Omnichannel retail E-Book

Alexandre Baquet

• Herausgeber: ESMOD
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 170

Veröffentlichungsjahr: 2023

Beschreibung

New strategies in international business
Radical transformations are under way in retail. In a world facing a succession of major economic, social, and environmental crises, as well as protest movements and a constant technological revolution, our scope of analysis should be broadened to help brands and entrepreneurs develop their business and help students orient their research.
Taking these changes into consideration with a close look at developments in China, the authors of this work offer tools for proper reflection, both for jobs in fashion and in other markets.
This publication is not exhaustive, but it aims to highlight today’s events in a dynamic, forward-looking way so that the reader can make informed decisions giving them the keys to prepare their sales development well and make it a real success, based on the following three subjects:
- What is fundamental in merchandising and distribution
- What is shaking up all organizations today
- What we should be foreseeing in coming months


ABOUT THE AUTHORS

Caroline HUANG, a former student of La Fabrique and SupdePub, passionate about fashion/design and digital, has succeeded in combining these two worlds in BtoB or BtoC retail experiences as well as in the design of showrooms/shops, their e-commerce extensions and marketing communication, while managing to express her dual French and Chinese culture.

Alexandre BAQUET, expert in merchandising and international sales techniques. After 20 years in a major beauty group, with sales, marketing, financial and merchandising responsibilities worldwide, he created ABRA RETAIL, his own merchandising solutions consultancy, and shares his expertise in companies and specialised schools.

Leseprobe

omnicHANnElretail

Alexandre Baquet

Caroline Huang

New strategies in international business

Part1

THE FUNDAMENTALS OF VISUAL MERCHANDISING AND DISTRIBUTION

Chapter 1Customer catchment area............................................................8

Chapter 2Retail space layouts......13

Chapter 3Organizing the retail space......................................................27

Chapter 4Window display design.....................................................38

Chapter 5Colors................................43

Chapter 6Signs, point-of-sale dis-plays, and point-of-sale information...........................................46

Chapter 7Lighting.............................52

Chapter 8Web-to-store..................57

Chapter 9Pop-up store...................58

Chapter 10Food court.....................59

Chapter 11Rating.............................60

Chapter 12Return policy

Chapter 13Showcasing business heritage

Chapter 14Measuring your performance (KPIs)............................63

Table of contents

Part2

WHAT IS SHAKING UP ALL ORGANIZATIONS TODAY

Chapter 1Automated stores..........72

Chapter 2Vending machines.........73

Chapter 3Retail to retail (R2R).....74

Chapter 4Digitally native vertical brands and their sales in physical stores......................................................75

Chapter 5No window......................76

Chapter 6No counter or welcome desk........................................................77

Chapter 7Mini stores.......................78

Chapter 8Facade decoration.........79

Chapter 9Showrooming.................80

Chapter 10Virtual stores................81

Chapter 11Live streaming: the “see now, buy now” experience..............84

Chapter 12Truckstores...................89

Chapter 13Booking in-store appointments: the shopping datebook...............................................90

Part3

WHAT WE SHOULD BE FORESEEING IN COMING MONTHS

Chapter 1 Sustainable economy...95

Awareness............................................95

Chapter 2Your store is unique...104

Chapter 3Product customization......105

Chapter 4Personifying creators and producers...........................................107

Chapter 5Partnerships: when beauty and fashion meet..............108

Chapter 6Virtual influencers......109

Chapter 7Social media: usavs China...................................................112

Chapter 9Collaborative e-com-merce websites................................118

Chapter 10Yuka and advisory appli-cations.................................................119

Chapter 11When video games in-fluence fashion.................................120

Chapter 12Virtual dressing rooms...127

Chapter 13RFID and its uses.....128

Chapter 14VR and AR in fashion retail.....................................................129

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Part 1 /

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Table OF Content

6 billion human beings in 2000 and 9 billion by 2050. 3 billion Internet users in 2020 and twice more by 2050, in addition to the billions of objects networked to artificial intelligence.

