It seems like long-standing brands are crumbling with increasing regularity these days. An article on how a poor digital strategy helped bankrupt Toys “R” Us, Inc. is a perfect example of what happens when you take your eye off of the evolution in digital marketing.

Let me say that, for the record, I entered digital marketing kicking and screaming. I didn’t want to tweet, post or whatever. I’m an old-school sales guy, and the idea behind digital marketing seemed like a big waste of time. Besides, I have to admit, I was a bit afraid. Afraid I would break something, or say something stupid, or who knows what. Digital marketing was the unknown, and the unknown inspires fear in all of us.

Perhaps that’s what happened to Toys “R” Us, as detailed in the article, “How a Poor Digital Strategy Helped Bankrupt Toys R Us.”

Clinging to the past
The point of the article is that Toys “R” Us waited too long to beef up its e-commerce website and its website overall. While the company is moving quickly to address those needs, there is a certain irony that is claiming Toys “R” Us as its latest victim.

In a world where viral videos explode instantaneously and celebrities can be made in a span of 15 minutes, building an online brand takes time. Search engine rankings don’t come overnight. An easy-to-use website that provides a good user experience requires testing and time.

Toys “R” Us clung to the notion that “the biggest asset we have is the magic of the experience” in regards to their brick-and-mortar store. 

Hey, we’re talking a toy store, not Disneyland. A parent’s worst nightmare is bringing a little kid into a store where there are a million things to buy, and junior wants them all. So perhaps the reliance on the “magic of the experience” was more of a defensive statement and not what parents want.

Parents want to buy a toy, purchased from the comfort of their own home, delivered without having to battle through lines, other screaming kids and shopping mall parking. Toys “R” Us didn’t get it.

Ok, so what does all of this have to do with the label industry?

Have you talked to your customers yet? Or watched the competition?
Customer research would have revealed that customers are much more inclined to pursue an online experience, as Toys “R” Us struggles might have indicated. And by watching the competition, they might have also seen that a behemoth named Amazon was eating every retailer’s lunch at an alarming rate.

Are you doing the research to avoid a similar fate?  Have you reached out to your customers and found out what you can do to make their experience more seamless? Is it reflecting in your online experience?

In terms of marketing, are you also keeping your eye on the competition? Are they getting more aggressive in digital marketing–beefing up the search and online video presence while also integrating their sales team into the marketing approach?

Lessons learned from Toys “R” Us’ intransigence need to be realized well before it’s too late. Digital messaging is fast, but building a digital presence takes time. Don’t wait until it’s too late.

Rock LaManna is the author of L&NW’s popular column, The Bottom Line. Rock helps printing owners and CEOs use their company financials to prioritize and choose the proper strategic path. He is President and CEO of the LaManna Alliance, and provides guidance on how to grow a printing business, merge with a synergistic partner, make a strategic acquisition, or create a succession plan. Rock can be reached by email at [email protected].