Sensory marketing in the fashion industry: the use of music as a way to attract young customers (15~25 y.o.)
Sensory marketing in the fashion industry: the use of music as a way to attract young customers (15~25) Aurelie Lacambre (Lily) N0595498 20th August 2015 MA International Fashion Business
FIG 1: James Bay playing live at Burberry fashion show
Nottingham Trent University
I confirm that this work has gained ethical approval and that I have faithfully observed the terms of the approval in the conduct of this project. This submission is the result of my own work. All help and advice received other than from my tutors has been acknowledged and primary and secondary sources of information have been properly attributed. Should this statement prove to be untrue I recognise the right and duty of the board of examiners to recommend what action should be taken in line with the University’s regulations on assessment contained in its handbook.
Signed : Aurelie Lacambre
Date :
9, 611 words
CONTENTS
FIG 2 : Mannequin plays the trumpet in a Moschino shop.
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Abstract Introduction
Aims and outcomes
Methodology
Literature review
Discussion
Findings
32 Conclusion 34 Recommendations 36 Implications 37 Bibliography 42 Appendices
FIG 3 : Volume button
“Experience is the new currency of modern marketing landscape because experiences are life, and people talk about experiences every day� Smilansky, 2009
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ABSTRACT Purpose – This research was conducted in a view to analyse the retail experience for fashion brands using music as a strategy to attract younger customers (e.g. Burberry and Abercrombie & Fitch). It evaluates both online and offline use of music as a way to enhance customer arousal and engagement focusing on generation Y, i.e. the millennials. Design approach – The 4 months research adopts a European standing point, focusing mainly on the UK and French markets. Data was gathered through a review of the existing literature and a combination of observation, questionnaire and interviews. Value – Based on the external environment factors identified it was seen this research is of interest to the brick and mortar brands who wish to survive the online era. The outcome of the research for the fashion industry is to illustrate ways to grow through retail innovations. Keywords - Music, Fashion, in-store experience, sensory marketing, future of retail
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FIG 4: Oscar and the wolf live soundtrack of Dries Van Noten fashion show
INTRODUCTION The fashion industry is constantly evolving and with the rise of new technologies consumption patterns are shifting, i.e. from a physical point of purchase to a virtual sphere. The growth of e-commerce and m-commerce means that, in order to compete, bricks and mortars need to offer a particular level of service and an experience different from the online shopping experience (Barrie L., appendix 1). For this reason in the 21st century, experiential retailing is the new frontier for fashion retailers (Gilmore, 2002). According to Euromonitor “most teenagers or 20-somethings is the first generation to have lived all their lives with the Internet. They browse and shop with their mobile phones and tablets - and they will pass on this consumption culture to their own children. They represent a long-term opportunity for online specialists such as Asos - and for fast fashion chains such as Gap - that have successfully grown through e-commerce” (Euromonitor, 2013, appendix 1). To be able to compete with on-line shopping fashion retailers have to provide a great level of service and an invaluable experience that will attract and retain the youth. Tarlok Teji, Lead Partner UK Retail at Deloitte, state that “linear thinking and refinement worked in the 90’s, but will need to change in order to engage the 21st century shopper. Retailers have got to build in some innovation of value to meet the needs and wants of today’s customers” (Soars, B, 2009). In order to differentiate and to draw customers in, fashion retailers need to offer different experiences that delight the customers’ senses.
A Deloitte report affirms that “regaining consumer trust and loyalty by focusing on an experience and level of service that cannot be replicated on-line will be critical to improving the bottom line. Focussing on improving in-store customer service represent an opportunity for a retailer’s physical space to replicate the best online shopping while considering the store role as an omni-channel delivery model” (Deloitte insight report, 2013). Technology also plays an important role in the evolution of the retail shop environment as innovations are used by fashion brands to stand out from competition, e.g. mirrors turning into screens displaying runway shows or augmented reality shopping to guide customers in their purchase like a personal shopper would do (Davis, G., 2014 appendix 1). As it is for fashion, music is subjective to each individual taste and taste also varies according to age and other social factors. Therefore, this study focuses on examples of some fashion brands targeting the millennial customer. The research aim is to find solutions to respond to the changes in consumption patterns among pre/ young adults fashion shoppers with a focus on experience linked to music use in retail settings. This project scope is to explore and evaluate the use of music in various strategies of fashion brands including on-line marketing and in-store experience. The focus is put mostly on the younger generation as this demographic shops more and more on the internet representing a challenge for fashion retailers to attract those customers to store. The value of the research is to help fashion brands understand the future innovations and consumer perception of in-store experiences.
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“The physical store can serve as a differentiator in signalling the intended market segment, positioning the organisation and conveying distinctiveness from competitors� Schmitt and Simonson, 1997
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The first part of the study consist of the analysis of the existing literature on the topics of sensory marketing, multi-sensory experiences and the way music is used to influence shoppers behaviour. Moving on to the discussion for which a primary research method was selected i.e. a case study on the brand Abercrombie & Fitch / Hollister will focus on the segment of the 15 to 20 years old and a second case study on Burberry will explore the target of the 20 to 25 years old. This two sets of data combined will then provide an overall view of the millennial attitude toward music in fashion retail setting. Another aim of the research, which focuses on the retail experience, is to establish a link with the global strategy of the brand by comparing the offline to the on-line communications.
FIG 5: The Kooples Record
Proposals are drawn upon the results obtained through the customer survey aiming at identifying expectations for future in-store innovations. Proposals include one detailed commercial concept to implement in-store i.e. an innovation envisioned by the researcher and supported by the collected data. Limitations for experiential strategies may be that providing shoppers with new fun experiences is something short-term, meaning that it would be necessary to create new experiences often to retain the customers and keep them interested in your brand.
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AIMS AND OUTCOMES
S E M TCO
AIMS
OU
1
Cu ex p sto m eri er enc e=
To undertake an analysis of the external environment in order to explain why retail is evolving towards experiential retailing. Based on an in-depth review of the literature and on the study of the socio-economic factors new patterns of consumption will be debated.
To determine future trends in retail experience and consumer expectations.
B ra
2
To evaluate how music is adding value to brands in the consumer’s mind along with brand communication strategies. Through a customer survey and a review of the literature it will be determined to what extent music affect customer ‘s perception of the brand.
3
To identify how music can be used as a marketing tool to appeal to younger generations, targeting the pre/ young adults. This part of the research will serve as a bridge between the off line experience to the on line offer.
4
>
ndi
ng=
> To produce a thorough analysis of the benefits for brand image enhancement through music and its benefits for businesses.
M s t r a r ke t ate i n g gy =>
To explore new innovations relating to sounds or other senses, that would enhance the shopping experience in the future. The purpose is to think of creative new ways to implement music in the fashion retail setting.
P ro
pos
als
To assess the value of music strategy and its impact on the business profits and its viability. To determine omni-channel strategies providing seamless experience and engagement.
=>
To determine the future innovations in the retail environment that would best appeal to the young generation. A range of detailed proposals is to be drawn to respond to the studied evolution of the shopping experience.
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METHODOLOGY 1) Research approach The intrepretivism paradigm is applied in cases where there is not one objective truth but there are multiple truths which are perceived in different ways according to the social context. This is particularly true to the focus of this research as music and emotions emerging from sensory marketing are perceived in different ways by many persons. This also leads on to the realism construct which, unlike the positivist scientific pattern, admits the existence of multiple truths. This view emphasizes on the idea that researchers, contrary to scientific research, are not objective, but a part of what they observe (Collis and Hussey, 2014, Saunders, 2012). The deductive approach consists of developing a theory and hypothesis in the first place and then to design a research strategy to test the hypothesis (Wilson, 2010). To explore what reality, in a given context, is in order to support or to refute the hypothesis made. Contrarily, induction begins by making observations and seeks to create theories from them (Babbie, 2010). The inductive approach is to be followed as observations and data were first collected to then reach conclusions and theories concerning the use of music in the fashion industry targeting the young adult generation. (Collis and Hussey, 2014, Saunders, 2012). This do not exclude the use of deduction in some aspects of the research.
Cross-sectional is used when analysing a particular phenomenon at a particular brief time as opposed to longitudinal which look at a phenomenon over a longer period of time, as the research spreads on a period of 4 months from May to August it is longitudinal whilst some observations can only be cross- sectional focussed.
Along with interpretivism and realism paradigms, the pragmatism philosophy is also applied to the study as it combines different research methods, i.e. mixed methods approach. The mixed methods approach means using qualitative and quantitative data within a single research project with an explicit focus on the link between the approaches through data triangulation and put emphasis on practical observations to solve the research problems, i.e. pragmatism. Pragmatism accepts, that there are singular and multiple realities that are open to empirical inquiry and orients itself toward solving practical problems in the ‘‘real world’’ (Creswell & Plano Clark, 2007). Qualitative data will be collected through reviewing the literature and conducting interviews and observations. Quantitative data will be gathered by surveying customers in order to analyse their behaviour. A great part of the primary research was to get in contact with key informants that would agree to share their knowledge on the various matters, which include industry field experts, post researchers, teachers or fashion company staff. The researcher intend to collect primary data through the use of interviews, observations and questionnaires.
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2) Data collection Secondary data is to be collected through an in-depth review of the literature on topics retailing to experiential retailing, sensory marketing, digital marketing, consumer behaviour and branding. Secondary data will be collected through reviewing the literature including books, journals, newspapers articles, companies official website and social media. Concerning the primary research the tools which will be used are : store observations, email interviews, phone interviews, one to one interviews with experts or professionals Bethan Alexander is the course leader of the MA fashion retail at UAL and also an active researcher in the field of experiential and sensory retailing and innovative fashion formats and delivers master classes and conference papers on the topic. This person could be a great source of help and insights into my field of research. The following criteria were considered for the selection of a research design 1. coverage of the target population, 2. cost 3. flexibility of asking questions, 4. respondents’ willingness to participate and 5. response accuracy. The following survey methods were applied to this research. Questionnaire was used to gather opinion from a particular sample being the Millenials. Indeed in order to understand better what Millenials expect and how to provide them with good experiences it was necessary to gather data from this population (both from UK and from France) to then be able to make conclusions and recommendations. This method is a good way to gather quantitative data as it is time efficient, less costly and the standardized answers make data compilation easier. However, the bias rate can be higher than
FIG 6 : Marketing research process adapted from Tustin et al. 2005.
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when conducting a face to face interview. A one-to-one interview is a situation in which you can evaluate whether the respondent understands well the meaning of the question while this is not possible with a questionnaire. We’ve seen the questionnaire is used appropriately to cover the point of cost and coverage of the target population but is not efficient enough regarding the flexibility of asking questions. That is how the conducted Interview aimed at being complementary to the questionnaire in the research process. The Interview method was used to gather insights from industry experts. From the practitionners contacted via e-mails none agreed to take part in the research. This methods is good to gather qualitative data and in-depth explanations or views on a topic. Business theories such as SWOT, PESTEL, 5 E’s of marketing, the retail lifecycle and Maslow’s hierarchy of needs were also used to support the debated topic.
