Grand Designs in Retail

8/4/2019 Grand Designs in Retail

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Dear Retail Management Students

Im forwarding an interesting article Grand Designs published in media

(Busienss Standard)entailing latest developments in organized retail.

The article covers areas such as Atmospherics, Store Layout & Design,

Visual Merchandise etc.

Since presently we are covering the same topic, I thought of forwarding

the same to you all.

Dr.Pravin Patil

Faculty-Retail Management

Grand designs

Retailers are coming up with innovative outlet designs to provide

customers a unique experience and differentiate

Preeti Khicha / Mumbai August 29, 2011, 0:35 IST

BUSINESS STANDARD

According to a report titled India Organised Retail Market 2010, published

by Knight Frank India, between 2010 and 2012, the organised retail realestate stock will grow from the existing 41 million square feet (sq ft) to 95

million sq ft. The report says, during 2010-12 around 55 million sq ft of

retail space will be ready in Mumbai, the national capital region, Bangalore,

Kolkata, Chennai, Hyderabad and Pune.


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Yes, thats a lot of real estate. Now imagine the kind of business

opportunity that represents for retail planners and designers. And thank

brands that are thinking out of the box to keep shoppers engaged and

spending.

A case in point is Italian automaker Fiat which is planning to open a

lounge-like caf to sell its cars. The first two cafs in Pune and Delhi will

resemble an entertainment hub complete with a food bar, an area for film

screenings, theatre and artwork. Fiat, of course, is ploughing money into

this for a reason. The automakers sales in India have been dwindling and

the company is banking on these cafs to draw traffic, build consumer

connect and thus change the perception of Fiat cars in India.

Like Fiat, Indian retailers across the board from auto brands, apparel

makers to electronic majorswant to be more than just merchants and are

striving hard to create retail destinations where people can linger, learn

and experience the brand. While spends in the retail design space are hard

to come by, industry estimates indicate brands spend anywhere between Rs

1,000 and Rs 4,000 per square feet on retail design, with the spends going

all the way up to Rs 7,000 per square feet for luxury retailers. According to

the head of a retail design firm in India, last year companies shelled out

close to Rs 120 crore (organised sector) to retail design consultants and

experts and he sees this touching Rs 500 crore in the next two years.

Organised retail accounts for only 8 per cent of the overall retail industry

(with 40-odd retailers dominating the pie). Experts believe 2 per cent of the

unorganised segment will migrate to the organised segment every year,

which means the organised sector will be close to 40 per cent of overall

retail in the next 10 years. Opening up of FDI (foreign direct investment) in

retail will, hopefully, give further impetus to retail design, leading more

Indian brands to consider the store environment more seriously.And the

reasons are many. With product and technology at a level playing field in

many industries, brands are banking on the experience to differentiatethemselves. As a design consultant puts it, Companies want to create retailspaces which are an extension of the brand DNA and difficult to imitate

and commoditise.

Driving brand perceptionRetail design firm JGAs chairman, Ken Nisch, who has partnered with

Bangalore-based design house Future Research Design Company (FRDC)


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for retail projects in India, says, Retail design needs to go beyond interior

design. It needs to be implemented with strategic intent to ensure the retail

landscape reflects the core values of a brand. Brands are slowly getting

mindful of that. Take the example of Coimbatore-based yarn company

Jagannath Textiles, which, till now, retailed its Crusoe brand of innerwear

through multi-brand outlets. Recently, the brand opened three flagship

stores in Coimbatore, Mumbai and Kolkata to help build a distinctive

identity for the brand. The objective was to build an image around

innerwear which is otherwise a rather drab category, says Sanjay Agarwal,

founder, FRDC, which has conceptualised the store design.

Crusoe is trying to replicate what successful womens innerwear brands

worldwide like Victorias Secret have done by using retail as a way to build

the wow factor around its brand. Customer insight revealed that insideevery person there is a sense of adventure, and Crusoe translated this to its

brand philosophy using adventure as a theme for its stores. Water kayaks

and skateboards are used as visual elements inside the stores. While

Jagannath Textiles general manager (operations) Ganga Rathna agrees that

investment to the tune of Rs 4,000 per square foot of design looks

prohibitive, the company believes the gambit will pay off in the long

term.Then there is paint company Asian Paints, which is also dabbling with

some interesting retail formats. Two years ago it unveiled a unique format,

Colour store, to reinforce the companys leadership in decorative paints.

