Monday 24 February 2014

Creating a storm: Two retail trends that demonstrate the real value of Experiential Marketing.




Online shopping has put consumers in the driving seat.  Shoppers now have 24-hour convenience and can do their own research at the tap of a screen.  In fact, Internet shopping increased by 17.8% in 20131, suggesting a revolution rather than just an evolution.  Therefore, you’d be led to believe that shopping is increasingly becoming a transactional process, right? Wrong.

A recent survey of the shopping habits of 18- to 25-year-olds suggests that just over two thirds of them - some 68%2 - prefer to shop in stores for clothing and shoes.  Furthermore, 53% of shoppers claim that friends are most likely to influence them to buy new clothes, rather than responding to a magazine advert, which is 20%3.  This seems to be the reason why retailers are doing everything they can to create advocates, or brand friends, that will share their good news.  To achieve this, creating the right brand experience is critical to having an emotional connection rather than just a transactional one. 

Simply put, the shopper experience is, and will remain, top of the agenda for a long time.  But how are brands surprising and delighting today’s consumers?  We’ve identified two retail trends to help shed some light..

1. High street retailers creating experiences out of store:

Retailers are looking beyond their own space and taking themselves out to consumers.  By creating experiences in places where consumers would not expect, they are achieving social fuel, which in theory leads to brand advocates.  In February this year, Topshop used their London Fashion Week catwalk at the Tate Modern as the content to drive exciting experiences away from the action.  Consumers were given the chance to experience a live stream of the action at their Oxford Street store shop window. Five lucky winners were plucked out of the crowd and taken south of the river for a front row seat at the show.  Topshop cleverly took the action online too to achieve much wider coverage.  The fashion show was streamed live where consumers could ‘Shoot and Share’ the catwalk looks they loved with their friends online.





Another example is New Look, which has created its own branded double-decker bus which goes on tour across the UK this month to take the stress out of shopping for jeans. New Look wants to delight shoppers by giving them a sleek and fun way to try and buy denim wear. The bus has its own spacious changing facilities, ‘chillax area’ and nail bar, as well as a ‘Selfie Studio’ where people snap and share online for the chance to win £500 worth of vouchers. The mobility of this experience means that it can go to locations at specific times to suit the needs of their target audience, and give them more than just a store experience.




Other exciting out of store retail experiences seem to be popping up everywhere.  Burberry launched a raft of experiential activity during last year’s festive campaign. An iconic delivery van took to the streets of London supported by fashion events and a pop-up experience in Harrods.   Whilst GAP, and this is one I personally experienced, deployed their ‘Cheer Squads’. A group of beautiful, GAP wearing hipsters performing carefully choreographed skits for unsuspecting shoppers in London.   It was quite excellent street theatre that achieved its objective of driving footfall to their stores.




2. Online retailers creating their own physical store experiences:

This emerging trend, labelled "clicks to bricks" or "e-tail to retail", looks set to write yet another chapter in the story of the recent retail revolution. 

With the fact that 68% of consumers prefer to shop in-store for shoes and clothing, it is no wonder that online retailers are searching for ways to connect with their audience offline.  And it’s the retailers that are willing to create rich and fun experiences that seem to be winning.

A good example of this is Rapha, the premium cycle wear brand currently being donned by Team Sky.  The business started life in 2004 as an online retailer and they quickly realised that to achieve a genuine connection with their consumers, they needed a real world experience to build their character.  Rapha opened five stores around the world in London, San Francisco, New York, Osaka and Sydney.  The power of these store experiences has led to a meteoric rise for the brand in a relatively established and crowded market place. The brand experience goes way beyond great design and mood lighting.  They tap into a cycling lifestyle and culture by providing a cafĂ©, pro bike race screening evenings and its very own club where riders can join other enthusiasts on rides to the countryside.  The majority of their sales remain online, but these precision-engineered experiences have been invaluable in developing their brand story.




Bonobos, a US clothing online retailer, is another good example. They seem to have gone one step further by creating pop-up guide stores, a concept that involves shoppers browsing merchandise then ordering online for a home delivery.  As well as providing a unique experience for its audience, it also creates great content for them to use to excite and energise their online community.

Final thought:

The irony seems to be that the digital and Omni channel revolution is in fact making the retail brand experience, whether in-store or out of store, more important than it has ever been. People talk about their experiences and if they have a great one, they’ll ultimately become an advocate, which in today’s retail world seems to be the Holy Grail.

The Network Experiential is an experiential marketing agency specialising in insight, creative, production and staffing.  We are experienced in retail activation (both in-store and out of store) and pop-up solutions. Please do contact us for more information.

By Simon Couch, Director of Experiential, The Network Experiential

Sources:
1. British Retail Consortium-KPMG Retail Sales Monitor for December 2013
2. LIM College Students' Survey “Shopping Trends Among 18-25 Year-Olds” 2012
3. Cotton Incorporated Lifestyle Monitor 2013