3) Limitations This project proceeded on a 4 months phase which would appear rather short. For this reason time had to be managed efficiently and an action plan was carefully organised. The scope of the project is wide. The allocated time could not allow to investigate further elements that could have been related to the studied matter. The printing costs for the two copies of this completed research was also a barrier to be taken into consideration. The bias from the researcher could also represent a limitations for the obtained results. Music, emotions and sensorial feeling are specific to every individual as all of us have different taste and preferences. Thus the researcher own vision on the topic can distort the evaluation of the studied brands. Industry practitioners were contacted for interview. E-mails sent to those latter were left unanswered. An interview was conducted with a NTU senior lecturer in visual communication who has a particular interest in the topic of music in relation to fashion.
4) Ethical considerations Ethical considerations include university ethical clearance forms for each of the interviewee participating in this study. When interactions with customers occurred those were conducted anonymously.
FIG 7 : Future retail experience digital store.
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LITERATURE REVIEW When searching for the existing literature different sub-topics appeared to have been studied. Those can divided in three categories, first is the customer experience and behaviour in retail settings. Then music in relation to Branding , i.e. brand image components and communications; and lastly Marketing. Through the years and with the evolution in consumer attitudes marketing theory has shifted from the traditional paradigm, then to the relationship marketing and most recently to the sensorial paradigm. Sensory marketing is defined as “a marketing approach that engages the consumer’s senses and affects their behaviour” (Krishna, 2010, p. 2). It can be assumed that the value of a brand emerges when interactions occur with customer’s multi-sensory experiences in the value-generating process, bonding the individual to the brand. This view that selfinterest and competition are the drivers of value is in accordance with relationship marketers who believe that it is mutual cooperation that delivers value which differs from traditional marketing viewpoint. Using sensorial strategies means to appeal to cognitive, emotional or value-based elements. Such strategy allows firms to differentiate their brands and products while offering a highly individualised targetoriented experience, thus impacting on consumer behaviour. As seen with the study of the external factors, personalisation and individualised marketing are becoming more and more key in the future of the fashion industry (see appendix 1 and 2).
In a multi-sensory brand-experience more than one of the five senses is solicited to impact on the shopper’s perception of the retail setting (Hulten et al., 2009). A multisensory brand-experience strengthens individual value creation and depends on how individuals react when interacting with a brand. It is an environment in which shoppers are guided in their consumption through the involvement of the five human senses, the scope being to generate high customer value, delightful experiences, and convey strong brand image. In his research, Hulten, provides an overview of the multi-sensory brand experience concept in the sensorial marketing paradigm. The outcome was to identify how sensorial marketing generates value to individuals and build strong brand image as compared to other marketing models, i.e. traditional and relationship marketing (Hulten, 2011).
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“Physical stores are still primary way people acquire merchandise, and I think that will be true fifty years from now”
Johnson, 2011
Point of sales sensory marketing use ambient elements to touch customers’ senses and appeal to their emotional, cognitive and behavioural state to create a powerful brand image and encourage purchases (Manzano et al., 2011). Kim, Koo and Chang research focuses on integrated marketing communications as a way to provide new experiences in the footwear sector through case studies of Nike and Puma. Unlike other article this paper used more theory to support arguments such as models adapted from Maslow’s hierarchy of needs and the brand experience wheel BEW. Theory and charts are useful tools to clarify and support ideas and especially to make a strong point that is more easily understood by readers. Sensory marketing is merging with digital tools as the use of the Internet and technologies is constantly growing (see appendix 1). Digital marketing is enhanced though music, many brands use music online as a way to increase awareness, e.g. by creating playlists that they share with customers thanks to web based sharing platforms, e.g. Spotify.
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The experiential view of consumption was first introduced by Holbrook and Hirschmann (1982) and Holbrook (1999). Holbrook (1999, pp. 8-9) state that : “Consumer value resides not in the product purchased, not in the brand chosen, not in the object possessed, but rather in the consumption experience(s) derived from there [. . .] In essence, the argument in this direction boils down to the proposition that all products provide services in their capacity to create need- or want-satisfying experiences [. . .] In this sense, all marketing is “services marketing” (Holbrook, 1999). The role of experience, therefore, has a central position in the creation of consumer value. These research evidence that this concept is quite old, yet recent study took the paradigm further. Arnould and Thompson’s research debates the emotions and contextual, along with the symbolic and nonutilitarian aspects of consumption (Arnould and Thompson, 2005). In the field of experiential retailing, previous research evidenced how music and sensory factors influence consumers’ behaviour (Morrison et al. , 2011; Nell, 2013; Soars, 2009; Stuart, 2013). Due to a large number of indirectly but still relevant studies only a few were selected thus taking into consideration the most specific and recent articles. Some research adopt an holistic view of the senses – touch, sight, sent, taste and sound- while other focus only on some of these elements. Results obtained by Morrison et al. illustrate that music volume and aroma vanilla scent when combined impact on shoppers emotion and influence their behaviour leading to greater time and money expenditures. Those outcomes are also linked to a higher level of satisfaction during the shopping encounter (Morrison et al., 2011). Those results were obtained for the research based in Australia and may differ in other parts of the world. Data for this research were collected within one only retail store it would seem then that this flaw would be easily solved by looking at various stores of the same unique brand or by looking at various brands, which the following
Fashion shopping as an hedonic experience
Fashion shopping as an utilitarian accomplishment
pleasure
necessity
secondary need of belonging
basic primary physiological need
spending plenty of time
scarcity of time
not necessarily leading to purchase
implies purchase
impulsive
planned
emphasis on experience
emphasis on rationality
playfulness
seriousness
Table 1: Hedonic and utilitarian behavioural aspects, author’s own.
report intend to achieve. Vanilla sent was used to target a feminine market segment, thus only one category of shoppers was considered. Nell’s research studies the effects of store atmospherics on shoppers behaviour in apparel retail stores in the Tshwane region in South Africa. Results obtained in this research showed that sound and music modified the time spent in the store, so we can see that researcher agrees on this matter (Morrison et al, 2011; Nell, 2013). The research by Soars (UK) combines an in-depth review of the existing literature and primary data gathered through interviews. However, it would seem that industry predictions made by the researcher were mainly informed by other past research and may have benefited from further quantitative evidence.
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Soars retains that by 2018:
“ - possibly, all adds will be tailored to the individual and based on their past purchases, - digital technology will lead to high sales through use of mobiles,
- under 25 people’s brain shape is changing which would lead future generations to gain the ability to cope with higher levels of sensory input�
(Soars, 2009)
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FIG 8 : Branding sign
The Phd thesis written by Stuart in 2013 is the most comprehensive piece of work in application to the topic of my research. In this research emphasis is put on all the senses. The aim is to deeply understand the consumption experience construct by adopting a multidimensional view of experience with the support of empirical data focusing on the young women segment aged from 18 to 25. A wide variety of interview for primary insight was achieved but one can assume this is fair to amount of time span accorded to such a significant project. Findings suggest several stimuli including product, the physical setting, people, technology and brand message components contribute towards the creation of specific cognitive, emotional, sensory, physical and social experiences in fashion stores. It identifies technology as an important component affecting the consumer experience and proposes further research into this stimulus in a fashion context. Stuart states that : “The study has provided some pragmatic recommendations for designing fashion store environments” (Stuart, 2013) which is true but from a theoretical description only while in the following research it will be intended to create a model design concept to implement music in retail settings. The researcher suggests that “future research could utilise a case study approach to evaluate the creation and consumption of experiences in fashion stores” in various location and time span (Stuart, 2013). The following research intend to draw case studies of two fashion brands targeting different segments of the youth, pre- adults market.
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Other studies investigated music as a brand image component (Babin and Attaway, 2000; Morrison and Beverland, 2003). Researchers investigated music as being reflective of the brand image. Fashion retailers are not only selling a product but a lifestyle, a mean of expression, an identity and a sense of belonging to a particular group. Indeed, the younger generation is the most eager to achieve the sense of belonging (Maslow’s theory). Older customers mainly focus on the product quality and less on the representation it conveys.
The outcome of the research conducted by Babin and Attaway (USA) was that investing in exciting physical environment adds value to a brand and results in higher customer share (Babin and Attaway, 2000). While Morrison and Beverland explore the use of music in a real-world context adopting an ethnographic approach through interviews, case studies and participant observations in American, European, and Australian experiential retail stores. This study explores various retail settings and do not focus on fashion stores only. Results showed that it is crucial for brand managers who wish to use music as a brand image component to adopt a well-studied and broad strategic view in order to be viable (Morrison and Beverland, 2003).
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A
DISCUSSION Market overview
The British fashion industry fact and figures
Since the recession in 2008 the UK fashion retail industry is steadily growing. The following figures evidence the ways in which this sector is evolving. Table 2 : Value of UK’s clothing and accessories market
2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016* 2017*
£33.4bn £34.2bn £35.1bn £36.5bn
Table 3 : Value of UK’s online clothing and accessories market Growth (2007-12)
Growth (2012-17)
41.2%
185.4% Market size: figures in £bn
£37.5bn £38.6bn £39.8bn £41.1bn £42.6bn £44.2bn £46bn
1.5
2.1
2.5
3
3.6
4.3
5
5.6
6.2
6.8
7.5
2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016* 2017* * Forecast Source: Columino
* Forecast Source : Columino
The head of fashion at Kantar Worldpanel, Ian Michell declared to Drapers that: “During 2014 the popularity of click-andcollect in the fashion market has surged. We expect this trend to continue in 2015 with the quickening of delivery speeds and diversifying of pick up locations. The retailers who can offer the best of these types of services are the ones who will benefit the most from improved customer confidence over the coming year.” Click-and-collect sales grew by 47% in the year, making it now worth more than £1bn in sales. Online grew 16% in the same period (Spybey, K., 2015, in Drapersonline). According to a Retail week report published in 2014, nearly half of consumers now shop online for clothes, as a result online sales reached £5.6bn in 2014. Online fashion sales are predicted to rise 41% by 2017 (Retail week report, 2014). According to the same Retail week report by 2017 predicted online fashion sales will rise to £7.5bn with a predicted total value of the clothing market of £46bn.
Table 4 : Spend in store versus spend via click-and-collect in 2014.
£68 average retail spend
£38
average C&C spend Source: Land securities
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Yet the UK high street has suffered from the growth of e-commerce. Selling online is cheaper for any brand as the physical store involves significant costs such as rent, heating, lighting etc. Due to this, many stores in the UK high street have closed down. It reflects the reality that to stay competitive shops need to become experiential destinations. Which also lead the way to the creation of many pop-up stores in the future of the retail landscape.
