Specialty vs. Mass Market

As a specialty retailer, it may sometimes feel overwhelming to play David to the mass market's Goliath, fighting off seemingly massive arsenals of weapons with but a few sticks and stones. However, a recent survey conducted by marketing firm Funosophy Inc. delved into mom's motivation to shop specialty and the results highlight some exciting opportunities for independent retailers to step up their game and increase business.

The survey asked 200 moms of kids ages 3-5: “What factors play into your decision to purchase a toy for your child at a specialty store instead of a discount marketer like Target or Wal-Mart?” Moms were invited to share their motivation in their own words. Multiple responses were permitted. Although examples were given to clarify the term “discount merchandiser,” specific examples of specialty toy stores were not given and Toys “R” Us was not specifically identified as either a specialty toy store or a discount retailer.

More moms listed price/promotion as a potentially more motivating reason to shop specialty than any other reason, meaning a well-placed price promotion could really impact business. The lesson: create a loss leader, promote it aggressively, and increase store traffic. Your customers will come for the sale, but who knows what else they'll buy.

The second most popular reason to shop specialty was the ability to find a specific item moms said they couldn't find at mass retailers. Additionally, some respondents cited being able to find more “unique” toys at specialty. So if you stock unique or more exclusive items, spread the word about them.

Interestingly, mom's third most motivating reason to shop specialty was the perception that the toys are of higher quality and/or safer. Some moms even mentioned that they would look to specialty to find toys that were made in the U.S.A. With toy safety being such a hot topic in today's media, promoting the quality of your products is a smart marketing idea.

Finally, 12 percent of moms reasoned that they could find toys with more educational value at specialty stores than at mass retailers. So, draw attention to your educational offerings.

Some moms mentioned a specific type of toy that they would seek out at a specialty retailer. Not surprisingly, educational toys topped their lists, followed by creative toys, physical activity toys and interactive playthings. Other reasons to shop specialty stores versus discounters included:

• Cleaner, easier shopping experience
• Better warrantee
• Desire to support local businesses

This month's survey shows there are great opportunities for specialty retailers to impact their business simply by doing more to highlight the differences between what they carry compared to their mass market competition. In particular, it found that price promotions and highlighting the unique or educational aspects of your merchandise could drive traffic to your store.