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CONTACT: Pam Danziger, 717-336-1600

Retailing in the 21st Century
It's Not About Selling More Things, But Delivering a Shopping Experience

Stevens, PA December 1, 2003 — Quite literally everything about the way people shop has changed - where they shop and the type of stores they patronize, what they buy, how often they shop and how much time they spend shopping, and why they shop. So it is a challenge for retailers to plan a marketing strategy that will deliver measurable results in the face of so much market turmoil.

"The single biggest opportunity today for retailers is to understand how consumers' expectations of the shopping experience has changed and to develop strategies to deliver on those expectations," says luxury marketing expert Pam Danziger, president of Unity Marketing and author of Why People Buy Things They Don't Need. "Today people spend a far greater share of their money buying things they don't need, while in the past shopping for necessities, i.e. food, clothing and shelter, dominated."

"When people shop out of desire, not need, they are buying things in order to achieve a special feeling, a greater sense of well-being, in some measurable way to enhance the quality of their life. In other words, the things they buy become a means to an end, and that end is an experience," Danziger continues.

"Few retailers today grasp this revolutionary idea that retailing is no longer about selling more and more things, but about delivering an experience," Danziger says. "Retailers continue to believe they are in the business of selling things and so they 'stack it high, watch it fly.' But today consumers expect shopping to be an experience and retailers will be rewarded when they deliver their shoppers a 'thrill.'"

Bargain hunting is an experiential thrill for shoppers
There is much hand wringing in retailing circles about shoppers' demand for sales and discounts. Retailers have to keep cutting prices deeper to attract shoppers into the store. "Having studied this passion for bargain hunting among the luxury shoppers, i.e. those who can afford to pay full price, but are hesitant to do so, we find that discount shopping is at its heart part of the 'fun' of shopping. It makes people feel good when they find a bargain. They get a thrill beating the system and getting something for less. Retailers that want to get off the discounting roller coaster need to put more fun back into shopping. They must enhance the shopping experience."

One retailer that is doing just that is Build-A-Bear Workshop, a chain of stores founded in St. Louis, MO and now spreading internationally. The concept of Build-A-Bear Workshop is simple and immensely attractive to experience-seeking shoppers. At Build-A-Bear the shopper gets to design and create their own teddy bear from picking out the unstuffed animal 'skins,' choosing the thickness of the stuffing, and dressing the bear in the latest 'teddy bear' styles.

"What Build-A-Bear has done is taken shopping for a plush toy and transformed it into a memorable experience. A customer describes the Build-A-Bear shopping experience this way, 'The bears are free; you only pay for the fun of creating them.' That is experiential retailing at its finest and points other retailers in a new direction away from selling things to delivering shoppers an experience," Danziger says.

Understanding the Shoppers Expectations Is Critical to Future Success
For retailers to transform their business from one focused on selling things to a shopping experience, they must truly connect with their customers by developing a two-way dialogue with them. "Connecting with the consumer means talking less and listening more. It means giving more value, rather than taking more money. It means reaching out and getting involved with the customer and their community, rather than waiting for them to get involved with you. And most important, it means creating your business around your customers' needs and expectations," Danziger explains.

"Market research that combines both the qualitative and quantitative perspective on the customer is the best tool available today to help retailers understand the experiential desires of their customers," Danziger concludes. "Unity Marketing is a marketing consulting company that is uniquely able to establish a dialogue with shoppers, gather and interpret what they are really concerned about, and deliver actionable marketing strategies that will create a special shopping experience in the store."

About Unity Marketing
Founded in 1992 , Unity Marketing (www.unitymarketingonline.com) is a marketing consulting firm that specializes in consumer insights for luxury marketers. Using its proprietary why people buy research strategy, Pam Danziger, company founder and author of Why People Buy Things They Don't Need (Ithaca, NY: Paramount Market Publishing, 2002) uncovers the motivations, desires and emotional needs that drive consumers to buy. Unity also publishes market research studies on the luxury market, jewelry, garden, pet accessories, home furnishings, gifts and collectibles, greeting card and stationery, tabletop, art and wall decor, personal care and cosmetics markets, as well as the Luxury Business newsletter. Pam is currently working on her new book, Let Them Eat Cake: Marketing Luxury to the Masses (as well as the Classes), to be published in 2004.

To arrange an interview or other media inquiries contact: Len Stein, Visibility, 914-712-2610; lens@visibilitypr.com