Thoughts Archives - RPA Group

What politicians could learn from retailers…

In sharp contrast, the fast-paced retail industry welcomes the competition that makes it focus on brand building and customer delivery. The old adage that customers vote with their feet is never far from mind, and every retailer knows their success depends on securing a ‘vote’ for their brand 365 days a year. If one compares the general management style of our politicians to the world of retail there are some interesting comparisons to be made. First of all, retailers are campaigning all the time. Their media and marketing machines, design, research and development departments and customer insight experts never stand down or drop their guard. They know that you are only as good as your last customer interaction.

By comparison, political parties market themselves every few years at local or general elections. Polls happen all the time of course, but they reach their apogee over a few weeks of electioneering. One could argue that the typical voter, is most receptive at those moments when they will either ‘buy’ one political brand or another. As a consequence politicians know their voters far less than retailers know their customers. As retail designers we make sure that customer insight lies at the bedrock of a retail brand’s existence. If you can’t deliver to consumers the products they want, in an environment where they want to shop, with a great customer experience, then you will fail. Brands have no mandate that will last them until the next election. Their values, their manifesto if you like, are based on an understanding of the desires and needs of customers.

I cannot think of an example in the retail industry where a CEO (Theresa May) and two managing directors (personal advisors) have conducted a strategy that ignores the company’s entire management team (the cabinet) and ultimately the company’s customer base (the electorate). Somebody pointed out that May had been too ‘presidential’ in her campaign and insufficiently ‘collegiate’. As all those who work in retail know, a ‘collegiate’ management style – working as a team, and putting the customer at the heart of all you do – is the template for success. We also saw social media, particularly Facebook, used by the Conservatives and Labour in very different ways. The Tories ran a campaign where hundreds of different messages could be delivered at a granular level, targeting people down to their postal code. Campaign content amounted to little more than blunt character assassination. On the other hand, Labour engaged with the battle weary electorate by using positive imagery and messaging.

Of course, the retail industry is no stranger to social media and spends millions on sophisticated personal profiling and targeting, but I cannot imagine a situation where one leading brand would run an ad telling you how bad a competitor’s products are. Sadly, in the UK we have almost arrived at a Hobson’s Choice and something is needed to sharpen and energise Westminster. Perhaps taking a closer look at the retail sector and how it engages with customers might improve the thinking of parties and what they deliver to all of us?

retailers need to be more “chameleon”

The answer appears to be no. Many retailers are embracing omni-channel in a token way. All too often the mindset is bricks and mortar + online + the brand, frequently the missing ingredient of ‘us’ the consumer. Retailers should act more like one of nature’s triumphs: the Chameleon. This fascinating animal is seamlessly and constantly responsive to its local environment and adapts to external factors in an incredibly agile way. It is one of nature’s most flexible and responsive creatures. Omni-channel requires a more flexible and Chameleon-like response to the consumer and the crucible for this interaction is the store space itself. The physical shop should be every bit as flexible as its digital counterpart and both should be mutually relevant to the consumer. Brands need to understand the relationship between physicaland digital experience better and allow themselves time to experiment, innovate and find what is right retailers need to be more “chameleon” In a world obsessed with separation it’s refreshing that retail at least supports an ecosystem fuelled by inclusivity and interaction.

I am of course referring to omni-channel. Here, borders cannot be closed, evolution cannot be halted and output should signpost the desires of future generations. But I have to ask, do retailers really understand how to fully exploit this dynamic ecosystem? within their own ecosystem so they can be flexible and responsive. Apple demonstrated this in 2001. The brand introduced collaborative side-by-side selling with passionate, knowledgeable staff who could respond to customers’ needs, demands and preferences. In essence the brand had created its own customer laboratory, a test bed where customer experience could be placed under the microscope. Since then we’ve seen most other retail sectors adopt the same key concepts. In a word, to be more Chameleon-like. But how many retailers have a store that allows for speedy reconfiguration in response to what shoppers actually want in that particular country, city or specific locality? Some have used a kit of parts approach whereby a new look store can ‘pop up’ through clever used of graphics and modular elements.

