Retailers need to ask themselves what is driving shoppers to their outlets, and I would not hesitate to give you already an answer. It’s DIFFERENTIATION.
I remember visiting the Jewish neighborhood in Antwerp, Belgium, where you could find dozens of jeweler’s, gold and diamond shops all next to each other in a same neighborhood. How is that possible - all competing with similar prices, same products and in the same location? Putting their businesses together these retailers are actually differentiating themselves through VARIETY. The message they transmit is double. As there are so many of them, consumers perceive they will find anything they are looking for. But also, in such an environment consumers perceive prices need necessarily to be fair if businesses want to succeed in the long term.
In the coming posts I will analyze some retailers in detail.
posted by Ignacio Molins
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