The bahavior report

Behavior Change within Visual Merchandising and Retail Environments

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Ling Zhang N0469100 FAS H 2 0 0 3 1 : C o m m u n i c a t i o n & Message 201314 Half Year 1

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Contents Executive summary

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Introduction

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Technology in Visual Merchandising

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How Behavioral change help advise Visual merchandising strategy?

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Primary Research

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Suggestion

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Ideal Consumer

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Conclusion

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Methdology

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List of illustrations

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References

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Appendix

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Executive Summary

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background, moodboard of different brands

This is a report analyzing the changing behavior of high end fashion brands in the use of visual merchandising at diverse consumer touch points, including the physical retail environment, online sales, use of social media and digital technologies. High end fashion brands include Prada, Louis Vuitton, Versace, Gucci, that are expected to lead the way in fashion innovation, so these are the focal point of the report. What is the future of visual merchandising and retail environments within fashion requiring change in sales practice and design?

figure 1: Louis Vuitton visual merchandising

Introduction The largest and most influential fashion brands such as Louis Vuitton (LV), Prada and Versace have influenced how people view fashion, as well as, their consumption of fashion. This report will focus on how these fashion brands have been able to lead, and continue to lead, in influencing behavioral change in the fashion industry through the use of great visual merchandising (figure 1 ) in the retail environment, aided by the use technological innovation.

The case study of the Louis Vuitton (LV) brand is a great example of how to be successful, a fashion brand has had to adapt to changing markets over time. The founder (Louis Vuitton) came from humble beginnings. According to Johnston (2012), Louis Vuitton established the company in 1854 on understanding that Charles-Louis Napoleon’s efforts to make Paris the epicenter of world luxury created an opportunity which LV exploited. LV established with the aim of offering better packing tools and the introduction of the slat truck was the foundation of the company’s success. LV introduced the world to wooden luggage (figure 2)in place of regular hide luggage, which was unpopular for its smell. Louis Vuitton’s son Georges oversaw the company’s global expansion from Paris to the rest of the world. This early success came from innovation using new technology for luggage, which surely must be the basis for ongoing success.

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Major fashion brands currently use a number of methods to distribute products ranging from online shopping to stores located in prime areas from where the company can access its customers. This is a recent change to the industry with online retail sales growing 19.4% in 2013 (Goldman Sachs, 2013). This growth is even more significant considering over 20% of clothing sales are now online (Poulter 2014). It is therefore important that fashion retailers become mutli-channel retailers ( Zablan 2011) The websites of major fashion brands alongside other online channels such as e-Bay are the most common websites that sell official products.

The major fashion brands depends on these distribution channels in addition to the traditional physical store sales. Consideration must be given to how the products can be visually merchandised in the relatively new modern retail environment of online sales.

figure 2: Louis Vuitton Luggage 7

figure 4: Mannequin that tells you what it's wearing: Dummies that talk to shoppers via their smartphones set to be switched on toda

Technology in Visual Merchandising

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figure 3: app with mannequins of House of Fraser According to Cunningham (2013) business has become more competitive than it has ever been which he associates to the growth in computer technologies (p.6).

Cunningham noted that customers can today access many products

Such technology as highlighted by Cunningham has many examples

and services through their personal computers. It has become important for business to go beyond the

that are being developed, for example retailers, House of Fraser(figure 3), Hawes & Curtis and Bentalls have begun a trial using mobile phone technology in

t ra d i t i o n a l t o u c h - p o i n t s , s t o r e s , into the use of new technologies in order to increase the touch-points and become more competitive. In addition what technology can be used

stores involving mannequins. The mannequins are fitted with beacons which send information to customers

in stores to improve touch points.

phones (figure 4)with detail of the products that are displayed on the mannequins, including information about the products displayed and what they cost. The service is displayed through an app, which consumers can choose to purchase products from on the spot and have delivered to their homes, or alternatively purchase in the physical store they are currently in.

(Poulter 2014)

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Figure 7:screen shot, facebook page of Prada

figure 6: screen shot, facebook page of LV

ffigure 5: screen shot, facebook page of Versace

This use of the innovative technology in visual merchandising is a trial for the future, however much research has been undertaken on technology use in business organizations and the effect it has on performance and ability to achieve objectives.

