‘Amazon Charts’ Re-Define ‘Best Seller’

The New York Times: Amazon now tracks “not only the top-selling digital and print books on Amazon, but the ones that customers spend the most time reading … With its lists, Amazon aims to redefine the notion of a best seller, expanding it to include books that are ‘borrowed’ from its e-book subscription service, and ones that are streamed on Audible. As a result, the lists give increased visibility to books that might not typically appear on other best-seller lists.”

“All of Amazon’s acquisitions and new features are having a cumulative effect, allowing the company to draw on its vast customer base and troves of data to discover what is popular, and return that information to customers, creating a lucrative feedback loop … Crowdsourcing and data mining are also driving the company’s approach to its bookstores, which act as showcases for books popular with customers on the site. While the stores have traditional categories, like fiction, nonfiction and travel, the most eye-catching shelves feature categories culled from Amazon’s customer data.”

“The first thing customers see when they walk into the store is a large display table, labeled Highly Rated, which includes books with an average rating of 4.8 stars or higher on a scale of 5 … Another display case, labeled Page-Turners, features books that people finish reading on their Kindle in fewer than three days … Another section features the most ‘wished for’ books from Amazon’s website … The books are all displayed face out. Under each book is a card with the average customer rating, the number of reviews and a featured review from an Amazon reader. Displaying the full cover of each book mimics the visual look of Amazon’s website, and might lure customers to unfamiliar titles.”

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Google Eyes: Watch While You Shop

The Washington Post: “Google executives say they are using complex, patent-pending mathematical formulas to protect the privacy of consumers when they match a Google user with a shopper who makes a purchase in a brick-and-mortar store. The mathematical formulas convert people’s names and other personal information into anonymous strings of numbers.”

“The formulas make it impossible for Google to know the identity of the real-world shoppers, and for the retailers to know the identities of Google’s users, Google executives said. The companies know only that a match has been made. In addition, Google does not get a detailed description of the individual transactions, just the amount spent.”

“Google would not say how merchants had obtained consent from consumers to pass along their credit card information. In the past, both Google and Facebook have obtained purchase data for a more limited set of consumers who participate in loyalty programs. Consumers that participate in loyalty programs are more heavily tracked by retailers, and often give consent to share their data with third parties as a condition of signing up. (Not all consumers may realize they have given such consent, according to the digital privacy advocacy group Electronic Frontier Foundation).”

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Movies & Toys: Box-Office Bingo

The New York Times: “With the decline in DVD sales speeding up and the box office stalling on a global scale — even as movies become more expensive to make — studios like Warner for the first time are looking to merchandise as an engine. Film companies will release 25 movies with toy tie-ins this year, according to Bloomberg analysis, up from roughly eight annually in the past.”

“More than ever, consumer products are influencing moviemaking decisions — namely, sequels and more sequels. Retailers are more willing to devote shelf space to tie-in products when there is already proven interest … the opportunity is too great for studios to pass up, and Exhibit A is Disney. Over the last five years, operating income at Disney’s consumer products and video game business has roughly gone from $1 billion to $2 billion … Disney is the world’s No. 1 licenser, with themed products generating $56.6 billion in retail sales last year.”

‘It is not a coincidence that Warner, Universal and 20th Century Fox have turned to Disney veterans to invigorate their merchandise divisions.” Pam Lifford, the president of Warner Bros. Consumer Products, “spent 12 years at Disney Consumer Products, leaving in 2012, when she was an executive vice president … Jim Fielding, former president of Disney Stores Worldwide, took over consumer products at Fox in January. Vince Klaseus became Universal’s consumer products and video game chief in 2014 after a long run at Disney.”

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Of Puppuccinos & Peanut Butter Bacon Burgers

The Wall Street Journal: “For some restaurant customers, the hottest items to order aren’t on the menu. In recent years, so-called secret menus have cropped up on social media and attracted a cult following. Devotees proudly photograph their McDonald’s Chicken Cordon Bleu McMuffins, Chipotle Quesaritos (a quesadilla-wrapped burrito) and Shake Shack Peanut Butter Bacon Burgers. Fans debate recipes and discuss how to order tricky items without provoking the ire of harried restaurant staff.”

“Some restaurants, like McDonald’s, deny the existence of such menus, although others say their staff will customize orders. Some establishments actually embrace the concept. Many creations are suggested and named by consumers, who detail online what ingredients to request. Sometimes, people put them together on their own.”

“Occasionally, secret menus aren’t limited to restaurants’ human clientele. Last year, Ricky Wolfe and his then-girlfriend, with dog Wally in tow, drove through a Starbucks in College Park, Md. She ordered a coffee and a Puppuccino. The barista, no questions asked, handed over a tiny cup filled with whipped cream. Mr. Wolfe, 28, was incredulous. Wally, a shepherd-hound mix, was apprehensive until her tongue met the whipped cream.”

