More Kissing Up to Social Good

Here’s another NY Times article (registration required, free for first few days) about retailers catering to the social conscience of their target customers. Although many of them are doing it because it’s fashionable, I expect some of them will find it a good way to build long-term bonds with their core customers. It’ll depend on whether the relationship is ‘sustainable’ between the customer, retailer and charity. Or maybe, as Paco says, on the relative importance of sex and spirituality!

Paco Underhill, a retailing consultant and the author of "Why We Buy," said he thought that merchants needed a new strategy.

"All the merchants woke up in the 21st century to realize the old tools – the advertising or sales promotions, the tools they taught in business school – don’t work anymore," he said. With their customers shopping in Wal-Mart or even in thrift shops, "merchants are taking a step back now and asking, ‘How can we more creative?’ "

The charity approach is a clever one, Mr. Underhill continued. "The stores are hoping to wrap themselves in a mantle that distinguishes them. Just as Whole Foods has wrapped itself in the mantle of organic, chemical-free food, this season’s retailers are trying to identify themselves with charity." He paused. "You know, a significant part of our nation is getting older, and as people get older, they get less interested in sex and more interested in spirituality."

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