Foot Locker’s Sidestep brand, for example, is agile, collaborative, and happy to bury its ego. At the same time, it is able to reflect its core message, react with authenticity and evolve naturally within a unique brand ecosystem. Sidestep has created an engaging environment using storytelling, an ancient and universal form of immersion, as a base concept. The ‘style editor’ staff form an integral part of the experience by garnering feedback. This has allowed Foot Locker to experiment with content, adding and subtracting collateral and gaining feedback from the fiercely loyal customer base before committing to permanent stores. True brand immersion relies on authentic storytelling, skillful editing and the sharing of brand essence. It can be used both to reinforce the brand and to evolve it.

If you get the formula right it can be just as powerful in a Pop-up as a flagship. The only caveat is that the message has to be genuine. Some are getting it right and have understood the Chameleon concept totally, while others’ lack of adaptability and customer sensitivity makes them stick out like a sore thumb. Wherever you find yourself, the end goal should be to use your store as a learning environment, to reflect your customer’s thinking and desires and, most importantly, to be flexible and responsive with the knowledge you have gained. Being a Chameleon doesn’t mean losing sight of your brand truths. It means being able to reflect the thinking of your customers in the appearance and functionality of your store.

the perfect store is the result of a ‘right’ brain ‘left’ brain balance…

Store design and brand thinking has gone astray for many retail brands and it seems that stores are either being too creative or too analytical and are missing out on a blend or balance of the two. The most successful stores achieve a balance of the two hemispheres.

Former Burberry CEO (now at Apple) Angela Arendhts rather tellingly pointed out that Burberry cherished both the right and left-brain, but more importantly relished thinking that was a union of both. Her current partnership with Apple’s design guru Jonathan Ive is already revitalising the look of its stores and taking the brand into new territory that fits a changing product base. The store in Belgium, for example, is filled with trees and boasts huge glass walls, doubtless very creative. However, it is bringing the outside world into the store, thereby underlining the unquestioned mobility and freedom of Apple’s products, which shows the logical left-brain at work.

It’s a big statement that is ‘on brand’ and the result of both hemispheres working together. Achieving this balance is easier than you may think. It simply requires designers to understand more about how consumers think and behave. This is easily achieved if designers work with retail marketers, psychologists and digital specialists to address a store’s ‘big picture’, thereby enabling the space to deliver everything the customer wants. Increasingly, this means understanding the basics of what makes shoppers ‘tick’. A retail psychologist, for example, will be able to tell you that your fate is sealed in just 1,000th of a second, as that is how long it takes for people to get their first impression of your store. And a digital expert will tell you that IT ‘bells and whistles’ should not be too prominently on display, but available and on demand and strategically placed. What will change the fortunes of flagging brands on the high street is the creation of a team where both left and right brains are given an equal shout, a team that decides the retail destiny of the brand. I think that more collaboration in this style will throw up some unexpected and enviably successful retail projects.

pop-up comes of age

The Telegraph revealed recently that almost a third of new businesses launched in the UK over the next two years will start life as a pop-up and reminded us that UK burger chain Meatliquor, now valued at £20m, started life in various car parks and vacant lots with just a van and a Twitter account. Like most successful brands, they happened to hit the zeitgeist but their success is not just inspiring a new generation of entrepreneurs, it is also putting some fire in the belly of more established brands who are also hoping to catch the wave.

The line between pop-ups and traditional retail has all but disappeared and yesterday’s transient and sassy retail concept has now become a central plank in the strategy of the biggest brand names. The benefits are obvious, pop-up stores, by their temporary nature, have a novelty value and are often seen as an edgy accompaniment to the main brand or as an attempt to ‘reach out’ to the customer. They also provide a good venue to break new ideas and products and remain flavour of the month with the press.
One established global brand that has used the concept to great effect is Foot Locker, which employed a pop-up strategy to evolve and define their Sidestep brand. Sidestep launched three pop-ups in Europe, made from a ‘kit of parts’ that could be re-jigged to suit customer preferences, a fine tuning strategy that allowed the store to act as a retail lab, in which design and presentation could be changed to suit customer behaviours and needs.

Foot Locker followed on from this activity by building the same flexibility into their new Runners Point stores across Europe. Pop-up is now a profitable vehicle for bringing innovative retail experiences to life, and the names we see popping up around us are getting bigger. With brands like Foot Locker, Marc Jacobs, Louis Vuitton and Nokia investing in the trend, we are perhaps only at the beginning of the pop-up revolution.

generation z – connecting with ‘Screenagers’ before its too late

And yet surprisingly, Gen Z is still seen as no more than a small blip on the radar for most high street brands, which seems crazy as they are the world’s fastest growing consumer group and currently make up 25% of the UK population. Gen Z has massive spending power, will soon represent 40% of consumers and by 2020 will make up 40% of the population in the world’s biggest markets, including the USA, Europe, China, India, Brazil and Russia.

How can retail connect with this important, marketing aware group that literally represents its future? Firstly, there are a few things that need to be understood and challenges that must be faced. Gen Z has been targeted by advertising from birth and has an aversion to being treated as just another another ‘sale’? JWT’s research stresses the point that any brand producing even a hint of self-interest or cynical behavior will be quickly found out, and for that reason we will have to design stores that not only fulfill their desires, but also meet their expectations. Retail destinations will not only have to provide ‘theatre’ but also a welcoming and honest interaction with the brand. Above all, we must remember that Gen Z wants to enjoy the retail stage but isn’t in the market for huge amounts of brand ‘fiction’ or storytelling. Obviously, retail needs to get on the wavelength of this age group right now and evolve stores accordingly.

Perhaps it’s a matter of evolution rather than revolution? For example, we should possibly be seeing the tired old free phone charging point and low end computer for customer use, currently tucked away at the back of the store, become genuine ‘Dialogue points’, where conversations with the brand can be initiated Maybe, shops should have chill zones where Gen Z can sign in with a thumb-print, the ultimate unique identity badge, to get personalized bargains and enjoy the kudos of being part of a brand fraternity.

Gen Z’ers would be happy to work with designers on what tomorrow’s stores should look like, they are natural ‘collaborators’ and ‘doers’, so why not enlist their help? Retailers should be exploiting that collaborative characteristic right now, so they can build shops that Gen Z will truly value.

if you’re not paying for the product, you are the product

Personalisation is now widely regarded as a way for “bricks” retailers to offer customers a seamless experience between the digital and physical worlds. However, brands need to be aware that we need to feel comfortable with how things are marketed to us.

Recent research illustrates that British shoppers are embracing technology: 14% of us would use cameras in fitting rooms to share with friends via apps or social media, 22% are interested in on screen offers in fitting rooms and 40% of us want to check if a products is available in-store via an app. But all of these things are baby steps and as easy for the average shopper to accept, as contactless payments or click and collect.

The really big stuff is just around the corner with brands planning to get ‘closer’ to us through improved personalisation. Some developments currently being mooted have the ring of science fiction about them, for example fashion and accessories that can ‘read’ emotions as we journey around a store, enabling the shop to suggest purchases or activities in line with our moods. Perhaps a calming massage on the fifth floor or a hot beverage in the basement?

This makes me question whether the store is coming too far into our personal space. Is it all a bit creepy? After all, what we all want, is to feel that our relationship with a brand is on tap – a conversation that we can start if we want to and more importantly switch off when we feel like being alone.

Accenture’s Technology Lab has a word for the creepiness that many of us feel, it’s ‘hyper-personalisation’, a devastatingly accurate data cocktail leading to a level of consumer understanding that would shock most of us. It seems as if personalisation is about to cross a marketing Rubicon into territory where progress is not answering consumer demand but is progress for its own sake. Maybe it’s time to let the consumer catch up?

britishness…

For millions across the globe ‘Britishness’ is a significant part of the authenticity of the brand they choose to buy. It can mean everything from the heritage and cut of a Savile Row suit, to the embossed Connelly leather of an Aston Martin. Fundamentally, ‘Britishness’ has become an iconic, hard to define quality, and those brands that embody it, and succeed in turning it to their best advantage, truly stand out in the international marketplace.

We asked a straw poll of consumers what exactly ‘Britishness’ meant to them. Many said that it meant craft and quality; a sense of understated sophistication. Others expressed the fact that it is traditional, yet modern. A surprising number highlighted practicality, something well made that can be depended upon, and others said it was a creative ‘spark’ that made something unique. Asked to define the quality of ‘Britishness’ through their own choice of products, manufacturers or designers, responses ranged from The Mini, to the Rolls Royce, from Burberry raincoats to Alexander McQueen’s skull prints, and from Stella McCartney’s fashion brand to Oliver Sweeney’s funky yet traditional shoes.

All have managed to infuse their brands with a ‘Britishness’ requiring not only marketing expertise, but a ‘brand story’ that is rich in association. For Aston Martin it is the 50 year link to James Bond, whilst for Savile Row it is the sartorial image of English gentlemen ranging from Prime Ministers to Princes. Whether the brand story is rooted in nostalgia or a unique vision of the future, if it is authentic and can amplify the right elements it will succeed; but only if it’s delivered in the right way. This type of storytelling is how brands need to connect with the hearts and minds of today’s consumer.

adapt or become obsolete…

British Land has made a statement recently, to coincide with the announcement of its yearly results, that acknowledges that retailers, and therefore landlords, must adapt to the rise of digital shopping or become obsolete.

The company owns and manages over £16.4 billion of UK properties making it one of the largest listed managers of property in Europe with a portfolio focused primarily on high quality UK retail locations. It sees that stores will remain central to UK retail in a world increasingly dominated by online shopping, but warns that physical and digital shopping must be integrated, with stores becoming showrooms, as well as pick-up and return points.

Reporting a fall in full-year profits, British Land said its UK retail business had been hit by the “twin challenges” of lower consumer spending and the growth of online sales and that it was now key for both retailers and landlords to adapt to the changing way that people shop: rational (purpose-led) and emotional (experience-led). We all know that the internet lies at the heart of these changes, not only because of the immediacy of being able to buy online, but also because of the way it enables consumers to compare prices and quality, share their opinions and shape the development of new products and services. The line between online and physical sales is getting increasingly blurred with the majority of sales more likely to have some sort of digital aspect.

From now on British Land will be expanding its digital platform and exploiting technological innovations for the benefit of both retailer tenants and consumers. The company cites a recently-struck long-term partnership with BT to introduce free Wi-Fi to all its shopping centres and extend Wi-Fi across retail parks as a first step. It’s good to see that enlightened landlords are coming to accept that it is vitally important to have the right assets, the right approach and an ability to adapt to a fast-changing retail environment and all the challenges that it brings.

all change at apple

After all, every so often, a company changes our lives, not just with its products, but with its ethos and there’s no doubt that Apple is very much the poster child of the marketing community right now. It’s worth taking a moment to consider the revolution that the brand has brought about in customer service and store design. After all, brands like this change our behaviour: how we buy, how we communicate with each other, even whether we speak with each other. Currently the biggest brand in the world, Apple has reinvented stores and created a genuinely new experience for shoppers, attracting more than a billion shoppers since the stores launched in 2001 and driving US profits of $3million per store, per quarter. Apple’s stores are designed in a very specific way, featuring large, “kitchen style” tables, which allow customers to trial as many products as they like and get to know how they work. So successful has the design been that it has been copied (illegally) in China with fake Apple stores and also adapted by Samsung in Canada.

