French fashion retailer launches 10,000 boutiques overnight

No, these are not physical stores. French clothing retailer Comptoir des Cotonniers (CDC) does not have the resources of a Walmart, but has relied on technological innovation to create virtual stores all over Paris, Toulouse and Marseille. The products will be displayed in the form of posters on Bus shelters, Cars, Café tables, magazines, and virtually anywhere where they can stick them. These posters have a QR code, which can be scanned by smartphones, and goods be purchased within a few seconds, on the move.  

Retail industry is emerging as a hotspot for mobile innovation, especially in the field of mobile payments. Retailers are using technologies such as QR code, Beacon and NFC to capitalize on impulse buying habits of shoppers. According to Digital Journal, More than 139.5 million Europeans now regularly shop via mobile phone, with 42 per cent of these saying that they regularly buy 'on impulse', compared to just 25 per cent of non-mobile adopters. Clothing tops mobile shoppers’ list, which makes this move from CDC a no-brainer.

So how does these QR codes work?

The QR codes store product information in an encoded format, which can only be read by designated applications. Customers would have to download CDC app from app store and register their details (such as payment, billing address, and shipping address etc.) with the app, only once.   After this, they can scan any of these QR codes, confirm the amount they are paying, and complete the purchase process in couple of screen taps.

Compared to traditional online shopping where customers have to painstakingly fill up numerous details, and more often than not they end up abandoning their shopping cart, mobile payment technologies (like QR code) are enabling retailers to offer a vastly superior customer experience. 

But, will this work?

Personally, I prefer to try out clothes in stores before buying, and would not be comfortable buying them on the move, which I believe might be true for majority of customers. If it were something like a book, I would not shy away from taking out my smartphone and scanning that QR code, but for  clothes, maybe not. It will be interesting to see how it plays out for Comptoir des Cotonniers. 

4Ds of Marketing

For a long time, we have talked about Marketing in terms of 4Ps emphasized by the marketing guru Philip Kotler. Essentially the 4Ps represent all the aspects that need to be covered when planning a marketing campaign. The 4Ps represent Price, Product (Brand Positioning), Promotion (Advertisements), and Place (Channels to sell the product). This concept has served the marketers well for many years, but is rooted in times when Digital Marketing was non-existent.

Over the last couple of years, Digital Marketing has evolved as a mainstream practice for Marketers everywhere, and it is prudent that we re-define the 4Ps framework to reflect this reality. That’s the reason I have created 4Ds framework where Ds represent Digital, Data, Degrees, Dialogic. Before you ignore it as another gimmick, give me another few minutes to explain how this framework can actually help us think about Marketing in current times.

4Ds of Marketing

Digital: No matter which sector they belong, it has become virtually mandatory for companies to maintain a digital presence in terms of Facebook page or Twitter account. But it doesn’t stop there, and since majority of consumers are using mobile devices, companies need to provide an online shopping experience. This experience should consider multiple aspects such as:

1. Device the customer is using (smartphones, tablets, Glass)

2. Logging to the website and searching for a product

3. The payment methods available to buy the goods

Data: The most important benefit companies have got due to the digital revolution is that they have access to large swathes of data, which was impossible to collect in pre-digital age. Companies can (some such as Amazon are already doing) mine this treasure of data to gain valuable insights into buying habits of its customers. Powered with this insight, companies have the opportunity to cross-sell and up-sell. Predictive technologies such as Big data have become accessible even to small companies, with the reducing cost of storing data and tools like Hadoop. 

Degrees: It reflects how connected the company is with its customers on social media. Customers who are fans and followers of company on social media subsequently shop more, and even act as brand champions. Companies can create exciting content in terms of videos and images to increase the engagement, and rum smart campaigns to create awareness at a low cost. Companies such as Coca-Cola have a content strategy, which determines what sort of content should be published on its social media. See the video here: https://www.youtube.com/watch?v=G1P3r2EsAos

Dialogic: Whereas a Dialectic conversation aims to arrive at a common conclusion, a Dialogic conversation doesn’t strive for a common ground. In simplest words, it refers to two-way communication between brands and the consumers. There is no effort from the company to impose a specific image of the brand on the mind of its customers, but relies on consumers to shape it. It might seem counterintuitive, but in the age of digital media, companies can rely on digital channels to listen to their customers, and evolve into a brand as the customer see it. Red bull has used this strategy to create a huge loyal customer base. Other companies too can adopt this style of communication and foster loyalty among its customers.