BW Confidential - Issue #15 - September/October 2013 - (Page 44)

Fusion shopping How retailers should integrate what works on the web into their brick-and-mortar stores by Naomi Marcoulet R etailing has been moving at two speeds, with e-commerce surging ahead while physical stores struggle to hold their ground. The consumer increasingly expects brick-andmortar stores to reflect the online experience, and experts caution that retailers and brands can no longer treat online and physical businesses separately. “Retailers need to reconsider technology and stop thinking of the internet as another door, but rather, as a portal to all their doors and stores”, says Michael Sheridan, chairman of UK-based retail firm Sheridan & Co. Millie Kendall, co-founder of the BeautyMART concept at Harvey Nichols in the UK, agrees: “The consumer has changed a lot, but retailers have not.” There are consumers who like to browse in-store and others who like to order online; retailers must be able to respond consistently to both. The consumer now also expects to find the same information in-store that she can access online. Macy’s has sought to accomplish this at its Herald Square flagship in New York. The store boasts a string of features that connect to the online world, such as tablets and mobile devices for consumers, mobile devices for sales staff, and RFID-tagged inventory. Macy’s also began testing Beauty Spot, a touch-screen kiosk where consumers can search and select products. To better integrate online and store shopping, some retailers are experimenting with services like allotted parking for e-commerce shoppers picking up orders. Perfumery chains Sephora and Nocibé have just launched an express online ordering service, while the layout of some retailers like Etat Pur and BeautyMART aim to mirror the web format (see case studies). Web theater In-store theater, however, is still relevant. Jeremie Muller, account manager at digital retail agency Carlipa, points to data by Digitas, which finds that almost half of consumers (48%) make a purchase decision while in-store. Muller 44 credit: istock Retail Store strategy comments, “The in-store shopper does not act in the same way as she does in front of a screen, where she can take her time. The store experience needs to be richer to capture her.” “ Real space has to be devoted to things that customers can’t or don’t want to do at home ” Sheridan & Co chairman Michael Sheridan “Real space has to be devoted to things that customers can’t, or don’t, want to do at home. Retail will ultimately be service driven,” says Sheridan. In beauty, consulting services and personalized responses are key to boosting sales. “The power of an in-store makeover can be transforming,” Sheridan continues. The beauty assistant role also needs to evolve. “The beauty assistant should not be waiting for the consumer to come into the store; she should [aim to] increase virtual interaction as well,” he says. Even the contact with a product should instantaneously help the consumer, Sheridan comments. The company is introducing a radio frequency technology in stores, which will detect when a product is removed from a shelf and trigger a light, sound, video or text reaction. “If [the consumer] wants to interact with the product, information about it should be forthcoming immediately,” says Sheridan. Meanwhile, the digital connection needs to work in both directions. “Brands often think of using the web to get consumers into the store, but they don’t think of store to web,” says Carlipa sales director Anthony Verdureau. A project for the Yves Saint Laurent brand used a Social Wall in stores to get consumers to talk about products promoted at retail on Twitter and Facebook, so people would be aware of what was happening at the point of sale. However, Muller warns that retailers should not use digital just for the sake of it. ”It’s ‘where can digital bring something more to what exists’— that’s what brands should be thinking about.” September-October 2013 - N°15 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #15 - September/October 2013

Cover
Comment
Contents
Update
Brand & retail news recap
Companies on the move
Take note Market facts, figures & trends
Best of BW Highlights from our e-publication
Launches The latest in fragrance, skincare & make-up
Interview Origins, Ojon & Darphin global president and gm Jane Lauder
Insight: Fragrance creation
Category overview
Industry views
Emerging markets
Consumer data
Role of the perfumer
Retail
Store strategy
Store concepts
Digital Beauty apps
Market watch: Chinese consumers
Overview
Shopping habits
Online sales
Radar A profile of six up-and-coming beauty brands
Travel retail: Inflight sales
Sector analysis
Channel innovations
Emerging markets Company profile: Marico
Packaging
Make-up analysis
Make-up innovations
Last word The Young Group’s Karen Young on industry trends and technology

BW Confidential - Issue #15 - September/October 2013