The one-of-its kind store in Mumbai is not a point of retail but serves as theimage driver for the brand. It helps us showcase the brands latest product

innovations, says an Asian Paints official. Consumers can experience

innovative products like chalkboard paint and glow paint which would be

difficult to visualise in a regular dealer store, adds the official.

The larger objective of this retail exercise was to change the dynamics of

the way paint is retailed in India. Typically, paint buying in India is left to

the mason or the building contractor; Asian Paints wants the end consumer

to get involved. Thus, it commissioned FITCH, an agency headquartered in

London, to design a concept that would make the paint buying experienceenjoyable. Explains FITCH founder David Blair who spearheaded the

design of these stores, The purpose of the store is to help make paint

buying a family affair. Hence we have dedicated areas within the store

where even kids can engage with colour. Asian Paints second Colour

store has opened in Delhi. If you are into retailing a service, retail design

becomes even more important. Two years ago, Hindustan UnileversLakme Beauty Salon approached design firm Eureka Moment to refresh the


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look and feel. Lakme spent close to Rs 2,000 per sq ft for the makeover.

Previously Lakme parlours had a very functional design, which did not

bring out the brand values, says Shanoo Bhatia, founder-director, Eureka

Moment, and chairperson of the National Design Committee, Assocham.

After surveying the preferences of Indian women, we decided to go for

design that was rooted in tradition but contemporary in style. We used the

Mandala motif as an inspiration and extrapolated the geometry of the motif

to design the space. The design was flexible enough so that it could be

translated to a tester unit in modern trade to an entire retail facility, adds

Bhatia.

Customer at the centreA good design needs to carefully incorporate consumer psychology and

demographics. Retail design is not always born out of market research; itcan come out by simply studying the target group very closely, adds

Ashwini Deshpande, founder-director, Elephant Strategy + Design. She

recalls her experience while working for Bajaj Auto when it opened its

Probiking stores five years ago to retail premium bikes. While workingwith Bajaj Auto we realised that the premium bike customer is different

from one who buys a regular commuting bike. He is passionate about bikes

and therefore better informed than the regular salesman, says Deshpande.

In 2006, Bajaj began the rollout of Probiking stores, and the company has

32 such outlets today.

Deshpande says careful observation of consumers walking into the store

helped tailor-make the retail experience at the new format. In busy areaswhere the Probiking showrooms are located, it is difficult to experience the

real thrill of the bike, she adds. The company simulated the experiencewith the help of a device, the dynamometer (typically used at workshops

for tuning bikes), which allows bikers to enjoy a life-like test drive. Bang

next to the dynamometer, the company placed a fan and a mirror so the

consumer could enjoy the breeze while riding his bike.The format has done

well; Deshpande claims the new stores began fetching three-digit sales in

the first month of launch. Eric Vas, president, new projects, Bajaj Auto,who handles the business, says the investments in design may not have

been justifiable back then. Now, as we expand our arsenal with the to-be-

launched KTM bikes, it will soon become viable, he adds.

Tata Internationals recent foray into shoe retailing with Tashi has also been

driven by key consumer insights. To stand out from the scores of retailers

in the segment, Tashi engaged FRDC to design an environment that will


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help change the way shoes are retailed in India. Unlike typical shoe stores

where shoes are lined on shelves, Tashi decided to showcase shoes by type

(casual, dressy, evening). Visual merchandising plays a key role in retail

design and arranging the shoes by type was based on the objective that it

would aid the purchase decision, says Agarwal. Space planning is critical

when designing a store. In the Lakme beauty parlour revamp, for example,

the hair stations which were previously in the periphery were moved to the

centre of the parlour. This allowed us to use the periphery for installing

reflective mirrors and brand communication. The whole idea was that

customers seated in the centre of the Lakme parlour can view the

surrounding communication and thus indulge in impulse purchase of

services, says Bhatia. Lakme products which were previously stocked near

the reception counter were integrated into the hair stations to drive impulse

buying among consumers who would have walked in to simply get ahaircut.

Tashi shoe stores too made creative use of space by using wall displays

where the shoe could be viewed from different angles. Seating inside the

store was also scattered instead of the usual train-like seating arrangement.

