Higher Learning from Retail
Over the past 3-5 years, fashion retail has been going through what’s been coined “The Retail Apocalypse.” Long-held truths and traditions that had served retailers for over a hundred years no longer made sense, or needed to be tweaked, to integrate with online shopping, and overall digital technologies that have led to greater access to brands globally. In short, technology was facilitating supply in a world where demand hasn’t shifted—at least demographically speaking. Yes, fast fashion retailers, were able to convince shoppers to buy more, but even that has its limits.
And now, with the Covid-19 pandemic, the apocalypse is no longer metaphorical. It is real, and the consequences of not fully shifting to a digital-focused retail operation is forcing companies to shift focus immediately or go out of business. Those companies that have the funds and expertise to make this shift will make it to the other side of the pandemic intact.
There are many lessons to be learned from retail in other industries. In particular, higher education. In many ways, fashion retail and higher education are quite alike. They rely heavily on physical service, experience and community. The sum of these three elements is a brand name—that carries social currency, and allows fashion brands and schools, in equal measure, to increase their prices, far beyond cost. Both industries have engaged in building digital platforms, catering to a new generation of customers and expanding their reach and profits. But in both cases, the shift to online was largely for “looks” —to be seen as technologically progressive. Behind-the-scenes was something altogether different. Online shopping and online learning are largely misunderstood and therefore underfunded and understaffed. And the actual technologies driving their online activities are outdated.
In both cases, the physical and online experience have been kept separate. Fashion companies hired “online staff” and universities hired “online instructors” —often second-class citizens. And yes, while there are some positive examples of collaboration and integration between the two, these are not the norm. In large part, this is due to executive leadership, that doesn’t fully understand online modalities, especially in terms of how it is now driving the physical experience. full integration with a physical experience. What’s more, they are not part of the generation of customers or students, who grew up in a digital world and who expect a fully connected, integrated, hybrid experience.
Higher education is now forced to face head-on the online revolution that is completely re-shaping all learning modalities. And just like fashion retail, this is going to require a shift in hiring and staffing, building new expertise, a updated operational strategies. Except for the special few boutique schools—that are more in line with Hermes than Zara, higher education is now poised for a revolution, not an evolution. There is no simply no time for the latter.