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Outdoor Retailer and the Winds of Change

Recently Outdoor Retailer brought out some cost-cutting measures designed to ease the price pressure for manufacturers and traditional retailers. Attendance at the shows has been dragging. So booth pricing was cut along with some other stuff. It’s a start, but it does not address the challenge.

Here is the challenge.

The distribution system has changed. The minute manufacturers agreed to sell online then consumers became the 800 pound gorilla in the distribution system. They wrote product reviews. They expressed opinions on blogs. And they twittered about their purchases. They now are directly in the loop and they like it.

Traditional retailers are still players in the distribution system, but not the only player. And that is what Outdoor Retailer apparently fails to understand.

Here’s the line-up in the distribution system:

1. Traditional Retailers

2. Online Retailers

3. Small online “sellers” that are in the shadows…selling product that manufacturers may not even know about. (More about that in another blog.)

4. Manufacturers selling goods online.

5. Large Product Review Sites…these invite consumers to review, then publish to the public with relish including online links to retailers offering the product.

6. Platforms that offer a mix of brick and mortar and online.

Five of the six players in the system offer feedback loops for consumers to respond with a product review. Millions are doing so.

84% of consumers list online product reviews as key to their purchasing decision reports SIA. And I have tons of back-up research pointing to about the same thing.

Until OR addresses the consumer by opening up the Show to them for the last day, all other cost-saving measures that they employ is window dressing.

Why? Because OR is about cost-effectively selling and buying product. (We’re all in one place.) It is not about saving money. And more product can be sold and more on-the-sport feedback received when the 800 pound gorilla is in the room.

And if OR doesn’t address the changes in the distribution system, then manufacturers will be forced to.

What does that mean?

Money away from Outdoor Retailer, which will now be known as the “traditional trade show”, and money into an outdoor consumer trade show that will grow so rapidly it will make your head spin.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Facing Forward

 

The last day of the OR Show is basically a throwaway. Many retailers are gone. Senior management is gone. Those still at the show are shopping for discounts and all are just waiting for three o’clock to break down the booths. Let’s open the Show to the public for the final day. Invite all of the bloggers, the influencers, and the public. Charge them 5 bucks at the door to see the new stuff. And then watch what happens. 

It will be jammed. Traditional media will cover the event, in advance, due to the newsworthiness of admitting the public.  Booths will be crowded with consumers asking questions. Athletes will be on hand to talk with the public and pose for pictures.  Bloggers and influencers will be asking questions, taking notes, and preparing to write reports as soon as they get home. And traditional media will be doing reports live from the show floor. The energy of Day 1 and 2 will not only have been restored, but doubled. 

And what about the retailers? They should be smart about this. Take the opportunity to invite all of their customers to the show for this final day.  Will customers get on a plane and get to the Show? Doesn’t matter. The very fact that retailers are inviting them as their guests on the Show Floor will only increase customer loyalty. And why not take the five top customers to the show as guests of that retailer? Work out the travel and lodging in advance. Make it work. Then take pictures of the customers on the Floor. Put it on the web site. And do you think those customers will talk about their experiences when they got back home?  Oh, and one more thing. Work a deal with the brands so that you can bring back some new product so all of your customers can get a sneak peak at next year’s offering. Make the OR Show a storewide event. 

Buy in from the companies will be automatic to this public day. Why?  Because it is their chance to talk directly with consumers. And consumers are direct customers because companies are now selling to them online. Influential bloggers should be identified in advance and personally invited to the booth for a product line review. Companies should know which of their best retailers are bringing guests to the booth and senior management should be on hand to greet them. Management, reps, pr, product development and marketing should be engaged all day long. Why? Because this is monster leverage. A company can create more marketing momentum in one day then in the previous six months. 

And OR? Its pr effort ought to be in high-gear pre public day. And then it should have the common sense to get out of the way. Let it happen. And then post public day, report the results. All good for OR. 

So, it’s time for all of us to face reality. Retailers can own the show for the first three days. On day four, open the doors and let the great unwashed in. The time for exclusivity is over. Over. The time for inclusion, openness, and a new business model is here. Every one of us will benefit.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal