Patagonia’s Robert Cohen on the Retailer-Customer Relationship

Patagonia’s Robert Cohen on the Retailer-Customer Relationship

By Joshua Brustein October 03, 2013

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What do shoppers want? Experts discuss the forces reordering the retail industry.

Does it matter to you what channel people buy your clothing through?
Nope. I’m more interested in making sure customers get Patagonia and less obsessed with how they get Patagonia.

Is gathering information about customers more important now than it has been in the past?
It’s interesting because the consumer has gotten a lot more power. People are much more protective about their e-mail in-box than they are about their home address. They’ll sign up for a catalog or they’ll sign up for a coupon. But to get somebody’s e-mail address out of them, you know, it’s a quid-pro-quo arrangement. Nobody tends to give it up for free. Obviously that rich customer relationship that you really want is “We’re like you. We care about the same things you do. Let’s do things together.” In a lot of ways the desire to build that relationship is about retailers trying to make big business feel a lot smaller. With only 30 stores in the U.S. and 120 around the world, it is not that difficult to act small because we are small. People call the switchboard, it’s answered by a person. It’s not an automated phone number. People may think we’re much bigger than we are.You’ve focused on selling used clothing, sometimes even discouraging people from buying new. Is the actual trade in used clothing significant, or is this another way for you to tell customers who you are?

It’s been a little stronger than I thought it was going to be. You’re not looking at 25 percent of sales. But it’s not 25 percent of the floor. In a lot of cases it’s about, you know, a 10- or a 20-foot run of shelf. Let’s put it this way: The space is incredibly productive. We’re doing it because it’s the right thing. And if along the way there’s a greater opportunity to expand it, we certainly will.

Where else do you like to shop?
Oh, good God. Sadly, the iTunes Store because I’m buying a hell of a lot of music. I spend some time in Nordstrom(JWN), because I think they set such a standard for customer service. But it’s the iTunes Store more than anything.

Unknown's avatarAbout bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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