Does the Easter bunny really want to come out to play in January? Peter James Ryan asks in Inside FMCG
Retail has been a calendar-based business for all of its 3,500-year-old history.
Seasonal promotions have always served an important part of the retail calendar, connecting with the human emotions of customers and driving peak spending patterns.
But in the last twenty years something quite dramatic has emerged in the engineering of those promotional periods that has caused them to be stretched over much longer time frames – some up to 20 weeks now.
The two reasons this has happened are competitive fear and modern management structure and processes. Competitive fear is the perception of missed sales due to competitors stealing the march on a season. And modern management techniques have seen the emergence of data-driven ‘departments’ which increasingly strive to gain silo-based sales maximisation (as opposed to optimisation) at all costs, linked to performance remuneration.
The problem with all of this is that it is diametrically opposed to social trend and the drivers of customer behaviour. Increasingly, consumers are divided into planners and occasion crisis shoppers. Planners are the people who have an exhaustive, detailed list that they check off for each season with items they buy with thought and care – putting everything away until the date in question. These shoppers create the early peak and they are in decline.
The vast and growing majority of shoppers are too busy coping with their busy lives to plan and are pushing their purchases later and later toward last minute. With less time for thinking, their purchases are driven by convenience and efficiency and panic.
Extended promotional periods can create an early warning of a countdown to a seasonal peak. But they are also having two additional impacts. They are creating a wallpaper effect that – along with the unquenchable desire of consumers for new ‘news’ – is leading to negative motivation as the consumer sub-consciously registers “I’ve heard that the season is coming but it’s a long way off” and doesn’t click into conscious thought until very late. Often too late.
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Peter James Ryan is head of Red Communication and can be contacted on (02) 9481 7215 or at firstname.lastname@example.org.