The French fashion industry fact and figures
As it is for the British market the French fashion industry greatly suffered from the globalization and from outsourcing manufacturing operations to country with lower labour rates. Nowadays, the French fashion companies that are successful have to rely on a greater level of quality and position themselves on a luxury segment. “France is the market leader against Italy with a 29 % share of this €212 billion global market in 2013” (Vargas, C., 2014). In 2015, the French fashion industry accounts for 2 400 SME’s and employs around 130 000 people. The industry turnover is €34 billion (INSEE). Considering environmental factors, the recent French law bill “loi macron” if passed will have a significant impact on the French fashion industry. As shops would be allowed to open more hours in the week they would generate higher sales (see appendix 1). The lifestyle and expectations of the generation Y are leading towards the expansion of shopping hours. Traditionally in France, Sunday is a day in which you stay home and relax with your family, but the generation Y is moving away from such patterns and want to be able to access all the commodities that are available in the week time. For this reason the generation Y is said to be impatient, it is a generation which demand fast delivery and convenient services (e.g. fast food, fast clothing, fast access to information …).
Source: IFM
Germany U-K U-S-A
Spain
France
Italy 2.3
3.5
12.9
14.4
17
21
Table 5 : Online shopping in 2013 ( % of total spending for fashion)
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B
Factors for change
MICRO ENVIRONMENT
15
Competing in a saturated market Sourcing challenges
2
Maintaining brand loyalty
14 2
Competing on price Changes in consumer behaviour
7 6
Contending with the weather Providing a quality multichannel offer
16
Standout stores
1
Source: Retail week fashion leader survey
The death of the traditional marketing
Traditional marketing
Since the beginning of the 21st century, the growth of technology and the creation of social media pushed marketers to rethink the ways they talk to their customers. With the Internet, consumers get access to information, e.g. feedbacks and reviews. Hence, they are less inclined to hear the message brands want to convey but they would rather follow their peer’s advice. This has made traditional marketing become less efficient. Paradigms
functional features and benefits narrow definition product categories and competition
customers are rational decision maker methods are analytical, quantitative and verbal
Table 7 : characteristics of traditional marketing, Scmitt B., 2000.
Traditional > Relationship > Sensory
Marketing goods
Strategic
Table 6 : Today’s key issues for fashion retailers, retails week report 2014.
Today’s key issues for fashion retailers.
transactional exchange
service relationship relational
experience brand sensorial
product focus customer acquisition
customer focus customer retention
sense focus customer treatment
persuasion
interaction inter play one-way two-way communication communication
Operational promotion
dialogue on line interactivity digital multi -dimension
Table 8 : Marketing theory, from Hulten, B., Broweus, N. and van Dijk, M. (2009).
The evolution of marketing led to a shift of strategy from a product-focus approach to putting the consumer as the heart of the business.
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Table 9 : Investment priorities for fashion retailers, retail week report 2014 Total score Multi channel
24
Mobile
16
Customer service
10
Category or range improvements
8
Supply chain
7
Systems for stock
5
International expansion
4
Store technology
2
Reducing costs
0
Source: Retail week fashion leader survey
For a fashion retailer, approaching the store in the same way as any other sales channel has now become a big mistake as it fails to recognise the full potential of the store as a communication channel that promotes engagement from the customer. The store truly is more than a sales channel, it is the physical manifestation of a brand. It is the only opportunity that customers have to engage with all their senses. By effectively engaging multiple senses a fashion brand can maximise profits, as it was the case with the Nike experiential campaign (Carter, N., 2013). As seen on the chart, in store technology, hence experiences, does not seem to be a priority for fashion retailers to invest into. This may be quite the wrong way to go if a brand wishes to attract people to store and reach higher customer loyalty rates.
MACRO ENVIRONMENT
Changes in consumption behaviour
Shoppers spend more on-line offline
on-line
France
£23
£48
U-K
£10
£42
111 % 312 %
People tend to buy more on-line and frequent less the stores (Barrie, L., 2014). Source: Kantar worldpanel, 2014 Generation Y is the greatest part of the Table 10 : Spending on-line versus off line, retail week report 2014 population to use the Internet as they were born in the same time as the technology (see appendix 1). The Office for National Statistics (ONS) said that Internet shopping had grown in popularity, rising from 53% of adults buying goods and services online in 2008 to 74% now. Younger age groups have been regular users of on-line shopping, notably on smart-phones, with nine out of 10 people aged 25 to 34 having shopped online (BBC, 2014). The growth of internet use is a key factor for the evolution of physical retail. According to Stephens: “it’s entirely likely that upwards of 30 percent or more of the total retail economy will be transacted online by 2025” (Stephens, 2015). A retail week report published in 2014 found that online sales are predicted to rise 41% by 2017 (Retail week report, 2014).
Old mindset Careless
New mindset Considered
Quantity : buy a lot
Quality : invest in key pieces
Mainly about the Product
Holistic : product + its background
Price : low everyday
Value : pay more for better quality
Impulse : little thinking
Considered: thought though purchase
Table 11 : Consumer mindset, retail week report 2014
Customer mind set is changing from a “careless” to a “considered” consumption they have become more selective, i.e. they buy less quantity but better quality. This is particularly true to the Generation Y as they are becoming more ethical and environmental conscious. They understand fast-fashion is wearing out the earth resources and try to make more sustainable consumption decisions (Fromm, J., Garton, Christie, 2013).
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In the next years, consumers will ask for more individually tailored offering and experience thus leading in-store settings to be more personalised. By 2020 personalisation will become a key strategy for fashion retailing (Bevan, 2015).
Is the physical store still relevant? Percentage of shoppers who have used these channels to buy clothing and accessories in the year 2013.
When considering the previously debated key drivers for the change in the fashion retail landscape it appears that the value of the store can be argued.
66.3% Physical shops, high street
44.9% 34.6%
The graphs shows that the physical store still, and will keep on playing a big role in the way people shop, for this reason retailers should focus on making visit to stores even more delighting and enjoyable for their customers.
30.7%
The wider value of a physical store by 2017
Total store sales: £42.1bn
Online, mobile
2.6% Source : Columino
Table 12 : Shopping channels, retail week report 2014
The big thing right now is live experience. There’s no other reason to go into stores except to interact more with people, so there’s more theater in stores, like smell or taste or sounds — Being a point of inspiration for anything that engages the senses,” said shoppers who buy online David Ashen founder of dash design, £2.1bn a New York-based interior design firm with two driving goals: to elevate the clients’ brand, and to engage and delight the customer (Zimmer, A., 2015).
Being a point of collection for click-and-collect shoppers
£1.1bn
£38.5bn
£400m
Online, tablet
3.1%
Direct sales through store
Being the place where online mobile transactions are made
Physical shops, mall Physical shops, out-of-town park Mail order
8.4%
Stores serve not only as a place for purchasing goods, but also as a place for socialising and leisure (Hu and Jasper, 2006).
Online, dekstop
Figures are estimates for full year 2017
Table 13 : Value of the store by 2017, retail week report 2014
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Generation Y : who are the millennials ?
Millenials are the generation born between the 1980’s and early 2000’s. Their successors, born from 2000 to 2020, are the generation Z. Those are generations which grew up with constant easy access to technology, hence millennials are incredibly digitally savvy. Being at a life stage in which financial expenses are low, i.e. no mortgage or children to cater to, they have high purchasing power (leisure consumption). They have high social influence as they are more prone to trust their peer’s advice rather than the brand themselves (Fromm, J., Garton, Christie, 2013). Though they have been shaped by the same socio–economic trends, they are not a homogeneous whole as some of them are only starting secondary school while the eldest ones start to work and settle in their new adult/family life. They share similar traits, habits and values which marketers must understand to be able to satisfy this market segment’s needs. Generation Y could also be referred to as the smart phone generation as 76% of Millennials own smart phones globally.
NEXT Gen Z are progressive, socially conscious, conformists, marketing literate, collegiate and empowered. Because generation Z are complex and cynical it represents a difficult segment to market to. “Few [brands] are taking action yet,” says Lucie Greene, worldwide director of JWT Intelligence. “Brands with teens as a target audience will need to adapt fast to this group as they vote with their feet and are hyper brand aware.”
“Marketing campaigns have to provide real excitement and fun and cover very many different levels of engagement, from physical, to social media to traditional.” Brands can create advocates and this is the most powerful form of marketing, says Peter Souter, chairman and chief creative officer of TBWA London.
2000 - 2020
FIG 10 : Millenials all about online and mobile, author’s own.
More than previous generations, generation Y is highly aware of marketing and advertising. Their commercial awareness leads to their high scepticism about the nature of advertising. This means they may not respond to traditional marketing methods in the same way as previous generations used to. They are looking for a personalised customer experience. They want to be part of the story. The best way for brands to achieve this is to be authentic and convey messages that make people feel and relate to something bigger than simply making money (Waterworth, N., 2014).
FIG 11: Millenials by 2030, author’s own.
C
FIG 9 : Millenials using different devices
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Abercrombie case study
FIG 13: Abercrombie & Fitch store interior
Abercrombie & Fitch is a casual and fashionoriented brand aimed at consumers aged 15 to 28 who desire “an American college lifestyle.” The brand directly ties to the music through the statement, “Music first! Merchandise second!” Abercrombie & Fitch was founded in 1892 in New York by David Abercrombie and Ezra Fitch (Mahi, Boelsems, & Garrison, 2012). Abercrombie & Fitch targets young adults aged 18-22 and sells jeans, dress shirts, shorts, fragrances, and a number of other products for both men and women. These products are designed to be “casual luxury” and offer consumers with both quality and style. Abercrombie & Fitch has employed a strategy of keeping its store count low in order to maintain the exclusivity of its format. The brand’s flagship stores are typically placed next to very high-end luxury stores such as Louis Vuitton, Dior, Gucci, and Prada. This strategic placement is critical to the growth of the brand, allowing the company to charge higher prices and achieve significantly higher margins. While Abercrombie & Fitch has true background history, Hollister use a made up story to create a unique brand image. Hollister is a Southern California-inspired brand that targets ages 14-18.
FIG 12: Abercrombie & Fitch jeans
A
FINDINGS
Launched in 2000, Hollister Co. appeals to teens through its unique way of direct advertising which it terms as “walking selfmarketing”. Combined with the value of being a true south California brand the merchandise is named after Californian beaches and offer vintage beach styles. Compared to Hollister’s parent brand, Abercrombie & Fitch, Hollister sells with lower price point resulting in a mass appeal from its target demographic. Technology is widely used in the shop with video walls, electronic posters displaying the brand’ ads. In 2007, Abercrombie & Fitch Co. spent around $10 million USD to install video walls into Hollister Co. stores. The walls play live-feed from Surf City Huntington Beach, California to provide customers with a flavour of the SoCal surf atmosphere HCo. promotes.
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The first effect is to draw away older people such as gen Z and Y parents, as a results of this young people are left to shop on their own. The second effect of the loud music is an overstimulation which leads to reduced self control. The aim of this overstimulation is to trigger impulsive purchase behaviour by creating an environment that overstimulates the brain.
