THIRD SPACE CONCEPT
Identifying the
Emergence and
Strategic
Significance of
Third Space
within Fashion
Retail
Karinna Nobbs &
Veronica Manlow
Contents
1. Introduction
2. Definition &
Background
3. Form & Function
of 3rd Space
4. Methodology
5. Results
6. Summary
7. References
8. Case Study
9. Discussion Points
1. Introduction
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Evolution of the primary
motivation of fashion
consumption
Postmodern consumer
society
New points of differentiation
required
Experience Economy (Pine &
Gilmore 1999, Holbrook and
Hirschman 1982, Schmitt, 1999)
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Down-sizing due to growth of
e-commerce (WWD 2012)
Impact of ‘showrooming’
Merging of retail and leisure
“All department stores will become
museums, and all museums will become
department stores”
Andy Warhol
2. Third Space –
What is it?
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“Somewhere which is not work or
home but a comfortable space to
browse, relax and meet people,
even enjoy a meal” (Mikunda
2004:11)
“A space which is only partly
about shopping” (WPP 2010)
Also known as “Third Place”
Emphasis on socialisation,
interaction and community
Concept requires further
clarification
Aim to explore the form and
function of 3rd Space within the
Luxury fashion flagship Stores
2. Third Space Background
• 3rd Space is not new but within fashion
it has been growing since 2008
• Oldenburg (1989) spoke of the
traditional presence of neutral third
places in communities
• Places where individuals could gather,
exchange ideas and socialize
• Gap for commercial spaces which fill
the void created by the erosion of
these social spaces
• Shops and shopping centers now take
the place of traditional communal
meeting points (town squares,
churches, barber shops, bars, grocery
stores, restaurants)
3. Third Space –
Characteristics of Form
• Socialisation, entertainment and the
enactment of self takes place in new
branded spaces
• Supermarkets featuring cooking
classes and wine tastings to “stitch
and bitch” sessions and
customisation services in clothing
stores (WGSN 2013)
• Oldenburg (1989) suggests that they
should be: free/inexpensive, involve
food/drink, be highly accessible,
involve regular community and are
welcoming/comfortable
• Trend is particularly evident within
the luxury fashion sector
3. Third Space –
Characteristics of Form
• Consumers are
increasingly interested in
experiences which are:
– Unique
– Personalised
– Entertaining
– Relevant
– Authentic
• Not large spaces
• Form of added value often
promoted via social media
and word of mouth (The
Future Lab 2013)
3. Forms of Third
Space
• Open space – lounge/rest areas,
gardens
• Closed Spaces – VIP Rooms,
private suites
• Space for games/sport
• Space for art & culture
• Space for company artefacts –
heritage/museum
• Cafes and Restaurants
• Spa/Grooming services
• Space for education
• Space for technology
• Adaptable space
• Temporary Space
• Mobile space disembodied from
store (i.e. pop ups)
3. Function of Third
Spaces
• Third spaces are “being spaces”
that offer a refuge from
conventional commerciality
• Increase dwell time and create an
emotional connection
• Non traditional retail space –
strategic purpose
• Branded places that transcend the
static commercial experience with
hybrid spaces that speak to a
deeper commitment to a more
flexible, adaptable and experiential
business model (WWD 2013)
• i.e. art moves from occupying a
space on the wall to up front and
center stage
3. Function of Third Space
• Diffusion of point of attention
and intention
• Focus is shifted from brand as
icon to brand as omnipresent
• Co-creation of value
• Total branded experience
allows brand to be decentered
• Attention shifts to self, others,
screens, installations,
performance art, activities
• However all points should lead
indirectly back to the brand
3. Functions of
third space
• Emotionally engaging place
– Competes against ecommerce
• Creates deeper dialogue with
brand through emotional,
sensory connection
• Destination location for an
international audience
• Attract stakeholders attention
• PR exercise
• Integrates the brand values
