New faces of retail

The idea of going to a shop to just buy a product is outdated, but brands can provide varied activities or services to retain customers, say experts

With Metro departing as The Centrepoint's anchor tenant, one question has been hanging on many people's lips: Is physical retail dead?

Not quite - it might just be in need of a few new tricks.

When it was later announced that French sporting goods giant Decathlon would take over as the anchor tenant, complete with immersive and experiential concepts, the buzz around "experiential retail" was re-ignited.

But experiential retail alone cannot keep a brand afloat, retail experts told The Straits Times.

They outlined brand identity, consistency in messaging, retail experience and community centred activities or services as key factors in retaining shoppers today.

A lot of it boils down to concept and brand identity, said Associate Professor Leonard Lee of Marketing at NUS Business School at the National University of Singapore.

"To attract consumers to shop at a physical store, brands need to go beyond offering tangible products," he said.

"Successful brands are able to elevate that to what concept they are offering to consumers, and from there, provide a corresponding set of services and experiences consistent with that concept.

"They look at retail experience rather than just transaction of products."

Here are five brands doing it right.


APPLE: Go for a consistent brand identity

The Cupertino technology giant has long been lauded for being ahead of the retail game, with in-store services such as its free Today at Apple sessions, where the public can pick up skills such as photography using Apple products.

Associate Professor Leonard Lee of Marketing at NUS Business School, at the National University of Singapore, believes Apple's key strength is a clear, consistent brand identity that runs across all its marketing strategies.

"The store is an expansion of its concept of creativity - the tables feel almost like laboratory tables; it puts the products on the table for people to explore. It encourages active engagement where shoppers are free to experiment on their own."

Service beyond buying and selling plays into the brand's success too, he said. He cited Apple's customer service strategy of having store assistants bring the credit card machine direct to shoppers, instead of making them queue at a cashier.

"Unlike some electronics retailers here, Apple's physical stores don't focus too much on transactions - a lot of it is about selling an experience and lifestyle marketing. Apple is trying to promote a digital lifestyle."


PRIMARK: Big-name collaborations to thrill your audience

With fast-fashion brand Forever 21 announcing it was filing for bankruptcy, it might be tempting to blame low prices for a label's downfall.

But proving that theory wrong is Irish fast-fashion retailer Primark.

Known for its wide variety and affordable buys, Primark recently opened its largest store in Birmingham, Britain.

Alongside the shopping, the store has an in-house beauty salon, barber and restaurants including a Disney-themed cafe, so you can relax in comfort after you shop.

Primark's selling point has always been "offering the best value on the high street in an amazing store environment" - but that aside, the new store and its offerings will help it differentiate itself to attract footfall, said Mr Samuel Tan, Course Chair, Diploma in Retail Management at Temasek Polytechnic School of Business.

"In a location that serves one of the youngest cities in Europe - 40 per cent of its population is under 25 years - the product offerings reach out largely to the young shoppers."

The value retailer is also doing well in bringing in new-to-market products by collaborating with brands to feature popular characters such as Harry Potter and Pusheen, as well as with notable television shows Friends and Game Of Thrones, he added.

The tie-ups add variety and are relevant to the store's target demographic.

Similarly, local retailers can look at collaborations with other brands to keep concepts fresh and exciting, he said.


LULULEMON: Creating a community with free fitness classes

At Lululemon, you can buy athletic apparel and put it to use almost immediately at one of the brand's many affiliated fitness events.

The Canadian retailer, which has four stores in Singapore, organises complimentary yoga, meditation and fitness community classes both in and out of its stores.

Its shophouse outlet in Duxton has a dedicated space that holds up to 20 people each week. It also holds outdoor pop-up events - last month, it hosted a yoga session 56 storeys above the ground at ION Sky.

In today's context, offering such "skills-based development sessions" aligned with the brand works because it enables consumers to become better at what they are already interested in, said Ms Lim Xiu Ru, a lecturer at Singapore Polytechnic's School of Business.

"(The approach) continues to be successful as people become better at what they do - be it more serious in their yoga, meditation or even high-intensity interval training pursuits. That way, when they are looking to buy attire which helps them pursue these activities, Lululemon is the first brand that crosses their minds."

The label has also been adept at creating a community with like-minded individuals, said experts.

In Singapore, it collaborated with other home-grown fitness studios such as Boom and WeBarre to organise boxing and barre - a type of workout that combines ballet-inspired moves with elements of pilates, dance, yoga and strength training - classes respectively.

Mr Tan of Temasek Polytechnic noted how Lululemon strategically employs "young and active individuals" as service staff to represent the brand. "At activities or events, experts or well-regarded instructors are deployed to run the sessions. The community-centred activities reinforce the brand's values and builds brand awareness."

The brand's customer-centric business model is about meeting users' needs - something retailers can learn from, he added.


VANS: A space for the 'in' crowd

For sneaker label Vans, a unique concept store in London has gone above and beyond selling shoes.

Constructed inside five underground tunnels, the House of Vans store incorporates a cinema, cafe, live music venue, art gallery and even a skating ramp. The indoor skate park is free to use for all, with a Skate Skool organising weekly skating lessons.

Besides being an obvious tourist destination, it draws and retains its intended crowd.

Retail experts agree that creating and selling a lifestyle targeted at its consumers keeps them coming back for more.

Ms Lim of Singapore Polytechnic noted how the store's "strategic location" near London's famous Leake Street graffiti tunnel and railway vaults attracts just the right audience for it to provide a fully integrated experience.

She said: "By regularly holding skate nights, film screenings and music performances, this is not a store - but rather an experiential space where the 'in' crowd gathers and hangs out. This helps the label build brand resonance with its target audience who are buying into the Vans' lifestyle concept, rather than just the products."

It also provides purpose for its shoppers to visit the store, said Mr Tan of Temasek Polytechnic.

"Singapore retailers may need to better understand its customers to address their needs. The brand values must be relevant to the lifestyle of customers to be more sustainable."


ULTA BEAUTY: Keeping a fresh line-up of brands

American beauty store chain Ulta Beauty has won the loyalty of many in the United States, with an attractive rewards programme; in-store services such as hair, skin and brow treatments; and a curated line-up of indie brands such as ColourPop and Kylie Cosmetics that previously were only available online.

The beauty giant, whose biggest competitor is Sephora, also recently launched a virtual make-up try-on service for customers.

Ms Lim of Singapore Polytechnic commended the brand's new initiative Sparked, which provides consumers with access to direct-to consumer, lesser-known brands.

"This not only helps Ulta Beauty position itself as a brand which supports emerging brands, but also helps customers get to know more brands - and this keeps them excited and coming back for more."

Singapore retailers can look at promoting home-grown brands to keep their line-up "fresh", Ms Lim noted. "If these featured brands could be curated along a theme and provide a unique experience each time, customers may be intrigued and regularly come back to find out what's new."

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A version of this article appeared in the print edition of The Straits Times on September 07, 2019, with the headline New faces of retail. Subscribe