News

By Ben Woo, Managing Director

We’ve all seen the news footage. Eager discount shoppers camped outside a big-box retailer in anticipation of Black Friday. Then, they bang on the doors as the clock counts down to midnight, because they cannot wait to storm inside and grab the heavily-discounted products they have on their holiday shopping lists. Is a $278 65-inch 4K television worth enduring the late hours, the crowds — and even the potential violence?

Black Friday, the shopping spectacle that has become a hallmark of late November around the world, will be a bit different this year. With the novel coronavirus pandemic still raging in the US, some stores have already announced rolled-back hours, thankfully giving employees the day off for Thanksgiving day. Shoppers will have to plan purchases differently this year — and so will retailers. Luckily, they can look to streetwear culture for a few tips to help make their holidays a little more happy.

Whereas discount offers and BOGO bargains can devalue a product or brand, “drops” create scarcity, excitement, and attention — all of which savvy retailers can convert to meaningful increases in sales, earned media, and brand equity.

Limited-run merchandise? Countdown clocks? Frenzied shoppers? These are not limited to Black Friday anymore. (Just ask anyone who tried to buy the Nike SB Chunky Dunky sneakers when they were released in May of this year.) The art of the “drop” was invented by luxury brands and elevated by Supreme, but streetwear brands and retailers have taken it to the next level.

1. Nike uses its SNKRS app to release hot sneakers for sale, sometimes in maddeningly limited amounts. For the buzziest drops, Nike offers perks like early access and customization to their most loyal shoppers. Mass Retailer takeaway: If you have a connection to your consumer through an app or membership, use it to offer early/exclusive access to desirable merchandise.
2. Sneaker retailers such as SneakersNStuff let hopeful sneakerheads enter raffles to try and win the right to buy a new pair for retail value. For some of these raffles, a non-winning raffle ticket entitles you to a discount in-store for something else. Mass Retailer takeaway: Traditional retailers have the opportunity to create this excitement around releases or sales as well — not just to lock in potential sales, but also to drive online lead generation for your retail outlet.
3. What to do with scores of people lined up digitally? Tell a story! NTWRK, an app for streetwear and collectible drops, creates a media moment around a release. Eager shoppers waiting for the BUY NOW button to come on are treated to videos about the brand, the artist, the item, and the culture swirling around all of it. They don’t just wait for scheduled releases — they also turn on notifications for unannounced “shock drops,” allowing brands another way into their consumers’ pockets — anytime they want. Mass Retailer takeaway: If you’re going to keep consumers’ attention, engage them with content, messaging, and other offers while they wait for a drop.

Understanding the shopping experience is critical to understanding how brands, retailers, and consumers interface. We at RedSky have always taken this into account when developing consumer journeys, segmentation personas, and go-to-market strategies. But it’s no longer a nice-to-have — in 2020, it’s a must. If you’d like to learn more about how your brand or retail outlet can take advantage of these opportunities, please reach out at info@redskystrategy.com. The first 3 people to contact us will receive a free LIMITED EDITION RedSky Strategy notebook! Act now, while supplies last!!