YouSaid · the spoken record

Barbara Kahn

lines on the record: 92
first: 2018-10-17
most recent: 2018-10-17
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Would change season to season. Season to season. But it gave you a reason to buy more. Same thing with electronics or innovations or cars. The technology just got better and better, and so you needed, so that you do need to see something new in order to get people to buy because products just don't wear out that fast. If they wore out, then you'd have to replace. But a lot of things don't. So you need fashion, style, new technology. What Amazon did and the digitally native vertical brands did was I do think significant disruption, which is different than this changing in styles and trends. And they realize that the whole model of retail had gotten stale. And that's when I went back to that sales force commission kind of idea. The idea that if you would go into a department store and try to run away from the perfume women, you know, that were going to spray you. Like, what were they thinking?”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, what I think what you're talking about is the way retail changed over time and got people to buy more, which was change styles, change trends. So in the old days, Ham. That was what?”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, that's interesting to think of. You know, you're seeing a lot of pressure on these digitally native vertical brands. They're considered some of the disruptors. A lot of what they have done by going direct without all these intermediary channels, they've been able to lower the price. And so a warby Parker is a very high design glass, but it's glasses, but it's sold at $95 rather than at $500. Oh, really? So that's part of what the disruption is. It goes back to that notion of your margin is my opportunity. So I'm giving you what you really want, but I'm charging you a lower price. So that's one way that they've been disrupting. And the other way the disruptings have is making it more convenient. I suppose there's something lurking out there that we haven't seen yet, but right now, that's what people are doing. I can't imagine what...”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Right, and the service was different. The brand was different. The materials in the car might have been different higher value. So there was, I'm not saying it was silly. I think there was value to what's going on. But that's the paradox of luxury. And part of what makes it special is not everybody has it.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, you know, usually in economics, which I'm sure you know very well, supply and demand says you lower price, make things more accessible, then your market share is going to go up. In luxury, that's the paradox. If you lower brands too much, like Michael lower price too much, like Michael Koore's and Coach did inadvertently by having a lot of discounting and selling a lot of their products and outlets, that diminishes the value of the brand. So if the, and if you make it too accessible, it diminishes the value of a luxury brand. Luxury is for elite. Luxury is special. Luxury is inaccessible. So when you make it a little bit more affordable, the notion of affordable luxury is almost an oxymoron. That's the paradox of luxury. It doesn't follow the regular rules of supply and demand.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“But when you take some of these positions, you're going to get polarization, and they must have calculated, you know, we'll lose some, but we'll gain loyalty in other markets. And they thought it was worth it.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Oh, they had to know that they'd get, I mean, Trump made it clear they were going to get some backlash on this. True to form responded yesterday, although not as extremely as one might have thought, but he did respond. And then the boycott Nike kind of hashtag boycott Nike and the crazy videos that are coming up with people burning their expensive shoes. Which is kind of silly because A, you already gave...”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“But that's not where the news is about Nike and women, the lawsuits and all these other things. And that's been the news. And Nike has to face that. And I think you asked me before about the difference in millennials and baby boomers. One of the things I see that's different is that millennials seem to hold brands accountable. And so it's not just enough to brand a product. You kind of have to take some positions. You have to be responsible. And I think Nike is taking that position now. They're standing up to social issues that do concern their core market. And they took a stand on it. Look what happened at Starbucks. You know, one incidence in one Starbucks restaurant in Philadelphia caused an incredible reaction around the world. That was something I was talking to someone in Europe about it and I said, I don't suppose you heard about what happened in Philadelphia would start.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“No, I mean, I think that's the calculated decision they made, and they had to do some things because they also had been getting a lot of negative publicity on the women issue. I mean, they support Serena, and she's a fantastic role model.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, it's really interesting to watch because I've been teaching marketing for a long time and we would teach branding and we would talk about what are the biggest brands forever the same biggest brands Coke, IBM, whatever, Toyota. All of a sudden the last five years we all know who the biggest brands are now Amazon, Google. Right. I mean, and that's a change that happened very, very quickly in the last five years. And if you look at their stock prices, Kellogg's, Gillette, they're hurting. The CPG companies are hurting and they do have to do something to wake up and smell the roses just like the retailers. So Gillette, for example, has started subscription services to compete with Dollar Shave Club and Harry's. Coca-Cola just bought a coffee company. Look what Nike's doing. That's pretty interesting. So let's discuss that.