design:retail - June 2017 - 32

the visual eye

032

Putting on
the Ritz

PETER-TOLIN BAKER
VISUAL MERCHANDISING SPECIALIST
P-T B DESIGN SERVICES

ptb@ptbdesignservices.com

UXURY RETAIL, as with
any retail sector, certainly has its own share of
ups and downs. Recent
press has highlighted
market challenges that many
luxury brands are currently facing,
including global political and
social turmoil, anxious investment
markets, changes in customer
shopping behavior between brickand-mortar and online sales,
significant shifts in media and
marketing, and increased competitive pressure between brands.
Luxury retail fulfills a unique
and powerful role within the pantheon of the continuously evolving
landscape of retail environments.
Often overused, the term "luxury" itself continues
to evolve and adapt to the changing world of wealth
and prestige brands.
Luxury goods generally are products and services
that are of exceptional quality and high price. They
include an electrifying range of designer clothes,
accessories, jewelry, watches, cars, yachts, property,
technology and travel experiences. They are marketed as both aspirational and inspirational, and
not considered a necessity, like food, clothing or
shelter. (Just don't try telling that to the next new
Hermès Birkin bag owner!)
In economics, luxury goods are considered to be
a Veblen good-essentially a material commodity in
which demand increases as the price increases due
to the perception of the product or service as a status symbol. This differs from Giffen goods, in which
price and demand for inferior goods are driven up
by the lack of competitive options. Both Veblen
and Giffen goods go against the "Law of Demand,"
which assumes that as the price of a good increases
demand decreases (and vice versa).

JUNE 2017

DESIGNRETAILONLINE.COM

In order to maintain the desire for such costly
products and services, luxury brands invest aggressively on sales and marketing platforms-be it in
online or brick and mortar; providing a seamless luxury shopping experience to meet and
exceed the exactingly high expectations of today's
luxury shopper.
Furthermore, luxury retail environments provide a unique range of variables for retail design
and visual merchandising, including:
Prime retail locations-be it corner flagship
sites, luxury shopping districts or exotic travel destinations; basically, wherever there are the highest
retail rents in the world.
Premium materials and finishes are liberally
used in key customer areas, including expensive
marble, metal, fabrics, furniture and flooring.
Custom designed fixtures and materials specifically for the brand-one-of-a-kind or limited runs,
these items take extra time to develop and produce,
but are essential in creating an exclusive, branded
luxury environment.

GLOBALSHOP.ORG

Cutti ng- e dge te ch nology
that is incorporated into both sales
and non-sales areas-real time data
collection, augmented reality or 3-D
holographic imaging, integrated
touchscreens-creating an exclusive,
seamless experience.
Security is a significant aspect for
any retailer, but due to the high-value
nature of the product, security in
luxury retail takes on an elevated
role-albeit preferably in a noticeable,
but not overt manner; doorman or
buzzer-activated entrances oftentimes
add an additional layer of security.
Gracious customer service areas
are key, including well-appointed
private sales and dressing rooms,
discreet POS stations shielding
the sales transaction, and elegant customer restrooms. This also can include unique details,
such as having cash counting machines in select
stores given that shoppers in certain regions prefer to pay cash in large stacks of bills rather then
financing or credit cards.
Exceptional lighting-a critical layer, with extra attention and resources provided for lighting
luxury retail environments due to the elevated nature of the product presentations and high-quality
customer service areas.
All these noted details help to maintain an aura
of brand prestige, glamour and store opulence.
They build customer confidence in the quality of
the brand, the product and its craftsmanship. And,
most importantly, they help drive sales. Which is a
good thing for any type of retailer.
PETER-TOLIN BAKER IS ACTIVELY INVOLVED WITH RETAIL
DESIGN AND VISUAL MERCHANDISING VIA P-T B DESIGN
SERVICES (OWNER), AND AS A REGULAR CONTRIBUTOR TO
DESIGN:RETAIL.

Photo by BY CREATIVE LAB/SHUTTERSTOCK

http://www.DESIGNRETAILONLINE.COM http://www.GLOBALSHOP.ORG

Table of Contents for the Digital Edition of design:retail - June 2017