Ahearne et al (2008) research

Visual merchandising in retail stores can be further supplemented by the

was undertaken to determine the effect IT usage had on sales personnel performance since

use of social media. Parsons (2013) undertook a study to find out how companies were utilizing social media

many organizations were spending substantial amounts of human and

in marketing and advertising their products by analyzing Facebook pages

financial resources in equipping sales personnel with IT (p.671).

The study found that adoption of IT

of 70 global brands(figure 5,6,7), including leading fashion brand s such as LV, used to reach out to their c o n s u m e r s ( p. 2 7 ) . T h e r e s e a r c h found that companies had found

had significant positive effects on the sales personnel performance.

The researchers recommended the adoption of IT solutions in order to increase salespersons’ adaptability

Facebook to be a useful medium for marketing and advertising their products. It found that companies posted information about their

to consumer needs and their ability to meet these needs effectively.

products, about 90% of organizations posted photos, 83% uploaded videos, 72% had promotional or campaign information, 60% had information on event coverage and announcements and 36% had discussions on their pages. The visual merchandising aspects of this in social media would be important in getting consumers viewing this social media to purchase in stores.

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Behavioral change theories, how can these help advise Visual merchandising strategy?

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A number of theories can help to explain the influence technologies such as social media have had on consumers. In explaining social cognitive theory (Rosenstock, Strecher and Becker 1988), Rotter and Bandura defined consumer incentives as the value of the outcome or object the individuals seek. In the case of fashion, this can range from physical appearance, self-esteem to gaining others’ approval. Kim, Phelps and Lee (2013) sought to determine

Skar et al (2008) sought to

the relationship between self-efficacy and consumers’ expectations of social, enjoyment, functional and

determine the ability of intention c e r t a i n t y, c o g n i t i v e - a f f e c t i v e congruence of attitudes, attitudinal a m b i va l e n c e a n d p a s t b e h a v i o r to predict behavior and behavior

embarrassment outcome (p.9). They found that self-efficacy indirectly and directly influenced consumer behaviors. A fashion brand can make use of this research to consider what

change. The research found that these factors greatly influenced both behavior and behavior c h a n g e . H o w e v e r, i t w a s f o u n d that past behavior was the most

would tempt a consumer to purchase its products, whether it is due to appearance, prestige to affect selfesteem or gaining approval from others.

important predictor, without which the o the r pre di cto rs’ e f f e ct wa s insignificant. This means that any marketing efforts LV, or any other organizations, undertake should consider the effects of past behavior.

This is also important in profiling the potential customers, as well as, targeting. Customers who have used LV products are also likely to use LV products in future.

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Primary Research Primary research was conducted involving interviews with three respondants, all consumers of high end fashion brands with a high disposal income, specifically Louis Vuitton brand was the focus of the interview questions. The respondents included a professional within the f a s h i o n i n d u s t r y ; s p e c i f i c a l l y, a n

The interviews revealed that LV was held in high regard among the respondents and was most hi ghly re ga rde d by the studen t who ranked it among the top t h r e e f a s h i o n b ra n d s w h i l e t h e professional and the designer

established designer with more than 15 years of experience, an established lawyer and a female student popular for her indulgence in top of the range

ranked it in top five and top 15 respectively. Online and physical

fashion designs. The respondants were asked 4 key questions about

stores(figure 6) are the main touch point that consumers regularly use.

It was clear, from the interviews,

technology use within fashion retail.

that the touch-points between LV and the customer were dependent o n t h e c u s t o m e r s ’ l i f e s ty l e a n d how they used the Internet. For instance, the professional stated that he “accessed the company’s information on its Facebook pages and website”. On the other hand, the student used “… instagram, Twitter, Facebook and the company’s website.” However, the designer had more interaction with the company than the other two interviewees.

In addition to Facebook, Twitter, company’s website and Instagram, he also used “…Linked In, fashion journals and some local magazines.”

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figure 8: LV's physical store

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With regards future change for fashion b ra n d s a l l t h e t h r e e r e s p o n d e n t s noted that they had observed some sort of change within the industry.

