is a great example of this- Church street is closed to traffic, and filled with retailers and restaurants- making it a great place to shop, eat, meander and discover. The nearby mall is empty. Malls are becoming a depressing and uninspired destination. But that’s a story lots of others are already telling.
For the time-being, people will continue to be pressed for last-minute shopping, and until online retailers can figure out how to deliver same day, those shoppers are going to the mall.