In the final hour of trade fair Fashion Exposed in August, the head of westfield retailer relations took to the stage to discuss the findings of a 2010 Retail Study Tour. Here, Ragtrader spotlights key trends presented by Jack Hanrahan.
Polarisation
Rather than gather in the middle ground as they traditionally have, retailers are increasingly scampering to either the ‘value’ or ‘luxury’ end of the shopping spectrum.
Value retailers like Primark have little in common with discount retailers of the past, with Hanrahan describing their store design and merchandising strategies being close to premium. At the polar end of the scale are the likes of Neil Barrett, declaring their luxury status with trends such as gallery retailing.
Value is more than price
Quality fit-outs, customisation and specialisation are the new value-adds. London retailer Suitsupply, for example, has a tailor in-store to customise the suits it sells off the rack. In the athletic sector, customers can design their own sneakers, clothing and gear in the NikeiD stores.
The anti-big
It’s about the anti-cookie-cutter approach, Hanrahan says. Stores are being designed to fit in with their local environment, exuding an artisan, authentic feel.
Hanrahan points to Spanish shoe brand, Camper. Its stores are quirky and “very different from a shoe store”, complete with walls that customers can write on. Dover Street Market in London is another example. Despite occupying six floors and with garments priced at £3000, it bears little resemblance to a traditional luxury store like Prada or Chanel.
Fast fashion
The key point about fast fashion, Hanrahan says, is scarcity. “It’s about running out of the merchandise. If you don’t come in and buy today, it won’t be there tomorrow.
In Forever 21, for example, they receive stock every day. They turn over 30 per cent of their stock every week. It is a vibrant environment. There’s change. There’s a real reason for customers to keep going back to their store.” The migration of Zara, Gap and Banana Republic to Australia’s shores is just the start of the fast fashion boom, Hanrahan predicts.
Service as a product
“If you’re not selling services as a retailer, you’re missing out,” Hanrahan says. “It’s a bit like an apparel retailer not having any accessories ... Everyone’s got a skirt or a dress or a top. What they might not have is your style knowledge.” Services can be anything from garment alterations, to new season workshops, to staff on the phones ready to help e-store customers. The point is, Hanrahan says, “if you don’t have some, you’re not going to sell any.”
Retail technology
“The smart phone has arrived,” he declares. In retail it can be used to scan QR codes (a matrix barcode) that link customers to websites which explain the lifecycle of a garment, for example. Another technology Hanrahan saw in action in Tokyo was the Edy. “You go with your smart phone and if you’ve got an account, you just scan it over the Edy and the Edy will charge you.” McDonald’s in Japan has 18 million people registered for the technology. “In 10 years time, our wallets will be a lot smaller,” Hanrahan says.
Personalisation
Consumers want a product created just for them and nobody else. Brands that are taking up the trend are Anya Hindmarch with her bespoke bags; Los Angeles-based retailer The Stronghold with its customised denim offering; Freedman’s Sporting Club in New York, which custom-creates merchandise on its premises; and Havaianas thongs, which can be built to a customer’s colour specifications.
Experiential
To stop shoppers from drifting online, retailers are going to have to develop the notion of in-store experience, Hanrahan says. There are five components to a customer’s experience, according to Wharton Research.
The first is brand experience: what is the brand? What does it mean? Is the customer in love with it? Next is engagement, or how the customer is received in-store. The level of execution of a sale, the speed of the sale, and the store’s problem-resolution strategy are the final three components.
With concierge-like store greeters, sites built from imported Italian glass, and the processing of sales through mobile technology rather than cash registers, Hanrahan believes Apple is currently the ultimate store experience.