INSIGHT Volume 4, Issue 1 by Kevin Dugan

Volume 4, Issue 1

THIS YEAR’S NEW CLASS: REALITY CHECK 401 Realizing that over the next 10 to 15 years, today’s college students will help to significantly reinvent most of what we know as “retail” (and thus, the built retail experience), our Creative Leadership Team decided it was time to go back to school. FRCH partnered with the University of Cincinnati’s College of Design, Architecture, Art and Planning to teach a fourth year retail design studio. The design focus is a small urban retail mixed-use venue catering to college students. With three weeks left in the term, here are some top-line learnings about students and retail:

No Big, Demographic Buckets A single consumer group sampling is providing amazing diverse points of view…about themselves.

Retail Redefined The idea of “place” is as much social as it is physical; value has a lot to do with relevance not price; being media and information connected is not an option; the “basement or garage look” is dead (but you better have a bar).

Coolest Idea Consider a store that’s about buying, swapping and trading products, information and services—all centered around the life needs of the college student community. Dead on!

PAUL LECHLEITER CHIEF CREATIVE OFFICER This kind of fresh, direct learning continues to amaze and inspire our Creative Team—especially for this next wave of retail evolution.

DANCING WITH THE STORES

This year’s National Retail Federation (NRF) Show was packed with inspiration from retail industry leaders. FRCH kicked-off the international industry event with a keynote presentation entitled Dancing with the Stores. With a popular TV show and cultural phenomenon as the theme, FRCH took a deep-dive into the world of iconic retail. In addition to detailing the qualities retail icons possess, and what it takes to become an icon, FRCH predicted who will be the retail icons of tomorrow. From our perspective, these iconic brands include Uniqlo UT and Nau.

Uniqlo UT Uniqlo’s goal is to let customers wear what they love. To that end the Japanese basics retailer recently launched “UT” for Uniqlo T-Shirt. This new concept serves as a shrine to this fundamental and favorite article of clothing. UT recasts the basic into the ultimate personal form of clothing and personal expression—even its packaging is innovative.

Nau Active wear retailer Nau is concerned for the environment and committed to sustainability — along with many other

retailers. What sets them apart is that they donate five percent of every sale to a charity of their customers’ choosing. If a brand can demonstrate that it cares, consumers have a compelling and meaningful reason to pick that brand over its competitor. The NRF Show was the first stop on a world tour for FRCH with scheduled speaking engagements at this year’s GlobalShop, Euroshop and the World Retail Congress. Contact insight@frch.com for more details. Photo courtesy of sting* (www.flickr.com/photos/sting7)

UNDER ARMOUR

TOP PROJECTS:

Under Armourâ&#x20AC;&#x2122;s first full-line retail store uses a back lit wall to showcase footwear and other select merchandise. The wall can be seen from the entrance and helps draws customers into the store.

FLOORING AMERICA

Eliminating the disarray of typical home flooring stores, FRCH worked with Flooring America to create a clean, bright environment where customers can explore flooring options for their homes more easily.

A SNAPSHOT OF FRCH DESIGN WORLDWIDEâ&#x20AC;&#x2122;S RECENT CLIENT WORK

HAMPTON INN

As part of its international expansion, Hampton Inn created a new brand to establish itself for the first time in new markets. The new brand includes a new room design that is already being rolled out in the UK.

DICK’S SPORTING GOODS

BLACKBERRY

A bolder approach to store layout and interiors helps feature the retailer’s hottest brands. Brick-wrapped columns, green-framed signage, wood ceiling treatments and vinyl flooring all help define the spaces and reinforce the brand.

BlackBerry’s new store design encourages customers to explore the latest handheld products. The fixtures are flexible to handle a steady flow of new products while graphics subtly reinforce the brand.

LOTTE DEPARTMENT STORE CENTUM CITY

This South Korean Department Store offers a high level of service with lounges on each floor for its select customers. Lotteâ&#x20AC;&#x2122;s Very Important Guests can take their time shopping and escape from the main floor to relax in a refined atmosphere.

SPEAKING OUT ABOUT RETAIL BRANDS FRCHâ&#x20AC;&#x2122;s keynote presentation at the National Retail Federation Show in New York City kicked off several speaking engagements for the firm. In addition to a lively review of what it takes to become a retail icon (see Dancing with the Stores), the FRCH calendar is full with presentations at industry shows around the world. EuroShop: Steve McGowan, FRCH Vice President and Managing Creative Director, was in Dusseldorf to step through examples of stores that have aligned their brand with the customer experience using immersive design.

GlobalShop: FRCH Vice President and Managing Creative Director Christian Davies will join clients Under Armour and Luxottica to show how brands keep up with unprecedented change to establish, build and maintain connections to the fickle global consumer. World Retail Congress: From Chicago to Barcelona, FRCH Chief Creative Officer Paul Lechleiter will provide visual insight into how retailers connect with consumers along with predictions of what to expect from the store of the future. Contact insight@frch.com for more details on any of these presentations.

LUXE TARGETS YOUNGER AUDIENCE Spotting trends is a fast-paced and never-ending pursuit. Here are three of the trends we’re tracking for their impact on the customer experience.

Luxe Catering to Younger Category: Luxury retailers are getting creative to reach a valuable younger audience aspiring to be affluent in the future. These mass affluent consumers— a growing high end of the mass market— are an important target as luxury retailers introduce more affordable products. This audience is responsible for more than 25 percent of discretionary spending in the U.S. today. Coach Coupon: Shoppers were holding their dollars tighter during the 2007 shopping season, pushing some high end retailers to offer rare discounts to lure them into stores. Coach even offered coupons to holiday shoppers. However, today’s mass affluent consumers are looking beyond discounts for new ways to connect with retailers and brands of choice.

Style Go To: Armani Exchange has diversified its experiential marketing, expanding into new social mediums to speak to this consumer. Through pulsating in-store music, a private CD label, a MySpace page, and even a blog, Armani is tapping into the emotional side of consumer expectations. They have created a retail 360º brand experience where shopping becomes entertainment.

The takeaway? Luxury retailers will continue creative approaches to connect with this valuable target consumer.