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah. Or givers and takers and plan B. But he's real, you know, all of that stuff. Even management, which maybe you used to think of management and marketing as quote unquote softer sciences, we're all using data analytics. Of course, finance has always been heavily data driven.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“We've definitely included more analytics in our marketing, in everything. Adam Grant is another professor at the Wharton School. Sure. He started people analytics program.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, that's one thing for sure. The Wharton School, our dean, is advocating over and over and over again data analytics, data analytics. You really can't go into marketing anymore if you don't understand customer analytics and data analytics. You know, in that story, I remember when it came out maybe five years ago, was surprising. But, you know, you really didn't need data analytics to do that. A smart salesperson could have watched this girl come into the store by a pregnancy test and buy, you know, vitamins and prenatal vitamins or all these other things. It really wasn't rocket science to figure that out.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Extrapolate that out. To infinity, which is never a good idea. But you know, even some of our students are going to Walmart now, which was in the past, they weren't so intrigued with going to Arkansas, you know, and working in, like you said, an operationally efficient company. But now Walmart.com is in San Francisco. Jet.com is in. There's a big purchase of theirs a couple of years ago. Yeah. Yeah. So now it's a sexy, interesting, fun place to work.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Who knows what they're doing? I think they're working for AWS or whatever else. I don't know what they're working. But Amazon's a huge company, right? Right.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, the mattress company Bonobos, which was subsequently bought by Walmart, all birds is a new one that's getting a lot of, ah, you're wearing all birds. But these are digitally native vertical brands that are going out. And we were trying to make retail sexy, but retail was becoming sexy. The technology you referenced before really did change the way people think about retailing.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Students, so that was particularly sensitive, you know, something we were very proud of. But there's also Casper that did it more recently.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I mean, for the last seven years or six and a half years, I was the director of the Baker Retailing Center at Wharton. And the goal of that retailing center was actually to convince Wharton students to go into retailing. Typically the Wharton students didn't go into retailing. They went into investment banking or hedge funds or consulting. But Jay Baker, who had retired as the president of Kohl's, thought this was a missed opportunity. And so he developed the center to encourage people to think about retailing. And I was the director of it. And so my goal was to really learn as much as I could about retail and what the excitement was to try to convince our students to go into the industry. At the time I was doing this, retailing was changing radically. Not only Amazon, but these digitally native vertical brands started. Those are the digitally native vertical brands are brands that start online and they go direct to the end user. Warby Parker was started by Ford Wharton.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Right, yeah. Something special, and that's what I mean by differential advantage. You got to be better. You can't just be good enough. You got to be better at something.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“I well, you know, that's an interesting thing because I think somebody might have a Louis Vuitton purse and then a target t-shirt. You know, that's possible. But there's always going to be a price-sensitive segment. So everyday low price, the Walmart strategy, Costco strategy, TJ Maxx, they're all doing very well, even though the luxury brands are doing well too because they're going after being the best at something. So luxury is the best at product. And everyday low price is the lowest price.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, you know, the luxury brands are still doing very well, so you're looking at Louis Vuitton, Herm ⁇ s, those are really doing very well. They're staying off of Amazon, but they understand the importance of online also. They're partnering with things like Farfetch or NetaPorte, which are some kinds of online marketplaces that are dealing, but they understand if they're going to charge those premium prices. They've got to give superior product, pleasurable product, and a really good customer experience. You have to feel pampered when you buy luxury. So that's another piece of it.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Targets a very interesting example because it shows the importance of stores and this quote unquote omnichannel experience. So one of the things they've done that's very successful is open up these small urban stores. So they used to have these big boxes in suburbia and rural markets, right? But now they have these small urban stores where singles or young people are living in the cities more. They also open them close to campuses. And they're getting a lot of people who like to have the physical store experience. They've been tinkering with their product assortment. They've come up with a lot new store brands. They're trying to get the cachet of Target back, you know, that design kind of idea of fun shopping. And it seems to be working. They've been doing a lot of things. The biggest thing is changing that store, having a different assortment.