Who's Shopping Where?

The results of November's election present Robin Albing and her firm, Albing International Marketing (AIM), with a challenge. If there's really a red/blue divide in this country, does a manufacturer market to both in the same way? And how do "values" reflect on the home business? AIM, based in Flemington, New Jersey, works with clients in the gift, housewares, and tabletop industries to help identify new channels of distribution. Albing admits that most of her clients are based in blue states, and wonders if they may have to use a different approach to reach customers in Sioux City than in Sausalito.

AIM starts its process at the end of the selling chain, with consumers who are doing more cross-channel shopping than ever. Young couples are likely to register for weddings at both Neiman's and Target. There's no longer a stigma attached to mass market merchants, as all levels of consumers look for the best price. On the other hand, many lower-income consumers are familiar with Saks; they may not spend money there, but they know what the store has to offer and they're not intimidated by its image.

Albing sees huge possibilities with the next generation of consumers, the millennials or Gen-Y, age five to 25. Sophisticated and well-educated, with plenty of disposable income, millennials are the children of Boomers, and unlike generations past, there's not a lot of generational conflict. Gen-Y is not rebelling against its parents. In fact, they often share experiences; an 18-year-old may be discovering his dad's favorite musician, Bob Dylan, while a mother and daughter may shop together at J. Crew. The first market to really feel the impact of Gen-Y will be the wedding products industry — and that's just around the corner as the first wave of millennials enters its late 20s.

Kids, of course, are influenced by what they see on television, though not necessarily by what you may think. Jamie Oliver, The Naked Chef, is like a rock star to them, as is the grilling guy Bobby Flay. Albing sees Gen-Yers as young as 14 and 15 being "into" TV's cooking and makeover shows. And she sees real licensing opportunities for properties like Queer Eye for the Straight Guy.

Ethnic influences, especially Asian, are also affecting consumer behavior, according to Albing. Large Asian communities are quickly becoming Americanized, but with their own flair. On the other side of the ocean, growing consumer markets in Asian countries such as China and India are demanding certain kinds of products, which will influence the global market.

And while the U.S. remains multicultural, the lines between cultures are not as sharply drawn as they once were. Many young people have multiethnic backgrounds, resulting in a desire for what Albing calls "fusion home furnishings." Generational differences also affect the way people shop. The older Hispanic consumer may still shop in a local bodega, while younger shoppers buy at Wal-Mart.

Finally, we live in a mobile society, with people moving from region to region for business or personal reasons. Because of that, Albing thinks that the blue/red divide may not be as pronounced as it seems. As Americans move about, they're influenced by the cultural differences they encounter from community to community, and that, in turn, affects the way they shop.

One factor greatly affecting where and how consumers shop these days is the time crunch. Mall strolling and "ladies who lunch" are out. Shopping as entertainment has been on the decline for decades, except in some tourist destinations.

Home shopping parties are one solution for the time-pressed consumer, as the stigma associated with suburban Tupperware soirees has pretty much dissipated, and new consumers find pleasure in the social aspects of party-shopping. It's also convenient for mothers, who can work from home, and has found fertile ground in Asian and Hispanic communities. The new home shopping parties include hardware products for women as well as golf gear for guys. Brick-and-mortar retailers like The Body Shop have also entered the arena.

Kohl's department store is another channel that has adapted well to today's customer needs, says Albing. The retail chain, which is reminiscent of the old-fashioned, "not dreadfully upscale" department stores she knew in the Midwest, has the feel of both a semi-department store and discounter. With its racetrack configuration of wide aisles and cart access, Kohl's is easy to shop and saves time. But most of all, people feel they're getting a good deal.

Specialty chains such as Bed, Bath, & Beyond have also changed the way people shop for home products, much to the detriment of the traditional department store. Today, even as they try to reinvent themselves, there seems to be little reason to shop in department stores, with home departments that are "pretty sad," according to Albing. One solution may be to scale down department stores and focus on more unique products. In the meantime, consumers are buying hostess gifts at TJ Maxx and Marshalls, and Expo Design Center has expanded its housewares department.

In pursuing today's consumers, Albing's clients have been willing to switch distribution channels. Yet they're more likely to switch from one traditional channel to another. Albing wants them to think outside the box, to pursue "stealth channels" such as Cracker Barrel restaurants and Starbucks. But many of her clients haven't even been in a Cracker Barrel because they don't consider them "cool." On a recent visit to Seattle, she was surprised by the amount of gift product at a Starbuck's store in University Village. "Think if you had your mug in every Starbucks on every corner," Albing muses.

There also remains a lot of potential for reaching new customers on the Internet, as its annual growth rate shows. Even though we're inundated with daily email (and end up deleting most without opening it), there are usually one or two messages that catch our attention.

Another untapped possibility is furniture stores, a market that's currently in a state of flux. They're not the kind of stores people go to for impulse purchases, Albing notes, but some are beginning to look to Europe, where consumers buy home accents at furniture stores. It's one of the biggest channels of distribution for tabletop companies, for example.

Where does this leave independent gift retailers? There's a place for them, according to Albing, but it means constantly re-evaluating what consumers are shopping for. One merchandising technique that's working well is the concept of a treasure hunt, which lets the customer think she's finding something unique — as if on a treasure hunt in a bazaar. That means letting a little disorder rule: products may appear to be in the process of being unpacked; other merchandise may be piled on tables. That won't work, of course, where a store's image and product lineup is based on organization, but in other shops it lends excitement to the shopping experience, and encourages repeat visits.

Independents also have to make sure that what they're selling is very different. This may be hard to do, since so many chains are going directly to overseas manufacturers. On the other hand, those chains aren't going to trade shows or buying products off the shelf, which gives independents an opportunity. Also, working with other retailers can be a big advantage. By establishing a buying consortium with four or five others, independents can buy at the European shows, for example.

Retailers should also look to the web. There are a lot of things independents can do with a good website, and it's cheap to maintain one now. If a store is doing customized stationery, for instance, customers could go online to proof their orders.

Location is another feature that the independent retailer must constantly be aware of, since consumers are changing where they shop. If the shop's in a mall, it's going to be hard. Some of the newer open air malls are attractive, and even some strip malls — which are nothing to look at — have high volumes.

In the end, it's going to be the innovative, committed independent retailer who succeeds in today's market by convincing Albing's clients that the corner gift shop continues to be a viable, profitable channel of distribution.

Robin Albing and Albing International Marketing (AIM) can be reached at www.albing.com.