The professional noted that “Initially I had to find time to do my shopping in the store because the Internet stores were not existent. However, the adoption of the Internet has made it pretty easier.” On the other hand,

The respondents also agreed that shopping in future would become easier through the adoption of the technologies. The professional

the student felt that her method of

noted that “shopping will become easier and easier in the future as organizations compete in the m a r k e t .” T h e s t u d e n t e x p e c t s “most fashion houses to sell their

shopping had not changed. However, it is the designer who offered a more conclusive answer to the question by stating that “more and more avenues of distribution and selling fashion

products online with physical stores merely used for delivery purposes a n d c u s t o m e r r e l a t i o n s .” T h i s view fits in with the mobile phone

products had emerged.”

technology trial mentioned in this report, viewing but not necessary purchasing in stores but instead make the actual purchase online using a mobile phone app, app for Zara for example.(figure 7) The developer expects that “technologies will be used to create virtual shopping stores that would be available to the customer whenever and wherever they wish to shop.”

In her article, Nancy Flores noted that the future of fashion lay in customization of apparel from shoes to bags. She also noted that websites offer a tool through which companies can translate fashion information and offer fashion solutions through the use of this technology. Like Minds, a social site, noted that players in the men’s industry were responding to the ‘social’ opportunity that technology offered to them.

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figure 9: zara online app for consumer

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The respondents felt that individuals with demanding careers and younger people would be the most receptive of the changes that would occur in the fashion industry emanating from adoption of technologies. According to the student, young people would be most receptive because they “have grown up with most of these technologies.” On the other hand, the professional felt that “anyone who was either busy or extensive consumer of technology” would be receptive to the changes. The designer also conceded with this stating that “professionals and younger generations” would be the most receptive. He also felt that the older generation would be more conservative because of their “insistence on the contextual feel of the product before purchasing it.”

All the respondents felt that technological progress should be used to increase communication between the company and its customers. According to the professional, technological progress had changed the primary method of communication from mails and mass media to the internet. He felt that “companies can use technology to increase the number of consumer points to complement, and in some cases eliminate, the physical stores.”

The student also felt that using these technologies to meet customers’ insatiable hunger for information would help companies encourage consumers to consume more. Lastly, the developer stated that the company could use these technologies for “selling, public relations, customer management, a d v e r t i s i n g , a n d m a r k e t i n g … .” A s Flores noted, the fashion company can harness the power of sharing through the social media in order to offer customized customer solutions.

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figure 10: screenshot of louis vuitton official

It is also important to note that

There are numerous ways the

any change in future will center on adoption of Internet technologies.

It is for this reason that companies

company can exploit the internet and harness it into its process to

have rushed to adopt them into their core business, especially in relation to

already competitive market. For instance, Internet platforms can

customer communication and selling.

It is clear that technologies have helped to change LV’s consumer touch

be used to increase the number of consumer touch-points. It also offers

points from the traditional physical stores to the Internet stores. This has helped to shift customers from the traditional method of shopping to the internet platform.(figure 8)

relation, customer management, advertising and marketing. This platform is more efficient because the main channel of communication has changed from mass media and

However, it important to note that some individuals still prefer to shop in the physical stores.

mails to the internet, especially the use of social media.

increase its competitiveness in an

additional ways of selling, public

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Suggestion According to feedback from the respondents, it suggests the future of retail should become artistic, collaborative and technological.

For example, the store layout should be more atmospheric and quirky, then focus more on the product details, not only using mannequins because consumers would like to challenge new and innovative things and know whether the product is suited for them. Offering the consumer a memorable experience in the shop then consumer will be encouraged to experience again. Beside, window displays of luxurious brands such as LV(figure 9, 10, 11 ) have been very successful by connecting with technology, the use of lighting for instance, it suggests that may also apply to more high-street stores to suit changing consumers

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figure 11:window in Paris flagstore of Lv

figure 12 : LV visual window of bird leg

figure 13 :Louis Vuitton flagship store window, Zuric1

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Ideal Consumer Name: Yang Fern Age: 20 Occupation: Fahion Photography Student with part time job.

Personality: Experience new things and making friends, he has creative mind which shows through his style.

Interests: Travelling, fashion,photography, technology.

Hobbis: Blogging and shopping online.

