How can the physical store start to gain this role of proximity with concrete and effective responses, as a proprietary source, which begins to better understand its strength, as an agent of change…
Competition and Collaboration »
The speed demanded by the market has led brands to negotiate collaborations and new partnerships for the development and signature of their products and collections, perhaps the result of digital culture but which today has a greater strength to exist for the concept of serving and with greater satisfaction . It is for this reason that we increasingly need to cultivate the association of brands with complementary or similar purposes and that are willing to innovate more frequently in actions with consumers together and in a format of clear consumer perception than we are defending in context of the community’s mental health. For that, we cannot absorb a great density of attention due to the disorientation that causes abstinence from the quest to be satisfied, but we must try to be in tune with the moments of greater awareness of the refusal by the real need of the individual in order to achieve the attainment of his quality of life. . Or, many times, to support whenever it is important a full action to define the enlightened and assumed decision that will bring benefits to both parts of the consumer business.
Physical store is the new “contacless” medium »
“What is your function?” and “What is it really?” – are recurring questions in many retail meetings around the world. To answer, we must understand that the sale is no longer the sole objective of the physical store and the materialization in the physical space respects not only the brand building but also the commitment beyond the sale itself. In fact, the physical store does not exist only to distribute products, but to build brand value. In addition, the physical space must also add the responsibility itself for a new media model for branding consolidation, without making the brand hostage only to digital media, and elevating face-to-face contact through experience, assuming an Omni Chanel connection with costs each time. greater in the physical proximity relationship of spatial-object promotion, without traditional contact. It will not be so important to touch to feel but the reality of feeling the desire to have it will make me feel more complete because I know the difference to my quality of life as an individual and when in the community.
The revival of the physical store »
Another topic is the revival of the physical store, its new direction and how stores have sought to review or reevaluate their investments in publicizing their brand with the tendency to be only in digital. We have to remember that in 2010 everyone needed a website, and that in 2015 everyone needed to have an e-commerce website to exist with the consumer and in the beginning of 2020 it was evident that the common feeling of everyone having a physical store ” . And today what has changed just a time of adapting behaviors to be in the physical store with more respect for everyone in line with Covid-19’s social welfare. Do we need a return to the origins? Influence consumption with a new vision and new usage formats? And learn new management models for the sustainability of the family and the community? How can the physical store start to gain this role of proximity with concrete and effective responses, as a proprietary source, which begins to better understand its strength, as an agent of change, and the paradigm of learning by a global society with advantages of disadvantages hybrid shopping, where the online (without experimentation, with fast reach, reverse logistics, among other points) and the physical as the showroom, purely a showcase free of usability where the experience can surpass the limits of perception, of the knowledge that we are all consumers and agents of the circular business, who can elevate the concept of the visit to overcome barriers or obstacles to participatory health and sharing by real emotions.
An increasingly consensual concept is that of Retail + Entertainment. In other words: enough of having the store with “more of the same” (boring), where we have the product deposit and salespeople interacting to force the sale. Retail has to look for entertainment in the physical space, applying new sales concepts based on ROE (Return over Experience) and considering not only in managing the reach of ROI (Return over Investment). The vision of physical stores, have a calmer sales environment, without friction, a continued well-being, whether to stroll, with moments of learning, to know the product (s), and buy at home. Today, Slow Sell is the focus of many brands. Within these concepts, we see many stores with restaurant, café, bar, lounge for socializing, classes, workshops and personal shopper – and the brands try to tell their storytelling in the physical space.
Rent, Resale, Refurbish »
A very strong movement in retail is renting – Rent / Resale, which is the sale of used products or the rental of them. And Refurbishment, which is the sale of a refurbished product, or, often, a new product built with the reuse of components from other products. It is a concept that involves the term ‘Conscious Fashion’, a more conscious concept, which can dominate the global market – of brands with a larger image dimension.
Diversity and Inclusion »
Accessibility to the architectural design of the stores, we feel the lack of gender definition and visual identity of the physical space in a more inclusive and diverse way, including the selection of vendors for the stores, coming from different ages, ethnicities, genders and spiritual. The selections in the product catalog must be more aware of meeting a greater diversity of types and needs. It is a consensus that brands that are not prepared to deal with awareness and inclusion, in their entire production chain, will have problems with their consumers.
Social Retail »
If we read the example of Starbucks recognize that the feeling throughout the journey, from the entrance and go through the context of service to the satisfaction of consumption that in most cases leaves a memory of their humanity because it gives more time for us to be human – this is a direct relationship to the Social Retail trend. It is what we call “Third Place”. We all have our first social space, which is our home; the second is our work, and now there is the “Third Place”, a place where we get distracted and live together. Within this logic, it is from this third sphere that retail must conquer, by proposing brand experiences based on empathy (understanding the new issues of society, for example). Some stores considered Community Stores bring designers, collaborators, producers from the region to the store and connect these professionals to the local community. In addition to providing services to this community as well, such as classes, tips, recycling, social connection and etc. In this sense, the physical store must be a participant in simple and creative solutions, with an eye towards the consumer and their behavior in a global way, which can consequently reinvent their business model.
Health, Behavioral Economy »Retail was particularly affected by the period of confinement by restricting consumer mobility and confidence, causing a natural drop in consumption. Coronavirus introduced a triple, behavioral, health and economic crisis. The pandemic scenario makes it clear that there is no alternative for public policies that does not depend on the commitment and conviction of the population, to respect hygiene and agglomeration rules. Without that commitment, there is no strategy that will work. Today, there is an urgent need for a discourse and functional alignment to change behaviors, with agility and transparency, in improving the relationship between the person-consumer and effective communication.
Hope Innovation »
The current health crisis is the inevitable collapse of health as we knew it in 2019. There is no health system in the world that can handle the impact of this pandemic only with hospitals and isolation because if we add, as a consequence, another economic crisis which is of great uncertainty, clearly we all have to wake up to a more prepared and active life to unite people.
Are we better prepared to deal with this pandemic today? Clearly so, but for that we cannot rest waiting for some to solve the problem by the perfect solution, we all have, without exception, to promote the best practices and exemplary behaviors even though they seem to have no logic of effectiveness because they are part of the change and prevention to avoid a state of war against an invisible enemy.
It will be necessary to make a prolonged effort not to overload the health system, with the union of all for a participatory and shared health, among all agents of change, be they governmental, social and private entities, for the management of preventive health actions and organized in unifying values for the well-being of all.
What are we, the PLM, doing?
We are aligning a common strategy, with new platforms and new business models, without much time to follow to change strategies and offerings of products + services, capable of facing the course of the health, social and economic crisis, which we already know be of a very high cost and effort for the financial recovery of all by all. Today we are more convinced of the shared responsibility for shared health without merits and the commitment to support retail in its new normal for the importance of the physical store as a stepping stone for the existence of brands and the complement of social well-being. Without panic, we are all able to prepare organic social collaborations and learn new behaviours that are sure to demonstrate that we are capable of taking care of the current paradise in which we live. “Only the history of the past will do justice to the present memory”.
Article was written by César Augusto Lopes, Cheif Innovation Officer of PLM Global