To put it simply the global economic melt down is not a bad thing for the retail industry or your wardrobe in the long term. “Why I hear you scream?” Once again simple, by the end of the rocky road to recovery the market will become unsaturated and the focus up until and well beyond that point will be you the consumer.
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Companies that lack solvency bring down those companies who have been bothered to operate from a stable business platform. I guess you have heard of the term “loose canon” or “dead man walking” well for far too long companies that have been hanging on by the skin of their teeth have been eating away at those companies who have built themselves up with strong financial foundations and maintained their position through good financial management, transparency, drive and adaptability. The perverse thing being that many companies were willing to idle through the good years of boom, living on the crest of a wave and act surprised when the inevitable occurs. They failed to plan and guess what, failing to plan equals planning to fail.
The loose canon company is living from day to day. In an economic upturn this is fine as their shaky foundations will be masked by high sales volume and exaggerated growth. In recent years, well the last 15 years retailers have forgotten the key ingredient “profit.’ The loose canon company continues along its path of discounts, special offers and giveaways which in theory suit the consumer, because hey “it’s a bargain.’ But, is it really? These discounts and special offers are almost certainly made possible by old stock or discounted stock that the retailer has been able to obtain from its supplier. Who I might add is only too happy to move this stock on to free space up in his warehouse. The result is the consumer ends up with a promotional or discounted product that is pushed by the sales staff. The product does not fulfil the needs of the consumer, or does for a time, until it is quickly out dated by a new release. However the loose canon doesn’t care because the sales box is ticked. This is a triple whammy of misconception and failures. The company has completely missed the point and probably hasn’t made a profit, the consumer goes away with a poor product and to top it off the sale that has been made won’t retain the customer for future business.
This attitude toward sales and products brings about an inherent stagnation. Originality, quality and service go out the window. The consumer is faced constantly with mediocrity. So what does this all have to do with the economic meltdown being good for your wardrobe?
Well the fact is that once we as a county, or should I say world rise from this festering heap of over promoted mediocrity and the wheels of economic rehabilitation begin to turn, you the consumer will be looking at retailers that have come out the other end and will be doing anything they can to please you. Now I don’t mean special offers and discounts. I mean quality products provided by retailers who have a firm grasp of reality. The focus will have flipped 180, away from sales, sales, sales of mediocre products for the sake of sales. Too providing high quality original products with great service so as they can retain their customers. Why the big flip? Because quite simply the retailer will have realised that without consumers, retail is nothing and the retailers who did not provide such services prior to the crash of 2008 lost their consumers first and hey presto BANG!
Anyway the retailer lost his way, but sometimes things have to get terrible before out the other side comes a corrected way of thinking.
Now I guess some of you are shaking your head saying crazy fool. Well look at these examples of flip therapy already beginning in terms of product change.
Auto Industry – Investment has already begun in electric cars. Although possibly too late for some companies in the long run this investment will ultimately provide a higher quality product. Our regular run of the mill vehicle will cease to be pushed and we will have a product that truly serves the needs of the future public. Lower emissions, cheaper to run and quieter.
Food – Actually the food retail sector was ahead of the game on this one. Over a year ago high street supermarkets began introducing products with nutritional guidelines printed on the packaging. The products as a result improved in quality, when consumers can see in black and white what they were purchasing, it is of far greater importance for the producers to ensure that the product they sell is high in quality and nutritionally balanced.
Bank lending – The apparent ‘Damien’ of our current plight. Up until 2008 when Northern Rock hit the panic button, consumers in the UK were allowed to borrow over, or up to 100% of the value of a home they were to purchase! Who came up with that bright idea? Seems crazy when we look in hindsight, but because it was pushed by the banks and corporations and no one in authority thought to put a stop to it, the consumer jumped on the band wagon and accepted that it was a good deal. No, no, no, no. The banks were not caring for their customers as they should do; they were crucifying them with overburdening repayment schemes. However the banks have now begun to return to offering mortgage packages up to 70% of the value of the consumer’s home. This is a balanced approach that better serves the needs of the consumer and backs off the sell sell sell and any cost attitude. Ultimately the mortgage consumer will be better served by a process suitable to their needs.
It is however difficult to see beyond these examples at this time because in reality we have a long way to go to truly revamp the services and products that the world desires. Here is a list of examples of what could be improved to better serve the needs of the consumer in the UK across various industries.
Internet service providers – Although in the UK we pay one of the highest premiums for broadband service to our homes. We receive one of the slowest connection speeds in the world and limits set on downloads are burdensome. Not only that when a problem is reported it can take up to 7 days if not longer for an engineer to attend. In comparison developed nations in Asia receive internet broadband more than ten times faster, limits on downloads are rare and an engineer will attend within 24 hours.
Clothing – In the UK we are faced with expensive clothing that can be indifferent in quality, Consumers in the UK spent 48.55 billion pounds in 2003 on clothing, footwear and accessories. The products we receive should be of higher quality and increased environmental and ethical responsibility.
Products and services in the UK will be drastically impacted by this recession. In the short term this may have detrimental affects upon consumers however further down the road, I am positive that the consumer in the UK will emerge in an enhanced and fortified position of strength.
Raise a well made highly polished glass to the seeds of change.
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