Getting back to basics — the future of retail
In conversation with Sacha Rose, CEO, Derek Rose
Coronovirus has accelerated a transformation in retail that the advent of the digital age started. Shoppers venturing out as the stores began cautiously opening their doors will have noticed that there are a few more names missing from the high street and we can be sure that they won’t be the last to go.
Coronovirus has driven many more of us online out of necessity which will certainly hasten the end of many physical stores but it has done more than that. The increased awareness of the impact of our consumption driven society and economy on the environment was already causing many to look at their buying habits. The enforced and lengthy period of isolation and inactivity that we have all endured has meant — among other things — even more reflection on our relationship with goods and services.
Sacha Rose, CEO of luxury leisurewear company Derek Rose believes that we could see a return to what some might regard as old fashioned values around product quality, longevity and customer service; “It would be wrong to say that ‘fast fashion’ is dead but I do believe that for a growing number of consumers there is more of an awareness of the environmental and societal damage that is being done by a throw away culture.”
It is interesting to note that among certain sections of the younger generation wearing second hand clothing has become a badge of honour. (https://www.imrg.org/blog/is-buying-used-clothing-the-next-retail-trend/). This is something that retailers have already started to capitalise on (https://www.forbes.com/sites/marciaturner/2020/03/30/used-clothing-resale-a-rising-opportunity-for-retailers-large-and-small/) and there are a number of high profile fashion influencers who are doing variations on the theme of only buying secondhand. Smart brands are realising that being prominent in the second hand market is perhaps as good for your brand — if not better — as new sales.
“Length of life is something that always used to be a huge part of why people bought from a particular place. I heard a great quote from a journalist I met who said that her grandmother always told her that they were too poor to buy cheap,” says Rose. “As a brand that has been around for nearly a century, we have always focused on quality. I think our longevity is intrinsically linked to the quality of our products.”
Another interesting trend that is perhaps an example of retail reflecting changes in what society values has been around the type of products that people are buying. Sales of pyjamas and luxury leisurewear were already on the increase before coronavirus hit (https://www.standard.co.uk/fashion/pyjama-loungewear-trend-a4269916.html) and this trend has only accelerated during shut down. Rose thinks this may be because we are learning to value our down time more.
“Our customers understand the value of free-time, be it time alone or time spent hanging out with friends and family. They are happy to invest in clothes that enhance and add a little luxury to this experience,” he explains. “I think as trends go this one is significant and long term. You see it reflected across the market in the demand for athleisure wear. Successful brands take time to understand the real drivers in the market — how people are thinking, feeling, even living — and hook into that.”
This focus on product quality and in investing in long term relationships not just with customers but also employees, results in brands that are not just more environmentally friendly, but also better for society.
“For us it is not just about the product (although that is always number one), it is also about the Derek Rose family — our employees. This might sound trite but we know that if we look after our employees — pay them fairly, treat them well and invest in them — they will do their best for our customers.”
This idea of good customer experience is clearly not rocket science but defining what customer service looks like in the digital world can be difficult.
“Yes, things like speed of delivery are important, as is the website experience and the integration of customer data across different channels but fundamentally a lot of what makes the customer experience good offline applies online. Can they speak to someone easily if there is a problem? Are problems resolved to their satisfaction? Is the product well presented when they get it? Are the people they speak to knowledgeable and engaging? Retailers can become so focused on getting a customer ‘into the basket’ that they forget the basics”, Rose explained.
Digital retail is something I know a bit about. My old company Conchango built some of the first digital environments in retail and what amazes me is how little has actually changed in 20 years. Too many clothing retailers are focused on reducing their supply chain manufacturing and distribution costs rather than designing supply chains around the customers’ needs and wants. This inherent lack of flexibility and years of underinvestment in core systems, even when the stores were profitable, has already resulted in the demise of well known high street names. When the retailers realised that web and store needed to be integrated their systems, processes and people were just not capable of delivering the change required.
Retailers need to get back to basics and organise themselves around the customer, be relentless about the data, integrate the channels properly and make sure they have a fast and flexible supply chain. They also need to make sure that they think about the values that they want their brand to represent and consider what they need to make the brand sustainable in the future.
There is no doubt that we are at a seminal moment in our history. Of course it is about more than the clothes we wear but they do reflect the wider changes in society that might indicate that the era of consumerism at all costs is over.
