Posts Tagged ‘public relations’

Impressions of the Outdoor Retailer Show

First, I thought ORSM09 was a very positive show. Two things continue to happen. The stock market continues to move upward, reaching 9000 just before the Show. Second, this staycation thing is the real deal. People are staying home, taking up new sports, planning local family vacations, and the outdoor industry is benefiting.

It’s all working and our industry, although listing to port a little, is not capsizing. 

And I like the general attitude. “Yeah, things could be better, but we are still making some money, running a tighter ship, and we will make it through.” 

New media is growing in the outdoor space. Tweet-ups, constant tweeting from the Show floor, and many of the major brands looking at or engaging in the blogosphere. Outdoor Retailer is embracing new media and supplying more portals on the Show floor. All good. 

I still strongly believe that the Show should open its doors to the public on the last day. It will happen someday. It is inevitable. 

Now, to the darker side. I heard from several very reliable sources that a certain large retailer threatened several large brands if those brand did business with online powerhouse Amazon.

Let’s start with this. After too many years in the marketing business I must emphasize again that retailers and brands can not fight the market forces. For example, I remember about ten years ago, medium sized specialty retailers were running around the Show telling the brands that they would drop any brand who sold online. Several brands sought my advice. I asked this question,” where is your growth?” And they replied, “Online.” And I asked why? And they said, “Because we think that is where a growing percentage of the consumers will be.” 

Right direction. Right thinking. 

YOU MUST FOLLOW THE CONSUMERS. YOU WILL NOT LEAD THEM. YOU CAN NOT BULLY THEM. THEY ARE TOO BIG. THEY ARE IN CONTROL. THEY HAVE ALWAYS BEEN IN CONTROL. AMAZON IS GROWING FOR A REASON. 

So, to this large retailer, I say, you must stop this nonsense. Brands will follow the money. They will sell to retailers who bring them customers and offer growth. They have no choice. Their shareholders have put a bulls-eye out there and told management to hit it. Unless, you, large retailer, want to guarantee the returns necessary to keep these shareholders happy, then you must do it the old fashion way.

You must compete. You must continue to create a unique position in the marketplace, buy creatively, attract more consumers to your doors and online, offer great customer service and sponsor customer loyalty programs. You will sell more, and order more merchandise. And the brands will support you more. 

And speaking of support…how can you, large retailer, threaten brands when almost 50% of your floor space is now your own branded products? You, at times, drive consumers into your stores using other brands as the bait, and then you offer your branded products at a lower price while your salesforce whispers that your product has the same quality only it costs less.  

So you are partners with the brands, you compete with them in your own stores, and now you threaten them because they want to grow their businesses. No wonder brands are confused and, at times, angry.

You are a retailer. A damn good one. Probably, the best.  You have been solidly on the side of “good”. You have helped grow the outdoor business. Now, others with a different business model, want to do business and help grow the industry. Invite them in.  And sure compete with them, hard. But also talk with them. Educate them about expectations. Talk to them about the environment, sustainability and participation. Show them how to be a force for good in the business. Both of you will profit. Why? Because you are both capable of bringing millions more consumers into our business. And everyone will profit. 

So, be the leader that you are, and stop baring your teeth.

Peace. 

Out.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Window to the World

I found the below graph from eMarketer (done by Ruder Finn)  very interesting. 

Overall, Ruder Finn divided online activities into six categories, listed from most common to least:

     * Learn

    * Have fun

    * Socialize

    * Express oneself

    * Advocate

    * Do business

    * Shop 

Men were more likely than women to go online for business, entertainment and to keep informed on news and current events.

Women, in turn, were more likely to use the Internet to advocate for a cause or issue, express themselves and socialize.

More than two-thirds (69%) of young adults ages 18 to 29 posted comments on social networking sites, 55% played games and 50% went online “specifically to rage against a person or organization.” 

Okay, much of this data doesn’t surprise me. What does is that 100% of the respondents are going online to “pass time”. Pass time? Who has got the time to pass the time? Once I got past feeling sorry for myself, then it started to become clear. 

The Internet has become an entertainment center, information center, education center, and a conversation center. It is becoming all things to all people. So, that monitor that sits in the house, or in the office…it truly has become the window to the world. 

So, if you are an outdoor business, then understand that your customers, consumers you want to reach, your vendors, your manufacturing partners, your environmental and social initiative partners, your reps, your retailers, your employees and their families are all looking “at the screen”. For many it is the first thing they do in the morning and the last thing they do at night, with many many visits in between. 

Brands better be presenting themselves there. And they should educate, entertain, sell, and dialogue.  

Ten years ago this was a dream. Now it is here, with all of its advantages.

Go.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Brother, Can You Spare A Dime?

Recently I was in downtown Salt Lake and came across two people begging for money, clothing, anything. This time I looked closely, without the “go find a job” attitude that I normally carry. These were people who were looking for jobs. The signs were heartfelt, and I thought, authentic. I believed they would drop everything and follow me if I offered them a job. 

And then I started thinking about all of the excess inventory that the outdoor recreational industry dumps every year. Jackets, socks, pants, long underwear. Inventory that manufacturers try to hide from retailers by putting the stuff in the backchannels and then the product sells for dirt cheap. Or retailers try to hide excess inventory from the manufacturers by going online under another banner and selling stuff at a steep discount. (More about that in a post coming up.) 

Is there a better way?

I think so. Here’s an idea. 

Instead of dumping inventory into these back channels, take it and offer it to the out-of-work/homeless folks in ten major cities. It comes with a price tag. To receive the clothing package each person-in-need must sign-up for the brand’s environmental or humanitarian cause in that city.

Brand volunteers go out into a city and find the real people who want to work and contribute. These people get assigned to a project and are told where and when to show up. River clean-ups, parks, beach clean-ups…there are a millions projects out there. 

The projects last for a weekend. On Saturday and Sunday…breakfast, lunch, and a dinner will be served to the homeless at the project locations. At the end of that weekend the volunteers get a great clothing package from the outdoor manufacturer. 

Local retailers would volunteer and offer other types of support… and benefit by having their establishments featured in the local press. 

Can you imagine the public relations benefits of such a program? Every local television station would go “live” from a volunteer location. Radio and print would be all over it. And in ten cities. Get your PR folks to talk with the big guns…like The Today Show, GMA, etc. Would this appeal to them? Uhhhh, yea. A manufacturer giving back to ten cities and to the folks who need some help. Headline:  Manufacturer, Homeless, and Local Environmental Groups Combine To Make A Difference. 

And new media would take the story and run with it. Outdoor blogs. Green blogs. Political blogs. Big time. Bloggers would be wondering how else we can employ the unemployed for the benefit of all? Twitter would be on fire with the brand volunteers, press, bloggers, etc.  who witnessed these events. 

So, instead of dumping product, a manufacturer is putting that clothing to good use. And leveraging it by getting more publicity then that manufacturer has gotten in the last three years-combined.

Too expensive? How expensive is it to find a home for all excess inventory that disappears without profit, with no benefit to the company, and all the while contributing to price erosion?

So find a home for that excess inventory in a place of gratitude, work, and good will. Who knows, the company might change lives, and those are follow-up stories worth gold. 

Outdoor recreation has soul. I’ve seen it. Show more, and the benefits to the company will come in all forms.

Homeless person to a brand representative:  ”Thank you for the long underwear. I’d like to help further with the clean-up. Will you be doing this again?”

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal