value and values…

The speed at which retail theory evolves has meant that the language and terms we use quickly become overused, obsolete and obfusticated. This means goodbye to ‘experiences’, ‘omnichannel’ and ‘phygital’ and our associations with them. This also reduces our ability to clearly define our brief and brand expectations. However, there is some enduring retail language worth investigating further, to gain a more insightful view of how we might approach this evolution.

Let’s consider ‘value / values’ as a persistent term, associated with retail…

A brand’s value could be said to refer to its customer’s relationship to the product or service and the financial worth attributed to it. As this is calculated on investment in marketing versus uplift, and is exclusive of cost and margin it is sufficient to measure Return on Investment. However it begs the question: Where is the longevity in the relationship? In this sense, Value is subjective and reliant wholly on a brand’s marketing skills to establish and maintain this. The ‘storytelling’ is unilateral, non-interactive and lacks true engagement. We experience this historically in the cosmetics industry, witnessing a pot of cold-cream, increasingly miniaturized, slathered with impenetrable pseudo-scientific jargon and afforded an exorbitant price tag related to perception, but not necessarily performance. Brand loyalty in this case is garnered only by the psychology of limitation and the need for ‘the latest’, not necessarily ‘the best’.

A brand’s Values however, when carefully considered and delivered, can significantly alter this dynamic. Values are inherent components of the human individual that govern selection in most things. They are subconscious and can be subjective, but share commonality that is regardless of gender, race and social background. If you are able to appeal to the fundamental psychological level of shared human values, empathy is generated, inclusivity prevails and lasting engagement is the result. Let’s not forget that humans process their relationships with brands, with the same part of the brain that they use to generate and evaluate friendships and social bonds. If brands and designers engage with and stimulate this process in the same way, through generating genuine empathy and understanding, a lasting retention of the brand experience is created. It results in authentic engagement, and trust – friendship in other words.

So, the ultimate question no doubt is how do designers appeal to these values? Reflecting on the time-poor nature of many consumers, the brand message needs to be focused both on individual relevance and wider cultural inclusion. Generosity, inclusivity and wellbeing are just three arenas in which we to battle for the hearts and minds of customers. We see brand generosity increasingly reflected in conversion of prime retail space, into complimentary service areas. L’Occitane and Lululemon, both on London’s premium Regent Street estate, dedicate their first floors to a focused extension of the main brand. Make no mistake, these are conceptually indulgent, committed, beautifully designed environments, devoid of direct sales and suggesting a wider world beyond the brand. Inclusivity and empathy with alternative social and cultural sectors generates that fundamental feel-good factor, especially alongside the feelings of indulgence during purchasing. US online retailer Zappos understands this and parallel with their retail website has a compelling, but most importantly, easily realised methodology of donating used goods. The customer simply prints and attaches their own label to a box of donations and drops them in the post. Domestic and foreign charities benefit, and allow selection of specific destinations. Physical ease and altruism are a winning formula

Wellbeing and social conscience continue to be enduringly historic on the high street. Arguably, Anita Roddick began to extol the virtues of brand Values with the first UK Body Shops in the late ‘seventies, infusing the brand with ethical sourcing and moral leadership. That trend extended to physical health over a decade ago with Innocent Smoothies 5 for 5 cafes, aiming to serve 5,000 people their 5-a-day for a fiver. We now see slowly increasing focus on mental wellbeing, with active wear brand Ivy Park consulting mental health charity MIND, to help positively empower women by increasing self-esteem. Similarly Boots is focusing on positive engagement with teens regarding their mental and physical wellbeing.

How do designers initiate this process with clients? It all leads back to Values. We need to remember that our clients are human too. Engagement and empathy with their brand aspirations is just as important as translating it for their customer. Understanding the traditional ‘goods-for-money’ transaction is dead. We need to embrace the fact that information is the new currency and investing in understanding any customer or client, taking time to listen and empathise is going to give us a return on experience.

Why Symbiotic Retail Space Works…

There is no doubt that big changes are afoot and retailers need to adapt in order to prevent themselves from toppling over the edge.

