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Growing retail revenue by servicing hidden markets

Growing retail revenue by servicing hidden markets
Twenty-five degrees below zero is not unusual for a January evening in Minnesota. Neither is trying to find a place to stay warm. And on one particularly cold evening, as I moved between the hot tub, swimming pool, and sauna at our local community center, I was struck by something other than the howling, gale-force wind outside – most everyone in the pool area of the community center was speaking Russian, not English. For a moment it seemed as though I had been transported back to some East European Spas I had visited years ago.

A few days later I needed a pair of pants hemmed and went to a local tailor. Once again I was surrounded by Russian speaking staff as they attended to my needs. Curious, I did a little research and found there were lots of Russians in my area.

Like much of Minnesota, my town is known for its Scandinavians, there are no Russian churches with their trademark onion-shaped steeples and Borsch is not featured as a soup du jour in any restaurant I have visited. But, as it turns out, there are quite a few Russians in the area – 30,000 in fact. Plus, there are another 11,000 Russian speaking Ukrainians – totaling more than 41,000 Russians or Russian speaking people…which is twice the population of the town where I live. They are a people group who is not hiding, but hidden none-the-less.

Now you might be thinking, interesting factoid about Minnesota, but what does that have to do with Christian retailing? Turns out, it might have a lot to do with it. In fact, for the Christian bookstore owner, more than just an irrelevant data point, the whole topic of identifying people clusters may have significant influence on a retailer’s revenue in the next few years – but more on that in a minute.

Most people in this country are familiar with the growth of the Hispanic population and the impact it has had on culture, politics and religion throughout the U.S. Many retailers have responded to this demographic by offering ethnically appropriate goods and services. But as I started to learn about the Russian population in our area, I couldn’t help but wonder if there were other equally hidden people groups to be found. And if there were, how could my industry, digital book printing, partner with book stores to help and service these groups of people?

Providentially my wife Roberta was taking a “Perspectives on the World Christian Movement” class at our church. One night she came home came home from class fascinated to have learned about  the numerous cultures of the Twin Cities, and their specific demographics shared by the guest speaker, John Mayer, Executive Director of City Vision. I called John.

John is the kind of guy every marketing person wants to find – he has data…and lots of it. And as I suspected, there are a number of different pockets of culture in the Minneapolis/St. Paul area – 200 to be exact. The Somalis being the most obvious people group, but Hmong, Tibetan and Liberians are here in significant numbers as well.

And while this is all very interesting about Minneapolis the point is there are significant, often hidden, people groups in your metro areas too! It would not be the same mix of cultures as Minneapolis, but the numbers would be significant just the same. And by reaching out and servicing the spiritual needs of these groups, you would also be driving increased revenue for yourself as well.
In the world of market segmentation, you have a rich target. Not necessarily wealthy, but well defined…you know who and where they are and can develop a persona or spiritual needs assessment for books and Bibles. And in many parts of the country, according the 2008 ARIS (American Religious Identification Survey), growth in Christian churches is being fueled in large part by Christian immigrants. So the market potential is growing as well.

As a retailer it is not enough to know what a particular segment wants, you have to be able to supply their need – relatively easily, and at price points which make sense. And it is precisely at this point where culture discovery, need fulfillment, sophisticated digital book printing and cloud computing intersect.  

Cloud based digital print networks are being built that will help U.S. based publishers have their books printed on-demand, per order in other countries – within minutes…without large shipping costs and importation hassles. But less known are how these same networks are allowing international publishers to have their books printed in the United States easily, inexpensively, without large shipping costs and customs issues…and most importantly, just one book at a time if necessary. This is significant. And opens to you, the retailer, the possibility of not just finding translated versions of current American Christian writers for these people groups, but finding excellent Christian material, written in the language of the target market you are focusing, and using metaphors and life examples that better speak to that culture. And the best part, because these books are printed in the United States, they do not cost any more than any other book printed in this country.

Ezdra Publishing (http://www.ezdra.com) is an excellent example of this kind of resource for local bookstores. Located in Ukraine, they already print books in the U.S. by uploading their work to a cloud computing server first and printing just what is needed – from one to dozens of books at a time. Ezdra is an excellent resource for anyone wanting good Christian literature written in Russian. But there are great publishers in Peru, Brazil, Sri Lanka as well…just waiting to meet the needs of the people in your own community.

U.S. Distributors are starting to understand the need too and are sure to enhance the just-in-time bond that has been growing between the Christian retailer and Distributors for awhile. STL Distribution launched a print-to-order facility this year. They deliver same day shipping for any order that is received by 1:00 PM - including books they do not have stocked on their shelves. Those books are stored virtually in the Cloud Server – ready to be printed when they are ordered. And as this part of the business grows, this will include all kinds of literature and books from many different cultures - ready to order and print, one at time if needed…such as Ezdra Publishing.

And as you seek to supply your new target markets with Bibles, even obscure translations, the publisher Virtual Storehouse is a source and the Bibles from there are starting to be made available through STL Distribution (http://www.stl-distribution.com). As the publisher’s name infers, the Bibles are kept virtually in a server until needed….so whether it is Spanish, Uzbek, Nepalese, or some other hard language to find, Virtual Storehouse is a resource for meeting the Bible needs of your audience.
 
At this point you may understand there could be markets to go after in your area, but you are not sure how to do that, and really, bottom line, you are not convinced there will be a return on your investment. So what are the benefits of developing a relationship with a specific ethnic market? John Mayer suggests several:
1.    Net new business. More than a spike in sales, this will be all new source of revenue.
2.    You will be targeting the leading edge of growth in the U.S. Christian Church.
3.    Your target market will grow. New immigrants tend to settle in areas where other members of their ethnic group have settled – ensuring a new source of business each year.
4.    Incremental sales of your English inventory. You will sell more English language books and Bibles as well. You may capture the parents with your ability to service their language needs, but you will also sell English based books and Bibles to their children.
5.    Ministry – you will be providing a much needed ministry in your area.

You’re convinced, but you are busy and can’t spend a lot of time doing analysis. The following are a few easy and practical ways to seeking out the more hidden people groups in your area:
1.    Read what John Mayer has done in Minneapolis (cityvision.org)
2.    Ask your school district what languages they are servicing. Many times you will be surprised at how diverse and even exotic some of the languages are…but they give you a clue to what the clusters of ethnic groups are.
3.    Google the U.S census in your area.
4.    John Mayer suggests a “Wind Chill” survey (a term a Minnesotan can appreciate). But the idea is get out and observe what is happening in your area. What languages do you hear as you walk around your area? Are there new ethnic grocery stores or restaurants being built nearby? Years ago, I became aware of a growing Hindu population in San Francisco when they set up a worship area beside my mountain biking path in Golden Gate Park.
5.    When you have the stats, think beyond the numbers. In Minneapolis there are many more Somalis than Russians. But the Russian demographic is a better long term investment. First, many of them have a Christian heritage, they have higher disposable incomes, and they read in Russian and English. If you are a Christian retailer in the Twin Cities metro area, you can supply Bibles through STL Distribution for people ministering to Somalis. But for a long-term investment in a market segment, the Russians, Liberians or even the Hmong would be better groups to target.
 
Technology is beginning to drive a whole new era of engagement with other cultures in the United States. Established book stores and chains need new customers, ethnic groups need literature and Bibles in their own language, international publishers want to reach their people groups in the United States – to open markets for their work. Cloud based, digital book printing is enabling all of the above to happen – driving all new sources of revenue for you…starting right in your own backyard.