Store employees are trained to be experts in the products, meaning that no question is too big or too small. Apple also employs roving sellers who allow customers to pay through their iTunes account on an iPad, anywhere in the store. This removes the potential for large queues and makes the overall experience more personal. In addition, it is another opportunity to showcase what the technology can do. Now Apple is hiring Angela Ahrendts, who was until today the CEO of Burberry. She is a ground-breaking thinker, having overseen a very successful revolution of the Burberry brand. At Apple she will lead the retail and online stores effort and be responsible for the strategic direction, expansion and operations, which will further enrich the consumer experience on and offline. So are we to expect a revolution at Apple?

Angela is the second fashion CEO Apple has poached in a matter of months. Paul Deneve, former CEO and President of Yves-Saint Laurent, was hired back in July. At the time, there was much speculation as to why Deneve, who led YSL’s retail expansion, was not joining to spearhead Apple’s retail efforts, but rather as a vice president in charge of “special projects.” Apple followed up Deneve with the August hire of Enrique Atienza, a senior vice president at Levi’s, who now leads Apple’s US retail efforts. Apple says it is thrilled that they have the ex-Burberry boss on board as she shares their passion for innovation and customer experience. It will be interesting to see what ideas the ex-fashion industry ‘big guns’ will graft onto the Apple tree.

Clearly there is a very clear agenda for how Apple conducts its business, so much so that books have even been written about ‘The Apple Way’. Maybe we are to see an expansion of the brand into related areas? Fashion? Accessories? With a brand this strong it could almost be all things to all men, thanks to the commonly held belief that what underpins most purchases are the twin concepts of trust and respect for a brand – Apple of course has these by the shedload. So, with huge monetary success and an almost evangelistic customer base, where will the triumvirate lead the brand? We predict product range extensions and a morphing of the physical Apple store into something hugely exciting and truly unique. Let’s wait and see…..

brand new friend?

More than half of the respondents said they would be “devastated” if their favorite brand went away. Not just annoyed or disappointed, but actually devastated. It’s interesting to think about what a brand is doing to develop such a deep and meaningful relationship with its consumer. Results like these are obviously nectar to the brands that would be sorely missed, but for every cherished brand there is a host of others that would love to be our best friend, but just don’t know how to go about it.

Currently, the retail world is undergoing a fundamental transformation: consumers are hyper-connected, expectations are sky-high, marketing fatigue is just another pop up ad away. The connected consumer can be fickle, treats your store like a showroom, and, thanks to social media, pays more attention to a friend’s experiences than to your promotional gambits. It’s no surprise then that traditional business models are rapidly becoming extinct, and that the relationship between retailers and consumers is shifting dramatically not day by day, but minute by minute. So, how can retailers understand, let alone keep up with this pace? Simple, they are turning to experts in other fields to help them out. One thing that is being considered is Neurological Connectivity – creating an addictive, irresistible shopping experience, from pre-shopping anticipation to consumption. Experts have determined that a brand or store has a neurological connection with customers if they approach the store visit as they would a visit to the home of a good friend. The trip requires almost no perceivable effort, because they know it is going to be a fun and enjoyable experience.

Basically, using research in this way is all part of the Holy Grail of attracting and keeping customers and increasing brand loyalty. As the emotional connection stakes are raised I predict there will be even more talk in 2014 of retail brands as ‘friends’.

airport retail is ready for take-off…

There’s no doubt that we are seeing a massive expansion of the non-aviation side of the increasingly profitable airport business. Airports such as Heathrow, where there are 5 applicants for every retail space, have become the most sought-after retail locations in the world.

