November 3, 2005

Harry and David Get It

The other day, we were writing about how retailers are starting so early with their holiday promotions, because they anticipate a weak retail selling season. I don't happen to think that starting early is going to solve the problem.

I don't think you can fool people. And I wouldn't want to try. What's threatening this holiday season is cost...the cost of gas and the cost of everything that is affected by gas....and that would be practically everything. (I saw a red bell pepper in the supermarket the other day that would cost a half-hour's worth of the net pay of a minimum wage employee.)

So, starting early doesn't really address the problem.

Harry and David, the legendary fruit-and-more direct marketers, announce on the cover of their current holiday catalog "Same low shipping and handling. Shop now, don't pay until February. Save 10% (free coupon inside)."

Well, that's EXACTLY what today's consumer wants to hear. All of us are sick of the energy surcharges slamming us on anything we order or buy. And saving 10%? That sounds great!

Successful retailers this holiday season - I think - will give customers what they want (discounts on products, and more reasonable shipping costs)...not just what they, the retailers want.

New Stats on Diversity Market

We've also written a lot about the fast-growing Hispanic market. How interesting to read in the latest PRSA publication that "The buying power of blacks, Asians, and Native Americans will exceed $1.7 trillion by 2010, an increase of 268% from 1990."

Recent U.S. Census statistics predict that, by 2050, the Hispanic populaton will grow to 102 million, or 24% of the total population. The black population will be 61 million, or 15%.

There's another compelling statistic from the Census people that doesn't relate to diversity, but it sure does demonstrate the impact of the aging boomers: By 2050, there will be 86.7 million, or 21% of the total population, over 65.

We're already seeing significant trends in marketing to these audience segments. Look for more. And, think of how your product and service can best resonate with these dynamic constituencies.