Solitude is Warm.

Happy Holidays.

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So who should be scared in 2012? This is an excerpt from an interview just completed with Marc Andreessen, founder of Netscape, and highly respected Silicon Alley venture-capitalist. "I think 2012 is the year that retail--retail stores--really starts to feel the pressure. And I don't say that because I don't like retail stores. I loved going to Borders. I thought it was a great consumer experience. And I was a huge fan of Tower Records. But the economic pressure is huge as e-commerce gets more and more viable and as these category killers emerge in the superverticals. If I own mall real estate or retail stores in cities, or if I own chains like electronics chains, I'd be concerned.... I think electronics and clothes are going to be a real pressure point. Home furnishing is going to come under pressure. It's going to get harder and harder to justify the retail store model. The model has this fundamental problem where every store has to have its own inventory and every store is also a warehouse. The economic deadweight of that entire inventory in each store--that's what took down Borders.

Retail runs at very thin margins. So if e-commerce takes a 5 percent or 10 percent or 15 percent bite out of your category, then it becomes harder to stay in business as a retailer. So I think 2012 is the year that that really kicks in."

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Heritage will no Longer Maintain "Luxury Brand Value"

Luxury Brands must become proactive in helping to shape the concept of "heritage. We create our heritage everyday in how what we stand for, and how we communicate our social and lifestyle values. Contemporary Luxury Brands are beginning to recognize that "social caring" and sustainability are a part of the "quality" equation. This is the beginning of 21st century heritage, where history is in the making each and every day, every week, and every season.

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Luxury and Sustainability - Trending into a Movement

The greatest cultural shift of the 21st century is the growing awareness by consumers on the impact of what we buy has on the well being of the planet. Luxury brands and the celebrities whom endorse their products are beginning to lead the way. As luxury brands become more accessible to a broader aspirational customer base, luxury and sustainability will become close friends, adding value from placing greater emphasis on social and environmental excellence. The paradigm shift in what we associate with style and success, is moving quickly to incorporate "awareness" to social issues and sustainability practices.
Profits must be optimized inclusive of these shifts, not simply maximized for short term gain. The math must change in how companies calculate earning a "profit". Luxury brands are in a enviable position in that they attract the attention of so many,
those affluent to buy their products, and many more who hope to. Their influence is undeniable. The recent report entitled
"Deeper Luxury" sponsored by the www.wwf.org.uk offers an insightful study on the trends underway. In fact, it is no longer
a trend, its a movement.

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Nordstrom Opens "Social Charity" Store: Treasure and Bond in Soho

Yesterday, Nordstrom, the highly respected specialty department store entered into the New York marketplace with the opening of a new "concept" store known as "Treasure&Bond", located in Soho, the neighborhood in which I live and work. It is part "product testing", part "focus group" and a marketing investment to shake hands with New York shoppers, announcing their arrival. One of their major messages is that 100% of the "profits" will be donated to several well deserved charities, a direct tie-in to social giving. It is a bold promise, and one which should be clarified. What exactly does the word "profit" mean today. One is lead to believe that the word profit is the "net profit" after the store pays its rent, salaries, marketing and operating expenses. Does that mean that if the revenues of the store are below what it takes to cover its expenses, then no profit will be generated meaning no funds will be donated? The shopper who makes a purchase is likely to assume with certainty that Nordstrom knows how to make a profit. However, this concept store is an experiment, and a risky one. I think Nordstrom means well, but this exciting "promise" illustrates how important it is for brands to think through the consequence of their marketing strategies, before making promises to its shoppers. We are living in a demanding age where transparency and clarity is most valued by the consumer. Better to donate 10% of sales than 100% of profits. As a shopper, I would then know that definitively a portion of the sale is going to the social beneficiaries. No audits of the P&L are necessary. What do you think?

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21st Century Retailing: Demand drives Supply

Social retailing, will grow rapidly. Social network platforms will act as an "agent" on behalf of small groups and large communities, now certain to influence and power the next-evolution in e-commerce..Expansion of social networking platforms will allow followers to organize quickly around a targeted call to action, linking the purchasing power of one, with many...enabling the group to maximize value from products and services, essentially "buying" on behalf of the group. The number of physical retail stores or "doors" as they are called will lessen as a competitive advantage beginning in 2012. Smart retailers will "crowdsource" the interest of their customers and re-invent "custom" shopping, making products to meet the demand. Demand will drive supply.

6 E-commerce Strategies for Standing out in a Digital World.

1. Think and Act like a Storyteller: Create stories on your products and testimonials on your services.

2. Engage and Encourage Forums and Comments: Invite the customer to sit down at the dinner table. Consider adding customer comments as audio clips. Adding customers audio testimonials can be a simple as taping a phone conversation. Using audio clips is simple, inexpensive and does not require technical expertise or expensive online tools.

3. Spell out the Details: Stay Transparent with Policies. Remember that the main reason people are online is to get information -period. That is the primary goal especially before they buy. Share statistics, create charts, show maps, disclose sources, and keep prospective customers on your site or platform.

You can write articles, give teleclasses, offer whitepapers, provide downloads, share interviews, recipes or helpful hints. Make sure the information is informative, entertaining and relevant to your customers rather than a veiled attempt to sell. People can smell hype a mile away and this is the kiss of death online. Always remember your competitors are only a click away.

4. Video Rules: Share your branding message with short video snapshots. Use videos to educate your visitors on product uses or assembly. Create a short comparing product features or demonstrate the product in use. Keep your videos short (under 3 minutes) and clear. Host your videos on public sites like Viddler or Youtube and post them on your website. Here are a few examples talking about connecting with your website visitors.

5. Place an Image on Your Brand - People are incredibly influenced by creative typographic design. Invest and Upgrade. The online space is as sensitive to graphic identity as in printed space. Cultivate your digital image and build consistency.

Consider adding human pictures to your about us page. Include staff picks or reviews and encourage your employees to write on the blog, social media sites and to contribute articles. After all these are the people your virtual customers will interact with. Don’t hide behind a virtual storefront - don’t be afraid to let your customers get to know the people they are buying from.

6. Social Media is the Media: Customers are moving into groups, sub-groups, and communities of shared interests. Hang out there. are hanging out in communities online. The purpose of social media sites is to share opinions and interests. Connect with target market through blogs, twitter, Linked-in, Facebook, Stumbleupon or any of the dozens of niche social media sites.

Your customers are having conversations with or without you so schedule in an hour a week to schmooze online. This is a way to make connections, not sales - keep it authentic , informative and reap the benefits of worldwide word of mouth referrals.

The way people buy has changed forever with Internet ecommerce. Lets get to work.

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