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power of brand experiences

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"Never buy something unless you're sure you know how to sell it” Arthur Daley - Minder

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This quotation talks to a changing idea that has been hitting retail shores for a little while….

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…what is it? That how we sell has completely changed

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Once upon a time retail lived well above CPI, in ‘05 we took a dip and has been consistently under performing since

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Categories that involve experience have successfully grown, while more traditional retail like department store shopping has further fallen victim to changing consumer behaviour

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Today’s retail environment has made it a little more difficult to win over the hearts of consumers... especially when: You can buy what you want, Where you want, How you want, For how much you want, And from who you want “I want direct from manufacturer prices” “I want an endless range of colours & styles to choose” “I want to get it delivered today” “I want access to international retailers brands” “I want a branded experience” Consumers are expecting more

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Historically, retailers in Australia won on place and price The traditional retail arena dominated if they had the best location on a high street, shopping or destination centre Essentially, they survived by acting as supplying warehouses close to consumers

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But the game has changed, now the box of tricks has narrowed Moving from brick & mortar to omni-channel, location is no longer your competitive advantage and a price advantage is harder to prove The tool kit focus has therefore changed…the key to survive and thrive is how your environment, service and personal proposition come together for a great experience to inspire

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Price ‘em low, stack ‘em high and watch ‘em go Weave into their world to reach into their wallet savvier consumer market shakeup access to offshore brands digital enablement This has seen retailers moving from a “stack ‘em high” to a “weave into their world” approach

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Retailers are starting to embrace brand experience innovation Burberry "The world is moving so fast. There is absolutely no room for laziness or for resting on your laurels,” Christopher Bailey, the firm's chief creative officer Amazon "If you do build a great experience, customers tell each other about that. Word of mouth is very powerful.” Jeff Bezos CEO Macy’s "Macy's is kind of the leader right now in a lot of digital initiatives. They've been trying out lots of digital initiatives to engage with shoppers in their homes and in stores,” Jeff Hardison, VP of Marketing and Business for Meridian (Macy’s partner) http://mashable.com/2012/11/08/macys-indoor-gps/ http://retailindustry.about.com/od/frontlinemanagement/a/Amazon_CEO_Jeff_Bezos_quotes.htm http://www.guardian.co.uk/fashion/2012/sep/12/burberry-london-shop-website http://pandodaily.com/2013/06/01/meet-the-apple-of-the-coffee-world-nespresso/

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Retailers doing it right have mastered the creation of engaging experiences to inspire and delight consumers across channels great staff service inspiring environment online & mobile integration & inspiration personalised communications personalised products efficient fulfillment immersive experiences

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Macy’s Delivering the next generation in store experience, Macy’s have embraced in-store Google maps, NFC offers, Beauty Spot kiosks to self diagnose/select, mobile integration and even assistance with their jean selector Online & mobile integration & inspiration – personalised communications

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Burberry Revolutionising their brand experience, Burberry have leaped forward with augmented reality as the tool to deliver an immersive and inspiring omni-channel experience Immersive experience – inspiring environment – online & mobile integration & inspiration – great staff service

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Make Up For Evers (Sephora) Latest Sephora concept store is all about behind the scenes at a fashion show, with video footage playing, demo bars to build the brand around the new range Inspiring environment – great staff service – immersive experiences

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Nespresso Benchmark in how to build a brand outside of the supermarket, Nespresso are digitally integrated, store experience that draws you in and use consumer data in their club for personal touches Efficient fulfillment – inspiring environment – great staff service

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SuperGlue Recently opening it’s doors as an extension to Glue Store with custom tailoring of jeans, chillout areas and even a coffee barrister to demonstrate a brand feeling outside of the merchandise Personalised products – immersive experience – great staff service

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Kochhaus Described as a ‘Walk in recipe book’ all in one recipe tables, food trials, a well integrated but simple site and delivery structure for extra convenience make Kochhaus a true foodie experience Inspiring environoment – immersive experience – efficient fulfillment – great staff service – online & mobile integration & inspiration

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Monki Inspiring store environments just speak cool and with an online portal that encourages you to make your own fashion movies to share it captures the target consumer mindset perfectly Inspiring environment – online & mobile integration & inspiration

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Nike+ Fuelstation Motion-sensing LED walls change colour as customers walk past, motion-sensitive smart mirrors show film footage runners wearing products, touch screens give info on Nike+ products and Run Clubs. Highlight is a Kinect installation that allows visitors to create a life sized digital versions of themselves on screen to share via social media as well as being the hub for weekly run clubs with nutritionists and physiotherapists on hand. ?? Immersive experience – personalised communications – online & mobile integration & inspiration – personalised products

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Mood Stockholm Combining food hangouts with inspiring shopping spaces, this department store has even gone so far to demonstrate the brand ideal with rooftop meeting rooms for rent in their garden space Inspiring environment – immersive experience – great staff service

