Why Argos & eBay's distribution methods can work together in harmony

I have to say, as someone who is more-interested-than-most in the digital marketing space, eBay is one of the only brands I really pay attention to when it comes to their email marketing campaigns. They are often well-targeted, relevant and provide decent value. Hence I was pleasantly surprised to see this email in my inbox recently:

There was an existing partnership between Argos and eBay with many Argos product sold through eBay regularly. However, this extension of the way the channels work together is a great strategic move from both parties.

A few years ago, upon the spark of the digital age, which saw the likes of Woolworths, HMV and Habitat struggle- I was worried that Argos would simply be destined for the same fate. It was surely going to be out-priced, out-producted and out-branded by the likes of Amazon? However, by thinking and accepting that their existing distribution model wasn't going to be sustainable long-term, Argos have adapted their strategy which blurs the lines between the online world and bricks and mortar retailers.

I think the key to success in what Argos is doing is the fact they are so accessible, convenient and efficient. Their Click and Collect service was pioneering, their digital channels are fantastically-integrated with their retail channels and they partner with the best brands- often I don't even have to check if Argos stock something I just presume they will and I'm not often wrong. They also have great, local stores, you don't have to go in to a big town or city to find exactly what you are looking for.

However, this isn't just beneficial to Argos in terms of defining their brand as a digital, well-distributed service. eBay gain something they've never had before- a physical presence in the UK market. So many brands (especially those who are solely online) are realising the importance of an omni-channel experience and that 'human interaction' with the brand. By collaborating with Argos, eBay have a tangible setting in the form of hundreds of stores. 

eCommerce sold us the idea the home delivery is the way forward, however consumers are starting to realise that it is not as convenient as originally thought. Fear of leaving your house whilst waiting for a parcel or having to cart it home on the tube after having it delivered to work or worse, queuing in the post office depot on a Saturday morning- all build the case as to why click and collect has become a phenomenon! Amazon locker was a solution that had won over many consumers and now eBay is matching that with their own offering.... featuring humans!

Not only is this a great strategic move for the two brands, but this will ultimately provide a fantastic experience for the customer. They are able to drop whatever they've sold on eBay at a local Argos store (open late evenings and weekends), pay a rate for P&P which by far rivals the Post Office and provide a tracked and signed for parcel to the customer! 

In terms of change management, the organisational impact is minimal, the infrastructures for delivery and storage are already in place as Argos have been delivering their own products for years and as mentioned above, have the processes down to a T.

I look forward to hearing more about this exciting partnership!

Is NEXT still relevant?

Since moving to Swindon in late-October, I can bet my friends and family would describe me as going a bit 'furniture mad'. I've been scouring every furniture site, warehouse, store for not only the best deals, but my perfect piece of furniture.

I used to sell sofas in NEXT during my first couple of years at university and lust over the beautiful sofas and perfectly matching furniture sets that were bang on-trend. Every colour, pattern, handle or design was so carefully thought out and I used to spend every 4-8pm shift on a Friday planning out my dream lounge or bedroom.

Finally, I have that dream flat! Furniture shopping has become my addiction and therefore I have spent a lot of time in NEXT stores searching for the perfect piece. However, after finding some great pieces, I never ended up actually going through with any of the purchases. I found almost all of NEXT's furniture products cheaper online. There were almost identical items for over half the price- I was not prepared to pay double for a brand name that I wouldn't have even been proud of owning.

One may argue, that although NEXT do not compete on price, they have a range of added-value benefits including fantastic distribution networks (you can click & collect before midnight the day before), great customer service (I remember giving someone a refund on a rug they bought 2 years before) and convenient locations (drive up, pick up). I agree these are fantastic benefits which the customer can see the real value in and perhaps why they can still act as a semi-premium retailer. However, I don't know if customers are really willing to pay double the price.

Not premium or value

There's no argument- NEXT's quality in terms of manufacturing and materials is unmatchable to other retailers on their scale. For such a huge retailer, their products do have that 'personal', do I dare say 'home-made' feel to them. It is evident that they beat the likes of The Range or IKEA when it comes to intricate and careful designs, however NEXT are not on a par with ultra-quality stores such as John Lewis or House of Fraser who have less stores, yet serve more carefully selected items from well-known, luxury brands.

I feel as though constantly acting as the 'middle' guy can be a win in some cases, NEXT for me is for the families who want to tap in to the luxury lifestyles, but aren't quite at the bespoke or tailored levels. However, not really defining your market could also be a real hindrance for NEXT as they are a reachable brand for most, yet I'm not sure how many of us would consider them as a treat if there is no real perceived product satisfaction, i.e. I was just as happy buying my mirrored dressing table from a never-heard-of online retalier than I would have been from NEXT, however had it been John Lewis I might have thought differently.