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The Stitch Fix Secret: Make Shopping Easy

The New York Times: Stitch Fix is a mail-order clothing service that offers customers little choice in what garments they receive, and shies away from discounts for brand name dresses, pants and accessories. Despite a business model that seems to defy conventional wisdom, Stitch Fix continues to grow … To the company’s founder, Katrina Lake, success comes down to delivering what consumers want: making it easier to shop … In her view, what was important was helping customers find clothing they liked without taking lengthy shopping trips and returning dozens of items.”

“At the company’s warehouse, Eric Colson, formerly a top data scientist at Netflix, spoke to the role that data science — once the province of high-tech giants — plays in nearly every aspect of the Stitch Fix business. Mr. Colson excitedly illustrated on whiteboards how the company’s systems can narrow down a broad range of women’s pants to a relative few that each individual customer is statistically likely to keep … Algorithms have even cut the number of steps needed for workers to pick out clothes for individual clients.”

“Yet the question remains whether customers who are initially thrilled by receiving a customized box of clothing will remain customers for months or even years … Stitch Fix executives declined to share their retention statistics, but claim that they are above industry averages.”

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Artists & Fleas: The New Retail Acrobats

The Wall Street Journal: “These are tough times for brick-and-mortar retail. Stores are closing locations at a record pace, while chains including the Limited and American Apparel are going belly-up. New York City’s flea markets, holiday markets, farmers markets, night bazaars and art fairs, however, continue to draw big crowds. If it’s sold from a stall or a folding table, it seems, shoppers can’t get enough of it.”

“Artists & Fleas … is opening a new, 5,000 square-foot market on Friday at the prime retail intersection of Prince Street and Broadway in SoHo, the former home of an Armani Exchange. Co-founders Ronen Glimer and Amy Abrams say artisan markets are thriving because shoppers are hungry for unique goods, not to mention connection. They choose their merchants based not just on their wares, but personality. A key question: ‘Is this a fun person?’ On peak days, their Chelsea location attracts up to 10,000 shoppers. That in turn draws merchants willing to pay $65,000 a year for a 50-square-foot booth.”

Cynthia Rybakoff, a jewelry maker, comments: “We might as well be baleen whales scooping up krill. We don’t have to work that hard to bring people in … There is no advantage to having a storefront other than vanity.”

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Shopping-Cart Psychology: To Return or Not?

Scientific American: “It seems like a basic courtesy to others: you get a cart at the supermarket, you use it to get your groceries and bring them to your vehicle, and then you return it for others to use. And yet, it’s not uncommon for many people to ignore the cart receptacle entirely and leave their carts next to their cars or parked haphazardly on medians. During peak hours, it can mean bedlam. Where does this disregard come from?”

“Social norms fall into two general categories. There are injunctive norms, which drive our responses based on our perception of how others will interpret our actions. This means that we’re inclined to act in certain ways if we think people will think well or think poorly of us. And there are descriptive norms, where our responses are driven by contextual clues. This means we’re apt to mimic behaviors of others—so what we see or hear or smell suggests the appropriate/accepted response or behavior that we should display.”

“The world will likely not end because we aren’t returning our shopping carts—that would be an amazing butterfly effect—but it’s an example of a quality of life issue we can control. That guy who didn’t return his cart may not be a complete jerk. He may just be using the example set by others so he can get home a little more quickly. But if everyone does that, then we’re shifting the balance of what is acceptable, which may have greater ramifications to the social order. We have a greater influence over seemingly mundane situations than we realize.”

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Redbro Chickens: Slow Growth, Better Taste

The New York Times: “Perdue Farms, one of the country’s largest chicken producers, has been raising what are known as slow-growth chickens side by side with the breeds that have made the company so successful. The new birds, a variety known as Redbro, take 25 percent longer, on average, to mature than their conventional cousins, and so are more expensive to raise.”

“Perdue is trying to find just the right slow-growth breed, and it has a strong incentive: A fast-growing cohort of companies that buy vast quantities of poultry, including Whole Foods Market and Panera Bread, are demanding meat from slow-growth chickens, contending that giving birds more time to grow before slaughter will give them a healthier, happier life — and produce better-tasting meat.”

“Consumers would … have to accept some trade-offs: While the new chickens have a fuller flavor, their meat tends to be distributed differently over the body, with more generous thighs and smaller breasts than the chicken most Americans are used to … In marketing slow-growth chickens, Perdue and others will have to make consumers understand why they are paying a higher price … the suggested retail price of a Sonoma Red (from Perdue’s Petaluma Poultry) that weighs four pounds is $16.”

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