200 million websites in 2010 and two billion by 2020.

15% of trade done through e-commerce in France, compared to 30% in the US and 60% in China.

Two million stores in the world today, but how many in five years from now?

Through which distribution channels should you launch your brand?

Which uses should you foresee to transform your store? To what end should you incorporate new technology? On what model should you base your investments in digital technology? Let us explore some answers to these questions to clarify your strategic thinking.

Part

1

THE FUNDAMENTALS OF VISUAL MERCHANDISING AND DISTRIBUTION

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Table OF Content

Storekeepers have to identify their customer catchment area to pick out their direct compe-titors and know their customers. This analytical tool can be used before starting a business or on a daily basis to hone your sales initiatives.

The customer catchment area does not deter-mine where to settle, but rather determines an ecosystem to get to know so you can adapt your sales offering and communications.

This zone is defined by a reasonable distance between a store and its customers, which can be expressed in minutes (the number of minutes it takes to reach the store by foot, public transport, car, bicycle, etc.) or in kilometers.

It is a geographical area divided into two or three sectors (at an isodistance) that are “pri-mary” (the closest zone, five minutes away) or “secondary” (the furthest zone, 20 to 30 minutes away) and that demarcate the store’s appeal: the customer catchment area is considered the zone of attraction or influence.

The units of measurement used for customer travel are:

An individual walking at five kilometers per hour (so one kilometer every 12 minutes).

A car driver travelling at 16 kilometers per hour in a town (so one kilometer every four minutes) and 48 kilometers per hour in an urban area.

There is a big difference between a town (which is densely populated with well-developed public transport) and a rural area: a so-called invisible border with direct competitors is sometimes traced.

The following can be identified:

Everyday purchases relating to basic needs:open-air markets, bakeries, pharmacies, butchers, post offices and social services for which the primary customer catchment area ranges from five minutes by foot (in town) to 15 minutes by car. During the 2020 coronavirus lockdown, the French government allowed

Chapter 1

Customer catchment area

Oalley - www.oalley.fr

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Part 1 /The fundamentals of visual merchandising and distribution

citizens to travel within one kilometer from their home each day to “do grocery shopping”.

Verbatim accountPascal, aged 53 years, lives in the tiny village of Ver-sur-Launette (in the Oise department of France): “I buy my bread every day but I have to drive almost ten minutes to reach the first bakery in my neighboring town”.

Verbatim accountIsabelle, aged 52 years, lives in the village of Saint-Bauzille (in the Tarn department of France): “Although the grocer comes twice a week with his van, I drive each day to the town of Caussade, 20 minutes away by car, to buy fresh produce”.

Verbatim accountNirina, aged 22 years, lives in the 17th arrondissement of Paris: “Almost at the foot of my apartment block, I’ve got two pharmacies that are just a minute’s walk away”.

Weekly purchases for food and home products(at a supermarket or hypermarket), emergency grocery buys, regular shopping (in a shopping street, complex or mall) for which the primary catchment area ranges from 10 minutes by foot to 20 minutes by car.

Verbatim accountAnne, aged 44 years, lives in the small town of Bougival (in the Yvelines department of France): “I buy all my groceries for the week at the hypermarket in Montesson or Chambourcy. It takes me 20 minutes to get there and I use the opportunity to fill the car up with fuel”.

Planned or impulsive purchases,on one’s way from work or as part of a rest day (fashion, beauty, accessories, leisure, etc.) for which the catchment area ranges from 15 minutes by foot to 30 minutes by car.

Verbatim accountCamille, aged 20 years, lives in Beaune (in the Côte-d’Or depart-ment of France): “When I leave Dijon uni-versity at the end of my day, I spend the evening in the Godrans Liberté district, stopping just one tram stop before the train station. It’s my little pleasure detour before continuing by train”.

