designing inspiring spaces, images retailme, december 2015

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Page 1: Designing inspiring spaces, Images RetailME, December 2015

58 www.imagesretailme.com ANNUAL 2015

Consumers today don’t just shop for products. They look for shopping experiences they can relate to and

remember, whether at a luxury store, value fashion store, consumer electronics store or even restaurants, cafés and everyday grocery outlets. That experience depends crucially on how the store is designed. Is the design innovative and eye-catching? Is it relaxing, even therapeutic? Does it favour ease of navigation and viewing? MRF’s Retail Design Conclave looked at the elements retailers need to keep in mind when designing their stores.

Design should reflect the brand ethos It’s a matter of choice. It could be the comfortable, living-room ambience of Dubai’s home-grown Spontiphoria Boutique and Café. Or the vibrant, fun environment of Virgin Megastore. Or, yet again, the functional space of a Géant Hypermarket. Or it could be the plush and lavish interiors of a Morad Yousuf Behbehani store, luxury furniture store En Vogue or fashion innerwear concept Nayomi.

The design reflects the choice, which needs to be in sync with the brand ethos,

Designing inspiring spacesas retailers seek to attract consumers looking for the total experience in inspirational yet functional spaces in stores they encounter on their shopping journey.

The conversation on design at the conclave began with an experience related by Luca Cappuccitti, head of global business development of design firm Design International. “Around two decades ago when I was studying in Rome, we students were always eager to visit designer brand stores like Gucci, Prada, Louis Vuitton and the like. But there were always the guards back then, standing outside the store, who wouldn’t let us enter. Luxury was only meant for elite spenders in those days,” he recounts. “That’s not the case today. Luxury brands have now become more accessible.”

“The perception of luxury is changing in most matured markets,” Cappuccitti observes. “It’s no longer confined to the logo or the brand. It’s about creating a space that’s in sync with the brand’s ethos and understanding its heritage. It’s going back to the roots. Artisanal work and customisation are gaining prominence. That’s why designer brands today urge their artisans to hold conversations with

consumers to understand their tastes and customise the product to suit the taste. That’s luxury! They employ the same logic in designing their stores.”

Shuja Jashanmal, managing director of Lucrae General Trading LLC, which deals in fashion, accessories and beauty, sees luxury as meaning different things to different people in different markets. “In this part of the world, the likes of Prada, Burberry are considered luxury, whereas in India it could be Zara and H&M. Again, in Europe and some other markets, heavy customisation would be considered luxury,” he says.

There are other region-specific differences in preferences. “In the Middle East, customers are fonder of shopping in luxurious, futuristic and interactive stores whereas their counterparts in Milan or other matured markets look for tailor-made products,” Jashanmal adds.

“Brand names sell big in the luxury segment, but competition is getting fierce,” feels Shahzad Gidwani, general manager of the Morad Yousuf Behbehani Group, the Kuwait-based luxury retailer.

“You need to create a story around each brand to sell it to the consumer. People want to know the history of a brand to

Page 2: Designing inspiring spaces, Images RetailME, December 2015

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understand why they have to pay their hard-earned money for the product. As retailers with franchise rights for some high-end, luxury brands, we try to answer their questions and educate them. It’s only then that they come back and are willing to spend more money with us,” he explains.

“Of course, it’s not as easy as it sounds. You must get the mechanics right – from explaining the science behind the watch, to the quality of artisan work, to creating a plush store with comfortable lounges where customers can sit and decide whether to buy a product or not. We work closely with our principals, listening to their brand requirements and putting them in place. We also add our own unique design elements in our boutiques, which they greatly appreciate,” Gidwani adds.

But Sidiqa Sohail, founder of Spontiphoria Boutique & Café, feels brand consciousness isn’t only about well established brands, given the growing spaces for new names. “Yes, the Gulf region is very brand conscious and people here like visiting and buying from stores they’ve heard about or shopped at. However, that doesn’t imply there’s no

RETAIL DESIGNCONCLAVE

The pop-up format is an interesting area. We see more and more of these concepts penetrating the region. They are seeing a lot of success. They not only give new and small retailers in low rent locales the opportunity to gain visibility but also help in attracting footfall into mall. – Luca Cappuccitti

Any initiative that helps tell your brand story is worth the effort, be it around design or the community. The design, product line-up, merchandising and even customer service, all have to be aligned with the brand ethos. – Marcus Käss

Shopping malls will have to be more open to accommodate newer design formats with better opportunities to interact. For example, we wouldn’t really mind allocating some of our in-store spaces to artists and the like. – Mark Anthony Lack

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they walk out satisfied. That’s the kind of experience we seek to offer them. And to do this, we see design as a core element of our business,” says Nisreen Shocair, president, Virgin Megastore Middle East & North Africa.

