Shops sell things. But maybe that's not the future. Brand retailers that don't deliver "heavy duty" in-store experiences could be destined to fail. In-store isn't about distribution any more. Shops are the new media. So says "retail futurist" and founder of The Retail Prophet consultancy Doug Stevens.
He told marketers yesterday that retail stores like Burberry and Lulu Lemon already provide “heavy duty” brand experiences beyond commerce. He aid that as media channels have become more like stores, stores must become a source of media.
Speaking at the Online Retailer Conference in Sydney the Canadian said: “We're witnessing the end of a 50 or 60 year era in the way we shop. It's abruptly coming to an end. The value of a store used to be for the distribution of product. Now it's not.”
Mobile and digital is accelerating the shift that has changed consumers' access to products through things like shoppable video, e-commerce, f-commerce (Facebook commerce) and social networks, which means they don’t need physical stores to buy things anymore, he suggested.
“We need to wipe out of our mind the traditional notion of path to purchase as there isn't one anymore. [Marketers] would be better off thinking of purchases along the path. We need to stop thinking in terms of channels of communication and marketing channels and start thinking of the moments where consumers need the things we sell and then use new technologies to bring the opportunity to buy to them.”
Because shoppers can buy goods anywhere and any time, stores will become places for co-creation, personalisation and what Stephens dubs “consumanufacturing”.
“[The job of a store is] to create a brand experience so powerful consumers will want to buy from your brand on whatever channel.”
He cites Lulu Lemon yoga stores, which have been described as “cult-like”, Burberry's flagship in London and cycling shop Pave in Barcelona, as examples of stores that already offer “heavy duty” brand experiences.
“Media is becoming the store – media's role is to be the store not just bring people to the store. [Brands] have to look at the function of a store – it's not to distribute masses of product but to provide masses of experience. The store is becoming one of the most powerful sources of media.”
He suggests that retailers only just wising up to omnichannel are already five years behind, because retail platforms such as eBay are already thinking about the context of retail and selling rather than the actual transaction.
One problem Stephens sees with retailers is the perpetual competition between rivals, which he says stalls innovative thinking and progress. He offers a stark warning for retailers to look further afield for inspiration and the next big idea.
“We need to stop competing because it leads to incremental behaviour. The problem with that is your competition isn't who you think it is. It's actually a 26-year-old kid building an app that will eradicate what you do.”
From a local perspective, John Batistich, marketing director of Westfield Australia, agreed. Below are his top three examples are of local brands embracing the trend:
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Sports store Lorna Jane, which has a strong social community and sells a a lifestyle beyond products, according to Batistich.
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Fashion store Sports Girl which uses digital technology in its store to connect its digital marketing.
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Street and surf fashion store Superglue's high end concept store in Melbourne offers an espresso bar, exclusive high end magazines not available in Australia as well as a denim tailor that will personalise garments.
“There's no question that these businesses are performing better and are all showing growth by redefining stores not as a place of transaction but with a focus on basic human desire for social interaction, instant gratification and allowing the shopper to buy their way.”
It's not always retailers embracing the trend, he says. FMCG firms such as Coca-Cola with its names on bottles activity and Unilever's Magnum ice cream bar show how brands can get in on the action too.
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