By Debbie Hauss, Editor-in-Chief
I’m now a true believer. After listening to three extremely passionate retail executives discuss their unique business models, I am convinced that innovation will be the key to retail longevity heading into the future.
As part of the pre-NRF RetailROI Super Saturday event, a panel of three retail innovators — from Wild Things, Story and RevZilla — shared the secrets to their success. Each example is its own definition of “entrepreneurial” and thinking outside the box.
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Story is a concept that hits close to home for me as a writer and editor, since Rachel Schectman, Founder, described it as a retailer with the “point of view of a magazine.” Housed in a 2,000-sq.-ft. storefront in the Chelsea neighborhood of New York City, Story “curates merchandise around a story or theme,” Schectman explained. Theme-related events draw consumers in and help sell products used as part of the “story.” To date, Story has put on 13 different themes, from “Home For The Holidays” and “Project Pop Up” to “Wellness” and “Making Things,” and “Made In America.” Watch for the concept to expand to other cities around the country.
Mass customization is the linchpin behind the latest success of Wild Things, a 35-year-old retailer of technical outerwear. Although not a new concept, mass customization has proven to be the right formula for Wild Things. With six styles of items that can be custom-designed by individual shoppers, launched in November 2012 (and seven more to come), customizable gear is now 25% of Wild Things’ entire business, said Ed Schmults, CEO, who noted that more than 7,700 other companies currently are testing or trying the mass customization concept. The footwear industry has been a mass customization leader: Nike is in its second or third generation of the concept. But specialty apparel brands, such as Prada and Burberry, also are on board.
RevZilla has taken a segment of the motorcycle-riding public by storm. “The greatest thing about the products we sell is that no one actually needs what I sell,” said Anthony Bucci, Founder. Yet the merchant is approaching $100 million in revenue and employs 100 people. It’s the emotional connection that inspires 30- to 55-year-old motorcycle enthusiasts to spend more than $800 on a riding jacket. The brand is successful, in large part, due to shopper loyalty. “It is evangelist-driven,” said Bucci.
Employing Technology To Move The Businesses Forward
Each of the three businesses taps technology to enhance the successful models. At Story, Schectman’s team employs thermal technology from Prism Skylabs to heat-map the entire store and determine which items and spaces are attracting the largest audience. Story also employs Perch Interactive projection technology to enhance the in-store experience. And the proof is in the pudding, so to speak: Story was profitable in its first year, said Schectman.
RevZilla uses “a lot of video” to tell the brand story. And Wild Things’ has developed a manufacturing process consisting of “lean techniques,” which cut production costs, making the cost per unit similar to bulk production costs. Additionally, Wild Things manufactures all items within the U.S. – in the Lawrence, Mass. factory, to be specific. (Sharing this information with the RetailROI audience garnered spontaneous applause.)
While none of us are likely to be the key target demographic for each one of these concepts, we all can appreciate the creativity and business savvy that helped bring these success stories to life.
I’m looking forward to hearing about more great new ideas and technologies as I gear up for the next four days at the 2014 National Retail Federation Big Show in New York. Maybe I’ll sleep next week…
