The prospect of sudden change in retail is worrying legacy brands. I frequently speak to many different companies and their biggest concern seems to be around the collapse of intermediaries like department stores and other wholesale-related commerce. It’s as if everyone feels that digital is about to hit its tipping point and — even after all this time — no one is quite ready for it. Maybe a sign of this concern is the high volume of requests that our consulting team is getting to urgently workshop channel alternatives for major automotive, beverage, fashion and technology brands.
Right now, many legacy brands negotiate (and rely) on being placed in a particular space within a limited selection at department stores (and their online sites) and at other specialty retailers — but these intermediaries appear to be a relic of a traditional system of distribution of goods. That retail-distribution model has now been superseded by digital commerce and connected logistics. A whole bunch of new and disruptive direct-to-consumer models add real value for the consumer including a sense of discovery, social community and aspirational experience.
So, brands I speak to wonder just how long they have before the economics of the market corrects the mechanics employed.
Have you been talking about this with your colleagues and partners? What are your plans if the ‘middle bit’ of retail fails? What is your DTC strategy? From our point of view, the brands that will win in this new world of retail will be the ones that put shoppers at the center of their business — and build a structure so that every decision and action are customer-first every time.
Anyways — What We’re Seeing On PSFK
The New Discovery: We’re noticing how products are being introduced to people in the places they actually go to — not where they have to drive to. You can now buy clothes from your co-working space, or you can buy from startups from the local food hall. This exchange program also gives you a reason to visit a store again and again. And of course, there’s shopping while you binge: I’ve heard this idea since the mid-90s but folks are still trying to sell everything on the screen as you watch the show.
Speaking of TV, the stories on PSFK suggest that content producers are busy freeing themselves of the shackles of format. It’s interesting to see how entertainment and brands can adapt to a new world of channel specific delivery modes. We’ve seen Chipotle create a show for snapchat, NBA shooting video so that it works better on phones, and the Simpsons being recreated for VR. And now there’s TV streaming service just for kids.
The technology to shoot this stuff is changing too — Google has a camera that creates VR for Android and a new pocket camera has been built for the rigors of live streaming.
Smart thinking: Red Bull hacking old fashioned payphone so people can find out when the buses are coming.
Will tech end up giving us cuddles and kissing our boo-boos? Could AI save us from loneliness? Could VR offer pain relief? Would AR check to if the sea is free of riptides and/or sharks, can a spoon make the food go down better, could scent help you know when your privacy is under attack. It’s also interesting to see a video game respond to players’ emotions and an Instagram tool that helps folks from harming themselves.
There’s something to be said about being tiny: trailer hotels and the mini London pub.
A Day In The Life: Searching For The Tangible
I got a ride in a lovely Tesla X SUV the other day, and while I enjoyed all the fancy tech and performance, I felt myself missing an olde worlde detail : you can’t slam the door closed and listen to a comforting and hefty clunk! (You have to use a button for the doors like many folks use on your tailgate today). While we live with all this supportive tech, we seem to still yearn to use our hands — and we see that in stories on PSFK: we have modular kit DIY robots, create your own cameras, build your own shelters, inflatable movie theaters — and if you’re bored with your home — why not take it apart? Honda has a van made of 3D printed parts, this database helps you build your own street furniture and this transforming table has been buzzed all over the design web.
I do dream of some car company taking a note from an emerging interest in Jeep Wranglers that I seem to be noticing (despite current sales numbers). Could someone go against the over-tech trend and build a stripped-down super-basic (but super fun) electronic vehicle?
I’d buy one. Hopefully, direct of course.
Until next time!
Piers
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Founder | Editor-In-Chief
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