Verbatim accountTom, aged 24 years, lives in Versailles (in the Yvelines department

of France): “Although I work in a big store, I like going around the shopping mall of Saint-Lazare train station before going back home. You can find almost anything there within a small space”.

Considered, planned purchases relating to the long term(household appliances, fashion, DIY, jewelry, etc.) for which one is prepared to spend a considerably long time travelling (for example, driving to a shopping outlet). Because the primary catchment area can be over one hour by car and is rarely covered by foot, the notion sometimes loses any relevance.

Verbatim accountRalph, aged 57 years, lives in Vernon (in the Yvelines department of France): “Twice a year, I go on a day-long shopping trip for clothes with my two boys at La Vallée Village in Serris in the Seine-et-Marne department of France. It takes us almost two hours by car to get there, but it’s worth it”.

Verbatim account Adrien, aged 40 years, lives in Saint-Cloud (in the Hauts-de-Seine department of France): “I don’t think twice about driving 25 kilometers to Plaisir for all my DIY purchases at Leroy Merlin or my furniture at Ikea. It’d be no use taking public transport: I’ve always got too much stuff to take home and it’s complicated”.

Verbatim account Cédric, aged 29 years, lives in Orléans: “To buy an engagement ring for my sweetheart, I jumped on a train for Paris and toured the fine jewelry boutiques on Rue de la Paix. It took me all day, but it was worth it. I found what I was looking for.”

Verbatim accountLola, aged 17 years, lives in Beaune (in the Côte-d’Or department of France): “There are city-center stores where I go sometimes with my friend Inès for beauty products, but we prefer taking public transport to go all the way to the Toison d’Or shopping mall in Dijon on Saturdays or Sundays. You find big fashion brands there. We take the T2 line then walk a bit. It takes us an hour, but it’s peaceful”.

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Table OF Content

Direct or indirect business competitors.

Direct customers with demographic and socio-economic data: population group by age, sex, type of accommodation, socio-professional category, household make-up, and level of education and training.

Traffic paths and directions, public transport solutions.

Outdoor communication tools (display panels, signposts, free Wifi).

The overall economic dynamic: changes in prices of business assets, rent, real estate and whether there are storekeepers’ associations.

Within a catchment area, the following can be found

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2

3

4

5

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Part 1 /The fundamentals of visual merchandising and distribution

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Table OF Content

Lastly, it is worth remembering good website indexing (retail sites, Google Maps) to measure traffic and attract customers to go-to geolocation zones.

Available tools: Google Maps, Oalley.fr, societe.com, INSEE, SIRENE, DADS, DGFIP, Town Halls, Departmental and Regional Councils, Yelp, CCI Webstore, Annuaire des Entreprises de France, JC Decaux, Avenir, Dauphin, Giraudy, Clear Channel, Visiocom.

Concerning the fashion store Levi’s at 76 venue des Champs-Élysées, 75008 Paris:

Draw the primary customer catchment area covering a five-minute walk and the secondary customer catchment area covering a 15-minutes walk and metro ride.

In each primary and secondary area, list all rival equivalent fashion stores (premium category).

What is the revenue of the biggest competitor in the primary customer catchment area?

Describe the SPCs (socio-professional categories) in the primary zone.

Identify the advertising panels within a 300-meters radius.

ExerciSes

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Part 1 /The fundamentals of visual merchandising and distribution

Floor plan layouts in a retail space

Zoning starts with a space design based on several studies involving:

Analysis of an empty retail space: strengths and weaknesses.

The natural or spontaneous behavior of a consumer.

The customer path: the direction of customer traffic you want to encourage (in the potential customer) through store development.

Interrelations between products in accordance with the overall layout.

These studies help zone a retail space by ensuring:

Optimal management of entry points and traffic flows to orient and influence the customer path or visitor behavior (and to turn the visitor into a customer).

Recognition of hot zones and cold zonesin the space to determine the strategic spots that optimize the presentation of products and promote certain offers.