She then poses a question: Why should people travelling from New York or London shop at Virgin Megastores in the UAE or Saudi Arabia? Her answer is “the experience we offer to them and our diverse product mix.”

“Every customer expects things to be merchandised in a certain way – be it a hypermarket, bakery or plush designer outlet. They expect things to be clean, tidy and uncluttered. These aren’t unachievable goals for a retailer. One of the things we do to keep our stores exciting is adding new elements. Also, we ensure each store looks different from the other but retains the fun and surprise element, apart from being functional and pragmatic,” she elaborates.

Every retailer defines design and experience differentlyCustomisation may be a desirable design objective but what would it mean to a retailer who does 32 million transactions a day? As Mark Anthony Lack, COO of Retail Arabia, which holds the franchise rights for Géant Hypermarket, never fails to emphasise, “There could be few things more boring than shopping at a 107,670 sqft hypermarket, browsing through similar looking shelves.”

He goes on to say, “We’re trying to change that shopping experience by closely looking into the way people buy products at a hypermarket. We want to make the grocery shopping experience more exciting.”

“The problem is, hypermarkets tend to force customers to think like them and accept their way of merchandising. Why should a hair dryer share space with a flat screen television when its rightful place is in the personal care section?” Lack asks.

growth opportunity for new concepts,” she points out.

“When I started Spontiphoria, we literally had a blank canvas, which gave us the opportunity to connect with our target audience, get to know them and build a relationship with them. That’s the new way in which retail operates – personalisation, customisation and evolution.”

“Consumers are willing to visit unique places and try out unique products. So retailers must build something unique to attract and retain them. Take us for example. Spontiphoria sports a warm and cosy setup in which we’ve combined a café with a boutique selling unique, one-off pieces alongside freshly baked home-made eatables. The concept has resonated well with our resident community and also far beyond,” she avers.

Virgin Megastore offers a different take. “Our goal is to offer a premium experience not necessarily against premium pricing. You can find something priced at AED50 at a Virgin outlet and go all the way up to AED15,000. Customers get the same experience and service regardless of how much they spend so

You’ve got to think creatively to add innovation to a mall or a store. For example, the Dubai Aquarium and Underwater Zoo or the Hollister window with Bondi Beach videos at Mall of the Emirates instantly attract passersby to stand and look. – Markus Beyr

The most valuable element of our business is our people. Retail design is crucial, products are vital but if your customer service isn’t good, you won’t be able to retain your loyal customers. That’s why we hire people to handle categories that they like. They can talk to customers from their own experience. However, if the design doesn’t fit the culture of the store, it will never complete the equation. – Nisreen Shocair

The exterior has to be as attractive as the interior. That’s what brings in much-required footfall. There are several inspirational spaces being created in the region. In Dubai, we see several such creative spaces mushrooming. But sometimes malls do not see the value of such creativity beyond a certain point. This needs correction. – Rob Canning

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“What we’re trying to do at Géant is create a new display concept to change this. We need to merchandise goods in an appropriate and relevant manner. That would mean clubbing everything from hair dryers to epilators, razors, shampoos and deodorants in a health and beauty section. Similarly, all items classified under ‘household’ – cooking, dining, cleaning, storing – should be placed together. The laundry section should include washing machines, irons, ironing boards, washing liquids and powders and other washing essentials,” he elaborates.

“Another section that’s being revamped is confectionary. When we think ‘confectionary’ we think ‘children’, so it must be a fun area. But that’s just not the case in most hypermarkets. We’re looking to change this. My idea is to make the Géant confectionary section resemble a Hamleys store, with attractive and interactive fun elements,” Lack adds.

Stephen Holbrook, executive board member of the Kamal Osman Jamjoom Group, a company that deals in fashion and beauty concepts, is also of the opinion that the job of a retailer managing a huge portfolio of over 780 stores is to create the right kind of shopping spaces with a sense of newness.

“For us, it’s crucial to ensure that

our stores create a sensory experience, tell a story. We’re willing to make huge investments to achieve this goal. Customers in the Gulf tend to shop a few times a week. That’s no exaggeration – our loyal customers visit us thrice a month. But every time they walk into our stores they look for newness. The question is how do we ensure newness every time they shop with us? We can do this by having some flexible fixtures that we can move around in our stores while keeping the core untouched. We also have a constant flow of new products with each fashion season,” he explains.

Ethical cosmetics retailer Lush, which sells hand-made, cruelty-free products with minimal or no packaging to minimise waste generation, also invests a lot of effort in designing stores that are sustainable. “The principles of sustainability and animal friendliness resonate not just in our products but also in our store design,” avers Garry Wells, property manager at Lush.

