design:retail - October 2015 - (Page 38)

searching for steve jobs 038 In Search of Substance ROBERT HOCKING RETALE MATTERS robert@retalematters.com @rhockinguk Y OU CAN'T ESCAPE the fact that retail design-beautiful or not-ultimately is at the service of selling stuff. It's why people pay for it in the first place. Yet you also can't avoid the fact that physical stores are on the verge of losing their last great opportunity versus digital, because, to quote Ron Johnson, "Retail isn't broken, stores are." Research says that up to 90 percent of purchase decisions are emotionally led. Regardless of the category, inherent is a deeper meaning to the shopper than simply "acquire cheap." From cleaning products and food to your first (or any) car, or that special something for someone you love, all of it is loaded with meaning. But think about it: where is this really delivered by brands in the space between desire or need and the ultimate purchase? Brands and clients (and you, if you work for the brand) are increasingly pressured to find channels, or ways of using those channels, to build greater meaning and connection with people shopping for what you sell. The same channels exist today that did 20 years ago, but it's harder and harder to make them work. Now, interestingly, most channels haven't changed that much, nor shoppers' needs for that matter. The issue is that we have not changed our thinking to keep pace with what's happened in the intervening years. Online shoppers are less inclined to browse, make fewer impulse purchases and are more discount focused. And even though Amazon is 20 years old, bricks and mortar still is the channel for buying-just 10 percent of all purchases in the United States are made online. Yet the typical physical store is designed more for function, specifically enabling a transaction, than OCTOBER 2015 DESIGNRETAILONLINE.COM about deepening engagement. And this is exacerbated by the fact that store staff too often play a minimal role in building bridges with customers. In the United Kingdom, 70 percent of CPG products are purchased "on sale." Research shows that the majority of purchase decisions made in a grocery store happen within about 3 ft. of the product in as little as 10 seconds. Ten seconds, 3 ft. and looking for deals is the depth of engagement most stores have created for shoppers. Do we really think this can continue, do we really think the necessary investments will be made around retail design if we don't create more value through what we do? With communication channels less effective and stores based more on transactions than inspiration, something must be done. So what is the opportunity for the company that creates the true future of buying by deepening engagement, personalization, storytelling and relationships that recognize what people really want when they shop? Here's the thing: if you mainly design physical store experiences you should be worried. The "product shed" mentality of most stores hasn't changed, and technology has caught up. The network pipes are big enough, the platforms robust enough, and consumers are conditioned enough to seek immersive experiences through technology and are comfortable making purchases online and on their mobile devices. Technology allows us to remove walls, to create consistency in service levels, to always be on and personalized, and to offer limitless inventory. It allows us to adapt a retail environment to the type and needs of the shopper. No one is doing a good job at it yet-not yet, but soon. I recently interviewed a consultant who specializes in cognitive ergonomic research (how people interact with complex systems) and he told me about being commissioned by Amazon to study how people shop in bookstores to see what parts of this experience could be brought to life online. We are now at a point of parity of products and experiences, where consumers don't care, and this is because we don't give them a reason to. But in my view, design is the future of everything as long as it's willing to get out of the box. It's bigger than architects and retail designers; the new world is one without walls. When there's no box to create in, what's possible? The people that will claim this new future will be those who don't think in one. ROBERT HOCKING IS A LONDON-BASED RETAIL BRAND CONSULTANT WHO LOVES RETAIL BUT HATES SHOPPING-AND CONTINUES TO SEARCH FOR STORES THAT WILL CHANGE HIS MIND. Illustration by ILYABOLOTOV/ISTOCK/THINKSTOCK http://www.DESIGNRETAILONLINE.COM

Table of Contents for the Digital Edition of design:retail - October 2015

design:retail - October 2015
Contents
Editor’s Note
Show Talk
On Trend
We Love This!
Designer Picks
Clicks & Mortar
Postcard
How’d They Do That?
Have You Heard?
Mingle
Perspectives
Visual Eye
Searching for Steve Jobs
Under Armour
John Varvatos
Retail Design Industry 2015
Backstory

design:retail - October 2015