Chapter 2

Retail space layouts

Today, the retail industry is undergoing a trans-formation while technology continues to develop. Yet the initial aim has not changed: to have a positive impact on the customer experience, making it unique and creating value. To fulfill this aim, you have to design a physical environment that captures the limited attention of consumers.

Once you understand how a consumer behaves, you have to be able to predict that behavior to influence them by designing a well-thought-out space. That begins with zoning.

1

The aim of the zoning layout is to attract the potential customer or visitor and make them want to become a customer: to encourage buying. This is achieved through a positive customer experience in which the structure of the store visit becomes a fluid, relaxed, optimized flow.

A few principles to remember based on Ebster’s research

If your retail space has several floors, it is wor-th remembering the following perceptions.

People generally prefer exploring or strol-ling around the area where they first entered the store (for this reason, a one-floor store optimizes the customer experience).

The customer flow is degraded by going up and down staircases or using elevators or escalators.

A luxury store with several floors often looks like it is reserved for an elite.

How can visitor traffic in a retail space be analyzed?

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Table OF Content

Grid layout

1

Diagonal layout

2

Free flow layout

3

Forced-path layout

4

Through observation of customers in the environment to identify its problems and opportunities.

Through identification of flows so that the space’s profitability can be maximized. Video recordings and thermal mapping can be used for this analysis.

What rules should guide us to organize traffic in our retail space?

Traffic varies in accordance with retail type, store size and target clientele (dis-cussed later).

The invariant right: customers generally turn right after entering a store and then explore in an anticlockwise direction. It is often recommended to display high-pro-fit products and useful information just to the right of the entrance, outside the transition zone.

The customer flow should never be sacri-ficed for purely esthetic reasons. A store should be a place of sales so should encou-rage buying.

The transition zone should be avoided:

This area, also called the decompression zone, refers to the space just beyond the store entrance. The newcomer needs a transition to get used to the new envi-ronment: new lighting and stimuli (visuals, sounds, scents, etc.).

- In this zone, space should be devoted to high-profit products, clear and attractive signs, or brand information. Nothing should disturb the potential customer’s mind.

Application: the main types of retail store development

Once you have analyzed, studied and understood the movements and behavior of visitors to your retail space, you can start to influence the way they will relate to your products. This strategy is based on the layout design of your store: zoning.

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1

2

4

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Heat map of different plans

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Part 1 /The fundamentals of visual merchandising and distribution

Let us imagine a space made up of six zones, a third (1/3) of which is taken up by products, with the two other thirds (2/3) being used for customer traffic.

Zone 0 Entrance transition zone: a space the visitor needs to get used to the new environment designed by the store and to become a customer.

Zone 1 and 2 this is the most strategic zone. Here is where best-sellers, new items, special offers, products encouraging visitor par-ticipation, and so on, should be positioned. The potential customer’s attention should be captured suc-cessfully here: they should be drawn in and given a good impression to be welcomed warmly. This zone can represent 50% of a store’s total revenue, hence its importance.

Zone 3 and 4 this zone is fur-ther away so it should attract the gaze of the potential customer. Demonstrations or themed features should therefore be positioned here on the customer path, arousing curiosity. Checkouts can be placed here, with products prompting impulse buys also presented in this area. This zone represents around 25-35% of a store’s total revenue.

Zone 5 and 6 this zone, which is usually at the back of a store, is the least-frequented area. It should be used strategically, with products placed there that do not need to be highlighted to be sold. These products could include basic items people inevitably need. They are articles people plan to buy anyway.

Point de relance

Achat d’impulsion

Caisse

Partie la plus fréquentée

Partie la moins fréquentée

Alimentation de proximité

Services

Entrée

2

4

3

5

6

1

Caisse

Présentation des produits

Vitrines

Circulation

Cabine / stock

Vente de marchandises

A) Few studies and principles