Innovation and investment by manufacturers and retailers is nurturing the green shoots of recovery in New Zealand retail.
New Zealand has always had a reputation for quirky and innovative ideas and businesses. The Kiwis have never felt a need to blindly follow trends, but have always been happy to innovate and improve on ideas. My time in Auckland this week, marked by a beautiful Indian summer, again showed me the truth in this.
I saw – and experienced – some truly world-class retail environments and leading product innovations. This was evident from the smallest local New Zealand company to the largest international player.
The visit also granted me time in different NZ stores and channels, living with NZ retail on a daily basis, as well as with some of our senior clients, to better understand their position in and approach to this recessionary environment we find ourselves in. It seems they are leading the way in innovation, and they know it’s the way to beat the recession.
Doing well in grocery is New World’s Victoria Park and Albany stores, which offered a first-class shopper experience in a bright, airy and subtle environment. Produce is excellent, well displayed and almost “shop within shop.”
The bakery and deli were staffed by experts. The pharmacy section was completely differentiated from the rest of the store by layout, lighting and aisle shape, and Kimberly Clarke’s range displayed irrefutable evidence of innovation via new packaging formats and designs.
But the stand out was the fresh fish section, complete with fresh oysters under a constant stream of splashing water, enticing and entertaining. That’s in-store theatre, and theatre is the key to the future of retail.
Joan Desu’s new packaging for snap frozen vegetables was bright and appetising in eight-colour print, jumping out at the customer. AB Foods phenomenal growth in premium tea and coffee – and up against the world’s three largest food companies at that – is testament to innovation and hard work by defining a clear plan to enter key sectors with a limited range of consistently supported brands.
And then to pharmacy. New Life Pharmacy stores are bright vibrant places to shop, wooing the customer with huge airy graphics and a quirky “tin bucket rack” of specials visible from outside.
Several months ago I talked about how the top end of retailing would need to hold special events to keep their best customers. My assumption was that it was only applicable to very high-end luxury stores and department stores. I was wrong.
Life Pharmacy has held invitation-only, lightly catered evenings for their best customers, with fantastic results.
But how about this; with a large fragrance offering, staff are encouraged in quiet moments, to wear the stores’ fragrances out through the centre’s relaxing coffee spots. The result? Shoppers are asking about the fragrances. What a clever way to woo customers – and they are buying.
Some retailers really do get it, and Life appears to be one we can learn from.
I could go on about innovation in the land of the long white cloud, but Smiggle will suffice. I’m the latest convert! If Smiggle isn’t in your local, head online. It’s a prime example of very clever niche retail offering a unique shopper experience.
Like many new retailing concepts, it follows no one but the shopper – and it works. Saturdays prove too many customers to move in that tiny footprint store. Great experience, cleverly merchandised and, I would surmise, very high margin. A win for all!
So, are there any green shoots of recovery to be found in New Zealand? Well, yes. Note the Toyota dealer on the road out of Albany to Whangerai whose signage read: “We will not be taking part in any recession!”
Truly, the recession-proof manufacturers and retailers are, once again, only the ones innovating their product offerings and creating entertaining shopper experiences, regardless of price tag.
In his role as CEO of CROSSMARK, Kevin Moore looks at the world of retailing from grocery to pharmacy, bottle shops to car dealers, corner store to department stores. In this insightful blog, Kevin covers retail news, ideas, companies and emerging opportunities in Australia, NZ, the US and Europe. His international career in sales and marketing has seen him responsible for business in over 40 countries, which has earned him grey hair and a wealth of expertise in international retailers and brands. CROSSMARK Asia Pacific is Australasia’s largest provider of retail marketing services, consulting to and servicing some of Australasia’s biggest retailers and manufacturers.
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