Back in 1991 I watched Operation Desert Storm in Iraq unfold on TV. At some point during the conflict, a reporter interviewed General “Stormin” Norman Schwarzkopf and asked him what a General does to effectively lead troops into an intense and dangerous situation. Schwarzkopf’s answer (as far as I can remember it) stayed with me: “A leader’s job in ANY situation,” he said, “is to tell the unvarnished truth.”

SOME UNVARNISHED TRUTH

Things are never going back to the way they were. COVID-19 has and will change the way we live our lives and do business. The hard reality is that many lighting showrooms won’t survive this. Others WILL survive, but just barely… perhaps taking years to claw and fight back onto solid ground.

However…

Some showrooms will not only survive, they’ll thrive. Not in SPITE of the Coronavirus outbreak, but in many ways BECAUSE of it. In my opinion, these will be the showrooms who anticipate the societal changes ahead and move quickly to meet them. Rather than just waiting out the storm, they’re the ones getting busy RIGHT NOW preparing for the aftermath.

CHANGE IS NOT COMING… IT’S HERE

A pandemic – like no other human crisis – compels sudden societal shifts. The telephone wasn’t catching on with the masses until the Spanish Flu of 1918 drove the need for distanced communication. The flush-able toilet was invented near the end of the 16th century, but indoor plumbing was a luxury until over 200 years later. It took a tuberculosis outbreak (that killed one in seven people) and Robert Koch’s research on germs to move indoor plumbing from a luxury to a household necessity – almost overnight.

As with previous outbreaks, the COVID-19 pandemic will undoubtedly bring some big-time social shifts. Bet on it. There are four shifts I believe we can see coming if we look hard enough. If these are true, smart showrooms can plan for them now.

• SHIFT ONE: Geographic Barriers Become Almost Non-Existent
  WHAT THAT MEANS FOR SHOWROOMS…
  Geography is no longer a sustainable advantage. Lighting showrooms who rely upon drive-by visibility will struggle. Those who add SUBSTANTIAL value to a defensible group of local trades while learning how to add value beyond their own geography will thrive.
  
• SHIFT TWO: Health and “Staying Well” Stays Top of Mind for Years, Influencing a LOT of Purchasing Decisions
  WHAT THAT MEANS FOR SHOWROOMS…
  Showrooms who understand and leverage the power of healthy lighting to improve mental, emotional, and physical wellness – and who cultivate expertise on that front – will find ample opportunities for growth.
  
• SHIFT THREE: Trust and Value to be Established With Fewer (Often Zero) In-Person Meetings
  WHAT THAT MEANS FOR SHOWROOMS…
  Lighting showrooms who only know how to add value in-person will face a decline. Showrooms that use technology to EXTEND THEIR REACH with a unique value-add will flourish.
  
• SHIFT FOUR: Showroom and Vendor Consolidation (economic dishevel accelerates channel-breakdown)
  WHAT THAT MEANS FOR US…
  In lighting, distribution-channel-breakdown began a while ago (vendors selling direct to trades, branded storefronts, white-labeling, distributors going direct to factories, etc.). Channel erosion makes it harder to stand alone. Stronger showrooms and those who band together (partnering with other distributors AND with vendors) to share innovation costs, negotiate prices, market collectively, etc. will be left standing… and stronger.

In each of my next four posts, I’ll take one of the FOUR SHIFTS I see coming and break it down into more detail. I’ll then give some ideas and actionable strategies. In each post I’ll add specifics on my own plans for Hansen Lighting (caveat: I can’t guarantee that I’m not a complete idiot… so take everything with a grain of salt) and how I hope to leverage each SHIFT to position my showrooms for the new future.