Also from Tom Redd...
Retailing with Precision
November 27, 2012
Consumers showed no indication that they were letting up on online purchases on Cyber Monday despite having already spent a record $59.1 billion over the four-day Thanksgiving Day weekend. What are your takeaways from the performance of online retail so far this holiday season? [more...]
PRICE ...PRICE...PRICE! After watching my 24-27 year old kids jump on the deals over the past 5 days, the core of their actions centered on PRICE. This was best price on heavily promoted items, or deals on items from standard "sales." Not new to any of us, but read on....
One of the kids needed a new Christmas tree for the apartment -- since the occupant finally got out of our basement and is in his own place, he found that he is responsible for his own tree, decorations, and being Santa for himself. He found a great deal on an artificial tree after comparing online and in-store. The store beat the online prices. Same for his new electronics (PC).
So, for the future, the reality is that price and selection (assortment) are the deciders. Online vs. store -- if my kids have to drive 30 minutes to save $30 on a pair of shoes they will do it. Mobile and online are great channels for some shopper segments, but my guess is that a majority of the shoppers still want PRICE vs channel.
They may shop mobile but they BUY on price and they BUY based on the channel that gives it to them the fastest. These are the Millennials...this is the future.