Almost every day there are more and more articles on massive retail store closings (especially larger department stores) throughout the US. With thousands of stores closing, could this be the death of brick-and-mortar retailing? Hardly.
To get a better perspective of what is happening to department stores it is helpful to see how their current retail model originally developed and evolved. Beginning in the early 20th Century, department stores consolidated several independent specialty stores under one roof: hat shops, dress shops, accessories shops, jewelry stores, shoe stores and perfume shops. The department stores eventually followed consumers to suburban areas with shopping malls, the department stores being the “anchor” for other stores in the mall. This model worked well for over 100 years with the whole point being the idea that shoppers could buy a variety of clothing and accessories from one trip to the department store, but this century-old model is breaking down for the following reasons:

1. Online sales. This reason is the one everyone reads about, but it is not the biggest reason for brick-and-mortar retailer problems. After all, online sales still only represent less than 10% of total retail sales.
2. Destination consumer purchasing behaviors. Destination retailing is driving most consumer purchasing today. If consumers want to buy something at the lowest price possible they will specifically go to Wal-Mart or to Amazon. If they want to buy perfume, 99% of them will go to a department store. But they are not sticking around the store to buy other products.
3. Consumers need for engagement. This factor is huge. Today’s consumers want to shop with retailers who engage them. Entertain them. Educate them.

The Paradigm Shift that is occurring involves the swing back to specialty stores that department stores replaced a century ago.

Any retailer who wants to survive this shift in retailing needs to do the following:

1. Become a destination for consumers.
2. Engage, entertain, and educate consumers using emotions and the five senses as a guideline (i.e. Starbucks/Taste; Flower shops/Sight; Perfume stores/Smell; Gardening stores/Touch)

My prediction: Within 10 years there will be more than 10,000 brick-and-mortar retail stores selling natural perfumes from only a handful of retailers now.

https://www.forbes.com/sites/walterloeb/2017/03/20/these-21-retailers-are-closing-3591-stores-who-is-next/#2a91a79c4854

 The present quickly becomes the past as ever-increasing technology advances faster than the human capacity to absorb it, leaving many still thinking in old ways and trying to do the same things as before, using the same old models.

Analysing old media models for brands trying to reach consumers, the question has to be: Are these previously successful media processes currently engaging consumers effectively? The answer increasingly is: No, they are not.

 Today, thanks to technology, consumers want to interact with brands, to question them and to get answers. On the other hand, if brands want consumers to follow them, they need to engage them.

 Brands have to wake consumers up and engage them with strong topics, have them reply and follow brands. Fortunately some brands are beginning to learn how to navigate in new ways to activate consumers’ brains in their favour.

Very soon, brand spending money on big TV campaigns, even on prime time, it won’t help much. TV viewership and applications are rapidly changing and while older generations are still looking to TV for their news, younger audiences are finding fewer need for traditional TV. News is coming instantaneously via Twitter and series can be downloaded by streaming and watched at a convenient time. Adding to the problems with digital advertising is new technology that will block ad content from consumers.

I love magazines, the smell of paper, the glossy pictures but the question again is:  How does a printed publication truly engage consumers? With this media form, it is becoming increasingly difficult even with the most beautiful and popular magazines. They are dated the minute they are opened, if they are opened at all. With social events being organized, for example, consumers need accurate, up-to-date information only available online. Magazines should be interactive to be really useful, and they should connect to the store, to the brand’s website and invite consumers to engage.

Brands and companies are still working on a local budget and are still investing in national campaign while the world is now global. How can you invest in a campaign on the web targeting specific countries only. This model is not concrete. If you target a campaign on the web you reach the world. I don’t believe in fake campaign promising to reach a specific country.

On the web you can only reach your network and enlarge it with more followers, you cannot force people to follow you, this is what we call false campaign.

A brand should have true followers not false followers they buy through social media because these followers will not be engaged.

This advertising model is being made obsolete by social media that are not bound by country borders, meaning that brands can have much more effective and less expensive global brand strategies.

No one can escape the fact that digital is completely changing the way brands and companies could enlarge their potential audience without limits, reaching a small village in China or the far east countries without any boundaries just by going on the web. 

New Media will provide bi-directional messaging that encourages consumers to respond with their opinions, questions, and stories.

Brands are also beginning to understand now that even though printed magazines are beautiful but they are truly limited and that those brands should instead consider less expensive e-magazines that are instantly interactive and can truly engage consumers.

 What is really going on with current brand advertising, whether TV or magazine, is a one-directional means of brands imposing their message on consumers who are becoming sick of them and increasingly want to avoid them as much as possible.  New Media will provide bi-directional messaging that encourages consumers to respond with their opinions, questions, and stories. This is how media and brands will truly engage consumers.

 Many social media-focused people like myself have more followers in social media than some glossy magazines and my posts are engaging consumers to follow me on blogs, and e-magazines. I am simply a blogger, sharing ideas and my vision of the world, and yet there are thousands of people like me, making us a huge media network reaching millions of consumers world-wide.

 Have a look to the number of clicks that Facebook, Linkedin, YouTube, Twitter register each day. They are the New Media, but they are nothing without us. If tomorrow everyone decide to leave them or if someone start to close them down..  They are empowering people and are becoming very powerful.

Finally, if you want to reach what consumers are looking for, follow the New Luxury Media Group and have your brand certified New Luxury. You will find consumer looking for those kinds of products and New Luxury Products represent a growing consumer sector. Consumers want to know where to find these products and who they can trust.

 Also chose an agency that understands how to engage consumers who need alternatives to the stale advertising of the old model.  Make sure your agency will not apply the same old patterns almost guaranteeing your advertising dollars or euros will not be used properly.

 We can introduce you to the ways we would invest our own money, Experiential Marketing, and events inviting clients to the retail stores where they can interact with consumers and provide them with timely information about their own product needs.

 If you still believe it is difficult to differentiate yourself as a brand and effectively engage consumers we can talk about this, since it is our expertise.