Karen Katz, president and chief executive of the Neiman Marcus Group, delivered a talk Thursday night before a packed audience in Robertson 001. Her talk, which provided an introduction to Neiman Marcus in the context of the broader retail world, was a part of the Business Today seminar series.
After providing an overview of the company’s history, Katz focused on the “transformation of the shopping experience” in the technological age. She described the paradigm shift as “the hardest challenge we have had to meet.”
“Our goal is to make sure our customers can shop anywhere, anytime and any place,” Katz explained, highlighting the customer service-oriented approach that, she said, is at the center of her company’s strategy.
For decades, Neiman Marcus’ advertising was focused on three avenues — events, direct mail and sales associate communication, Katz explained, but, with the rise of other marketing media, the company’s strategy has drastically evolved.
Katz then described the company’s evolving market strategy in response to these changes. Rather than institute a “multichannel” approach, Katz said, the company strives to be an “omnichannel retailer.”
Katz differentiated between the two by explaining how, as a “multichannel retailer,” the company once operated “separate business units” for online and brick-and-mortar stores. She characterized the “omnichannel” model as “highly integrated,” whereby the stores, the Internet, mobile applications and social networks work together to create an enhanced shopping experience.
One example Katz provided of this “omnichannel” approach was the “virtual closet,” a developing feature on neimanmarcus.com that allows shoppers to upload photos from their closet. Shoppers can then share these photos while consulting Neiman Marcus’ online stylists, who can select items that complement the shopper’s existing closet, Katz explained.
The company has also made use of social networking sites, Katz added, referring to such media as “the key to our future in terms of engaging customers.” In addition to the Neiman Marcus Facebook fan page, which currently has 290,445 fans, the company has created two blogs, “NMdaily” and “5th/58th,” focused on Neiman Marcus and its ultra-luxury store Bergdorf Goodman, respectively.
Katz also presented a video clip of Bergdorf Goodman’s Holiday Windows, noting how the video’s viewership on YouTube reflects the growing impact of social media.
In spite of the emergence of the online market, Katz added, Neiman Marcus continues to value its in-store shopping experience. She cited Neiman Marcus’ in-store events as one of the company’s greatest strengths.
“We are constantly having parties in our stores,” Katz said. “It brings lots of people into our store, they party, have a glass of champagne and then what do they do? They shop. That’s our goal,” she added, eliciting laughs from the audience.
Katz’ lecture was followed by an extensive question-and-answer session. When asked about the possibility of international expansion, Katz replied that she is investigating the possibilities in China but cited the need for brand support as a limiting factor of expansion. Instead, she finds “the biggest opportunity in China” to be the online market, she said.
Megan Lui ’14, an attendee at the talk who is also involved with Business Today, said she was pleased with the lecture. “It was really interesting to see that perspective,” she said. She noted how, in comparison with other Business Today speakers who work for hedge funds and similar organizations, Katz’ customer-service oriented work focuses more on “psychology” and “thinking creatively.”
The event also attracted prospective undergraduates who were attending Princeton Preview. Admitted student Vivian Wang said she found Neiman Marcus’ online marketing strategies, such as “the new virtual closet,” to be especially fascinating. “No stores really do that right now,” she added.
Katz is a graduate of the University of Texas. She received her MBA from the University of Houston and joined Neiman Marcus in 1985.
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