Magazines: Fashion magazines such as Vogue.

Film: transformer ,iron man.

Music : open-minded, like Jazz,rock..

figure 14,15 16 17 : collage images showing some of the products the ideal consumer would consume

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Conclusion This report shows that adoption of technology increases productivity in fashion area. How influential fashion brands become successful within social media to support visual merchandising. Despite this, a number of lessons can be learnt in relation to a fashion brands such as LV and adoption of technologies, especially social media and other internet platforms, in the customer touch-points. According to the research, It is clear that customers shopping experience has become easier and the same trend is expected to continue in future hence the company cannot afford to rest and it must exploit any technology that helps it improve the customer experience to increase its competitiveness. I believe my suggestion will work well in the retailing market and technological aspect could develop rapidly in visual merchandising.

words: 2547

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Methodology This report adopted an interpretivism research philosophy. Johari (2009) noted that interpretivism requires a researcher to subjectively understand a phenomena hence the philosophy is suitable for research seeking to help the researchers increase their understanding of contextual and c u l t u ra l p h e n o m e n a . A c c o r d i n g t o We b e r ( 2 0 0 4 ) , t h e k n o w l e d g e o f the world is constituted through the experiences a person has lived through in his/her years (p.4). Based on this argument, this report sourced subjective information from the participants (respondents) on issues relevant to the report’s objectives. The research adopted a qualitative approach because the study objectives which are to be analysed to understand effects and behaviour rather than obtaining statistical analysis through quantitative research.

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deally, the report would have wished to capture the views of all people who actively interact with the fashion world or purchase products from the leading fashion houses. However, this is impractical for a number of reasons such as time limitation, resources and inability to cover the whole respondents hence the report Data Collection Method: Survey The research used a primary data collection method using semistructured interviews. Reasons for choosing primary data is because it is convenient and gives first hand information from the respondents which is updated unlike relying on secondary data.

The targeted respondents were identified based on their likes of high-end fashionable products and the high disposable income they had. This enabled them to be privy to changes in the fashion industry.

The respondents targeted were located in Beijing. The reason for choosing this location was because of a large-pool of individuals who are fashion sensitive. A random sampling technique was used to select the respondents because the locality of the city had people with fashion conscious and it was an effective approach.

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had to settle for a small sample of respondents who would provide the adequate information within the available time. The report settled on interviewing three respondents who were highly involved with the industry.

The 3 respondents were chosen based on the following, One of the three respondents was a professional within the fashion industry; specifically, an established designer with more than 15 years of experience. One of the remaining two respondents was an established lawyer. The last respondent was a female student popular for her indulgence in top of the range fashion designs. In addition to this, secondary data from news and fashion websites was analyzed in order to broaden the range of respondents.

Interview Analysis: The interview questions designed were based on the objectives, which the research wanted to cover. In addition, there were 4 open-ended questions, which were asked by the researcher.

The researcher communicated with the respondents through email and phone communication to set their interview dates due to the respondent’s busy schedules.

Through email

communication all the respondents agreed to set interviews, which were scheduled within a week at their respective location within the city. An interview was undertaken with each individual (respondents) for a period of 8 minutes for each respondent.

During the interview, the respondents were asked open ended questions in order to ensure the interview remained objective while giving the respondents the freedom to answer the questions any way they deemed appropriate. The responses were clearly recorded for the analysis stage. The researcher used the Google tool to search through the Internet for opinion articles on fashion that would complement the information acquired from the respondents in order to achieve the objectives of the report.

Ethical considerations were noted and there was a form, which clearly stated the research, was conducted purely for academic reasons and all respondents were of sound mind and aged above 18years.

The research had limitations including time factor and also the challenge of respondents not feeling comfortable to divulge their fashion details. However, the researcher worked to give the respondents confidence.

Data Analysis The data completed on the interview script was collected from the respondents during interview. Collection was done physically through face to face interview with the respondents.

Before analysis of the collected data was done, the research did a pilot test to ensure the information collection was relevant. In the analysis stage, the researcher reread the interview transcripts in order to clearly understand the views of each respondent and identify any differences or similarities between them. The views were also compared to those found in websites. The researcher made a deliberate attempt to ensure that the interviewees were not influenced in the answers provided. Independence of the interviewee was important to ensure they provided their own opinions. In the interview transcript, the interviewer only recorded what the interviewee said without making any changes, apart from grammatical changes to make them presentable.

