Introduction to Retail Design Presentation to: Temasek Polytechnic, Singapore ZSTU, Hangzhou, China Bill Webb The London College of Fashion The University of the Arts, London www.arts.ac.uk largest university for art, design & fashion in Europe over 25,000 students students from more than 130 countries six specialist colleges focus on retail & fashion management Fashion Retail Academies centres for consulting and industry training extensive research…”Size UK”…”Mass Customisation”… The University of the Arts, London UAL Headquarters, London Mme Hu Jintao with Sir Michael Bichard, Rector Bill Webb Scholar of Cambridge University 30 years experience in fashion management, consulting and teaching Conference presentation and publications (The Fashion Handbook, Fashion Marketing – Contemporary Issues) Recent visits to Shanghai, Hang Zhou, Beijing, Dalian & Hong Kong Chinese wife and home in Dalian The Power of the Visual “You only ever have one chance to make a first impression” Why it matters…… “The first bite is taken with the eye” (Larousse) Store design is a key element of fashion brand marketing Why it matters…. shop design is the expression of your brand at the point of sale (Zara) shop design provides a three dimensional brand experience your shops are expensive assets! New Look Success Rating of Retail Design (UK retailers - % - source: Mintel) Change of image Increasing footfall Increasing average transaction Better than expected 25 15 9 As expected 43 61 56 Less than expected 11 5 7 Don’t know 14 14 23 7 5 5 100 100 100 Not an objective The Store Development Process Step Step Step Step Step Step Step Step Step Step Step Step 1 – define distribution strategy 2 – select design agency/team 3 – prepare design brief 4 - create design concept (research?) 5 – concept detailing & development 6 – layout & space planning 7 – prototyping & costing (QS) 8 - tendering appoint shop fitters 9 – open pilot store & evaluate 10 - snagging 11 – roll-out, with marketing support 12 – on-going performance evaluation Benefits of Retail Design Differentiation Levi Jeans San Francisco Benefits of Retail Design Catalyst for Change Benefits of Retail Design Sales & Profit Improvement Benefits of Retail Design Operating Efficiency Benefits of Retail Design Staff Recruitment & Motivation Benefits of Retail Design Customer Loyalty Benefits of Retail Design Branch Network Expansion Benefits of Retail Design Summary differentiation catalyst for change sales & profit improvement operating efficiency staff recruitment & motivation customer loyalty branch network expansion How to Design your Shop in-house external agency design agency architect equipment supplier shopfitter advertising agency joint project The Design Brief “Know who you want to be” the “bible” for the project should be drawn up jointly by the project team should be signed off by the director or budget holder time and cost of preparing the brief must be allowed for Don Watt Contents of the Design Brief creative brief operational brief financial brief programme contractual issues The Creative Brief background to the project “big Idea”, “vision”, “USP” – key dimension of competitive advantage target customer + lifestyle, needs and usage geographical market characteristics competitor analysis – positioning merchandise categories & brands desired mood & ambiance brand personality & value Integration with other brand marketing The Operational Brief shop location & site shop size & variations, space use methods of operation – stock holding, replenishment, circulation, etc product mix & characteristics display method & density requirements security strategy promotional & marketing requirements method of payment customer service offer staff and customer facilities legal issues The Financial Brief budget for the project, inc contingencies trading potential for specific stores, including pilot store capital v. revenue costs evaluation measures • • • • • • • (increased) profit return on investment sales and market share (increase) space & employee productivity footfall, visitor profile conversion ratio transaction value, multiple purchasing loyalty, visit frequency Key Design Elements store front & windows interior ambiance space use & layout merchandise presentation signs & graphics service(s) visual merchandising Store Front and Windows Interior Ambiance Interior Ambiance colour finishes (floors, walls, ceiling) textures lighting temperature sound/music smell products & customers! Space Use and Layout Space Use & Layout principles footfall horizontal circulation vertical circulation space allocation adjacencies use of the cube densities flexibility Space Use and Layout grid boutique rose freeflow loop or “racetrack” Space Use & Layout Merchandise Presentation hanging lateral frontal stacking dumping pegging mixed Merchandise Presentation sight lines vistas focal points category coordination fixtures Signs & Graphics information education promotion atmosphere Levels of Design Application 1. 2. 3. 4. 5. cosmetic : graphics, paint etc facelift + secondary fixtures, lighting, uniforms, flooring refit + fixtures, layouts, equipment remodel + exteriors, circulation, services, total concept…. rebuild : start again! Spend depends on…. return on investment local customers local competitors shop unit state of the art knowledge Visual Merchandising “The First Bite is always taken with the Eye” Origins of Visual Merchandising Fashion - creative display Consumer Goods - merchandising disciplines Visual Merchandising Visual Merchandising Douglas Crate & Barrel Visual Merchandising Objectives Strategic - supporting your brand enhance customer experience improve store intelligibility suggest customer problem solutions improve your R.O.I. Visual Merchandising Objectives Operational - improving trading results increasing increasing increasing increasing sales profit margins stock turn space productivity Visual Merchandising Objectives Tactical - optimising daily opportunities supporting supporting supporting PR supporting supporting new products supplier promotions your own advertising and seasonal promotions “Sales” Tools of Visual Merchandising graphics colour lighting texture display props electronic screens the merchandise itself ! Tools of Visual Merchandising Which Brand is this? Tools of Visual Merchandising Measuring Visual Merchandising footfall dwell time conversion rates transaction values multiple purchases sell down rates promotion take-up rates brand awareness & reputation Fashion Brand Identity Stylistic Identity – product design handwriting Image Identity marketing communications Retail Identity – selling environment Burberry Saviola & Testa (2000) International Flagships Burberry, New York Comme des Garcons, New York Louis Vuitton, New York The International Brand Building “Flagship stores are those stores regarded as the pinnacle in the retail chain. They are usually large and located in high footfall, prestigious locations. They offer a full range of merchandise, with an emphasis on the more expensive, high quality and high fashion lines. The role of the flagship store is essentially about retail brand building and reinforcement rather than profitability. The media coverage that flagship stores attract adds to the communications process. When entering new international markets, retailers often begin with a flagship store incorporating the latest store design, to test the reaction to the retail concept” (Varley, R & Rafiq, M, 2004 p167) Design Management specific responsibility integrated team approach continuous application right skills – architecture, interior design, graphic design, retail operations, retail marketing specific budgets and evaluation Hugo Boss Thank you – Any Questions? Now’s Your Chance! b.webb@fashion.arts.ac.uk