Tashi has a pedicure station that allows men to pamper themselves while

waiting for their spouses while they perform the onerous task of making up

their minds. Indirectly, this is also a ploy to extend the time a woman

spends at a store, adds Agarwal. When Tata Group forayed into

prescription eyewear with Titan Eye+ it wanted the eyewear buyingexperience to be less intimidating. Instead of frames tucked away in glass

counters, we introduced the touch-feel format where consumers could try

on eyewear lined against a wall. We wanted to create an environment which

was not controlled by the salesman, says Biju Alexander, divisionalmanager, retail, optometry and manufacturing, Titan Eye+.

Mix and matchAccording to Nisch, there needs to be stimulation and excitement to build

brand loyalty and to allow people to regard the store not simply as a point

of purchase but a vehicle to further their self-image. Think of globalbrands like Selfridges in London, Bloomingdales in New York or a

Hamleys toy shop. All their products are available at many places but

people go there because of the excitement they deliver, says Nisch. In

India many brands are trying to build in that excitement factor through the

use of graphics and other visual aids. When Westside approached FITCH

three years ago to change its image of being your mums shop, the designhouse introduced interesting graphics to enhance the store environment.


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Graphics in the retail store need to tell a story. It does better than having

an army of sales assistants, says Blair of FITCH.

Another example is Future Groups latest premium food retail format Food

Hall which has little nuggets of food wisdom alongside shelves that allow

the brand to engage in a conversation with the consumer. Food is a

category in retail which is driven by culture, tradition and milestone,

believes Nisch. Most of us have our early experiences about food

whether it is something special our mother made on holidays or food as it

relates to wellness and lifestyle. Hence storytelling in a food environment is

vital. To add a personal touch to its stores, Canons experience zones havea dedicated gallery that showcases photographs of the month, mailed by

consumers through its online club.

In some cases, interactivity can be built in through the product itself. For

example, Samsung has unveiled experience stores, Smartphone Cafes,

where consumers can try out the phones. In an increasingly cluttered

smartphone market, Samsung knows it is vital for consumers to experience

its phones to make an informed choice. In the last two months, the

company has rolled out 55 such stores, designed by Delhi-based retail

design firm Shark Designs. Deshpande of Elephant Strategy + Design says

good design needs to take consumers beyond the listening mode.

Interactivity is key in building an emotional connection between a

consumer and product and many are using technology to build surprises. Bajaj Probiking stores, for example, have an interactive wall mounted

inside the dealerships that allows consumers to learn about the high-end

features of the bike. The Asian Paints Colour stores have a revolving wall

that helps the prospective buyer view different paint themes.

The Titan Eye+ stores have a style consultancy station that allows

customers to take their photographs while trying on new frames. This was

based on the insight that when people with vision problems try out frames

they are not able to see themselves clearly. This helps shoppers who are

visiting the store on their own, says Alexander. Agreed, retail brands inIndia are nowhere close to their international counterparts when it comes to

engaging prospects. For example, the Italian fashion house Pradas store in

Beverly Hills (USA) has interactive dressing rooms where a magic mirror

allows you to see your outfit from all sides and send images to your friends.

Likewise, Nikes store in Barcelona has a Magic Book in the womens

section that allows you to check out the wall mounted television catalogue

by moving your hands over a sensor. Agarwal of FRDC says innovative use


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of technology will become more common in India as the retail industry

matures. For instance, retail solution provider Nedap Retail is bringing

social media right into the stores it is designing in India. It is believed that

Raymond Groups brand Parx, which is undergoing a design overhaul for

its stores, will be one of the first brands to use tweet mirrors inside the

store. These tweet mirrors will allow consumers to click a picture of their

outfit and instantly send a photograph to a friend via a social networking

site or MMS.

However, the retail environment can do only so much. If customer service

does not reflect the brand story you are telling, the whole thing can go for a

toss. Brands need to equally consider the return on investment. Retail

designers need to put on the business hat and ask themselves whether the

clients investment in design will bring the right returns, says JacobMathew, co-founder, Idiom Design. In sum, companies that marry all the

razzmatazz with pragmatism will be the ones to make business sense in the

long run.

Grand Designs in Retail

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