I have a very hard-won perspective on the concept of retail cross-promotion. Early on in my career I worked in the consumer electronics publishing space. I’ve seen how retail display has evolved over the years, as one time powerhouses like Circuit City crashed and online innovators like NewEgg flourished. One of the more brilliant ideas was the "concept" store. Niketown has mastered it, and so has other leisure retailers like Bass ProShops and Cabela’s. BestBuy did a nice job with it, but was hit by the recession hard. I guess Nokia was too, because it recently announced that its concept store in New York City was headed for closure. According to The New York Times, “it is a sign its retail strategy of flashy brand-booster outlets is needing a refresh.” I don’t agree.
I think Nokia is looking at its concept stores the wrong way. To my way of thinking, big concept stores are big monuments to brands. They are brick-and-mortar brands and as such, need to be supported by cross-promotional campaigns. The Internet is easily the best way to do this. I’m not privy to the overhead involved with Manhattan real estate, but I can tell you that the Nokia store was a great display for what the company could do with various segments of its customer base from the basic phone for kids to the diamond-encrusted case for the hoi polloi. Current targeting technologies can take that "concept" store and make it a conceptual online retail destination. Target the kids to check the store out, and then direct them to the more tactical Nokia.com. Target the hoi polloi for a sweepstakes that includes a trip to NYC and an exclusive tour of the store.
I think Nokia is looking at its concept stores the wrong way. To my way of thinking, big concept stores are big monuments to brands. They are brick-and-mortar brands and as such, need to be supported by cross-promotional campaigns. The Internet is easily the best way to do this. I’m not privy to the overhead involved with Manhattan real estate, but I can tell you that the Nokia store was a great display for what the company could do with various segments of its customer base from the basic phone for kids to the diamond-encrusted case for the hoi polloi. Current targeting technologies can take that "concept" store and make it a conceptual online retail destination. Target the kids to check the store out, and then direct them to the more tactical Nokia.com. Target the hoi polloi for a sweepstakes that includes a trip to NYC and an exclusive tour of the store.
I think retail concepts are still great ideas. Not every brand is going to be able to be Apple and combine abstract concept with brick-and-mortar commerce. Even Nike seems to value display and cool factor over actual purchase at its stores. Nothing wrong with that. In fact, it’s something the audience you might be neglecting online might like to see.
No comments:
Post a Comment