FIG 14:Hollister California brand logo
Hollister has a higher store number which has been well received by shoppers and has been at the heart of growth of its parent company. Abercrombie & Fitch and Hollister files accounts in the UK are known as AFH Stores UK Ltd. Its latest results show that sales were £209.5m in the year 2013. The business’ aggressive branding to create a strong brand image resulted in a competitive advantage with a distinct shopping experience and a brand image which drived the company’s success. The in-store experience appeals to all customers’ senses, from the music to the odor of the atmosphere, from the visual presentation of the products to the sales associates who represent the typical A&F family member. Abercrombie & Fitch has a rustic look in the stores, has a strong smell of cologne and perfume, and plays extremely loud music to attract the millenial consumer. Playing on the club party like ambience for its in store experience the brand created its own cologne sent Fierce which is spread around the shop. The inside has very little lighting and plays loud electro music. This atmosphere is the kind of experience teens and young adults aspire to as they are eager to discover what nightlife is about. The effect of the loud music in ANF stores were proved by researchers to impact the way young customers shop (Caldwell, C., and Hibbert, S., 1999, Hargreaves, D.J and McKendrick, J. and Saarikallio, S;, 2011).
Yet, its selective brand image of cool and sexiness was highly controversial in recent years. Controversies related to nudity, sexuality, exclusionary targeting have impacted the business. Alongside with fierce competition from fast fashion brands, the fact that ANF style has stayed the same and has not evolved with the years resulted in a recent drop in sales. The two brands have become less popular among teenagers in the last years. Thus, Abercrombie & Fitch should think about new ways to attract the teenage customer once again. Instead of focusing on the same style, the company should change and grow with the current trends. To do so it is all about meeting the customers where they live now: on Instagram, Facebook, and Snapchat. It’s not a groundbreaking idea, but ANF is earnest in its pursuit of Generation Z. ANF’s retail model, after more than 10 years, has now reached the decline phase.
To appeal to the Gen Z it is crucial for the brand to re invent itself and evolve along the trends in the industry.
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B
Burberry case study
FIG 15 : Burberry brand
When thinking of the use of music in the fashion industry Burberry is the most powerful example that comes to mind. Established in Basingstoke, England in 1856, Burberry is a luxury fashion brand with a purely British heritage. Recognisable for its distinctive check pattern, the company sells clothing, fragrances, sunglasses and cosmetics. After the late 90’s Burberry had suffered from a diluted brand image and consistent changes were needed to revitalise the brand. Burberry‘ s re birth started in 2006 with the appointment of Angela Ahrendts as CEO and with the support of the Chief Creative Officer, Christopher Bailey. At this moment Burberry understood how digital was key to the future success of the business. Ahrendts and Bailey stated that “the vision was to be the first company who is fully digital” and that they wanted “to build a social enterprise”. Ahrendts also mentioned to the Harvard Business Review that “The number one strategy that came (from our first meeting) was centred around the brand. The brand message needed to be purified by focusing on outerwear, on digital and by targeting a younger consumer”.
The choice was made to target the millennials because they are the digital users. Most often Millennials are the influencers, tastemakers, official critics and reviewers in society today. They are incredibly brand loyal as a whole, with an increasing level of disposable income. If delivered well, this target would pay dividends to Burberry for years to come. (Davis, S., 2014) To promote the success of the new strategy the company had to rejuvenate even internally as now 70% of employees are around 30 years old. Employees are encouraged to use social media whilst at work and both Angela Ahrendts and Christopher Bailey regularly do webcasts for all members of staff, updating them of how the business is performing and what the latest objectives are.
Bailey mentioned to GQ, “We had realised that we had created a lot of platforms that only exist online so we decided we had to bring these to life. Our approach to the store was to make a bridge between the online and offline experience. Today I think we’re less concerned about where we actually shop, and more concerned about the experience we have while we’re shopping.” The brand’s innovative strategy was to blur the boundary between its online environment and physical stores. As nowadays access to goods and services is often only a click away from most, luxury brands are no longer defined simply by rarity and price. Time has become the ‘real luxury’, with customers deriving pleasure and satisfaction from interacting with brand worlds, not just the products. This means retailers have to deliver relevant experiences, seamlessly at all points of the customer journey (Brandunion, 2013).
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Why music is a good way to reach out to the millenials ? In order to be successful, music strategy for a fashion brand has to be very well aligned with the target consumer and the image of the product. Christopher Bailey says “We try to make sure that the music always has a personal resonance. We also often talk about the craft of music in the same way that we might cut and sew a trench coat - somebody has made that instrument and now somebody is actually using that instrument to play something”. At Burberry music is not only used to reflect the brand image but is also a fount of inspiration in the creation process. It is music, Bailey says, that “definitely, often, usually” before anything else “sets the directional mood for what we’re working on.” Though this often seems to happen subconsciously. “You listen to a piece of music, and something sticks but you don’t realise,” he says. “And you start working on things and it tends to permeate everything you’re then doing at that moment” (Barton, L., 2013). The level of experience reached by customers, author’s own.
Meaning Status / Identity Emotions Price / Function
Holistic experience
sense act
relate
feel
think
How successful is the strategy at Burberry ? Through its product range, communication and use of music the brand Burberry aims to convey emotions to its audience (Tuned global, 2014). The aim of implementing a music strategy then can serve to engage consumers, create tangible value and impact the bottom line.
By providing an holistic experience the brand succesfully engage the customer emotionally, making them want to belong to the brand spirit and community. As a results of all investment made to rejuvenate the brand Burberry has seen record sales, which are continually growing. Investing into music enabled the brand to reach higher awareness from the public along with becoming the market leader in a less favourable economic context. The collaboration between musician and the fashion brand is a win-win for both. The musician is exposed to a large audience and in turn hopes to sell music and tickets to live shows and be globally recognised via another platform, fashion, which showcases the artist (Tuned global, 2014). Even if public is not aware of this, Burberry’s music team are also contributing to musicians by help them match with the right management and record labels.
Revenue growth This measures the appeal of the Burberry Brand to customers
Table 14 : Burberry official strategic report, 2014-2015
Adjusted ROIC This measures the efficient use of capital to deliver attractve returnson incremental investmets, importat given the group‘s investment in new projects.
Table 15 : Burberry official strategic report, 2014-2015
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Music as a brand identity and brand image componant
FIG 16 : 5 E’s of marketing
Point of sales sensory marketing consists of using ambient elements that impact customers’ senses and lead their emotional, cognitive and behavioural responses to create a brand image that encourage purchases (Manzano et al., 2011: 74). Burberry want to emotionally connect with its customers via the use of music. Through the music choice the brand image is enhanced. Burberry is a typical British brand which emphasizes values of heritage, quality, handcraft and know-how. The same values are applied to the videos of the musicians they promote. Those musicians are pure new British talents and the videos are extremely well produced. In the videos the musicians wear Burberry’s products so the collaboration benefits all those involved, the brand as well as the musician. Burberry’s music videos have been watched from 500 000 to 1 800 000 times on Youtube. In accordance with Maslow’s hierarchy of needs, sensory experiences are linked to an individual’s striving for identity and image, as well as for self-fulfilment. Approach or avoidance depends on cognitive, emotional and valuebased elements. This means that experiences in a functional sense, but also in an emotional sense, should conform to an individual’s personal and social-life context (Prahalad and Ramaswamy, 2000). That is why music is a powerful way to appeal to the youth demographic. FIG 17:Hollister California brand logo
Music is used by retailers to signal target clientele and brand image and to structure the temporal dimensions of the retail to environment over the day, week and year. It is also used to structure in-store conduct. Visual merchandising and store atmospherics (store design, sound, lighting, fixtures, props, etc.) are of high importance in the retail industry (Levy et al., 2012:489) which was also evidenced in the primary research through the Millenials questionnaire. The survey results highlight that young people enjoy the shopping experience better when the store is easy to browse and the merchandise is well displayed and easy to find.
OBJECTIVES OF EXPERIENTIAL MARKETING 1. Build Relationships 2. Produce Interaction 3. Verify Target Audiences 4. Increase Awareness 5. Increase Relevance 6. Increase Loyalty 7. Increase Trial 8. Create Memories
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Intangible benefits The history of the brand Burberry is well conveyed through their use of music. The presented artist embody the Britishness and high quality of the brand. The personality of a luxury brand position is also present in the music selection, the acts are all independent artists (and not mainstream), only a small category can fully appreciate the beauty of these music styles. Presence The brand present young artists which entice young customers (20-25 years old) to discover more about the brand.
Rational benefits Emotional benefits As a result of this marketing, customers Burberry music make the customer feel experience deep emotions and highly part of the brand community. connect with the brand.
The in-store experience at Burberry provides the brand with high awareness, while engaging emotionally their customers, resulting in higher margins and profits. low margin high margin
low sales vol high sales vol
Burberry’s retail model is in the growth stage.
FIG 18: Brand identity model
HO T
S
AS
M CO M
M
OD
ITY
W
NE
In the field of experiential retailing and digital technologies used in stores, Burberry is the leader and the most successful innovator in the fashion industry. Other brands may get inspiration from this model and follow the trend after Burberry has already established the new experience. Other brands who in future plan to invest into creating sensory environments would not be innovators but followers.
FIG 19 : Diffusion of innovation in the fashion retailing sector, adapted from Rogers theory
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FIG 20: Burberry acoustic sessions
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A seamless journey from online to offline
FIG 21: Burberry’s flagship store in London
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A bridge between offline and on-line
As evidenced in the interview with a NTU senior lecturer (appendix 4) the off line experience has to connect to the on-line experience. The experience has to be consistent though all brand touch points. When customers get confused about the uniformity of the journey they go through when using multiples devices to shop their perception of the brand could get negatively impacted. On-line marketing in relation to music can serve as a way to promote the brand. It is a strong tool to create a conversation around that unique in-store experience. When targeting millenial customers using online media is the most effective way to communicate, to share and to increase awareness. Indeed, this demographic is highly dependant on the Internet technologies as shown on the infographic. FIG 22 : Millenials online use, statistics.
The on-line digital marketing has the biggest power to reach out to millions of people. It is cheaper to communicate with music on-line rather than investing in complex in-store technologies. Brands can use online to communicate what is happening but also to do a follow on activity. So they create sensorial experiences in-store and also conduct a follow-on strategy . So in terms of the consumer you don’t just experience that once but at different touch points with the brand. It is like in any relationship where in order for the relationship to last you have to make that conversation keep going. Brands should consider their customers as their friends by interacting with them and keeping in touch with what they feel and think. Through all this, positive word of mouth is generated – recommending the store to others- which can be highly valuable for the fashion brand. Brands might share special videos on their Youtube official channel or via social networks such as Facebook and Pinterest. They might even create their own play list on Spotify or have their own radio stations. One way a brand could unite fashion and music is for instance when a customer buys an item they might get access to music downloading after purchase or some other similar benefit . On-line can be used to engage customers, with competitions to win prizes that would relate the brand to a music event. All those actions are tools to increase Millenials awareness and brand loyalty. Sensory marketing allows measuring and explaining consumer emotions, spotting and capitalizing on new market opportunities, maximizing product profitability, ensuring first and repeat purchase and ensuring long-lasting product success.
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The offline environment offers greater sensory possibilities than the on-line virtual world. As sensory experience are more and more expected by the Millenials, retailers who originally started on-line are looking to develop their business off line as well.
Fig 23 : Millenials crave sensory experiences.
