A number of articles have appeared on news websites in which the principles and thinking behind 5-D Value, in particular the nature of value in the Dimension Deep-Connect, are applied. Specific reference to the management framework 5-D Value and the value dimensions Degree etc. is however not drawn in the articles.
Amazon and Macy’s in the USA as well as Marks & Spencer and Sainsbury’s in the UK have introduced an app for checkout-free payment in stores. In-store mobile services can link the customer’s shopping basket to a range of information for each item including sustainability and more healthy alternatives, which is pertinent for customers because the products are on their minds exactly at this time. This information also serves to promote the retailer’s overall value proposition and binds the customer to the retailer.
Retailers always have sold consumers on the benefits of their products. Today, they must also explain how a retailer’s products can help save the planet and improve the living and working conditions of people. Here are examples of retailers doing it well and 5 suggestions of how each retailer can improve the sustainable value it offers.
Online retail is constantly accused of destroying downtown communities due to running stores out of business. In fact, e-commerce builds communities in a viable manner, suitable to the modern world, by making them sustainable. Online retailers can secure a successful future by becoming the nerve center of virtual communities united in sustainable value creation.
First-mover advantages for fashion retailers in second-hand clothing: As part of the turn towards sustainable shopping, consumers are increasingly buying and selling preworn clothes. Fashion retailers entering this trending business area can treat the source of the second-hand clothes, the consumer-seller, as a kind of business partner, with mutual benefits in buying and selling. The retailer fashioning the best relationship with such hybrid partners can deepen the tie with more customers, thereby raising engagement and market share.
Conventional wisdom says the customer gains a more meaningful impression of products in a physical shop rather than online. However, the internet offers great potential for wide-ranging information from different stakeholders, smartly packaged by the digital retailer using multimedia, drill-down and linked information. An online shop can communicate a fuller picture of the benefits for customers and satisfy their growing interest to understand the impacts of the product on business, society and the environment.
Clothes are being handled like cars – and why not? Digital fashion companies can learn from the auto industry in building deeper relations to customers by treating them newly as business partners who supply apparel. Together with re-fashioning the value chain, there are opportunities for online clothes retailers to raise their market profile and market share. And also help the environment to boot.
Three marketing aims are prominent for ecommerce companies in the coronavirus crisis: managing customer disappointment short-term with delivery delays, stimulating spending medium-term despite falling consumer confidence, and ingraining the online habits formed in the crisis into long-term shopping behavior on the web. Measures to achieve these aims include a personal story of innovation in logistics, giving consumers the sense that they are building savings while still spending and making online shopping into a social experience. Digital retailers will benefit from more loyal customers as well as personnel, business partners and investors who are enthusiastic at the retailer’s creative response to the crisis.
Retailers today face bottlenecks in their online delivery, depressed consumer confidence, and the need to engage customers now and when the shops open again. The challenges can be met by telling a memorable story from the supply chain, helping customers build up savings for a future outlay and making shopping an enlivening group experience, online and offline. Customers will be more loyal and other stakeholders will be reassured to see the retailer doing its best in the crisis.