Emily Byron interviewed Fabrizio Fredo, CEO of Estee Lauder for The Wall Street Journal.  Fredo explained his effort to remake the iconic Estee Lauder brands beginning with consumer research and understanding the shopping experience from the shopper perspective.  One of the biggest insights to come out of their research is that communicating prices to consumers through signage boosts sales.  This is very different for beauty counters which are typically a full-service, luxury experience.  Estee Lauder’s beauty brands like Clinique are synonymous with personal service.  However, Fredo has found a more hands-off approach to be a successful departure.

“It allowed the consumer to make up her mind without having to ask the price,” said Freda.  “This takes embarrassment away. Surprisingly, most consumers said, ‘I didn’t know it was so affordable.’” 

Going forward, the company is investing heavily in consumer research as part of his initiative to remake the brands and expand the customer base.  The company is already reaping the benefits of customizing their store experience to consider the various trip missions and shopping styles of their customer.

“At Bloomingdale’s new Clinique counter in New York, you can have full service from a consultant, analysis from a computer or browse on your own. A corner called Clinique Express provides product replenishment. So far the counter is doing well.”

Byron reports that sales in the most recent quarter are up 11%.

Consumerism has been through the ringer this year and everyone will be glad to see the end of 2009.  But what does 2010 have in store? 

Trendwatching.com touches on 10 behaviors it feels will persist and grow based on a look at how attitudes and technology are shaping our brand perceptions and decision-making processes.  However, it’s clear to say that these 10 are not the only ones that will persist. This report is an interesting read as we all get ready for the new year.

After you read it, let us know your thoughts?  Is there one that seems more on target than another?  Are they way off base?  We want to hear your thoughts about consumer expectations as well.

Click here to read the report.

After much ado, the initial results are ready and available for consumption (for $5,000).

The study, entitled, “In-Store Traffic — Where’s the Shopper,” compares 308 categories in Supermarket and Drug stores to uncover where manufacturers can find the greatest opportunity to connect with shoppers during their store trips.  Click here for a brief on what to expect when you purchase your copy.

Retail Customer Experience reported on two interesting examples of the return of full customer service. First Sears, who has been struggling in recent months, has decided to re-introduce their full service beauty departments.  Apparently, they pulled out of cosmetics some eight years ago. Now in an effort to lure shoppers back in the doors they will feature brands like L’Oreal, Maybelline and Covergirl with counters and attendants just like you find at Macy’s for Estee Lauder and Bobbi Brown.  Sears choice of brands is interesting for several reasons. These brands are usually relegated to mass and drug stores where shoppers have no opportunity to try before they buy. You have to know the product or be willing to take the risk. There is a built in base of customers in those drug store shoppers that are hesitating more now than before for fear of wasting money on a lipstick that is just the wrong color. In addition, all of these brands, Covergirl in particular, have a strong following of younger women who typically do not shop Sears. Pulling them into the Sears store with an opportunity to sample their favorite low-cost brand while getting luxury brand service is pretty savvy. Not to mention, the one thing that will sell in a down economy is lipstick.

On the grocery side of things, a Staten Island ShopRite is offering valet parking.  No, not Whole Foods, ShopRite. One of their shoppers was quoted as saying, “I don’t need the valet service,” as she walked to her car. Which begs the question, how much service is too much.  There’s a difference between a well thought out plan that targets customers based on understanding their needs and lifestyles and creating unnecessary bells and whistles. 

Do retailers have to be careful not to go overboard in trying to win customers? How do they go about striking the right balance?

Similarly, Miller Zell is releasing research later this week that demonstrates the effectiveness of in-store marketing versus in-home marketing. The research suggests that in-store marketing, which reaches customers at the point of decision, is significantly more impactful. Considering the retail economy this information could shift the way marketers target consumers and increase effective allocation of marketing dollars.