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I mean, I think they're seeing the retail apocalypse people are talking about that. If you don't understand these two basic principles, the principle of customer value and the principle of differential advantage, you're not going to succeed, RadioSheck, Circuit City, Borders, Soon Sears and Kmart, who knows. But these retailers that are not really up to snuff on customer experience, they just can't make it in a world that has an Amazon in it.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Store as long as possible. This new idea of you're a very busy person and you don't want to spend your whole day in a Walmart, so you should be able to pick it up as you drive home. That's a new idea, but that's not technology.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I think it is actually because when Amazon started in 1997, they started online, and they started with books, and you have to think back, why did they start with books? And I would argue they started with books because the product and the shopping experience could be completely digitized. Once it can be completely digitized, then what they did is have an endless assortment, so they had more assortment than any physical store, and they reduced prices by 10 to 30 percent. That was a dominant solution that attracted customers. But you're right, it started with technology. But the basic idea of removing pain from a customer experience does not have to be technology. Because think of what Walmart's doing now, curbside pickup. They could have done that a long time ago and made shopping easier, but they didn't. They made you come into the store, walk up and down the aisles, stay in the store as much as possible, impulse shop. You know, all the ideas put the milk in the back, all of that was to keep you in the...”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Or focus on making the product more fun or less painful or focusing on making the customer experience more fun or less painful. And what's really new in the matrix is that second column of customer experience. And what Amazon redesigned, in my opinion, is making that customer experience frictionless, easy.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Or customer experience. The rows are the principle of differential advantage. Do it better by increasing pleasure or do it better by removing pain. And that gives me the two by two matrix that I call my...”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“And that was it. And if you want to talk about someone as a great retailer, let's say Mickey Drexler, he was called the merchant prince. But that meant he knew how to merchandise. He knew how to assort product. He had a good eye. And nowhere in any of these traditional retail matrices was the customer. As a marketing professor, the first principle of marketing is the principle of customer value. And what does customer value mean in retailing? Give them a product they value from a retailer that they trust. That idea retailer that they trust that was missing. The second principle of marketing, which was not in any of these traditional retailing matrices, was the principle of competitive advantage. If you're in a very competitive market, you've got to be better than the competition. That means either increased pleasure or take away pain. So those two ideas form the underlying theory of the matrix. The columns are the principle of customer value, product benefit.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, well, I mean, I did name it that, but I think it's interesting to name it. Well, what else are we going to call it? Right. That's what I mean. They said name it something. I could think of nothing else. But anyway, the idea behind the success matrix is when I recently stepped down as director of the JH Baker Retailing Center. I had been there for the last six and a half, seven years. And during that time, I ran into a lot of changes in the retail industry. And being an academic, when I stepped down, I wanted to take a deep breath and try to organize everything into some kind of framework. And so I went back and looked at traditional retailing matrices, and they focused on the product, and they focused on operations or logistics.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Right. And that's why I was saying with the salesperson, too, if it's a function of just trying to make sure you make a sale, like you said, anything I can do to make a sale, that's not what Amazon does. Amazon said, let's make it as easy as possible for you. And that was the first time people really tried to do that. And that's why they could patent one click shopping. So going back to your example, the way you told the story, it was easier. It was better. But you could also imagine an alternative scenario where people are saying, I don't want you to walk out of the store without making a purchase and they start doing a harder and harder sell. That's not really customer focused anymore. That's, you know, sales focused.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Backfired when Amazon came in. Because I think when Amazon's trying to do is really make the customer experience easier, you know, and they make you so you can get in and out of the website very quickly. When Amazon famous for is they patented it in 1997, one click shopping And when I found out that that was patented, that was shocking to me. It's like, why would that be patentable? And then you had to go back.