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Made in Italy
Agenda
Industry InfoCurrent Retail TrendsConsumer TrendsShopper PersonaMade in ItalyConclusion and Suggestions
1.Industry Info
Competition & Market Size
Size of Home Decor Market
2.Retail Trends
Surge in Off-Price Store Openings
■ Consumers want to shop for value at a low cost
■ Off-price retail industry rapidly taking market shares from traditional retailers
Impact:■ Allows for greater growth potential for
HomeGoods■ Long-term potential of over 1,000 stores
according to 2016 study
■ Shade or color in season each year, especially in home decor ❏ International home and houseware shows
held to display what’s in so retailers can instantly appeal consumers
Impact:■ Consumers engaged in home decor and
design, focus on the trends of the latest shades and colors ❏ Potential loss of loyal customers if not
up-to-date
Shades & Colors in Vogue
■ Before customers enter a HomeGoods or house ware store, they like to do research on the products so when they go into the store, they know exactly where to find items.
■ E-commerce sales are increasing over 15% than the previous year. Mobile and computer purchases are much easier for consumers, they know what they want from HomeGoods so why go in the store if you can get it directly sent to your home.
■ In the future this could become an issue if sales continue to increase; HomeGoods will be losing conversion and in store sales which could later cause the closing of some locations if need be.
In-Store Shopping is Preferred by Household Good Shoppers
❏ Impact on TJX:■HomeGoods is doing it right ■However, trend must be monitored!
●Increasing amount of online-only furnishing companies (i.e. Wayfair and Hayneedle) have been changing the game (IBIS World)
●Consumers like to be able to compare prices, read and write product reviews
●In the home furnishing industry, e-commerce sales are expected to rise at an annualized rate of 10.6%
3.Consumer Trends
Reward Programs
■ Consumers want to know about the latest deals■ Impact:
□ Rising competition such as Ross and Burlington both have well promoted rewards programs
■ How to Differentiate□ Utilize location based notifications□ Use App to give deals and inform customers of new offers
Reward Yourself
■ 34% of home decor shoppers are buying because they see it as a way to “treat” themselves
■ Customers to treat themselves without spending too much money
■ Marketing campaign: Treat Yourself□ Tax Refund Season
Video and Digital Content
■ Consumers looking for retailers with personality, that can inspire their purchases with creative content
Impact:■ Majority of population are trend followers
❏ Content Creators are young brands❏ Shoppers are trusting and loyal to content creators
❏ Blogs about trends❏ Active social media❏ Videos on unique products❏ Decorating idea videos
4.Shopper PersonasVeronica, Susan, Carol & Jeanette
■ Age 20
■ Driven primarily by price
■ Responds well to sales and promotional discounts
■ “Italian goods are so well-made and make me feel like I am splurging on something luxurious”
Value VeronicaThe Value Conscious Consumer
Supermom SusanThe Variety Consumer
■ Age 45
■ Shops for unique pieces that tie together a room
■ High quality
■ “I really like buying Italian goods because I know I’m getting a well made product at a reasonable price.”
Carol & JeanetteThe Budget Browsers
■ Age 60 (baby-boomers)
■ Spends the most time in a store before purchasing
■ Less likely to look at non-sale items until they’ve seen what’s on sale
■ Often think of other family members when shopping
■ “Something that was made in Italy would make the perfect gift”
5.
Made in Italy
■ Homegoods team visit❏ Kitchenware, decorations, food
■ “Made with love”❏ Handcrafted
“Made In Italy”
What does “Made In Italy” really mean?
Does Made in Italy Matter?
■ Here’s what we learned from our survey:□ Made in Italy’s value depends on the
product□ Customers are indifferent over country
of origin▫ Known brand names matter
□ Quality > Country of Origin
6.Our Conclusion and Suggestions
Food Department
■ “Healthier” alternatives❏ In-store products were mostly typical
Italian foods; i.e. pasta, wine, olive oil❏ Combine Italian culture/lifestyle with
popular American ideal of healthy lifestyle➔ Gluten Free Cookies
Home Good/Decor Department
■ “Made in Italy” products are mainly in kitchenware and kitchen accessories❏ Find an italian silk flower supplier❏ Floral department is fasted growing at Homegoods,
take advantage of consumers willingness to spend more on Italian made products
THANK YOU!