It is easier to appeal to senses of smell and touch in a physical setting and the technology, as of now does not yet convey these sensory cues in virtual shopping. For sure on-line uses senses of sight and hearing but lacks physicality. New technologies try to fill this gap by making the experience more real. In future it can be thought that people will be able to shop online using only their voices, will be able to smell through their smartphone apps and to virtually try clothes on. In the next years, social websites will become shopping platforms with Twitter or Pinterest launching “buy buttons� that will make an impulse purchase decision very easy to complete.
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CONCLUSION This research evidenced how sensory environments can impact on customer behaviour and thus on the business growth. Music if used the right way is a strong tool to attract the youth segment (15-25 years old) and too get immediate attention from the public. The physical retail store has huge opportunity to re-invent and rise to the challenges of the changing marketplace and deliver consumer-focused experiences that tell a brand’s story and act as its point of difference (Aubrey and Judge, 2012). However, sound will never create the right impact if great attention is not given to the acoustic parameters of the space. As evidenced by the results of the Millenials customer questionnaire, very often people do not take notice of the in-store music either because the volume is low or because the noise coming from outside the shop takes over the sound of the music. On-line strategy is then easier and cheaper than implementing sensory musical experiences in the store. On-line strategy also has the power to reach out to many people and to promote the brand experience to attract customers to stores.
PROS • • • •
remain competitive attract new customers retain young shoppers emotionaly engage customers
CONS • investing into sensory shop environment is costly
• highers sales and profits • strong omni-channel experience
The risk of failure is sizeable • risk of choosing a wrong strategy • risk that sensory cues do not fit the target audience • risk of incoherence with brand image
• immediate response from target audience • positive word of mouth
• short term, i.e. may fade out with time thus need to evolve constantly
• enhance brand image • increase in brand awareness
Table 16: Pros and cons of music strategies, author’s own.
The future of fashion retailing In the industry there is a debate whether implementing digital innovations is the store is the right direction to take. Millenials are constantly living in a virtual world, through screens, they communicate and exchange with one another. This makes them really demanding for more physical interactions in the real world. Thus it can be argued that putting screens all over the shop is wrong. Yet, it is the way the future seems to lead to, as many retailers already took on the move towards in-store digital experiences. The role of retail innovation is really significant in this crowded marketplace. Companies that do not adapt to market conditions will not be able to sustain themselves (Ahlert et al., 2006). There are three theories on retail evolution that are presented in existing studies: 1. the wheel of retailing; 2. the retail accordion; and 3. the retail lifecycle (Brown, 1990). The wheel of retailing suggests that retail stores develop from low-cost, low-margin operations to new retail forms. The retail accordion describes evolution as a shift from specialist stores to more and more diversified product offerings. According to the retail lifecycle concept, retailers pass through four stages: 1birth; 2. growth; 3. maturity; and 4. decline.
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The case studies provided examples of two brands who use music in their retail strategy. It was seen that Abercrombie & Fitch model has not evolved with the market and is now in a decline phase, pushing the brand to think of new ways to become popular again. For the brand Burberry the music strategy is contributing to the growth of the business. The strength to their success is the integrated way they communicate and engage the milllenial customer, both on-line and off line.
The role of retail innovation would initially positively impact market share and sales and then throughout the next stages decline and eventually lead to new retail forms emerging. Even as retailing formats can be cut short without a continuous cycle of innovation (Reynolds et al., 2007). Because the fashion industry is ever-changing and the young customers grow up leaving the new generations to come, for a business to remain competitive it is necessary to always think about the future and evolve with the trends. After the millenials will come the Generation Z and retailers should focus also on this segment as they will soon reach higher purchasing power.
Why the future of fashion retailing is about sensory experiences ? As today we can access everything on-line the reason to actually go to a store is only about being entertained and feeling part of a community. Online shopping lacks physical interactivity and provides little sensory stimulation. For this reason the future for retailers holds to trigger emotions and delight, in their customer’s mind, by appealing to their senses. As it was seen in the research, customers are expecting such innovations. To respond to this change, retailers are starting to look at implementing new in-store environments. It was noticed that as of 2015, for fashion retailers investing in the store atmosphere is not a key priority but this is most likely to change in the coming years. It is quite sure that by 2020 retailers will engage even more their customers either through digital tech or other sensory stimuli, in the store to provide great experiences and reach high satisfaction levels.
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RECOMMENDATIONS The 21st century retail environment has seen the rise of technological inventions that enhance the in-store experience. With the RFID “Magic” mirrors, which are now able to read the RFID tag on clothing and can display associated information such as availability and advice on accessories, the shopping experience is revolutionised. Sales assistant can also be requested by touching the mirror. It even has the capability to transmit the shopper’s image to a friend’s mobile or email address and there’s also a version that displays an image of the shopper in the clothes without the need to try them on. In view of the functionality mirrors now have it could be thought that in the future more shops will use them with various ways to display their brand and engage their customers. To appeal to the future generations, brands could use music in association with the mirrors technology. In the fitting room for instance, it would be a pleasant shopping experience for a young/ preadult customer to be able to select anything by touching a screen on the mirror itself. This screen would enable the customer to select the music they want to listen to while trying on their items. This could impact on their behaviour as they would find it more enjoyable to try on the clothes before making their purchase decision. Their final decision could also be influenced by the different situation they would associate the garment with, e.g. I could wear this for a special occasion like a wedding, a party, a meeting. “When you’re trying something on you picture yourself in a place where they are playing this kind of music” (De Nora, T. and Belcher, S., 2000). After they selected a song, the screen would then change to some suggested items to compliment their outfits. AS all senses are connected to each other, the customer should also be able to change the lighting intensity and room temperature as they wish (within the fitting room). For this concept to work the traditional curtain closing of some shop would not be enough to provide good individualized experience. That is why the fitting rooms would need to be completely closed with a door, to not interfere with the near by customers. The customer in the future is asking for more and more individualised experiences (appendix 2), that is why this concept is viable to sustain in the future retail environment. Tomorrow’s sensory experiences should not be all about digital technologies. Live shows could be hosted by fashion brands and offered to be attended by their most loyal customers. Millenials is a generation who values vintage style and is quite melancholic, so for some brands which style correspond to that idea e.g. Urban outfitters, having a juke box in the store where the customers could choose the song they want to hear could be nice to engage the Millenials. The juke box could even not look old but rather futuristic. The brand Hollister needs to revive its in-store experience and its brand image. Instead of playing on the night club atmosphere they could increase their core image of a surfer style brand. They could play music or sounds that convey the ideas of summer, California beaches and surf competitions. FIG 24: Rebecca Minkoff ‘s store inNew York, fitting room
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FIG 25: Rebecca Minkoff ‘s store inNew York, fitting room
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IMPLICATIONS TIME To implement sensory experiences in-store, it is important to consider when the best moment is to launch the new concept. It also takes a lot of time to come with a carefully planned strategy. The needed changes in the store environment may also take a long time to achieve, which means that while the store is being re designed, it may have to remain closed for some time. By the time the new store is ready, the market may have changed and the project may not be viable any more. For this reason it is really crucial to consider well the strategy when moving to sensory shopping experience.
COST The main limitations to having more sensory experiences in the store is about monetary investment. Technologies such as mirrors or other screens are costly, and making the store acoustics appropriate to a music strategy can also be costly. Sensory is a short term strategy as the innovation may fade out with time. Making it necessary for the shop to evolve constantly. This would mean a part of the company budget/ earnings would be dedicated only to developing the in-store atmosphere, not just once but all years of the company’s life. There are also cost involved to train and educate the staff which is very important to make them completely familiar with new the in-store elements. The cost of planning event and signing contracts with musicians is also to be considered. The price may vary according to the kind of artist, either high profile or more under the radar.
RISK To mitigate the risk of failure it is advisable to try the innovation in one store only at first. Brands usually pick on the store which achieves biggest foot fall and are most often is located in big cities like London or Paris. For example one H&M store launched a trial of a fast payment method directly from the fitting rooms in one of their New York store. If the trial phase is a success the brand can then decide to develop the concept to more stores. To mitigate the risk of choosing a strategy that might not fit with the target audience, brand staff have to benchmark and conduct in-depth research investigating their consumer behaviour and perception of the brand. This also adds to the time and cost barriers to the implementation of sensory experiences.
The mirror technology in the future might also enable retailers to get better data from the fitting rooms about the items sold, tried-on and left in the store. This could be a new tool to analyse sales data. Brands who communicate without using music as a brand element are missing out and are not competing at the top of the industry, e.g. Gap recent decline in market share. That is why music and fashion are so closely related and need to be combined in the most various ways possible (on-line, offline, catwalk shows, recording label, radio ‌). Other limitations matters would be the artist copyrights and intellectual property. As it was seen the Internet era has also revolutionised the music industry. Due to easy free access to music artists are struggling to make a living. Selling music rights to fashion brands could then be a new way for them to strive.