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Illustrations content page figure: own image, 2014, [accessed 03 June 2013] [digital photograph] Figure 1: Lightboson.com, 2013, avaliable at: http://blog.lightboson.com/ magia-en-estado-puro-la-atraccion-de-un-escaparate/ [accessed 03 June 2013] [digital photograph] Figure 2: Marion P, 2013, Flikr, avaliable at : http://media-cache-ec0.pinimg. com/736x/f8/d0/df/f8d0df8265692c6b4a4f8bfdf5458277.jpg [accessed July, 2014] [digital photograph] Figure 3 :official web of House of Fraser., 2014, avaliable at: http:// retaildesignblog.net/wp-content/uploads/2014/03/House-of-Fraser-AutumnLeaves-windows-by-Millington-Associates.jpg [accessed 03 June 2013] [digital photograph] Figure 4: Poulter, S. 2014 The Daily Mai. avaliable at : http://www.dailymail.co.uk/news/article-2722399/Mannequin-tells-s-wearingDummies-talk-shoppers-smartphones-set-switched-today.html [accessed July, 2014] [digital photograph] Figure 5: own image, 2014, screenshot [accessed July, 2014] [digital image] Figure 6: own image, 2014, screenshot [accessed July ,2014] [digital image] Figure 7: own image, 2014, screenshot [accessed July ,2014] [digital image] Fifure 8 theyallhateus.com, 2014 avaliable at :http://www.theyallhateus.com/ [accessed July, 2014 ] [digital photograph] Figure 9: redsgned.com, 2014, avaliable at :http://redsgned.com/zaradesktop-iphone-app-redesign/ [accessed July, 2014] [digital photograph] Figure 10: own image, 2014, screenshot, [accessed July, 2014] [digital image] Figire 11 : Shanahan, L,2012, Lv visual merchandising , avaliable at : http:// www.pinterest.com/pin/96264510757222445/ [accessed July, 2014] [digital image] Figure 12: Hoke, Z, 2013, avaliable at : http://www.addicted-to-retail.com/ blog/windows/17446/attachment/gs1-640x922/ [accessed July, 2014] [digital image] Figure 13: Kadysewski, T, 2012, avaliable at :http://fixturescloseup. com/2012/08/25/louis-vuitton-bird-legs/[accessed July, 2014] [digital image] Figure 14: moonbasa.com, 2011. avaliable at :http://vogue.moonbasa.com/ vogue/a342250183246.html [accessed July, 2014] [digital image] Figure 15: Prechu, 2013 , avaliable at:http://www.cssauthor.com/daily-mobile27

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Balenciaga Handbags (2011). Latest Celebrity Bags. Blog Spots, available at: <http://celebritiesbags.blogspot.com/2011/04/latest-celebrities-bags-style. html> [Accessed 24 April 2014].

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Cartner-Morley, J. (2010). Welcome to the House of Vuitton. The Guardian, available at: <http://www.theguardian.com/lifeandstyle/2010/may/25/ welcome-house-louis-vuitton> [Accessed 24 April 2014].

Coulson, C. (2014) 50 best online fashion boutiques, The Times Cunningham, T. (2013). Improving Each Customer Touch Point. Smart Business Northern California, July 2013, pp.6-6.

Daily News (2012). UK Tops Global Ranking of Designer Handbag Lovers.

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Flores, N. (2013). Style and Social Media Experts Predict Fashionâ&#x20AC;&#x2122;s Future with Technology. Statesman, available at: <http://www.statesman.com/ news/lifestyles/style-and-social-media-experts-predict-fashions-fu/nWwrN/> [Accessed 24 April 2014].

Hawksworth, H. (2012). Louis Vuitton Store Opens. Harrods, available at: <http://www.harrods.com/content/the-store/news-events/2012/june/louisvuitton-store-opens> [Accessed 24 April 2014].

