<h2><strong>In-store spaces reinvent themselves in order to compete in today’s market</strong></h2>
It is no secret that the retail world is constantly changing. In such a vast and globalized market, it is increasingly difficult to offer a product with a <em>USP (Unique Selling Point)</em>. Therefore, retailers who are aware and want to keep up with <em>millennials'</em> demands, have focused their energy on offering a <em>UXP (Unique Experience Proposition)</em> in their store environments. As consumers, we now have many options to choose from, regarding where and when it is more convenient to shop. That´s why, there should be a good reason to make us want to visit a physical store. We are increasingly moving towards the so-called <em>destination stores</em>, which offer in-store experiences that help retailers to stand-out from the competition.
In my perspective, the most adaptable brands in the retail of the future are <em>Apple</em>, which created its own retail benchmark with its fast payment services, its genius bars and incomparable products; <em><a href=”http://goo.gl/nZDvBU” target=”_blank”>H&M</a></em> umbrella brands are also noteworthy to mention – <em><a href=”http://goo.gl/JbuVHd” target=”_blank”>COS</a>, <a href=”http://goo.gl/ixEAUG” target=”_blank”>& Other Stories</a>, <a href=”http://goo.gl/cmGdRc” target=”_blank”>Monki</a>,</em> etc. – since they target, brightly, markets which the mother brand <em>H&M</em> could not respond.
Successful retailers have a presence not only on traditional channels. In fact, they have embraced the full potential that the internet world has to offer. There are cases of success in retail where the business model is solely dependent on online services, such as the English brand <em><a href=”http://goo.gl/LF7jdT” target=”_blank”>ASOS</a></em>, whose flagship store only exists for consumers in a virtual reality, having only build pop-up stores for punctual campaigns. Another successful story is <em><a href=”http://goo.gl/hRLL7m” target=”_blank”>Farfetch</a></em>, a Portuguese brand owned by the entrepreneur <a href=”https://goo.gl/Ql2A0m” target=”_blank”>José Neves</a>. At the beginning of the millennium, this entrepreneur realized he could not sell his products because the sales in physical stores were stagnating, while in online commerce they were boosting. That was when he saw a business opportunity: to create an online shopping marketplace, allowing him to have a business on a global scale and at the same time, “help” boutiques with which he worked, to have more sales. Today, <em>Farfetch</em> is a bit like a premium version of Amazon, selling fashion and luxury.
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<h3>”As consumers, we now have many options to choose from, regarding where and when it is more convenient to shop. That´s why, there should be a good reason to make us want to visit a physical store.”</h3>
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We live increasingly in an era where consumers are focused on their needs as individuals (“I want”). They want customized products, with the best prices, as soon as possible – if a brand can´t offer it, a quick online search will help them find a brand that does it. Given this consumer demand, future stores are focusing on selling experiences and a lifestyle, rather than just products.
We can expect to see more and more stores that offer a holistic concept, in which the physical space does not exist in isolation from its virtual portal, functioning as a fully integrated brand experience. Apart from this continuing quest to offer consistency across both platforms (physical and virtual), retail brands have been actively seeking new partners to collaborate in order to help them to provide an <em>UXP</em> to consumers. Good examples of such collaborations are fashion stores like <em><a href=”http://goo.gl/8hylRk” target=”_blank”>Topshop</a></em> and <em><a href=”http://goo.gl/vYSSxY” target=”_blank”>Urban Outfitters</a></em>, which have in their physical spaces coffee shops, beauty salons, personal shopper, and other services that make their offer wider, inviting consumers to spend more time in their spaces.
Other type of collaboration that is already common in retailers who like to be innovative and to be at the forefront of trends are collaborations with artists, who are commissioned to develop pieces of art specifically designed for retailers’ stores, helping to transform their stores in unique environments that provide memorable experiences for their consumers. The Irish retailer Primark has been one of the pioneers in this trend, having collaborated with local art universities in their flagship stores, sending them a brief to develop works of art customised to their spaces. <a href=”http://goo.gl/kgf0eT” target=”_blank”>The Boston store, for example, exposes creative pieces designed by students of the </a><em><a href=”http://goo.gl/kgf0eT” target=”_blank”>University Massart </a>- Massachusetts College of Art and Design</em>.
The world of retail is inseparable from life in society. The oldest concentration of stores in human history dates back to the fifteenth century in Istanbul (The Grand Bazaar) and the most fascinating part of working in this area is that it’s constantly changing and we never know exactly what challenges the future might bring us.
Natália Vitorino,
Senior Graphic Designer, UP Partner