Friday, June 6, 2014

It's Elemental

Hello everyone, is it summer yet? Last week I was telling you about Rugrat bags and Indian Red tape, you can read it here.
Well it's June and sun or not, folk have holidays on their minds. If you're not on holiday now, then you will soon.
The good news for retailers (especially those in holiday spots) is that nothing loosens the cash in your pocket more than being relaxed and having a good time.
I have been reading books about Behavioural Economics recently. It's absolutely fascinating. Basically a new science, studying why we do things and the relationship humans have to money. Every retailer should study it, because the human mind is less under our control than we imagine. I was a retailer years ago, and I learned all the usual tricks like; Don't block the doorway, make it open and inviting. Put stuff to the left of the entrance you really want to sell (people scan/read from left to right). Keep the shelves well stocked (but not absolutely full), sublimely people don't often buy the first one.. they think it's not popular. Or if there is hardly any on show, then they can't be popular either. And so on.. you know the tricks already I'm sure.
But this guy, Dan Ariely who pretty much invented Behavioral Economics takes this to a whole new level. Check out his Ted Talk. Remember you heard it here first.
Since that talk, lots of smart people have jumped into this area and there are new books coming out all the time. The top companies like Facebook, even employ Behavioral Economists as directors.
Check out the book: Hooked, how to build habit-forming products. by Nir Eyal It's worth reading on the beach this year, if only to find out how Candy Crush is messing with your mind.
About six months ago I asked for advice on buying scarves.. our plan is to be market leader in the wholesale scarves market within a year or so.
You were incredibly generous, and flooded me with ideas. One thing we learned was that there are (broadly) two types of scarve markets..
1) The cheap and cheerful, wear a few times and ditch. Bought by younger people or bargain hunters. - Polyester or Rayon - retail range £1.75 - £6
2) The added value, gift to someone special, or for yourself if you like good things. Cotton, Linen or Silk - retail range £7 - £18 and upwards.
To sell well, cheap or premium they need to be a good price/value combination.
I went to China, India and Indonesia in search of such things.... and the fruits of those trips are just beginning to come now.
Some of those scarves are beginning to arrive.. Some ready for the winter market, see our Men in Tartan (Ok Father's Day as well), and some are cool accessories for the summer season.
Check out our Elemental Scarves - which really are a product of all the feedback and ideas we received. They are in our Cheap & Cheerful range.
You can buy packs of 12 scarves in a range of elemental colours, the scarves themselves are graduated colours, meaning they will blend well with more outfits.
Synthetic material, but feels like cotton and in a nice textured rebel look. Light and floaty. The perfect Summer accessory.
So even if you only buy one pack you will have a range to sell, but better a pack of each of the four ranges to have a scarf to match any outfit.
I think they will sell well at £2 each, or you can offer 3 for £5 - still a good margin and if displayed well.. a flier.
Have a great summer!!
Take care.