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Not so much an upsell as a lost opportunity. And that's how I took it. Okay, in that case, it's positive. But I want to make that point because I think this idea that retailers had in the past of doing whatever they can to make the next sale.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, you know, but I wonder when you tell that story, one of the things that's interesting to me about is whether that salesperson's on commission or not. And that's what I think is interesting about, say, what I consider a very creative retailer like Sephora, where the salespeople are not on commission. And the reason I bring up this point here is when you say, I'll send it to your store, is she really trying to, she or he, the sales associate, really trying to... Give something of value to you, which is the way you told the story, or were they trying to upsell so they make a commission? And that's a subtle difference, but I think it's an important difference. Well, if you walk in.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Slip away without Converting it to an actual sale. Has that been your experience? Oh, for sure, that's the case. So there's not all the traditional retailers are doing that now. So this is a”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“It in the color, size, whatever you like, They're very quick to say. We can order it now and have it shipped to your home for free, would you like to do that? And And if it's something you're familiar with, the size, it's like, yeah, sure, it's one less package I have to carry. Right. They don't want to let.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's everything to everybody. Omnichannel is thinking about not dividing up whether it's online or offline. It's all one big channel. And that's going to become not a real word anymore. And we're just going to think of this as retail. You know, when you buy retail, you can go online, you can go in the store, you can pick up there, you can buy there, whatever, shop it on the phone. I've noticed at stores like Wife calls this retail therapy, but it stores like”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“This particular snowblower, but you can buy it online They're shipping stuff to the store anyway. You pick it up. There, there's no additional shipping cost. Yet you feel like you're actually making it as friction free.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Imitate that? Yeah, you see that also Microsoft, and I mean Sony, which is electronic, they're opening up a direct store for them. But when they open up these new stores, they're different from old stores. They're not the same thing at all. They're much more concentrated on customer experience. Some of the new stores that open up are showrooms. They don't even carry inventory per se. And that's part of the point. You really can't say what's the percentage of shopping online anymore because some people will shop online, pick up in the store, then where do you code that? What is that? Is that online shopping or offline shopping? So I've experienced that with both Home Depot and Lowe's.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Everybody. You know, I don't think it's that online per se. I think it's changing the whole shopping experience. People talk about it as omnichannel, but right now it's just retail. Retail is... Now become a seamless integration between online and offline. The original online retailers are opening up stores. Even Amazon is opening up stores, which is kind of mind-boggling that they're opening up bookstores. Well, it's been so successful for Apple are some of the other...”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, thank you very much. It's fun to be here. It is. And this is such a fun topic. I really enjoy. Subject And let's just jump right into it. It's a chapter in your book. I have to start with How Disruptive Is Amazon? It seems like every announcement they make, royals and entire sector of the stock market. Yeah, it's really amazing. Every day, something new from Amazon, and every day there's massive reaction. And a lot you do see stocks move up and down as Amazon says something or other, threatens to go into health industry, into financial services. People are afraid. And it's interesting because what Amazon is a disruptor, there's no doubt about it. And they disrupt one of the most famous Jeff Bezos quotes, which I have never seen actually written down, but everyone on the internet swears he said this, is your margin is my opportunity. And that idea of taking out margin, in other words, taking out profit, is pretty scary. And when they can do it in a sustainable way, that's disruption.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“If you are at all intrigued by the impact of not only Amazon on the world of retail, but how overbuilt retail is and why it's inevitable that B and C class malls Would go out, why so many retailers are failing to keep up, failing to compete, why it's inevitable that we're going to see a lot of these retailers go down, and how all these really interesting applications of data analytics and technology is completely changing how retailers operate. The experiential aspect of it, the ability to capture data in stores that previously only existed online is a very, very significant change and the ramifications from that are going to be felt for quite a long while. With no further ado, here is my conversation with Professor Barbara Khan.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Week on the podcast, I have a special guest. Her name is Professor Barbara Khan, and she teaches retail and marketing at the Wharton School of Business.”
2018-10-17 · Masters in Business · Barbara Kahn Discusses the Retail Revolution (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source