channel checks: digital beauty stores...in this context, it is not surprising that brands and...
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April6,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
May9,2017
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OurChannelChecksreportsfeatureobservationsfromourrecentstoretours.Inthisreport,welookatnewdigitalstoreformatsinEuropeanbeautyretailing.
1) Beautystoresareusingdigitalizationtocreatecaptivatingin-storeexperiences.Thetechnologyinuserangesfrominteractivemirrorstoscreensshowcasingsocialmediacontent.
2) TheEstéeEditstoreinLondonusesaselfie-takingmirroralongsideinteractivescreensandin-storetabletstocreateastrongdigitalexperience.OtherLondonstoressuchasFabledsimilarlyleveragesocialmediaandprovidedigitalin-storemakeuptutorials.
3) TheSephoraFlashstoreinParisbridgesphysicalanddigitalshoppingchannelswithitsuseoflarge-screenbrowsingandbuyingpoints,aswellasathree-hourclick-and-collectservice.
Channel Checks: Digital Beauty
Stores
Deborah Weinswig
Managing Director,
Fung Global Retail & Technology
US: 917.655.6790
HK: 852.6119.1779
CN: 86.186.1420.3016
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April6,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
May9,2017
IntroductionInthepastyear,ourEuropeanteamhasseenaglutofnewbeautyspecialiststoreformatsthatintegratedigitaltechnologiestodifferentiatetheirexperiencesandengagecustomers.Inthisreport,weshowcasesomeexamplesfromourrecentstorevisitsinLondonandParis.Webeginbyprovidingsomecontextononlineandofflineretailinthebeautycategory.
InContext:TheDigitalizationofBeautyStoresBeautye-commercecontinuestogrowrapidly:EuromonitorInternationalexpectsUKonlinebeautyandpersonalcaresalestoclimbby10.5%thisyear.Yet,only12%ofUKbeautyandpersonalcaresaleswillbemadeonlinethisyear,indicatingthestrongholdphysicalstoresstillenjoyinthecategory.
Onlineandofflinechannelsareincreasinglyblended,however,assmartphone-equippedshoppersbrowseandbuyacrosschannels.Thisispromptingretailerstocreatecaptivatingin-storeexperiencesforconsumersthatcombineanaloganddigitalexperiences.
InlateApril,forinstance,BritishdepartmentstoreDebenhamsannounceditsstrategyshifttobecome“aDestination,DigitalandDifferent”retailerthatconnectswithcustomersmoreviasmartphonesandcreatesamoresocialshoppingexperience,includinginthebeautycategory.
Andonlineconnectivityisaboutmorethanjuste-commerce.Socialmediaplaysavitalroleinthebeautyindustry,especiallyformillennialsandGenZerswhooftenlooktosocialmediaforinformationwhendecidingwhatproductsorbrandstobuy.Accordingtoa2016UKsurveybyImogenMatthewsAssociates,27%ofconsumersgoonsocialmediaorwatchonlinevideostofindoutaboutbeautyproducts,whilst35%ofconsumersareinspiredbyhow-tomakeupguidestofindoutmoreaboutbeautyproducts.
• Seeourreport,GenZandBeauty:TheSocialMediaSymbiosisformoreonthistopic.
Inthiscontext,itisnotsurprisingthatbrandsandretailersarestartingtoleveragesocialmediain-store,frominteractivephotoboothstoscreensshowcasingcontentfromInstagram.
In2016,theCharlotteTillburybrandblazedatrailbyusingaugmentedreality(AR)“magicmirrors”inselectedUKstores.Themirrorsallowcustomerstotryondifferentmakeuplooksinseconds,thencomparelooksside-by-side,andultimatelycreatesanengagingandrealisticexperience.Notonlydoesthisincreaseup-selling,butitcanboostcustomersatisfactionandsavetimeformake-upartists.Whilethisisnotanewconceptinthebeautyindustry,itwasawake-upcalltootherretailerstoinnovatetheirin-storeexperiences.
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April6,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
May9,2017
ChannelChecks:DigitalBeautyStoresTheFungGlobalRetail&TechnologyteamvisitednewconceptstoresinLondonandParis.InLondon,wewenttoTheEstéeEdit,FabledbyMarieClaireandfinallythenewUKflagshipstoreforNYX.InParis,wevisitedtheSephoraFlashconceptstore.
TheEstéeEdit• TheEstéeEditopenedonLondon’sCarnabyStreetinNovember
2016.
• ThestandoutfeatureatTheEstéeEditistheselfie-takingmirrorwhichproducestwoinstantphotographs—oneforthecustomerandoneforthe“selfiewall.”
• InteractivescreensdisplayInstagramcontent,whichusesthebrand’sin-storehashtag,andcountersfeaturetabletswithhow-totutorialsforcustomers.
• Astrongdigitalplatformtopresentbeautytutorialsencouragesshopperstoexperimentwithnewproductsandstyles.
Source:FungGlobalRetail&Technology
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April6,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
May9,2017
TheEstéeEdit,LondonSource:FungGlobalRetail&Technology
FabledbyMarieClaireandNYX
FabledbyMarieClaire,LondonSource:FungGlobalRetail&Technology
• FabledbyMarieClaireopenedonLondon’sTottenhamCourtRoadinAugust2016.NYXopenedintheWestfieldStratfordCitymallinApril2017.
• LikeTheEstéeEdit,FabledbyMarieClaireandNYXintegratetabletsthroughouttheirstorestoshowcustomersmakeuptutorials.
• FabledbyMarieClaireevenhasdisplaysshowingwhichbrandsarebestsuitedforeachlook.
• Reflectiveofthesocial-media-savvybrand,NYXusesInstagramcontentfrominfluencersinitswindowdisplays.Usingits“TagUs”marketingtactics,NYXisabletocreateeffective,freecontentfortheirbrand—apopulartacticamongstbeautystores.
NYXusesInstagramcontentfrominfluencersinitswindowdisplays.
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April6,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
May9,2017
FabledbyMarieClaire,LondonSource:FungGlobalRetail&Technology
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April6,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
May9,2017
NYX,LondonSource:FungGlobalRetail&Technology
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April6,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
May9,2017
SephoraFlash
SephoraFlash,ParisSource:FungGlobalRetail&Technology
• SephoraFlashopenedinOctober2015,makingitoneofthefirstdigitalbeautystoreformats.
• Thesmall,140-squaremeterstorefeaturesnear-fieldcommunication(NFC)technology:thisenablesshopperstoviewinformationaboutfragranceproductsonin-storetabletssimplybyplacingNFC-taggedproductsnexttothescreen.Shopperscanthenaddtheproducttotheironlinebasket.
• Thestorealsoincludeslargeselfiemirrors,touch-screensforbrowsingandbuyingfromtheSephorawebsite,andphone-chargingpoints.
• Thestorealsoboastsanimpressivefreethree-hourclick-and-collectservice.
SephoraFlash,ParisSource:FungGlobalRetail&Technology
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April6,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
May9,2017
SephoraFlash,ParisSource:FungGlobalRetail&Technology
• FindmoreimagesfromourstoretoursworldwideonourFacebookpage,atfacebook.com/FungRetailTech.
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April6,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
May9,2017
DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comJohnMercerSeniorAnalystKatieMarshallResearchAssistantHongKong:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406London:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017
FungGlobalRetailTech.com