The Retail Marketing Society recently took a virtual journey around the globe to visit some of the world’s most interesting retail stores. Our guide was Dan Hodges, founder and CEO of Retail Store Tours and CEO of Consumers in Motion Group. The visited stores, in the U.S., Asia and Europe got high ratings on the Intelligent Engagement Index, a system developed by the Consumers in Motion Group to identify the common DNA that runs across retail and how these factors directly relate to retail revenue.
The Human Touch
The ability to empathize with customers is crucial to retail and overall business success. Today’s successful retailers hire sales associates based on their kindness and abilities to inform and entertain customers. The leading retailers focus on the human touch as a core business strategy. Nike and Williams-Sonoma Inc. are two companies that exemplify the human touch with their friendly and knowledgeable store teams.
The Use of Technology
Technology that interacts with shoppers as part of their in-store experiences is now a winning play. These technologies, however, must align with the customers’ needs and desires. Technologies that resonate with their target markets promote deeper customer engagement. Forward-thinking brands build behind-the-scenes IT infrastructures that support a multitude of applications within the organization. The result is greater brand loyalty and increased shopper frequency. At La Grande Épicerie, a supermarket in Paris owned by LVMH, you can go to a display, click on a wine bottle and get a full description of the product.
Store Design
The best store designs match form to function. For example, the design of the MAC store in the French District of Shanghai features a minimalist approach that mimics the sleekness of MAC’s products and implies ease of use. When Le Bon Marché realized it was falling behind in personal shopping, it developed a concierge program. There’s a bar where you can get drinks and snacks. There is also a library on the top floor — a beautiful, quiet space with no distractions.
Brand Story
An engaging brand story, often traceable to a visionary founder or a particular market need, helps to cultivate customer loyalty and can often transform loyal customers into brand evangelists. Once customers identify with a brand, they want to offer feedback and have their feedback matter. Such empowered consumers want to contribute to the long-term success of the brand, providing the parent company with an invaluable resource if treated respectfully.
The brand story can also create an immersive and imaginative store experience. At the Conservatory in Hudson Yards, next to the wall display for the French Bastide brand, there is a sign that says “La Sieste Bastide” and a mirror that is actually a door. Open it and you are transported to the South of France where you’ll hear birds, smell lavender and sit on a swing.
Employee Training
The general rule in retail is to hire for attitude and train for skill. This presumes, of course, that the training is well executed. The most successful retailers use a combination of daily questions and formalized classroom training to update their employees’ product knowledge and improve their people skills. For example, Sephora trains their employees daily through the Sephora University program.
Change
The ability to capitalize on rapidly changing trends in consumer behavior is usually the trait that most accurately distinguishes winning brands. Some retailers address change by refreshing their product offerings several times a year. Others adapt the way they do business to new business models, such as the grab-and-go. In China, vending machines are increasingly popular for everything from food to beauty products.
Unique Value Proposition
It should go without saying that a store offering distinctive products within a unique, focused concept is destined for success. A buying experience not found elsewhere has significant appeal for consumers seeking originality. In this regard, hyper personalization and preemptive distribution are key to delivering the precise products customers want at a price that meets the value exchange.
Etnia, an optical store in Barcelona, operates on the principle that you buy glasses for different occasions, so a customer doesn’t purchase just one pair. Another good example is Innisfree, a wildly popular Korean brand with the claim to fame that all its cosmetics are made with green tea that comes from a Jeju Island off the coast of South Korea.
Shopper Safety
The pandemic has been the catalyst for many advances. At Atelier Beauté Chanel in Soho, you need an appointment to get in, and lockers are available to store coats or packages. Another innovation is the use of safety-compliant plexiglass samplers for lipstick. In China, shoppers’ faces and body types are rendered on virtual reality mirrors so that outfits can be tried on digitally. These mirrors can be set up outside of stores so that a shopper can make a purchase and then go inside for pickup. It’s an exciting innovation in general, but during the pandemic, it’s particularly important.
Retail Marketing Society
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