What’s ‘in’ in retail?
On my way into work the other day, I noticed the latest addition to the line-up of (admittedly ever changing) retail at Cardinal Place in Victoria – Lone Design Club. I’ve been a fan of the brand’s concept for a while and the latest pop-up didn’t disappoint. The ‘Wellness Haven’ offers “one-of-a-kind products from 50+ of the most exciting independent wellness and lifestyle brands”. Neat.
Besides impressing me, it also got me thinking; retail is a fast-changing world, everyone is doing what they can to keep up and there are a few brands really leading the way in terms of what can (and should) be on offer. So, who are these brands, and what exactly are they doing?
- More than just a product
The stores really standing out at the moment are those who recognise it’s important to offer more than just the product; increasingly physical retail is about the experience. One brand paving the way on this front is Glossier. Their branding and marketing are on point, and, importantly, their stores match up. At their flagship store in Covent Garden, the brand’s modern, fresh aesthetic is showcased with well curated, well merchandised products, set amongst bubble gum pink seating and the brands signature ‘you look good mirrors’. There’s also a ‘wet bar’, where customers can test products, a replica subway station and a very ‘Instagram-able’ mosaic.
To get people in store and spending, you have to offer more than what you can get online. Glossier’s Covent Garden store is a standout example; a focus on the customer experience has created a true destination.
- Integrated tech
UNIQLO is pushing the boundaries of what in-store retail can offer. Their flagship store in Tokyo is a futuristic haven with multilingual customer support, in-store tax-free service and MY UNIQLO that allows customers to create original UNIQLO products with custom designs. Across their wider portfolio they have also integrated a made to order suit service, UNIQLO Suits, as well as self-checkouts that utilise radio frequency identification (RFID) tags, allowing the machine to identify each item and calculate the total amount.
Brands like Glossier have focused on aesthetics and the customer experience and, while UNIQLO stores are well designed, it’s the tech that really gives them an edge. It’s also helped them shake their ‘sensible’ image. Think GAP fifteen years ago, you knew you were getting durable, good quality clothes at an accessible price point, the problem was it was just so ‘uncool’. UNIQLO offers something similar in terms of product, good quality basics at reasonable prices, and yet, they’re more popular than ever with discerning Gen Z-ers. So, what do they offer that sets them apart? The answer, a few viral products (that bag) and trendy, tech focused stores.
The UK is running slightly behind the likes of Japan, but as retailers at the top of their game begin to integrate tech into their instore experience more and more, they can look to the likes of UNIQLO for inspiration.
- Independents
Independents flooding onto our high streets are pushing the boundaries in terms of what smaller brands can offer. Take Lone Design Club, the unique pop-up concept connects ethical, independent fashion and lifestyle brands by utilising vacant retail units. Their ‘concept store’ only ever stays in the same spot for a few weeks and offers an immersive experience, a range of events, guest speakers, interactive workshops and personal shopping – all with a focus on sustainability and integrated tech. Demonstrating that omni-channel retail isn’t just for the big players, LDC also has a digital platform which allows consumers to discover and shop independent brands 24/7.
Ethical, traceable practices are becoming more and more important. Gen Z’s spending power is on the up and they’re far more discerning in terms of where and how they shop. Sustainability is a key factor, and having grown up in the digital world, they’re far more likely to utilise the tech on offer. The price point of LDC means it’s perhaps more aimed at younger millennials (Zillennials) but, as Gen Z come of age, retail will need to adapt and independents like LDC continue to prove they’re way ahead of the curve.
So, what’s ‘in’ in retail?
As retail continues to evolve, it’s clear that customer experience, innovative technology, and provable sustainability will become increasingly important. Brands that successfully integrate these elements into their strategies will continue to perform well and, importantly, they’ll also no doubt play a crucial role in shaping the future of the industry.