The Harvesting of Low-Hanging Fruits. Internationally

RETAIL CONCEPTS OF THE FUTURE THE HARVESTING OF LOW-HANGING FRUITS

Innovation can be a highly convenient cover for all those who do not really seek profound change. A provocative statement that Liz Bacelar of The Current Global formulates as a call to action for brick-and-mortar retailers. Her demand falls in line with what many international retail experts claim. They all agree that retailers need to wake from their deep sleep and finally seize the opportunities the future holds. Text: Isabel Faiss, Nicoletta Schaper. Photos: Companies

For retail strategist Robert Burke, Selfridg- es remains one of the leading examples of how an excellent shopping experience should be staged.

“One of the buzzwords in our business is the term ‘omni-channel’. I think we started using the term before we totally understood what the expectation of the customer actually is.” Robert Burke, Robert Burke Associates

THE CURATED LIFESTYLE WORLD

In our search for strategists who deal with the pivotal trends of the global retail scene on a daily basis, we come across Robert Burke. He was a member of the Ralph Lauren management for many years before he joined Bergdorf Goodman as Vice President of Fashion & Public Relations. In 2006, he launched Robert Burke Associates in New York with the aim of advising brands and companies in the industry on, among other things, their respective retail strategies. His hunting ground is the luxury market, where one particular question seems to be very pressing: “How do we convince a customer to physically enter a store? Today, it is very important to orchestrate the correct lifestyle mix, to create the right surroundings for the store featuring, for example, restaurants, cafés, a fitness studio, or a meditation centre – maybe even complementary stores like Apple nearby. In the past, especially in the luxury market, it was often enough to stock brands like Gucci or Dior, but that has become predictable. The customer wants to be excited by innovation, a certain experience, and the eclectic mixture of a well-fitted lifestyle world.“ Burke also perceives the implementation of digital tools, as well as the symbiosis of online and offline, as an opportunity that only very few have identified correctly. “One of the buzzwords in our business is the term ‘omni-channel’. I think we started using the term before we totally understood what the

In China, the retail trade is fertile ground: Circle Studio stages shops for its customers as meeting places where consumption happens almost incidentally.

“A really excellent fashion store will no longer be identifiable as such in the future. It will look more like an art gallery or club.” Bobi Wang, Circle Design Club

expectation of the customer actually is. First of all, you have to make sure that the experience of every channel is at the same level. The relation to the customer is key. People want to go into a store and experience it. Among the larger retailers, Selfridges is a very good example. They always inspire customers with pop-up stores, new products, and new services. Customers want to be entertained and educated, want to be part of a brand. They are eager to establish a relationship with a store and its brands. This is one of the key points we have seen emerge.”

THE STORE AS AN OFFLINE TOUCHPOINT

One of the central questions regarding the future raison d’être of brick-and-mortar retailers is: How can a store transform from a supplier into an entertainer? Online is now better at supplying anyway. Jens Fischer, the Creative Director of Kultobjekt and Von7, has an exciting answer: “The store has to regain its status as an inspiring meeting place. It could, for example, rely on a so-called ‘Hubstore’, which is a shelf system we have developed. It allows the display of a selection of thematically curated products that change on a monthly basis. It presents products of innovative start-ups, most of which can only be found online. This surprises customers and invites them to explore. As a true offline touchpoint, the ‘Hubstore’ offers an opportunity to touch the goods, to

Inspiring: The Von7 Hubstore displays innovative products from start-ups in the store, most of which can only be found online.

feel their quality and special features – better than would be possible with an illustration. Using a QR code, the customer can obtain further information and order directly online, meaning the retailer has no additional effort in terms of advice or processing. The retailer not only profits from the turnover, but also from an increase in customer traffic and from the payment for the provision of space at the POS. This allows the retailer to earn more than the margin of stocked goods on a comparable area! The ‘Digital Pop-Up Store’, which we plan to implement in selected department stores and shopping centres in Germany this year, follows a similar pattern. Via Von7, the pop-up store is made available to brands with a strong appeal that offer new stimuli, every month or every three months. The principle: Touch and test local, buy online. This approach transforms a brick-and-mortar store from a mere distributor into a lifestyle magnet.”

DIVERSITY IS KEY

If you are worried about the future, it is always beneficial to look ahead. Currently, China is most certainly ahead. Talking to Bobi Wang, the head architect and co-founder of Circle Design Studio in Shanghai, it becomes easy to understand why. The affinity for technology, the overall optimistic mood in consumer society, the desire for status symbols, and an ‘everything is possible’ mentality form the fertile ground that seemingly knows no bounds to creativity. “A really excellent fashion store will no longer be identifiable as such in the future. It will look more like an art gallery or club,” Bobi Wang says, describing his vision of a fashion store as a central meeting place for interdisciplinary art movements and cultures. For him, the key is to turn the physical store into an inspiring hub where consumption happens almost incidentally. “Digital tools need to be integrated into these concepts naturally, because social media plays an

“Touch and test local, buy online. This approach transforms a brick-andmortar store from a mere distributor into a lifestyle magnet.” Jens Fischer, Von7

enormous role in China. It turns the store into a window to the world. Furthermore, online shopping has developed to an almost extreme extent. Stores have to try even harder to remain competitive.” His current benchmark in this area is Beams of Japan, a cerebral design temple that combines food, art, fashion, sport, and entertainment in its own microcosm. Bobi Wang perceives this multidimensional as a central stylistic device for the future of the fashion trade in the Asian market.