My Half Hour at the New York Internet Week HQ Expo
Last Thursday I took a walk over the Internet Week HQ Expo in NYC. It was the first time in my life I felt out of place because I didn’t have an iPad. Then, when I pulled out a pen and paper to take notes, it garnered looks as if I had pulled out a telegraph machine to order a pizza.
Anyway, I did have a purpose to being there. PSFK, a trends research and innovation company based in NYC, was leading a conversation about their analysis about the future of retail. The discussion was short, but rather enlightening. The topics were mostly centered on how social media integrates with and shapes both the traditional shopping experience and emerging retail platforms, such as mobile retail (imagine J. Crew crossed with a taco truck).
Mobile Retail
Outlets like Facebook, Twitter, and even Foursquare (maybe) have given retailers an alternative to the traditional brick and mortar store. Using social media to update consumers on their locations, startup retailers now have the option to make their business mobile versus remaining stationary. It’s a rather innovative idea that puts a new spin on the entire shopping experience.
Why do any of this? To quote one of the PSFK guys on the panel, “When your store is mobile, the entire world is your retail space.” It also lessens the worry that a competitor will move in across the street, and could give startup businesses a chance to compete with national corporations. Traditionally, a national chain can simply buy up large amounts of expensive real estate if they feel they can cut in on a budding business. However, if that budding business is mobile, it forces competitors to think beyond location and more on how to attract consumers. Additionally, a mobile business can do its own market research by moving from place to place and finding its own hot spots – Kind of like trying to find service on your iPhone in Manhattan.
A number of other innovative factors are involved when integrating social networking, retail, and mobile retail. For example, I asked the guys there if they felt that being a mobile retailer rather than a traditional one would entice consumers to purchase more regularly. Something I dubbed “The Ice Cream Man Effect.” Consider how kids lose their minds when the ice cream man shows up because they’re so afraid to miss out (Eddie Murphy portrays this very well in the single greatest standup concert of all time, Delirious).
If you follow a certain mobile retailer on Twitter and realize they are parked outside your office that afternoon, you may feel more enticed to visit or purchase something that day. The PSFK guys agreed that creating that exclusivity and all-around different shopping experience was definitely more exciting and interesting for consumers. But generating that interest and creating that buzz will remain a challenge for businesses and marketers. Should many businesses move to mobile retail in the future, this could become not just a novelty, but the lifeblood of their success.
The Power of Group Buying
For those retailers who remain cemented into the ground, there are still new ways to incorporate social media into their shopping experience. Social networks can be intoxicating. The more people around you that are doing something, the more likely you are to also do it. Time magazine posted an article two months ago about social networks and their impact on drinking habits. Similar to drinking habits, purchasing habits can also be influenced by those around you.
So, how are retailers capitalizing on this? The best example given during the discussion was about Diesel Jeans retail stores capitalizing on social shopping. Apparently, they are experimenting with putting a webcam outside their dressing rooms. This way, you can try on something new, come out of the room, snap a picture, and immediately send it to your BFF on Facebook for a reaction. (Hopefully the response is nothing short of “Fabulous!”) If your friend likes what you tried on, psychologically you’ll feel better about buying it, even if you don’t like it yourself.
Where Do We Go From Here?
Having all of our fans and thousands of followers at our fingertips is certainly expected to change the way we communicate and advertise our businesses. But if the PSFK research proves to be true, social media will have an impact far beyond social media and promoted tweets. The entire dynamic of the retail world will be altered.
As word of mouth becomes more and more important, businesses will be forced to focus on what is best for the consumer and not just for themselves. Similarly, as mobile technologies advance, competition will no longer be across town, but rather in the same pocket as your own business, just a click away. Comparison shopping and customer reviews will all be available at a simple touch of the screen. While this offers a wide range of concerns for retailers, it also opens the door for many different opportunities. Those that are able to capitalize on these could flourish. Those that do not could be left wondering where that taco truck went.
