International fashion brands are becoming more ambitious with retail store concepts, as Melinda Oliver discovers.
Listening to an in-store soundtrack of giggling young girls may not appeal to all consumers, but for those at the Barbie Shanghai flagship store it is an essential part of the retail experience.
Add to this a spiral staircase with over 400 Barbie mannequins wearing Barbie couture, a custom-make Barbie zone, a Barbie spa, a Barbie fashion runway, a Barbie reading room and a Barbie cafe, and very few visitors would find it forgettable.
According to Francesco Cordua, founder of US retail design company Exultant Brands, the six-storey outlet is a prime example of immersive retailing. Speaking at a Westfield business seminar in Sydney recently, Cordua stressed the importance of an all-encompassing flagship store to attract loyal customers.
“Every aspect of a flagship must be tuned to a brand image in the most interesting light,” he said.
Cordua – who led a major renovation of Tiffany’s flagship store in Fifth Avenue, New York – also emphasised the need for retailers to look beyond their own product categories for inspiration. “The next leading idea can come from anywhere.”
He cited Prada’s “Transformer” pavilion in the heart of Seoul, South Korea, as one of the more ambitious branding projects of the year. The temporary site was launched to promote four cultural events: a fashion show, film festival, art exhibition and runway parade. The complex was flipped and rearranged each time to suit the individual showcases.
“The biggest problem now is that they don’t know what they are going to do with thousands of tonnes of steel,” Cordua quipped.
Similarly, Diesel keeps its three international Diesel Denim Gallery stores in a constant state of transformation. The galleries are re-designed by a famous artist each year, with the layout intended to promote products as pieces of art rather than stock-standard apparel.
“I’ve been impressed by Diesel’s strategy for their overall brand, and the connection to the art world for the super-premium end of their retail spectrum has been an ambitious strategy for raising up their high-end without sacrificing prestige – or margin – for their mainline product,” Cordua said.
“The spaces themselves are simply beautiful, and the continual process of reinvention within their total store environment matches their commitment to creating quality, limited-edition product to match their clients’ elevated expectations.”
A key trend in retail development discussed by Cordua was the use of “tailor-made” branding concepts. The Stronghold, a vintage denim store in Venice Beach, California, offers its customers a shot of bourbon on arrival and is fitted out like a worker’s cottage from the 1900s.
The idea is to promote its products as both hard-wearing and rustic. Customers can choose from ready-made designs or create custom pieces, with options across cut, colour rivets, stitching and fabric. This ensures customers build a connection with the label and product.
The concept of ephemeral retailing – pop-up stores that bring brands to new locations and audiences – is also obtaining popularity, according to Cordua. “Ephemeral retailing is something that traditional executives in retail tend to shy away from, but it tends to have a really long-lasting effect on the way consumers perceive and experience a brand.”
Target’s pop-up store during New York Fashion Week last year was one such an example, he said. Because the retailer did not have a site in Manhattan prior to the opening, it ensured the store was heavily branded and stocked with exclusive designer collaboration lines.
“It was only opened for four days but people are still trying to track them down,” he said. “This encourages loyalty with a new generation of consumer.”
Also speaking at the Westfield seminar was Jon Bird, executive director of Australian retail marketing company IdeaWorks. Bird said retailers had to avoid being in the “me too middle” and set themselves apart from competitors.
He cited Topshop’s recently launched New York store as an example of intensive, brand-driven retailing. The store draws on its British origins to make it unique, with conceptual visual merchandising, a live in-store DJ and “cool” sales assistants, he said. “It pushes their image of cool Britannia.”
Cordua believes more brands are willing to invest in innovative store concepts, even under current economic conditions.
“Obviously the numbers vary greatly, but can start at $10,000 per square metre and go much, much higher. For property acquisition and design/execution of the complete brand experience, a number between $US80 and 120 million is not unusual.
“Over the last decade, this kind of project includes not only the creation of new caseline VM strategies and packaging, but has also come to include the creation of a new digital presence strategy.”
Retail trends
Retail expert Francesco Cordua outlines the hottest fashion trends:
Immersive experience: flagship stores offering an all-encompassing brand experience.
Curated consumption: the power of strong personalities to direct consumer choice.
Ephemeral retail: temporary retail outlets that perk interest and instil long-term loyalty to a brand.
Advanced handling: demonstration stores of products that can be purchased online.
Artisinal revival: a focus on tailoring, craftsmanship and bespoke elements rather than mass market products.
Everyday sportswear: activewear worn everywhere.
Relaunching old brands: bringing old ideas into new markets.