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Bibliography Illustrations Fig 1: James Bay singing at Burberry fashion show, Available at: http://imgbuddy.com/james-bay-burberry.asp Accessed 25/05/15 Fig 2: Mannequin playing the trumpet in Moschino shop, available at : http://experience.moschino.com/wp-content/uploads/2012/01/ Music-Notes-via-Spiga-gennaio-12-640x800.jpg Accessed 10/08/15 Fig 3 : Volume button, sense of sound. Available at http://www.eposnow.com/blog/how-to-create-a-sensory-shopping-experience. Accessed 30/06/15 and Grey background available at http://www.userlogos.org/files/backgrounds/Mr.Chelovek/Untitled-1.jpg. Accessed 30/06 Fig 4: Oscar and the wolf live soundtrack of Dries Van Noten fashion show, Available at: http://www.instyle.co.uk/fashion/news/parisfashion-week-dries-van-noten-ss15 Accessed 25/05/15 + QR code link to youtube video, Dries van Noten S/S 15 available at : https://www. youtube.com/watch?v=NK9-XhTWHdo Fig 5: The Kooples record, Available at : http://www.watmil.com/the_kooples_records__Rock_pop_indie_watmil_--FR http://upload.wikimedia.org/wikipedia/commons/8/87/The_Kooples_Records%2C_label_rock..jpg Accessed 25/05/15 Fig 6: Marketing research chart from Tustin, D.; Ligthelm, A.; Martins, d. and Wan wyk, J. (2005) Marketing Research in Practise, UNISA University Press: Pretoria Fig 7 : Digital store, available at: http://maxryerson.com/wp-content/uploads/2013/08/intel_signage.jpg?w=1024 Accessed 30/07/15 Fig 8 : Brand sign, available at: http://www.upsizemag.com/wp-content/uploads/2013/03/Branding2.jpg Accessed 30/06/15 Fig 9 : Millenials using technological devices, available at : http://blog.fundbox.com/assets/millennials.jpg?b4c23f Accessed 30/07/14 Fig 10 : Millenials are all bout mobile, available at :https://s-media-cache-ak0.pinimg.com/736x/ea/ee/fc/eaeefc0d4c90d24901229405149211f8.jpg Accessed 30/07/14 Fig 11 : Millenials by 2030, available at : http://www.majorplayers.co.uk/images/millennials_a7.jpg Accessed 30/07/14 Fig 12 : https://scontent-ams3-1.xx.fbcdn.net/hphotos-xfp1/t31.0-8/q84/p720x720/11741236_10152865340805378_5297842006620212309_o. jpg Accessed 20/07/15 Fig 13 : Abercrombie & Fitch store interior, available at : http://disenthrall.co/wp-content/uploads/2012/12/abercrombie-fitch-06. jpg?w=1024 Accessed 01/08/15 Fig 14 : Hollister California brand logo, available at : http://www.myfreewallpapers.net/abstract/pages/hollister-beach.shtml Accessed 01/08/15 Fig 15 : Burberry bag , available at : https://www.pinkorchard.com/media/catalog/category/Burberry.png Accessed 03/08/15 Fig 16 : 5 E’s of marketing, available at : http://myndset.com/wp-content/uploads/2010/10/5-Es-in-English.png Accessed 06/08/15 Fig 17 : Maslsow’s hierarchy of needs, available at : http://www.liveitloveitblogit.com/wp-content/uploads/2012/04/Maslow.png Accessed 10/08/15 Fig 18 : Brand identity model, available at : https://s-media-cache-ak0.pinimg.com/736x/15/d5/c8/15d5c82aab656b7630b0897d0a6f1bb5.jpg Accessed 10/08/15 Fig 19 : Diffusion of innovation Rogers’ theory, available at : http://www.smartinsights.com/wp-content/uploads/2013/10/Diffusion-of-Innovation-model.png Accessed 06/08/15 Fig 20 : Burberry acoustic, available at : https://uk.burberry.com/acoustic/ Accessed 10/08/15 Fig 21 : Burberry’s London flagship store, available at : http://cdni.condenast.co.uk/1440x960/a_c/burberry11_v_13sep12_pr_b_1440x960.jpg Accessed 05/08/15 Fig 22 : Millenials use on-line statistics, available at : http://www.entrepreneur.com/article/238294 Accessed 10/08/15 Fig 23 : Millenials crave sensory experiences, available at : http://www.jwtintelligence.com/2013/01/data-point-constantly-connected-millennials-crave-sensory-experiences/ Accessed 10/08/15 Fig 24 : Rebecca Minkoff New York store, fitting room, available at : http://retail-innovation.com/digital-changing-room-and-interactive-mirrors-at-rebbecca-minkoff/ Accessed 10/08/15 Fig 25 : Rebecca Minkoff New York store, fitting room, available at : http://www.mcmillandoolittle.com/blog/wp-content/ uploads/2015/03/RM1.jpg Accessed 09/08/15
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Table 1: Hedonic and utilitarian behavioural aspects, author’s own. Table 2: Value of UK’s clothing and accessories market, retail week report 2014. Table 3: Value of UK’s online clothing and accessories market, retail week report 2014. Table 4: Spend in store spend via click-and-collect in 2014 retail week report 2014. Table 5: Online shopping in 2013 ( % of total spending for fashion) retail week report 2014. Table 6: Today’s key issues for fashion retailers, retails week report 2014. Table 7: Characteristics of traditional marketing, Scmitt B., 2000. Table 8: Marketing theory, from Hulten, B., Broweus, N. and van Dijk, M. (2009). Table 9: Investment priorities for fashion retailers, retail week report 2014. Table 10: Spending on-line versus off line, retail week report 2014. Table 11: Consumer mindset, retail week report 2014. Table 12: Shopping channels, retail week report 2014. Table 13: Value of the store by 2017, retail week report 2014. Table 14: Burberry official strategic report, 2014-2015. Table 15: Burberry official strategic report, 2014-2015. Table 16: Pros and cons of music strategies, author’s own.
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References A
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D Davis, G., 2014, Digital retail innovations, Retail insider. Available at: http://www.retailinsider.com/wp-content/uploads/2014/07/Innovation-Report-FINAL.pdf Accessed 24/04/15 Davis, S, 2014, Burberry’s Blurred Lines: The Integrated Customer Experience in Forbes. Available at http://www.forbes.com/sites/scottdavis/2014/03/27/burberrys-blurred-lines-the-integrated-customer-experience/ Accessed 10/07/15 Deloitte insight report, 2013, Reinventing the role of the high street. Available at : http://www2.deloitte.com/content/dam/Deloitte/uk/ Documents/consumer-business/deloitte-uk-consumer-review-role-of-the-high-street.pdf Accessed 24/04/15 Dellow, T, 2014, Why good music marketing goes beyond targeting the bands with the most social fans. Available at: http://www.marketingmagazine.co.uk/article/1314466/why-good-music-marketing-goes-beyond-targeting-bands-socialfans . Accessed 10/07/15
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DeNora, T. and Belcher, S. (2000), ‘When you’re trying something on you picture yourself in a place where they are playing this kind of music’– musically sponsored agency in the British clothing retail sector. The Sociological Review. E Euromonitor International, 2013, Focus: Apparel retail specialists at risk from e-commerce, just style. Available at : https://www.just-style.com/analysis/ apparel-retail-specialists-at-risk-from-e-commerce_id116910.aspx Accessed 23/04/15 F Fromm, J., Garton, Christie, & Ebrary, Inc. (2013). Marketing to millennials [electronic resource] : Reach the largest and most influential generation of consumers ever. New York: AMACOM. Gilmore, J., & Pine J., (2002). Customer experience places: The new offering frontier. Strategy & Leadership, 30(4), 4-11. G Gorski, C., 2014, Experiential retail: attract, understand and engage. Available at : http://news.o2.co.uk/2014/08/12/experiential-retail-attract-understand-and-engage/ Accessed 20/06/15 H Hargreaves, D.J and McKendrick, J., “The influence of in-store music on wine selections”, Journal of Applied Psychology, 84, 2, 271-276 Holbrook, M. (1999), Consumer Value, Routledge, London. Holbrook, M.B. and Hirschman, E.C. (1982), “The experiential aspects of consumption: consumer fantasies, feelings and fun”, Journal of Consumer Research, Vol. 9, September, pp. 132-40. Hulten, B., Broweus, N. and van Dijk, M. (2009), Sensory Marketing, Palgrave Macmillan, Basingstoke. Hulten, B. 2011. Sensory marketing: The multi-sensory brand-experience concept. European Business Review, 23(3):256–273.
K Kim, J., Koo, Y., & Chang, D. (2009). Integrated Brand Experience Through Sensory Branding and IMC. Design Management Review, 20(3), 72-81. Kotler, P. (2001). Atmospherics as a marketing tool. Journal of Retailing, 49(4): 48–64. Krishna, A. (2010). An Introduction to Sensory Marketing. In Krishna. A. (Ed), Sensory Marketing: Research on the sensuality of products, New York: Taylor and Francis Group, pp. 1-13. 35. L Lindstrom, M. (2005). Brand Sense: Build Powerful Brands through Touch, Taste, Smell, Sight and Sound, New York: Free Press. Lindström, M. (2010). Brand sense : Build powerful brands through touch, taste, smell, sight and sound (2nd ed.). London: Kogan Page. M Mahi, C., Boelsems, G., & Garrison, J. (2012). Abercrombie and Fitch. Ontario, Canada: Richard Ivey School of Business Foundation. Retrieved February 19, 2014, from The Case Centre (9B12A033). Marzilli, T., 2011, Combining Sports, Music and Fashion Raises Buzz for Sneaker Companies Available at : http://www.forbes.com/sites/brandindex/2011/08/29/combining-sports-music-and-fashion-raise-buzz-for-sneaker-companies/ Accessed 23/04/15 Manzano et al., Marketing Sensorial: Comunicar con los sentidos en el punto de venta. 2011, Prentice Hall, ISBN: 978-84-8322-812-8 Morrison, M., & Beverland. (2003). In search of the right in-store music. Business Horizons,46(6), 77-82. Morrison, M., Gan, S., Oppewal, H., & Dubelaar, C. (2011). In-store music and aroma influences on shopper behaviour and satisfaction. Journal of Business Research, 64(6), 558-564.
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N Nell, C., 2013, Exploring the influence of store atmospherics on consumers’ buying behaviour in apparel retail stores: An exploratory study in Tshwane Reynolds, J., Howard, E., Cuthbertson, C., Hristov, L. (2007) Perspectives on retail format innovation: relating theory and practice. International Journal of Retail & Distribution Management Saarikallio, Suvi. (2011). Music as Emotional Self-Regulation throughout Adulthood.Psychology of Music, 39(3), 307-327. S Schmitt, B. (2000). Experiential marketing : How to get customers to sense, feel, think, act, and relate relate to your company and brands. New York: Free Press. Soars, B. (2009). Driving sales through shoppers’ sense of sound, sight, smell and touch. International Journal of Retail and Distribution Management, 37(3), 286-298. Spybey, K,, 2015, Fashion industry growth outstrips that of wider UK economy, Drapersonline. Available at: http://www.drapersonline.com/news/fashion-industry-growth-outstrips-that-of-wider-uk-economy/5067665.article#.VbECGflVhBc Accessed 30/07/15 Stephens, D, 2015, The Future of Retail is the End of Wholesale, Business of fashion. Available at : http://www.businessoffashion.com/articles/opinion/ future-retail-end-wholesale Accessed 23/04/15 Stuart, R., 2013, an analysis of the antecedents to and dimensions of consumption experience in fashion stores, phd thesis, University of Manchester T Tuned global, 2014, unknown author, Burberry create a brand experience by evoking emotions with the power of music. Available at : http://blog. tunedglobal.com/2014/11/05/burberry-create-a-brand-experience-by-evoking-emotions-with-the-power-of-music/ Accessed 20/07/14 V Vargas, C., 2014, France: “The market leader in the fashion Industry” Available at :http://www.web2present.com/studyabroad/france-the-market-leaderin-the-fashion-industry Accessed 30/07/15 W Waterworth, N., 2014, I’m a Millennial and this is How I Buy Things. Available at: http://tfmainsights.com/im-millennial-buy-things/ accessed 30/07/15 Wilson, J., 2010, Essentials of business research a guide to doing your research project, Sage. Z Zimmer, A., 2015,Sensory Experiences Shape the Future of NYC Retail. Avaible at : http://www.dnainfo.com/new-york/20150402/battery-park-city/future-of-shopping-includes-instagram-sensory-experiences Accessed 03/08/15
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Appendix 1 Analysis of the industry sector external environment, PESTEL SOCIAL FACTORS
1
Changes in consumption patterns, people tend to buy more on line and frequent less the stores (Barrie, L., 2014). Customer mind set is changing from a “careless” to a “considered” consumption they have become more selective i.e. they buy less quantity but better quality.
2
This change in consumption patterns particularly applies to the young generations as they were born in the same time as the technology (Euromonitor Iternational, 2013). People use more and more devices to shop creating greater opportunity for brands to communicate and reach out to the customer (Barrie, 2014).
