Plus: The 4 biggest small business challenges | Easter spending trends to watch
Retailers have long relied on age to understand their customers, but that approach is starting to fall short as buying behavior becomes harder to predict.
More businesses are focusing on who shoppers want to be, not just who they are. In this issue, we look at emerging consumer archetypes and how retailers are adapting to attract them, along with what’s holding many small businesses back and how to address it.
Before we dig in, check out the movie producer who left Hollywood to open a candy shop in New York.
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Retailers are rethinking how they define their customers
From boomers to Alphas, a lot has been said about generational consumers and how they’re moving the needle. That approach is starting to break down.
Retailers are shifting toward mindset-based “archetypes” that reflect how people want to live or see themselves, whether that’s wellness-focused, comfort-driven or nostalgic. The key is identifying your customers and aligning with what they’re looking for.
Why this matters: Demographics still matter, but they don’t fully explain buying behavior anymore. Retailers that can identify and act on emerging shopper profiles are better positioned to shape their messaging and product mix. ( Retail Touchpoints)
What's ailing most small businesses and how to fix it
When it boils down to it, most small business challenges fall into four areas: financing, operations, people and growth. Addressing them starts with understanding what it really costs to run your business, mapping out your supply chain to find efficiencies, creating crystal clear job postings and treating your employees well.
Why this matters: Many challenges that slow a small business down come back to these core areas. Taking a more structured approach, and leaning on fractional or freelance support where needed, can help ease the operational burden. (Santa Fe New Mexican)
Read more: Check out our Q&A with the founder of a fractional employment network.
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How two finance guys in search of a soft t-shirt built a retail brand
Childhood friends Michael Natenshon and Adam Lynch, founders of apparel brand and retailer Marine Layer, joined WWD’s Retail RX podcast to discuss how their quest for the perfect worn-in T-shirt led to selling product out of their apartment, then a 450-square-foot store, to 55 locations nationwide today. They ditched the security of finance jobs to chase their “California dream,” and while the struggle was real at first, it paid off.
“We still make the vast majority of our t-shirts and knits and jerseys and hoodies down in L.A.... and we make some stuff in China, we make some stuff in Peru, and in India and in Turkey. So, we kind of manufacture stuff all over, but still guided by that same thesis that our customer expects to have very, very, very high-quality product." –Michael Natenshon
Why this matters: A strong product and clear brand identity can carry a business further than scale alone. For small retailers, knowing what you stand for and building around it can be a competitive advantage. (WWD Voices)
⚠️Warning: email burnout is real, making SMBs targets for fraud
How often do you get overwhelmed by your inbox and hastily delete or half-read your emails? Most of us are too tired running our businesses to read and respond to every single message, and that’s what internet fraudsters are counting on. You can stay safe if you focus on high-risk emails mentioning payments/access, decide who on your team handles what, verify before acting and use tools that can detect threats early.
Why this matters: Consider this a warning sign to slow your roll when cleaning out your inbox. Practice good email hygiene by checking and deleting messages regularly so you stay on top of things and secure. (Bit Defender)
Thanks for reading this week's edition!
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The SKUpe is curated and written by Marcy Medina and edited by Bianca Prieto.
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