For quite a few Israelis, managing a network of gaming giants and international brands such as Lego and Nintendo is an enviable matter. After all, a life dedicated to blockbuster games and sales records can be an experience full of interest and excitement. Eran Tor, that this is his life, is aware of this – but he is far from sitting and playing all day.
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Last month, Thor turned Lego into a chain in Israel, with three branches in less than six months since it entered the country (in Tel Aviv, Rishon Lezion and Eilat), and later this year another branch is scheduled to open. At the same time, a second Nintendo branch opened in Eilat, four years after bringing the brand to Dizengoff Center.
The retail insights he gained along the way – among other things, he managed iDigital, an Apple importer, and served as a senior manager for Barkit Benckiser, an importer of cleaning brands – he is now sharing in an interview with Globes.
Eran Tor
personal: 56 years old, married and father of three. Lives in Herzliya.
professional: Holds an MBA in International Finance and Marketing from NYU University. He served in senior management positions at Bestfoods Global, and as CEO of Reckitt Benckizer in Israel and CEO of iDigital. Today I have a gaming turn.
Something else: Swimming lover.
1
Service and people
Since the closure of stores during the Corona period, many employers have encountered the problem of returning employees, and no less so of retaining new employees and creating identification between them and the workplace. “If retailers employ salespeople and pay them the same as salespeople, they get this experience, like some brands have in the fashion market,” Tor says.
“But if you want a person to leave and say, ‘Wow, what a service I received here,’ it is important to invest in employees. In my opinion, people want personal service, and a physical retailer that does not know how to provide this service, and build a team that understands these values, will find it difficult to exist.
“On the one hand, you don’t provide a service, on the other hand, you don’t bring all the variety that is available on the Internet, so what are you actually doing there? The personal experience is above all. This is the basis. When someone buys a Nintendo, they don’t just buy a game. They want to know how to connect, When does it come out and how does the character work? We speak in the language of the gamers, so it’s a set of things. In my opinion, people haven’t lost the desire to come to the physical stores.”
2
customer experience
According to Thor, to survive in the current era, where digital sales are gaining momentum, retailers must give the consumer much more than in-store merchandise and good service. “The strategic point in my eyes is that whoever does not provide a customer experience and exceptional personal service in the physical world, will not exist,” he says.
To illustrate, he mentions a jazz event that took place at the Lego store in the center, and the launch of a special collection for Leto Bashvet, which was accompanied by events in collaboration with the National Fund for Israel. Tor makes a point of doing this type of move on a regular basis, whether it’s community events at the brand stores or large projects for holidays and vacations, such as the giant menorah that was built in Chintar during Hanukkah, which was made up of 130,000 pieces and reached a height of four meters.
“You have to take the saying that the customer is at the center one step further. In our world, it’s entertainment – whoever comes to Lego comes to get a fan, and I have to give them that experience as best as possible. If you sell a box, you depend on it. If I sell a Lego of c “So, I can only sell the game. But if I do a jazz event, with real musicians who connect with my values, and I invite the Lego-loving community, they will come to the store, see the show and buy the box.”
“We invest in thought and resources to establish the boxes and the brand for life. A retailer who does not understand the importance of linking the dress or phone to everyday life, and does not provide added value, may see the customer choose another alternative.
“People are looking for belonging, they want to belong to a community. That’s why it’s important to build communities around the thing called a store. In the case of Nintendo, for example, we call it the fan house and not a store. People want an experience, they’re willing to pay a premium for it, and that’s the only place where physical stores will exist A client should feel that he is known, and that he is given support and the ability to express himself as a person, and also within a community.”
3
technology
“Stores must have a personal area of personalization,” Tor says. “Our new technology, which only exists in 40 Lego stores in the world, is the creation of personal photos in a Lego portrait. In physical retail, and not just digital, there is a great importance of personalizing the customer, and providing a product that is unique to their emotional needs.
“Our duty is to excite. The goal is for people to leave our store with a smile, and we do it quite well judging by the measurement of our returning customers. At Nintendo, for example, people return an average of 6.2 times a year. This means that every two months our customers return to the store again.
“The Lego store in the center, which opened about six months ago, has already been visited by 350,000 people. This shows loyalty, an emotional connection. On the website, of course, it is a different experience, but we are trying to make the connection between the platforms. In the end, the customer’s experience communicates when he sees the product on the website, and comes to the store to examine it. We treat it as one whole, one experience in one service. I believe that online and physical are one.”
What do you give online that sets you apart from others? I can buy at cheaper prices at KSP.
“We sell the full range of a thousand SKUs. The next one, without names, knows a third of us. Second, I propose a connection between the digital experience and the physical world. For example, whoever buys a product on the website receives a coupon to create a personal character in the physical store.”
What’s the difference between you and Teddy Sagi’s Lego store that opened in Netavgy?
“The Duty Free store is in the format of travel retail – small stores with a limited variety, which is intended for people at the airport. The variety of products, the service and the personalization make us very different, and I believe that in the end all this will help the Lego market to grow.
“I come from consumer worlds, and in Israel there was a situation of high prices, limited variety and a customer experience that was not synchronized with abroad. Over the years I tried to explain this discrepancy to Lego, but as in many cases, it took time for them to make the move. I am very happy about this partnership. Patience paid off.”
4
Identification with values
Quite a bit has already been written about the fact that members of Generation Z, which is the next consumer generation, are not only looking for the price tag or a beautiful garment, but also the values behind the brand, such as fairness and sustainability. Therefore, brands that want to stay relevant must listen to him. But listening is only the first part, then comes the action stage.
This is one of the reasons why Thor chose Dizengoff Center as the first location of the two brands – Nintendo and Lego – a location that openly declares those with its values. “With everything that is happening in the economic and non-economic world, brands need to look for people with a great passion and a place of commitment,” he explains. “I am the ambassador of the brand, and I try to make them feel that I am them. I am not the distributor or the store, I am part of you and my values are the same as yours.
“People are looking for that connection, so what’s important is not just to sell and not just a number of stores, but to give it to them. In everything I’ve done in life, it doesn’t matter if it’s Lego, Nintendo, Apple or Unilever, washing powders or medicines, in the end I come With a commitment to create change, not move boxes. People want those who are committed to success, and come with values similar to theirs.
“Many brands approach me, and I tell them I’m not the right person. I need to connect very strongly with the company’s values, feel the emotional connection and, on the other hand, the professional challenge. That’s why I think we’re successful. It’s not just me, but also my team who live the the values.
“I’m the one who gives the vision, but every day they meet with the customers, and they’re supposed to be Nintendo or Lego, and that’s the art. In the end, over time, it becomes a corporate culture.”
5
brand ambassadors
One of Thor’s marketing methods is the announcement of “brand ambassadors”. According to him, “Nintendo has 166 ambassadors throughout the country with whom we have a communication system, and we ask their opinion. At Lego, too, we listen to the community, and take some of these insights.
“The people selected have a responsibility to come and give me feedback. This is not a satisfaction survey, where you ask ‘Give me a 7 or 9,’ we are really asking how we can create a better experience. We demand this feedback. Two months ago, a little girl approached me in the store Lego in the center, and she said, ‘You know, I’m a builder. I suggest that you make certificates of official builders.’ Today we give official certificates to every child who buys in the store.”