3
According to the article written by Marzilli, T., collaborations between brand an music artists are beneficial to brand’s awareness. Buzz scores measuring consumer perception, have been rising among 18-49 year-olds in response to a new marketing campaign by the brands Adidas and Nike combining together sports, music and fashion.
4
The growth of internet use is a main factor for the evolution of physical retail. According to Stephens : “it’s entirely likely that upwards of 30 percent or more of the total retail economy will be transacted online by 2025.” (Stephens, 2015). A retail week report published in 2014 found that online sale are predicted to rise 41% by 2017 (Retail week report, 2014).
5
Gorski explains that “undeniably the retail space is changing. The high street is just not as appealing as it used to be. With the rise e-commerce customers are generally only visiting the high street to collect an online order or do some impromptu browsing. The reduced prices and convenience of online shopping is just too enticing, retailers now have to think of creative ways to make customers want to spend more time, and money, in their stores. This is possible by implementing exciting digital solutions that will deliver great in-store experiences to customers. PLUS - Making customers feel special through personalised interactive messaging. - Engaging with them using digital signage. - Assisting them with a real time guided selling application. - Acknowledging when they’re in store using applications such as iBeacon asking about their experience using SMS surveys that offer discount codes on completion.” (Gorski, C., 2014)
6
Consumers will ask for more individually tailored offering and experience thus leading in-store settings to be more personalised. By 2020 personalisation will become a key strategy (Bevan, 2015).
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SOCIAL FACTORS
7
According to the The Boston Consulting Group which surveyed 4,000 Millennials aged 16 to 34 in 2012 “millennials are predicted to be one of the largest consumer segments in 2030 (at 78 million), and they place great value in experiences and sharing, which means that to capture this group stores will have to cater to these wants” (Bhaga A., 2014).
TECHNOLOGY
1
Digital innovations are changing the retail environment (Davis, G, 2014). From 2015 and on, in-store technologies will help create more efficient and engaging shopping experiences (Maxwell, 2007) Technology used for higher personalisation is a way to connect on line and off line experiences (Mc Vittie, 2015)
2
In-store innovations are implemented to offer higher convenience to consumers as with new contactless payment methods e.g. Apple pay with mobile phone makes it quick and easy (Davis, 2014)
LEGAL
1
In the French market the “Loi Macron” is a law bill that would extend shop opening hours
including week end opening Sundays and night hours.
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Appendix 2 STRENGTHS
In spite of e-commerce growth , physical stores still play a big role in the fashion retail economy (Retail week report, 2014) After a period of economic recession the clothing industry has recovered (Retail week report, 2014) The clothing and accessories market is to grow 19% from 2012 to 2017 (Retail week report, 2014)
WEAKNESSES Digital
The physical in-store experience is heading towards more digital offerings but it may be quite a wrong way to go as people who shop online from home wish to find amusement and fun non-virtual experiences, as they already are too immersed in the virtual world and want to live more physical intercations (Retail week report, 2014)
Personalisation
Internet sales represent a big part of the industry, yet this mode of selling lacks the ability to respond to consumers desire of a tailored and more inspiring offering that would engage and entertain them in a personal individual way (Barrie, 2014).
Crowded marketplace
Hard to compete in a saturated market and thus leading to issues for maintaining brand loyalty (Retail week report 2014 ). Many stores whom cannot cope with the competition are closing down
OPPORTUNITIES Omni-channel
Strengthen the role of stores within the omni channel offering (Retail week report, 2014 )
Strategic opportunities
Get a competitive edge Attract different target market
THREATS increasing property and rent costs weak consumer spending online competition (Lovett, 2012) retail innovation requires significant fund investment (Mc Vittie, 2015) Retailers must stay cautious regarding the uncertainty that comes with the post-recession economic upturn (Retail week report, 2014) Total store numbers will fall by 22%, from 281,930 today to 220,000 in 2018 (Retailresearch.org, 2013).
Evaluation of the current retail environment compared to changes in consumer behaviour and consumption pattern
45
References for SWOT and PESTEL Barrie L., 2014, Fashion’s new frontiers: what’s next for retail?, Just style Available at : https://www.just-style.com/analysis/whats-next-for-retail_id123431.aspx Accessed 23/04/15 Bhaga, A., 2014, Retail Horizons: Will we need physical stores in the future? Available at : http://www.greenbiz.com/blog/2014/09/05/retail-horizons-will-we-need-physical-stores-future Accessed 20/06/15 Bevan, C., 2015, Intelligent technology is transforming the store, Drapers issue of May 16th 2015. Davis, G., 2014, Digital retail innovations, Retail insider. Available at: http://www.retailinsider.com/wp-content/up¬loads/2014/07/ Innovation-Report-FINAL.pdf Accessed 24/04/15 Euromonitor International, 2013, Focus: Apparel retail specialists at risk from e-commerce, just style. Available at : https://www.juststyle.com/analysis/apparel-retail-specialists-at-risk-from-e-commerce_id116910.aspx Accessed 23/04/15 Gorski, C., 2014, Experiential retail: attract, understand and engage Available at : http://news.o2.co.uk/2014/08/12/experiential-retail-attract-understand-and-engage/ Accessed 20/06/15 Lovett, G. (2012) Analysis: The future of retail property, Drapers. 13th November. Available at: http://www.drapersonline.com/news/ ecommerce/appliance-of-science/5008499.article. [Accessed 14/06/15] Marzilli, T., 2011, Combining Sports, Music and Fashion Raises Buzz for Sneaker Companies Available at : http://www.forbes.com/ sites/brandindex/2011/08/29/combining-sports-music-and-fashion-raise-buzz-for-sneaker-companies/ Accessed 23/04/15 Maxwell, J., 2007, Retailing 2015 New frontiers. Available at: https://www.pwc.com/es_CL/cl/publicaciones/assets/retailing2015.pdf Accessed 20/06/15 Mc Vittie, S., 2015, Personal experiences are the high street’s future, Drapers issue of May 23th 2015. Retail week report, 2014, (unknown author), Fashion retail 2014: The future of fashion retailing in a digital age. Available at: http:// www.landsecuritiesretail.com/media/18900/fashion-insight-report-final.pdf Accessed 20/06/15 Retailresearch.org, 2013, A GUIDE TO RETAILING IN 2018 BY THE CENTRE FOR RETAIL RESEARCH Available at: http://www. retailresearch.org/retail2018.php Accessed 20/06/15 Stephens, D, 2015, The Future of Retail is the End of Wholesale, Business of fashion. Available at : http://www.businessoffash¬ion. com/articles/opinion/future-retail-end-wholesale Accessed 23/04/15
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Appendix 3
Millenials survey I am a student in MA International Fashion Business at Nottingham Trent University. I’m researching on how millenials are influenced by music when interacting with fashion brands in stores and online. Answering this anonymous questionnaire, you will give me valuable information for my project. All the information will be used only for academic purpose and the data will remain confidential. A warm thank you for your participation to this anonymous survey for my final project contributing to my master's. *Obligatoire
Gender * male female
Age range * 15 - 20 20 - 25 25 - 30 over 30
Nationality *
How often do you shop for clothes ? more than once a week weekly monthly yearly occasionally
Do you buy more clothes ... * on line https://docs.google.com/forms/d/1PyKxWgofV_ltLfCcEkdCrhsuMPERObOZQqPQoO9QÂaY/viewform
1/4
47
48
49
Survey results
Total respondants : 100 Respondants were aged from 15 to 25.
When asked what channels they prefer to use when shopping for clothes here is what 15-25 years old answer. 37% prefer to shop in-store
5% prefer to shop online
18 % use both channels 15-25 years old music styles preferences. 13 % RnB
13 % alternative
13 % electro 40 % pop commercial 17 % rock
15-25 years old most loved fashion brands. H&M River Island Zara Topshop Mango 6% New look 6% Urban outfiters 5% Asos 5%
12% 11% 11% 10%
15-25 years old say those are key factors to make them loyal to a particular store friendly staff store layout sent music store ambience lighting window display
32% 31% 19% 18% 18% 12% 10%
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Appendix 4
Interview transcript
Lily- Hi Matthew thank you for meeting me today. Matthew- Hi L- I ll first start by introducing myself and my topic, even though I had told you in e-mail I’ll explain to you again. My name is Lily I am MA IFB student and I am writing my dissertation on the topic of fashion and music. I am looking at the sensory marketing and the experience in the store linked with the music. I chose this topic because during this year’ other projects I realised that music had a close link with the fashion industry. I had written a report on the brand The Kooples which launched a record label to promote some musicians of their choice. I also conducted a project on the brand Burberry during which I became aware of their on-line marketing through the Burberry acoustic sessions, which I really enjoyed discovering. The Burberry project also influenced my choice to focus on the younger demographic which would go along my idea to also study the brand Abercrombie& Fitch. Now I will leave you to present yourself and also tell why you are interested in this topic as well? M- I am a senior lecturer in visual communications for fashion. My background is in graphic design and I teach mainly to the undergraduate program fashion communication and promotion and my areas of interest really are the independent cultures. I am specifically interested in music culture and sub cultures. Particularly at the moment I’ve been doing lot of research within independent magazines within the mainstream and how there’s been a revival with the print media. L- I prepared a list of questions if you would like to go over it? M- OK L- According to you to what extent are millenials influenced by music? M- OK, you mentioned some very good examples such as Burberry and Abercrombie & Fitch. I think with millenials it is incredibly important for awareness that they are marketed to through using music to connect to these consumers. These consumers very much expect a conversation and a relationship with brands. This is why I think music has always been very influential on way that the youth demographic, right back to the 1940 and 50’s with the advent of jazz and rock n roll music what we see now is very much that music is marketed as a commodity inside the whole experience what a brand does and communicate and ways in which is promoting their products whether it is a fashion brand, mobile phone brand connected to music collaborate with affiliate with and music stars celebrities. So I am not really persuaded that strongly, that say for example that millenials necessarily know a lot about music or even are interested in music as real kind of followers, you know people who are passionate at music or anyone interested in celebrity culture the loom of fame and that got style and what it means to be cool. How you kind of some that with the coolness in your life if you adopt the codes and messages and attitudes of a brand you like and that you can see some similarities within your lifestyle and similar taste to you. We see that lot of millenias are really interested in music festivals in the last decade but I don’t think that as consumers they are there primarily for the music I think is more about the experience overall and the music is the bit of an altogether but then you do get some millenials who are genuinely interested in music firstly and then it might be into a particular fashion brand. I think Fred Perry is quite a good example of how they have connected with music and they have integrated as a section of their marketing and branding and that is called Subculture, so I think for a brand it is something interesting to be looked at, and the way in which they market it. As it is a part of what they do to take the commodity in their products and direct it to their audience and they do it through music by choosing new bands and new acts. They do this with lot of credibility and authority while connecting the music to the brand’s history which has got a long heritage, always connected to music and culture, attitudes of cool different tribes.