Discontinuing ranges

Another factor that deterred me from investing in furniture from NEXT, especially having had worked there, was there continual range refreshes. I know how fast paced their ranges are, not just furniture but clothing and accessories too. As I wanted to buy a couple of pieces at a time, I was relunctant to buy from NEXT for fear that the same range may have been discontinued the next month. Online, there is less of a fear due to the level of stock they can actually carry, due to the fact most of the businesses are literally- a warehouse and an office.

Price Promotions

NEXT don't ever do short-term reductions on their products. Other than 'buy two products, get £20 off each' which, as I said earlier, I was not in a position to do. I am a sucker for a reduction, no matter how small and if I see an item with 20% off it is usually the final push for me to click 'buy'. I know I am totally falling for marketing all of the time!

The infamous sale

Finally, one of the reasons I believe NEXT are irrelevant to me, as a consumer, is the fact I know that all of their products will be half price in 4 or 5 months time. It's the classic story of £100 on Christmas Eve, £10 on Boxing Day. I know this can happen with every retailer, but the face that NEXT places so much emphasis on their sales makes me think "Do I really want this enough to warrant not waiting for the sale? The answer is usually no.


I've placed the context of this blog post entirely on NEXT's furniture offering, however I believe it also applies to their clothing too. I am lacking a clear viewpoint of what they can offer me in exchange for hiked-up prices, a lack of confidence in the brand and a determination to get a better deal.

Fashion retailers

Ok just had a bit of a brainstorm moment which as a marketer I automatically want to turn in to a concept haha. So, I was in ibiza this week and was borrowing my friends skirt for a night out, whilst we were out I got loads of compliments and I really liked it. So I asked my friends where it was from and then when I got home I went to h&m and bought it in 3 colours as well as a bag and a top which caught my eye whilst I was in there. 

Now we all know that friend's recommendation is a huge influence on a purchase decision, yet what I did wasn't just a recommendation, it was a try before you buy which was then complimented by others which then led to my own purchase... 

What I am trying to say is that whilst usually compliments from others and feeling good about a purchase usually comes POST-purchase- the effects of which are a confidence boost/ reinforce purchase intentions/ positive attitudes to the product/brand... But my opinion is that marketers, more specifically in the fashion retail industry should try and create these attitudes and positive self image boosters PRE-purchase in order to convince consumers that their purchase intentions are just.

Obviously try before you buy on fashion items, especially fast paced high street stores is not only impractical but not cost-effective: but what about an app where customers can tweet outfits which their friends can rate or compliment or even give suggestions on the clothing. Only an idea! 

Personal shoppers are a great way of enforcing this, yet I rarely see them advertised other than wedding facilities, may be not for girls who are very sure of their own style but for girls like me who might need a bit of help, when friends aren't there to help I would love the help of a professional stylist! How special would that make a girl feel! Great confidence boost!! And not that difficulty to implement in retail stores either. I know for a fact more personal shoppers would lead to more and bigger sales!

Fashion retailers need to boost our confidence!!

Steph 

Republic's going!!

So if you live in the UK you may or may not have heard that the retailer Republic has now gone into administration. Not surprising as so many retailers have been slipping away in the last few months, but particularly annoying as I work there!! Most likely going to get made redundant, not the worst thing in the world as I was going to leave to start IBM in June anyway but very irritating as I just booked a holiday to Marbella which I am now not sure how I am going to pay off!!
But from my own experience of working there I understand some of the reasons, particularly from a Marketing perspective as to why Republic may have failed to make sales recently...
1. They didn't position themselves correctly: We sold cheap own-brands alongside brands like Kurt Gieger, Ravel and American Apparel. Either position yourself as cheap or luxury. You CAN'T be both.
2. Constant confusing sales promotion: the clothes had such a high turnover- good in some respects as constant flow of new products. However, the clothes are discounted so often we couldn't even keep up with the prices as staff- never mind the customers! I also think customers latched on to this and therefore wouldn't buy full price stock with the view it would be discounted the next week!
3. Bad customer service: I've worked in loads of retailers now; Primark, Next, John Lewis and I have to say Republic give their staff the least customer service training or any training at all for that matter! Republic could have done so much more with the service they offer with better training & management and providing an experience in their stores- something I think they were starting to achieve but better management of this was needed.
Just my opinions!! But very sad to see it go and will be keeping fixed on the news praying for a buyer so I can keep my job!