“It’s not something we have to do but something we’re keen on doing. It isn’t cheap but we’re willing to bear the cost since we’re convinced it’s the right thing to do. It isn’t easy of course and requires

a lot of effort and work, but we’re ready to go that extra mile. We also take extra care to make our contractors understand what we want to do and why, so they are aligned with our values while helping us create our beautiful, eco-friendly spaces,” he emphasises.

“We like our stores to sport a rustic industrial look. We use environment-friendly, low VOC (volatile organic compounds) paints and energy-efficient LED lights. All our furniture is made from reclaimed wood and construction materials such as scaffold boards from construction sites. Our floor tiles are made from 60-70% recycled materials. The same applies to our wall coverings. In addition, we have installed water saving devices in our stores to recycle used water,” Wells continues.

“Our goal is to make a positive difference to the environment and people by raising awareness about sustainability and eco-friendliness. We’ve seen rising interest over the years among our customers to know more about these

Social interaction is very important. We use our inspirational spaces to interact better with our customers. – Shahzad Gidwani

You have to engage with your customers, offering to them a personalised experience where design plays a key role alongside product offerings and service. – Shuja Jashanmal

Today, a retail outlet isn’t just about the design. Of course, that’s crucial, defining the concept. What matters even more is building and maintaining a meaningful relationship with customers. It’s important to offer them convenience, a luxurious experience through a concept store. – Sidiqa Sohail

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initiatives, about our journey. It gains us their allegiance,” he observes.

There are many more elements that add to the design and experience Rob Canning, general manager of En Vogue, agrees that a fulfilling shopping experience that goes beyond commerce is what brings today’s always-connected customers, who can milk the internet for product information and shop online, to brick-and-mortar stores time and again. “But tucking luxurious goods into a royal looking space may not necessarily be the right formula,” he warns. “You’ve got to be good at creating the right customer experiences in your inspiring spaces to entice shoppers to spend their valuable time and hard-earned money.”

Architect Marcus Käss, art director of Schwitzke & Partner GmbH, believes it’s a combination of experience and brand name that consumers look for. “If you enter a store and are thrilled by the experience but not the products, chances

are you’ll never go back there again. The experience is the key, no doubt, which is why people still come to physical stores despite almost everything being available online. But you must tell rich and interesting stories through your store design that resonate with your brands. It could be in the way you place your products from entry to the cash till and the customer service along the way,” he elabortes

“Another factor that plays a vital role in creating the right experience is entertainment. That’s what shopping malls and retailers are concentrating on these days. Design, product mix and entertainment are all very important to make the shopping experience lively,” observes Markus Beyr, owner and managing director of Attraktion!, which is into developing innovative world-class attractions such as brand-lands, amusement and theme parks, family entertainment centres, science centres, museums and much more.

“Take the example of the robots we’ve created for shopping malls. They have different features and functions. They roam around the mall, communicate with people and help them reach their

destinations. They also communicate with other robots to sometimes organise entertaining shows in the mall to attract visitor attention,” he informs.

“You’ve got to add excitement to shopping malls and stores,” agrees Cappuccitti. “You should surprise visitors every time they come to the mall. It could be with something as simple as a demo cooking station in a prominent location where people can come, pay and learn about the culture behind what’s being cooked as well as the ingredients and recipe. Or it could be an auction. You’ve got to attract and engage with new-age consumers in newer ways.”

Lack cautions malls to be careful while planning events. “Even though malls are social spaces, they shouldn’t take people away from entering stores and buying products. Events shouldn’t cause distractions for retailers,” he advises.

Shocair points to the technology angle. “Today customers walk into an outlet – be it a grocery, café, designer fashion boutique or department store – and expect a digital presence. It could be videos about a product or a recipe flashed on a big screen. Marrying physical items in-store with digital elements could push up average customer spend by 35%,” she points out.

“60% of youth, aged under 24 years, look for all information available on a retailer’s website, irrespective of whether they have an e-commerce presence. The line is really getting blurred. If you don’t do the homework for your customers, you’ll lose them. So design and digital have to be harnessed in the right manner to ensure a delightful shopping experience,” she suggests.

Food is also a big draw for retailers, which is why the likes of John Lewis introduced food concessions within its Eldon Square store in Newcastle, while Marks & Spencer has a big food department alongside fashion and accessories.

“There’s a definite synergy between food and shopping. Purchase decisions can’t be made in a rush. We’ve seen that our guests are more comfortable and relaxed to browse and shop at our boutique once their children sit down at our café with something to eat. And that was our goal in setting up Spontiphoria – to offer a 360° guest experience through our unique products and home-made food,” Sohail concludes. ■

When we invest in experiential design in our stores, it doesn’t necessarily have to be singing or dancing. Time is moving fast; people are in a hurry. Experiential stores should offer a feel of luxury to consumers. It’s a simple metric and the best pay-back. – Stephen Holbrook

The principles of sustainability and animal friendliness resonate not just in our products but also in our store design– Garry Wells