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Johnston, R. (2012). King Louis. GQ British, available at: <http://www.gqmagazine.co.uk/style/articles/2012-07/12/louis-vuitton-history-of-luxurylabel-and-outlets-shops-bags-shoes> [Accessed 24 April 2014].

Kim, H., Phelps, J.E. and Lee, D. (2013). The Social Cognitive Approach to Consumersâ&#x20AC;&#x2122; Engagement Behavior in Online Brand Community. International Journal of Integrated Marketing Communications, 5 (2), pp.7-22.

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“Louis Vuitton” (n.d.). Louis Vuitton, available at: <http://www. louisvuitton.com/front/eng_US/Stores#/eng_US/Stores> [Accessed 24 April 2014].

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Appendix Interview Transcript Interviewer (I): What are the various methods you have used to purchase LV products? And why?

Professional (P): I often purchase LV products mostly through the e-Bay because I do not have sufficient time to spare to shop in the stores. However, I sometimes visit the stores once in a while whenever I happen to come across one of the stores.

Student (S): I regularly do my shopping at the local LV store.

Designer (D): I do most of my shopping in the local fashion stores and a number of them stock LV products. I also occasionally use the Internet to do my shopping.

I: How does LV compare to other fashion houses?

P: I think the company has not done anything wrong for itself. I would rank it among the top five fashion brands.

S: I rate the company highly especially their bags and trunks. Overall, I believe the company is among top 3 fashion houses.

D: There is no doubt the company ranks highly, probably among the top 15 companies in the fashion industry.

I: How has your method of purchasing fashion products changed over the years?

P: Initially I had to find time to do my shopping in the store because the Internet stores were non-existent. However, the adoption of the internet has made it pretty easier.

S: Although I occasionally browse the internet to find new items, my method of shopping has remained the same.

D: More and more avenues of distributing and selling fashion products have emerged.

I: What has been the reason behind this change?

P: The existence of the internet has allowed me to save the several hours I could have spent on shopping and use it on more productive things.

S: I have always done most of my shopping in the stores in order to have a contextual feel of the items.

D: Competitiveness in the market has driven players into new avenues to increase their competitiveness.

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I:

What do consumers and fashion experts expect to change in the future?

And why?

P: I expect that shopping will become easier and easier in future as organization seek to compete for the market. I expect that shopping in future should be as simple as dialing a friend using a mobile phone or other technology.

S: I expect most fashion houses to offer their products online with physical stores merely used for delivery purposes and customer relations.

D: I anticipate that technologies will be used to create mobile virtual shopping stores that would be available to the customers whenever and wherever they wish to shop. This is because the fashion industry continues to be one of the most lucrative and competitive market.

I: Who will be most receptive about this change? And why?

P: It has to be anyone who is either busy or extensive consumer of technology. However, I believe busy professionals will continue to adopt technologies to eliminate the time spent on shopping and similar activities and focus on more productive functions relating to their professions.

S: I expect the young people who have grown with most of these technologies are more likely to be receptive about this change in comparison to the older generations.

D: I believe almost all groups will be receptive about these technologies.

However, it is professionals and younger generations I expect will be most receptive of these technologies. I also expect the older generations to be more conservative because of their conservativeness and insistence on the contextual feel of a product before purchasing it.

I: How can Louis Vuitton harness technological progress into its consumer touch-points in order to influence the market and increase its competitive advantage in the fashion market?

P: The Company needs to understand that the primary method of communication has changed from mails and mass media to social media and the Internet in genera. I the company can use technology to increase the number of consumer touch points to complement, and in some cases eliminate, the physical stores. Most of us are more comfortable doing our shopping in the comfort of our offices or homes with little regard to the people around us. Moreover, most of us spend substantial amount of time on the Internet hence the tool can be used for marketing and advertising in place of the traditional mass media advertising and marketing strategies.

S: Communication with the customer is the key way LV can harness technological progress. Individuals have insatiable hunger for more information on products and more positive information availed on a product translates to more consumption of the product. Therefore, LV should create more information channels in order to encourage more consumers to consume its products.

D: Selling, public relation, customer management, advertising, and marketing to name a few. The possibilities on how the LV can harness technological progress are endless with more and more uses being developed overnight. I believe the company should seek to exploit each method as it pops up since the Internet has become the most important information distribution channel.

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