NEW YORK–The world of retail is transforming, and social media is driving much of that change, according to a group of industry executives at the Annual Merchandising Chief Executives Event held by Financo Inc. yesterday.
In a spirited discussion, the panel—consisting of Millard “Mickey” Drexler, chairman and chief executive officer of J. Crew; James Fielding, president of Disney Stores; Sir Philip Green, owner of Arcadia Group of Brands; Solomon Lew, chairman of Just Group; Betsy McLaughlin, CEO of Hot Topic; and Bruce Rockowitz, resident of Li & Fung (Trading) Ltd.—offered differing views of the impact of Facebook, Twitter and other social-networking Web sites. All of the executives agreed, however, on the large and growing impact of social media on the retail business.
Green told the audience that Arcadia Group now has from 3,000 to 4,000 fans on Facebook, and that building an Internet business for retailing is a viable strategy due to its reduced cost versus building a brick-and-mortar-based retail business. McLaughlin, whose company counts a large number of teenagers, said teens’ ability to do multiple things, especially on social-media Web sites, is shaping their shopping behavior. “They want to be part of something, and the idea of being connected is now creeping into the adult world,” she said.
Fielding noted that the advantage of social media for Disney Stores is “I get feedback (from customers) and fast. I stay in touch. The immediacy (of customer contact) is very important to me.”