Customers have come to expect more from their retail experience than just the exchange of goods for cash. They can easily undertake this sort of transaction online, so if they have taken the time to venture into a store, they want to be entertained, engaged with and to be made to feel part of a community. With the interaction between retailer and customer becoming more personal, and technological advancements meaning that stores are becoming more like showrooms; stores no longer need to tout everything they offer. Gone therefore is the need for gigantic retail spaces in which to display lots of merchandise. With many retailers still beholden to long term rentals or not wishing to give up prime locations, what does this mean for all the resulting surplus space?

The good news is that excess space can be turned into a great opportunity for retailers. Increasingly, we are seeing some of this being used to accommodate “pop-ups”, which is a perfect example of a symbiotic relationship in that the host retailer benefits from extra capital, the pop-up retailers are provided with a low risk platform to trial their brand to a relevant target market, and customers are offered a more varied environment to engage with.

We are also seeing space used for integration of brands, such as Sainsbury’s incorporating Argos concessions in their stores, which in turn drives footfall and looks to transform the grocer into more of a department store. Not to be left behind, we are seeing some department stores also adapt to new demands and expectations, such as Selfridges incorporating a “silence room”, the perfect antidote to a busy and often overwhelming retail environment.

Utilising space to incorporate coffee shops and restaurants also increases customer dwell time. Book shops have been successfully doing this for years and our client Tommy Hilfiger has recently added a People’s Place café for customers to linger over a latte. The House of Dunhill was an early pioneer to offer some “non retail” space to add value. We worked with their internal team to develop the retail and club concept in their Mayfair flagship, which gives members access to a suite of facilities; including a historic humidor, traditional gentleman’s grooming salon, private club rooms, dining and a private cinema.

Lululemon offers free yoga and fitness classes in many of their stores and we helped our client Adidas transform an original bank vault in a listed building in Barcelona into what has been dubbed “The activity room”, which is used for fitness classes, product demonstrations and guest appearances from sports celebrities.

Ultimately, whether extra retail space is utilised for pop-ups, hospitality and leisure space, or as a social “hub”, it is essential that it both compliments and reinforces the brand ethos of the retailer that offers it.

Seismic changes can help secure retail’s future…

With so much happening, so quickly, in the world of retail we thought it was high time to delve deeper into the seismic changes affecting our industry, what they really mean for bricks and mortar retailers and how they can be leveraged to improve the future of retail, both for brands and customers. So, in October we held our first ‘Retail Indaba’, staged in Amsterdam, which met with a very positive response from some of the world’s leading retail brands.

Based on a Zulu word, literally describing a gathering for discussion, our Indaba’ was designed to provide an opportunity for brand owners to put some tough questions to both rpa:group and its partners. To this end we selected an expert panel that included a retail psychologist, our own head of design James Breaks and a technology specialist, all under the watchfull eye of Matthew Valentine, the Editor of Retail Design World, who acted as Chairman.

Our overall aim for the Indaba was to stimulate discussion that could be taken back to boardrooms to inform strategies that would drive positive real life applications. It soon became clear that attendees were grappling with some big issues, ranging from ‘omnichannel’ to AI, and that for some these represented untold opportunities whilst for others they represented challenges that must be met head on. We were delighted not only with the willingness of attendees to share experiences and talk frankly about their business challenges, but also with the challenging questions this led to such as, ”How do we ACTUALLY make fundamental changes within big business?” I think we all agreed that change now typifies retail. In the last ten years the humble high street store, still the preferred destination for 85% of shoppers, has gone through more changes than in the past one hundred.

Now a union of online and bricks and mortar, the once simple store is now an immersive brand theatre, incorporating a glorious cocktail of showrooming, digital entertainment and ‘sharable’ experiences. To deal with this change however requires not just a new mind set from retailers but also a new skill set, one that goes far beyond the old transactional paradigm. There was a general feeling from attendees that the Indaba broke new ground for them and that working collaboratively with our expert panel provided the strategy and insight to help them come to terms with some of the tricky issues that can affect all aspects of their brand identity.

“Knowing the unknowns” has become a constituent part of 21st Century problem solving and our Indaba addressed plenty of unknowns presented by the audience. For many attendees, it signposted a way to investigate complex areas such as brand development, retail design and store function. Above all the event illustrated how a team of experts, all from different disciplines, can address retail challenges in real time, delivering insight and strategy into how brands can interface with their customers.

If you would like our help with your next project, please contact us on 01784 256 579 or send an email to s.cuff@therpagroup.com