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L- According to you what are the benefits for a brand to invest in music as a way to engage the Millenials? M- The benefits are huge. It is a very immediate way to tap into Millenials’ interest! A lot of music artists are using a wide range of different media channels and particularly social media and digital media which is the best and quickest way to connect to communicate to Millenials. If a brand can be seen too, ally themselves, work with music artists, you see brands that have done so over the years like Coca Cola, Nike have done it really successfully. It immediately gives their brand ethos and the perception of the brand suddenly sees its coolness increase. Like maybe in situations where a fashion brand collaborates with celebrities to endorse or wear their products in advertisement and things like that, you often see it in fragrance adverts with movie stars so if a brand can do that with a really cool music star it will make them seem really cool as well. On the other hand it can back fire as well if they pick the wrong artist. But the benefits are that it potentially creates very immediate impact and awareness for the brand because if they work with a high profile music artist or which creates a lot of buzz then that would be reaching out to millions of people who are watching this artist whether that is on Youtube or see them live and then they can make that connection with the fashion brand then that’s being conscious or subconscious but it works in both cases then the benefits are hugely tangible. L- What do you consider the benefits for musicians playing for any fashion brand are? M- I think that probably are very much, if you’re being cynical or honest and realistic that would be the benefits are going to be mainly monetary benefits. I suppose it is the same as the previous question when a musician plays for a fashion brand this connection can be relay positive for their career and create more awareness for them swell. I think that lot of people might look at a musician and be quite sceptical about the reason why they are working with a fashion brand and that they may not being doing it for genuine purposes, that they probably do it just for the money or the recognition. That commercial mainstream genre some people even us the term they are selling out. It depends on who the musician is, if your looking at someone like Taylor Swift or Justin Bieber someone very mainstream is not the same as someone who is in the start of their career for which it could be very beneficial to be associated with a fashion brand and to do all sorts of endorsements and collaborations. Those big artists are not necessarily trying to be independent, from a subcultural point of view, their audience and everything that surrounds it is not going to be the same and critics say they are selling out. But if you take artists who start to build their career, slowly like typical small British bands Kasabian or Kings of Leon and look at how they’ve grown as they became more and more famous often you find that the more they link themselves to fashion brands the more that become commercial. Their original following path loose faith and loose touch with them the way they have gone against their roots from where they started. I think what lies behind all in terms of the connection between fashion brands and music artists is all about the money, isn’t it. L- According to you how can music contribute to a brand’ DNA? M- I would say, massively. There are brands that have the essence of music or the attributes of music styles and music cultures. The core of the DNA if you take a brand like All saints for example their brand DNA and essence, the way in which they project their brand entity and everything that you see has got such obvious close visual link to Rock’n’Roll with elements of Punk and Grunge. I think it is a good vehicle to use a music style, the look of a music genre for a brand. If a brand wants to create more powerful visual identity and to be more dynamic like it is the case for Abercrombie & Fitch, Hollister and how they use music within the store to provide an experience which is also a bit of what All saints do and create a connection with mainstream dance popular music for those brand then music is integral to their DNA. When targeting millenials I think it helps to get them to step in the store. Then when you go on line and if you see a brand that looks familiar to you and they are playing music that you like and they are sending those
52 visual codes, even simple thing like the typography they are using or the colours remind you of the sort of band, the sort of artists the sort of music that you might like. I would probably say that almost every fashion brand has a kind of link to it or some attributes that relates to music, you can look at any brand and make connection to a musical style or genre ether that’s deliberate ether that’s conscious or unconscious ether that’s done directly or not. L- For instance I’ve read about Victoria Secret using classical music in the store, but would you say that there is a link between the products they sell and the music they choose? M- I think this choice would have been well considered, it would not just be a mistake what they put on in the store. L- I read that they use classical music because they thought it would influence women which is their target customer segment to buy more M- Yes. L- See, when I think about the glamorous and sexy image of the brand I don’t think about classical music as a good association M- No. This means they are not using it in terms of the brand image but in terms of the retail experience. I think they are quite clever because they are very mass market but they also have got this kind of exclusivity element to what they do, especially with the catwalk shows, and the way in which they sell their products. They obviously are not high-end luxury brand but they try to aspire to that and to having that. So when they use classical music it is a way to give them those elevated elements of sophistication, luxury. I think that any brand would be using musician store in any way and in any part of their communication or of their marketing and to not have considered it then it would be a massive fault, wouldn’t it. That’s where you see brands falling down and struggle not just with music any part of their business where it isn’t completely considered and consistent they are employing people who make those decisions about what music to put in store they will have done their research so they have it all planned out. L-To what extent can music fit with the product that is sold? M- Concerning the experience in store, the music that is played in store I think will affect your mood because music is an emotive thing so that can make you feel either positively or negatively and impact your spending behaviour and it depends on how again as a millennial customer how seriously they take their music. I think music in store has to be carefully considered because it needs to be there in support rather than taking over from the experience. But again going back to Hollister the experience there is that you are shopping within a night club that experience. I think you should look at how fashion brands use music on the catwalk that is very important and very much considered and it is part of the way in which products are sold. With advertisement as well if you look at any kind of marketing strategy any music that is linked. I don’t think music as a soundtrack to a product or to a brand is as much important to a fashion brand than music is to films. Yet music is definitely there to support the brand, brands like Fred Perry are using music more and more like Burberry too. Some brands that may be have their own radio stations. There are certain fashion magazines that have kind of a strong link with music like Dazed and confused. If you think about it they are all part of that chain, aren’t they. Within the life cycle of how a fashion brand’s product is sold you may see your favourite artist wearing that piece of clothing and just because you love that music you say “oh I am gonna go and buy that”. You don’ need it but you just fallen in love with the idea of it. L- You mentioned some other brands like Hollister who use loud music, what brands are you thinking about? M- For sure Hollister has taken this to the next level but I think it depends on the store, but I have been to H&M and Uniqlo in different cities where the music was loud. I think it depends on the population of the city where the store is located. I think maybe also American Apparel in some of their biggest stores, you also get it within vintage shops which is not a brand but more a lifestyle. I think is also interesting to be looked at cause it also reaches out to millenials. We’ve seen that shop such as Topshop have taken on the whole vintage idea swell. for they sell products that are labelled as vintage and there Is that connection with indie music and with Rock’n’roll. Those are typical examples of the youth demographic stores like Topshop, Hollister, Uniqlo, American Apparel
53 and I think that would be in those store where you can experience loud music.
L- How do you imagine the future of fashion will be in terms of sensory experiences, especially with music? M- The future of fashion retail has been discussed a lot about. Either it is going to continue to be bricks and mortar on the high street and how it is going to develop with the increase of the on line experience. I suppose when you say sensory you are referring to the physical experience on the high street. There has been a big movement towards it and greatly influenced by the way a gallery or an exhibition and how artwork is shown, which is all about curated objects. Many fashion retailers are moving more towards that, so they are making their retail experience more curated and more of an edited choice. It is an experience so it means you don’t just go there to shop. You go there to experience the brand. Many examples of this come from luxury brands. They have all done that in a way that is highly considered and curated in store but a brand like COS and Other stories are doing it where music is a very key part of the environment. I think that it is very interesting that there might be a link between the music you might listen to and how you could own that soundtrack yourself or how you experience it when you’re in store. I am sure there is gonna be more direct marketing with this such as new releases from bands, like maybe when you buy an article in store and that might give you unlimited access to exclusive content of that music artist. Again when you go to an art gallery you can listen to comments that tells you about the work of art you’re looking at and I think with some brands it would be good to look at things like that. I can imagine being in a store in a brand like Acne and looking at their objects and garments but also listening to a specially selected soundtrack that might directly connect to my Iphone and then you know the music I am listening to might change from store to store depending on that soundtrack. May be brands can have their own radio stations, it has been done and is being done and complete that sensory experience. In terms of less direct commercial aspects I think fashion retail and stores like Selfridge’s they have done things where they often put on some interesting shows and exhibitions or pop ups where they use music to create that overall sensory experience. The phenomenon of pop up stores in recent years has become big in fashion retailing. I think for any brand to be doing something in the future in terms of how they approach retailing and visual merchandising the whole experience of being in store if they do that without music they will be missing out. L- Which would you say is the most powerful strategy and why? a- online music for digital marketing b- in store music experience c- both M- In relation to millenials I think the most powerful strategy is on line. But then you do have to back that up and connect it to in-store. Any brand now is thinking about 360° marketing campaign. They’ve got to make it integrated, not necessarily just repeat cause I think people want slightly different experiences or different promotions of that same content. My experience on-line musically in terms of connection with a brand for example with Burberry and it was really inspirational in terms of music content if I then went in store I would expect to be able to see or to experience that again. I think if you spoke to a sales assistant and they did not know about it I think that would be damaging to the brand. I think primarily you’re looking at on-line and the digital marketing because it just has greatest power to reach out to people and also is cheaper to do than instore. But then you have to connect it to the in-store experience as well. L – Do you think that it should be one of the top priorities for fashion retailers to implement more sensorial experiences both on-line and in-store? M – I think for any fashion retailer to be innovative for people to take notice to survive in a very crowded market place and very competitive they need to look at sensorial experiences. It is not necessarily that the customers demand it but because of the marketplace being so competitive all it takes is for one or two brands
54 to start doing it then you have to do it too. I think there has been a wide interest in sensorial experiences and physical experiences offline. Brands can use online to create a conversation around that, to promote it, to create awareness and to communicate what is happening but also to do a follow on activity. So they create sensorial experiences in-store there is a follow on after that. So in terms of the consumer you don’t just experience that once but at different touch points with the brand. Like in any relationship, you’ve got to keep that conversation going. So brands have to think of a customer not just as a customer but more as a friend of the brand. So they can become a brand advocate, someone who can be simple general public or even a celebrity. Sensorial of course is not only about music, music is a part of it but there are many other tools to create sensorial experiences like with sight sound smell and touch. This is a really fascinating area to look at. L- What some of the ethical considerations for a brand signing contracts with musicians would be ? M- This particular question is not my area of expertise but I guess some elements of intelectual property and copyrights are involved. Brands have an ethical repsonsability reguarding the way in whivh they use a musician output and a musician branding as well and their image. I guess it all depends on how high profile they are, what label they signed to it depends of the size of the label the bigger the label the more complex contract may be. Because now with the internet it is easy to get free access to music many artist are struggling to make money so they have to find other ways to sell their music like with live performances and with brand endorsement and collaborations with fashion brands. L- Can you think of examples in which music strategy failed ? M- I might need to get back to you on that one. L - Do you think that in store experiences to engage customers will have to evolve often ? M – Yes, it has to evolve. Fashion and music are intrisicately linked anyway. What is so great about music and fashion is that it is cyclical, it is forever and is always reinventing the past. Looking back in oder to move forward. If it does not evolve then it will stagnate then the brand would fail. Using music is all about tapping into the latest trends. The millenial consumer will get older the fashion style will change and it slows down as you get in your 30’s you start having other distractions such as your career and having children and family life, meaning those brands have new generetions that come on board. Gap is a brand struggling at the moment they did not evolve. They stayed the same and the have been loosing market shares. Unlike brands like Hollister who used the music, Gap haven’t done that so much. L- Thank you Matthew for all your insights.
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