Retailers can no longer focus on getting the customer to come to them, according to Mindy Grossman, CEO of US-based interactive retail group HSN Inc.
Grossman, who will be a keynote speaker at the World Retail Congress in Berlin this April, believes that customers need access and service on their own terms.
Inside Retailing is an official congress Media Partner.
HSN is a US$2.8 billion interactive, multi-channel retailer with two operating ssegments, HSNi and Cornerstone Brands. It offers retail experiences on TV, online, in catalogues, and in brick and mortar stores.
Grossman says her group is in a good position to take advantage of the current retail climate.
She says HSN has a unique and differentiated business model that allows its 24/7 network to identify shifts in consumer behavior.
"We measure our business by the minute and can shift in real time to both maximise and mitigate based on trends. In 2009, our ability to see these shifts allowed us to make critical changes to assortments, programming and marketing -- and that will continue to be a key priority in 2010," she added.
"Another immediate business priority for HSN is to own the future of transactional innovation across multiple platforms using content to create communities and to drive commerce.
"We have already made significant strides and have been at the forefront of innovation: We are the only retailer that streams live video on three screens: TV, Internet (with over 12,000 videos on HSN.com's product pages) and mobile (via our iphone shopping application).
"We have also had great success in enabling our customers to shop with HSN by using their remote control through our "Shop by Remote" technology, currently available in more than 25 million homes in the US, and now they even have the ability to shop with us in-flight. "We will continue to offer our customers with innovative ways to access our brands and products whenever and however they want to shop."
Grossman said there has been a shift in the consumer's psychology of acquisition.
"The wild days of abundance and status for status' sake are no longer relevant. Customers are more discerning in both their product choices and with whom they choose to have a relationship," she explained.
"We went through a period where functional trumped emotional as consumers redefined the difference between a "self" and a "selfish" purchasee. Value has also been redefined, and consumers expect more from both the product and the experience.
"Now, customers are re-engaging with more discerning purchases, such as jewellery, apparel and accessories, but the product has to be unique, special and do something for customers emotionally.
"Special" has become the new status. Our product assortments in these discerning categories are over 90 per cent proprietary to HSN and that creates a competitive advantage as we can offer a broad selection from both existing and new designers and brands that customers cannot find anywhere else.
"As many traditional retailers pared back assortments and service, we were able to provide a personal shopping service that was brought to life on TV, online and mobile, giving our customers instant access 24 hours a day."
Retailers need to offer alternatives, Customers need access and service on their own terms -- and locking them into a specific place and/or time is not realistic.
"Customers, particularly women, want their needs and lifestyle challenges to be understood and respected. They want respectful, intelligent and authentic communication. Helping them make the right choices, becoming a trusted adviser, and, in essence, an advocate for the consumer creates a completely different dynamic and bond with one's brand," Grossman explained.
"Today, customers are much more discerning and expect more. HSN has been pursuing a strategy of offering consumers "more" - more unique and exclusive products, consistent price value, and more accessibility over multiple platforms from TV and Internet to mobile and in-flight.
"On the technology front, being able to use content to leverage online broadband adoption, interactive television, Video on Demand, social networking and mobile platforms to give the customers access to commerce on their own terms is critical. However, it needs to be intuitive and relevant."
Retailers who focus on and really know their customer, effectively manage inventory and working capital, provide quality and strong price value, and create a differentiated product and shopping experience will be best positioned.
"It is becoming increasingly important to provide interactive services and to continue to offer more robust and unique e-commerce options as those will be a main driver in the future of retail. Technological advancements and new ways to shop will give retailers that competitive edge," she added.
Source: HSN