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Tesla Demonstrating ingenious design with an interactive, technology driven, custom design store and service experience as well as personalised website interaction to deliver brand ‘wow’ Personalised products – immersive experience – online & mobile integration & inspiration – great staff service

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Supercheap Auto Completely focused on the consumers car shopping occasions, the latest SCA store combines easy shopping with DIY education and next gen IT service and assistance Immersive experiences – inspiring environment – great staff service – personalised products – online & mobile integration & inspiration

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Koko Black Jewelry store meets chocolate, what better way to celebrate an indulgence. This brand experience wows and celebrates the product before it hits your taste buds with a service experience Immersive experience – great staff service

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Hotel Chocolat Celebrating the purity of chocolate & an ethical approach to sourcing, this London fashion scene concept is a chocolate shop that’s expanded into a cafe, tastings, super clubs, hotel, restaurant and even spa Immersive experience – great staff service – inspiring environment

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Dan Murphys One of the best retailers in Australia with an ability to drive efficiency on price while still delivering a clean and easy to navigate shopping experience Efficient fulfillment – great staff service

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Urban Outfitters True customisation, each store is designed around it’s micro-consumer set that surrounds it to engage and entertain as well as provide great product Inspiring environment – efficient fulfillment – immersive experience

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Victoria’s Secret Catalogue to international closet secret, VS has built an empire on it’s iconic Angels with a brand experience that exudes sex appeal in-store and through personal communication online Inspiring environment – personalised communications – efficient fulfillment

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Carton King Taiwan restaurant made nearly completely out of cardboard offers a very memorable and completely unique brand experience that’s unexpected while also being green friendly Immersive experiences – efficient fulfillment – great staff service

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Fourth Village The Italian foodie destination for great produce, pre-prepared meals, catering and in-store dinning experience, they make it difficult to walk out with only a couple of items in the basket Immersive experience – inspiring environment – great staff service

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Le Fashion Truck From pop up food to fashion, Le Fashion Truck creates unexpected fashion havens where consumers can get styled or book for private parties. A fun take on a traditional shopping experience Inspiring environment – personalised communications – great staff service

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Yogurtland Embracing personalisation, where consumers are not charged on product but weight a novel idea that is well displayed instore with self service as well as integrated online for easy ordering Personalised products – efficient fulfillment – inspiring environment

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Ice Hotel Bringing fantasy to life, the Ice Hotel has embraced a single brand thought throughout the concept from Ice bars, to Ice art galleries and of course accommodation to create a memorable experience Immersive experiences – inspiring environment – great staff service

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The Candy Room Creating a child’s fantasy with a colouring book brand style and simple to use web presence, the friendly staff and add on services such as candy bars make it a fun brand to shop inspiring environment – online & mobile integration & inspiration

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Bauble Bar Online retailer gone pop-up uses digital screens & interactive displays for consumers to design, personalise & purchase jewelry with store displays showing interactive content when pick up pieces or to upload pics Personalised products – efficient fulfillment – immersive experience – online & mobile integration & inspiration

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Warby Parker Finally, e-com site gone store, $50 eye exams, try on glasses and share/print with an internet photobooth, cc payments processed on tablets, orders made in-store - mailed a week later or if you buy online get sent five pairs – return unwanted Efficient fulfillment – online & mobile integration & inspiration – personalised communications – personalised products

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So what can we learn? Retailers are missing the one opportunity they have to use their only physical outlet to demonstrate the brand and talk to consumers in a memorable way that builds affinity Those that fail substitute memorable brand experiences for product clearances, lipstick on a pig merchandising/store designs and disconnected, functional online portals

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Great brand experiences rely on how well the retailer delivers: Inspirational omni-channel experiences Personalisation of communications and product Energised and efficient service

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The power of this experience? Consumers who love your brand, seek you out despite price discounts or access restrictions and contribute content and insight to help you build and defend your empire

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The answer Knowing everything about your consumer and understanding what’s important, then finding unique and special ways to create connections

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What that means to retailers? Consumer involvement in product design, edit and final pre-purchase personalisation Services and entertainment that drive visitation Knowledgeable staff, with training programs/benefits that encourage great service delivery Single message, omni-channel retailing using each channel strength to create a seamless consumer experience that excites Using data to create meaningful consumer communications relevant to likely purchasing behaviour and personalised Using your store to make a clear brand statement Shorten the product lifecycle and embrace more frequency, limited ranges and click&collect

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The result A retail category that is interesting to shop again, embracing the new tool kit to create a sticky starting point for interaction between retailer and consumer

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Find out more: For more information and ideas on how you can use the power of brand experience contact RetailOasis enquire@retailoasis.com or on 02 9976 6222 Alternatively visit our website www.retailoasis.com

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power of brand experiences