• Communicates brand
personality and positioning
THIRD SPACE CONCEPT
4. Methodology
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Carnegie Trust Research Grant
Exploratory, Inductive, Qualitative
Observation (Quota/Purposive)
Key Informant Interviews (Convenience)
2 Phases:
Phase 1 – National, (2 key locations, 87 in total, 12 in-depth
elite interviews)
• Phase 2 - International
– Paris, New York, Tokyo, Milan, Hong Kong, Moscow,
Seoul, (2 key locations, 527 in total)
– Flagship Store Managers/Brand Representatives (3
interviews per city, 22 in total
• Thematic/Content Analysis
5. Results: Form
OBSERVATION:
• Around 57% of the stores
utilised an aspect of third
space/place (Tokyo, Milan,
New York)
1. Lounging/rest area
2. A space for art/Culture
3. An area displaying/curating
the brand’s heritage
4. Private area/VIP Suite
5. A Cafe/Bar
5. Results: Form – Conceptual Model
5. Results: Form
INTERVIEWS
• Very few brand representatives
were familiar with the term
• However they understood the
concept very well and said it was
an area of investment going
forward despite difficult trading
conditions
• “This concept is not new but it
certainly reflects some of the
marketing strategies we are about
to introduce” (Italian Luxury Brand)
• The manipulation of technology
within 3rd space will increase
5. Results: Function
• “To stand out from
competitors” (American Luxury
Brand)
• “To excite customers and get
them to stay longer...and
hopefully buy more” (British
Luxury Brand)
• “To build an emotional
connection with the brand”
(French Luxury Brand)
5. Results:
Function
• “As a signifier of lifestyle”
(Italian Luxury Brand)
• “To act as a further point
of communication for the
designer’s values and
philosophy” (American
Luxury Brand)
• “To showcase how flexible
the brand can be” (British
Luxury Brand)
THIRD SPACE CONCEPT
6. Summary
• Emerging research area within the business
and management academic discipline
• The forms of 3rd Space relate to access, time,
culture, leisure and education
• The function of 3rd Space is linked to the
notion of community and emotional
engagement, co-creation of value,
differentiation and positioning
• Future research aims to quantitatively test
the model of third space
7. References
• Anderson, S, Nobbs, K, Wigley, S and Larson, E (2010) ‘The Motives and
Methods of Fashion Designer and Architect Collaborations’ Journal of
Media Arts Culture, Vol 8. No.2 pp 1-11.
• Allegra Strategies (2005) ‘Project Flagship: Flagship Stores in the UK’
January 2005, Allegra Strategies Limited: London
• Barreneche, R, A. (2005) ‘New Retail’. Phaidon Press: London
• Kozients, R.V.,Sherry, J, F, DeBerry-Spence, Duhachek, A, Nuttavuthisit, K,
Storm, D. (2002) ’Themed flagship brand stores in the new millenium’.
Journal of Retailing, Vol. 78.,pp17-29.
• Moore, C & Docherty, A (2007) ‘The International flagship stores of luxury
fashion retailers’ Fashion Marketing: Contemporary Issues (Hines & Bruce)
• Oldenburg, Ray (1989). The Great Good Place: Cafes, Coffee Shops,
Community Centers, Beauty Parlors, General Stores, Bars, Hangouts, and
How They Get You Through the Day. New York: Paragon House
• Reynolds, J. Howard, E, Cuthbertson, C, Hristov, L (2007) ‘ Perspectives on
retail format innovation: relating theory and practice’. International
Journal of Retail & Distribution Management; Volume: 35 Issue: 8. pp 647660.
• Tungate, M (2009) ‘Luxury World: The past, Present, and Future of Luxury
Brands’ Kogan page: London.
8. Case Study:
Hermes
• Hermés’ three level deep
flagship is built in the former
Lutetia Hotel’s indoor
swimming pool in Paris’s left
bank
• The first level features a florist,
book store and tea salon
• Tall lattice wood huts separate
space which are multi purpose
• The ‘Festival des Mètiers’ is an
event where customers can
engage with artisans at work
9. Future Research & Discussion
• How does this concept transfer within an
online environment?
• Is it relevant for all sectors of the fashion
industry (Mid-market and Value)?
• Is the concept culturally sensitive?
• How can the strategic impact and
effectiveness of 3rd Space be measured?
• How should the commitment of 3rd Space and
commercial space be planned?