However, the experience of our interior architects and designers has shown that retailers are often challenged with the ‘square peg in a round hole’ scenario. Whereas shopping centres are bespoke, airport terminals can throw up awkward spaces, which need to be carefully designed to allow retailers to express their individual character and brand values. Airports like Gatwick are redeveloping space to optimise their retail offering and at the same time elevating expectations of what retailers need to achieve. Spencer Sheen, Head of Gatwick Retail, sums it up, “Passengers expect more from airport shopping, especially with what’s on offer in some of the airports in the Middle East and Asia. They want more choice, availability and diversity. Competition is really key for us; we want to be right up there with the likes of Westfield and Bluewater.”

However, whilst an airport presence is immensely attractive to a retailer, the trading environment is nothing like the high street. Customers are in a more ‘affluent’ state of mind at the airport, with spare money to treat themselves and their family. Plus, each shopper, around for just 60 or 70 minutes on average, comes with the expectation of an easy to navigate, exciting shopping environment. Our experience of working on 5 UK airports shows that even though shoppers may be a captive audience they still expect the hotel experience to start in the terminal itself. This means that, “No frills” retail just won’t fly!

As Spencer points out, passengers are now demanding more choice, availability and diversity, all topped off with an engaging experience. Waiting for a flight, with time to kill and money to spend, they want to be entertained. Which calls for even greater contributions and innovation from retailers, not only in product mix, but also in store design. Airports once criticized for their interchangeable retail formats, are always looking to raise their game and recruit ‘A’ list brands like John Lewis, Harrods and Selfridges to add to their retail mix, brands that are not yet represented at other airports, or which underpin the airport’s unique profile.

For the retailer a coveted airside store means increased online business and enhanced brand recognition with an international audience. With so much to gain, there is little doubt that airport retail will increasingly become ‘best in class’ for retail store design and customer delivery over the coming years.

nirantarta!

M&S’s Plan A broke-even long before its projected date, and by 2009-10 had added £50m worth of net benefit to the company. Smart companies have expanded their CSR and sustainability on many diverse levels, looking towards the horizons they operate within. With their green message driven home through media saturation the consumer is preached to daily. However, beyond the process of promotion and sales of goods or services, businesses generally remain disconnected from the communities they operate in. Localism remains a mystical notion to big-business in Europe. It is seen as a challenge – whether in urban communities that rally against the latest incursion by a coffee or supermarket chain or a European state refusing meat imports. Where ‘safe’ standardisation drives profits, addressing individuality is perceived as an expensive pursuit.

The diverse nature, of urban communities in particular, confuses perception exponentially. The recent nationwide riots saw great numbers of people contributing to the clean-up and restoration of areas damaged by their disenfranchised ‘neighbours’. On the other side of the world, in the emerging Indian market, the approach to localism is simpler but so much more relevant to the whole of the society.

In a report produced for Mumbai’s ‘Forum for the Future’, sustainability company Futerra reports Indian attitudes to green issues as being “filed firmly in the box labelled “nice to have – but non-essential”. Bucking the trend however, is a young company by the name of Abellon, an energy provider that seems to have identified the missing link within business models worldwide. Where M&S have defined a sustainability approach within the European market, Abellon have pushed further. Firmly establishing its global responsibility, amongst its business model headings, alongside Agrisciences, Bio-energies and Waste Management Policy is an intriguing heading: ‘Poornakumbha’.

Poornakumbha symbolically represents an ‘empty pot’, “ready to receive and collect all that a community has to give after having enriched and enhanced its riches multifold”. Its roots are based in Ghandian philosophy, spirituality and entrepreneurialism – phrases you will be hard pressed to find in European business strategy. At its most basic, Poornakumbha promotes empowerment of communities by sharing of
inherent intellectual and financial wealth of big-business. Poornakumbha provides education and tools to drive local initiatives such as ‘wealth from waste’ – a cradle-to-cradle process that encourages re-use of waste energy products. In a society that acknowledges such obvious social divisions of class and caste, Poornakumba represents an inclusive notion of sustainability and corporate social responsibility. Maybe this innovative business model offers a form of
engagement and community healing that the West may benefit from?