Sadove
Say the name “Tory Burch” or “Saks Fifth Avenue” and any fashion-minded individual will go wide-eyed. Such was the case when NRF learned that Tory Burch and Steve Sadove, Chairman and CEO of Saks, would be among the panelists on a super session at Retail’s BIG Show. The topic was “The New Luxury Paradigm,” meant to examine the challenges that have faced luxury retailers during the past year and opportunities for growth in the future.
The panel spent an hour talking about everything from the balance between social media and maintaining privacy to the best product launches of all time, but because it’s impossible to capture it all, here are five takeaways from their session:
Price does not equal value. Over the last few days, I’ve heard everyone from Family Dollar CEO Howard Levine to Sadove talk about “value.” Luxury store shoppers don’t head to Saks or Neiman Marcus for the prices, of course, but that doesn’t mean there isn’t room at the table for a good deal. “People want things they can’t get everywhere else, but they also want value,” said Sadove, highlighting quality and design as important elements that complement price in the equation. Ultimately, Sadove said, shoppers want to achieve a “feeling that whatever they buy is worth it.”
Burch
The definition of luxury is changing. Gone are the days that luxury meant high prices and excess. Instead, said Burch, “Luxury means something very different than it used to. Now it’s about how you live your life.”
Brands need to do a better job communicating to people who love them. I heard something during this session that just absolutely blew me away: Marc Gobe, author of the book Emotional Branding and a session panelist, said that the Coca-Cola Facebook page, with three million visitors, isn’t even run by the company. (This sounded suspicious, so I checked it out and I’m nearly positive he’s right…except now the site has 4.1 million visitors instead of “just” three million. Good grief!) The bottom line? Companies need to love their customers as much as their customers love them. And, in this day and age, if you’re not giving your customers the proper vehicles for them to express their love for you…well, then they’ll just go and create that vehicle themselves.
To create a new connection with customers, all panelists talked about using social media (Facebook and Twitter, specifically) along with their websites. These media also provide nearly instantaneous feedback.
Gobe
Shoppers are buying “the highs and lows.” Like last year, many session speakers during the conference have grappled with the question of whether the customer has fundamentally changed or whether retailers are seeing a temporary shift in behavior. Tory Burch explained the change well. Fashion today is “about updating an outfit without having to go all the way,” she said, noting that accessories are performing well and highlighting eyewear, scarves, handbags and shoes as a way customers can enhance old favorites without breaking the bank.
It’s all about innovation. Some people speculate that the excitement of apparel is taking a back seat to gadgets like the Kindle and the iPhone. Though shoppers’ appetite for electronics is high, said Sadove, that doesn’t mean people can’t be excited by fashion. Instead, he believes, it all comes down to innovation. “The reality is, when there is innovation, consumers still want it,” Sadove said. “In the end…it’s about innovation and product. That’s what we need to keep vibrant.”
Also on the innovation front…remember takeaway #3 about using social media to connect with your customers and gain instant feedback? When Tory Burch tweeted about how much she hates taking off her shoes in airport security and joked that she should design travel socks, her followers inundated her with excitement. The result? Look for the socks by Christmas 2010.
One of my favorite elements from the engaging dialogue came at the beginning of the session, when Telsey Advisory Group CEO Dana Telsey asked Sadove to talk about the luxury market for the last few years. Watch what he had to say:
4 Comments
Hi Tory ! Your ideas are just fabulous – some that we think about but never enough to pursue, thank goodness your travel like you do…oh boy that sock will be a hit! Can’t wait will keep watching.
I”m excited for many reasons about the National Retail Federation and your connection. I am a Retail Sales Instructor for The St. Louis JOb Corps Center and wondering how I can make a connection to assist in getting my students certified here locally. I am certified Train the Trainer but trying to gather more information and or resources.
Great commentary, especially regarding point 3. Social Media channels have allowed brands to engage, communicate and above all listen to what their customers are saying. It’s also been a great way to not only build a brand a but to redefine it to a new audience. For example look at the recent success and press regarding Burberry’s http://www.artofthetrench.com Brilliant way of using social media and technology to build a following by expanding a luxury brand to a younger audience, without alienating your core customer.
@Roxie Scales,
Hello! I oversee NRF’s professional certification programs. Thank you for your interest in offering our customer service certification to your students. Our customer service credential adds value to training programs because it gives candidates a recognized professional certification, and one that is applicable to many industries (including hospitality, restaurant/food service, finance, etc). I was able to locate your email, so I’ve just sent you more information.
@Mike Scheiner,
Great point re: Burberry’s Art of the Trench. So brilliant because it allows customers to actively participate in the marketing of their signature product, without it feeling like marketing.
Tory, great ideas…agreed social media is the way to go for fast feedback & more diverse audience! Love your style!