Experiential Retail…Why are retailers so slow to jump on the bandwagon?
Technology has changed the way in which we shop forever and the purpose of the retail store has changed considerably.
What was once a location designed to make transactional purchases is no longer the case and more and more retail brands are leaning towards “experiential retail” as a way of enticing their customers back in store.
What is experiential retail and why has it become such a priority for high street brands?
Experiential retail prioritises its customer experience and engagement over sales, it creates moments that consumers want to share, inspires people through activating the senses, and creates bespoke brand led events and activations.
By creating a lasting memory consumers feel part of a community, which in turn brings loyalty, and whilst this may not have an immediate effect, it will eventually bring sales to the brand.
It goes without saying that we live in a world that is craving unique experiences to share on social media – experiential retail does just that.
But who’s doing it well?
When posing this question to many of our team members their immediate reaction was Dyson and Apple. It’s true that the tech brands are definitely leading in this area and these two brands being leaders in their field certainly maintain their status at top of the charts.
E-commerce brand, Farfetch has recently launched their London based Store of the Future. The concept links the online and offline worlds, using data to enhance the retail experience, delivering personalisation for customers and allowing store staff to become in-store influencers.
The flagship store aims to bring the human element back into the retail experience whilst also delivering a seamless and technology driven approach to personal shopping. Using technology customers will be provided with a personalised rail of clothing based on their browsing data, cookies and size.
Farfetch have made a name for themselves in the market, seamlessly combining technology with luxury. But it’s not just luxury brands that can deliver experiential retail to a high standard.
Ikea have been doing it for a long time, creating immersive showroom pop-ups throughout their store allows guests to feel like they are in their own home.
Amazon Fresh is possibly the biggest online brand to branch out into physical stores. The idea of walking into a grocery store and back out again without putting your hand in your pocket was once alien to us but now it’s an everyday occurrence.
Why should retail brands incorporate experiential retail into their business strategy?
According to KPMG, 78% of young consumers, specifically the millennials, prefer to spend money on an experience or event and share these experience-related purchases on social media. There is an emotional driver to this with 69% believing that attending experiences helps them connect better with friends, community, and people around the world.
Experiential retail is proven to build stronger emotional connections in particular the opportunity to touch a product, which intensifies the desire to purchase it. This is something you just can’t get from online shopping.
So why are retailers so slow to jump on the bandwagon?
It’s fair to say that retail is dying and retailers are not helping the situation. Is it because they don’t think? Or they don’t have the knowledge? Or they have become so reliant on digital income that the physical retail element is no longer important?
We believe it’s all of these factors, but above all their priorities are wrong. When looking at their business strategy the focus leans too much towards making money and not what the user wants!
When we design spaces and brands, our first port of call is to do just that, identify what the user wants and how this can be translated before even considering the digital elements of a brand.
Retail has been in our lives forever, we’re not prepared to let it fade away into the distance – retailers simply need to move with the times and be more creative in order to bring customers back through the doors!