Theme 2: NEW RETAIL – rethinking the physical shop DT17 - 2rd Sem - Oral Synopsis exam - Marketing & Communication Design
What will challenge the physical stores in the future? ?
Introduction to my model brand Vision: make sophisticated Founded in 2002 by Troels H. design accessible to the largest Povlsen, Mette & Rolf Hay possible audience Target group Mission: create modern furni- People between 20-70 who ture, focusing on materials, sus- are interested in design tainability and quality industrial manufacturing Competitors Value: development through Normann Copenhagen, Muo- sharing skills, simple solutions to, Broste and Ferm living and learning by doing
Why does HAY have to rethink its physical stores? - Clothing and shoe stores are affected - however, it will be observable in furniture stores as well 1 - Leading brands as Amazon, Nike and Co. redesign their physical stores - trickle down effect 2 - Significant growth in the interior design business followed by the macro trend technology 3 - Competitive advantage - HAY has the financial capacity to invest in their future 4 Working future-oriented is today more important than ever for HAY Sources: 1. https://www.housefull.com/blog/why-buying-furniture-online-is-becoming-popular 2. https://qz.com/956745/retail-experiments-from-farfetch-nike-and-amazon-offer-visions-of-the-store-of-the-future/ 3. Augment. How Augmented Reality & Innovation are Shaping the Future of Interior Design. Augment News (2016) 4. https://finans.dk/erhverv/ECE9958452/stifter-blev-genindsat-som-direktoer-efter-drama-nu-tjener-hay-mere-end-nogensinde/. (Accessed:
My problem statement But how can HAY transform today‘s shopping experience such that consumers are enticed to still visit their physical retail stores in the future? How may HAY shift their focus towards not only selling their products but also providing a real-life experience in a future setting?
Theories and Methods in-store observation expert interview Initiatives for HAY‘s retail future video-recorded in-depth inter- views of my personas theories qualitative research research methods SWOT/TOWS primary quantitative IVAN model online survey research research PESTEL model secondary Zeitgeist KEA facilities articles research Business Model Canvas statistics Value Proposition Canvas trend forecasts 4 Realms of an Experience Customer engagement books Marketing plan
My initiatives for HAY‘s retail future
1 st initiative: Pop-up shop - an addition to HAY‘s existing stores - more about the real-life experience - goal: to raise brand awareness and offer the customer an insight into HAY‘s universe - combines education, inspiration and entertainment
1 st initiative: Pop-up shop - it will be based on the 'un-store' con- cept - customer has the possibility to scroll through the product range on ipads and send the information to their phones - the advantage of the un-store is to col- lect data of consumers behavior
1 st initiative: Pop-up shop The second level has two functions : - artist exhibition that covers the whole room in one print (inspired by Louisiana) - virtual reality device which offers to experience HAY‘s showrooms – aims to give the customer inspiration for their own home
1 st initiative: Pop-up shop - There will be an exhibition which will be a mixture of the digital and analo- gue world of HAY - Ideas for the exhibition: the journey of the furniture, prototype, information ab- out product range, etc. - Focus on education and entertain- ment and presenting the customer HAY‘s way of thinking and its univer- se
2,50 HAY 5,25 25 2,50 OPSTALT FACADE A SNIT 2,75 1,00 6,00 1,00 6,00 FACADE A FACADE A 2,50 GRUNDPLAN 1. ETAGE HAY M:. 1/50
2 nd initiative: Branded VR device - VR device that enables the customer to see the showroom in a virtual reality at home - additionally, the device will have a print of HAY’s employed artist to make it visually appealing - they will be for free for the first 1000 visitors at the launch event, afterwards they will be sold for 30 DKK per device
2 nd initiative: Branded VR device
3 rd initiative: Marketing material - there will be new marketing mate- rial annually when the content of the exhibition on the second floor chan- ges - minimalistic style matching HAY‘s brand image - will be available for sale in the pop- up shop
4 th initiative: HAY goes mobile HAY goes mobile Initiative for HAY‘s retail future
4 th initiative: HAY goes mobile
4 th initiative: HAY goes mobile
4 th initiative: HAY goes mobile
Extract of Value Proposition Canvas Gain Creators - Seeing furniture in your own home through the AR function strengthen the consumers purchasing decision and less furniture will be returned to the store - saves consumer time Gains and money - Easy overview of product range & information through the - Saving money /time app - Instant and easy access to information Products & Services - Knowledge about quality design - Educating people on quality desing through the app design - App : Online shop, the virtual realiy showrooms, Customer jobs the augmented reality function, the education Functional: Easier way of section, the social media styling home - through AR app channel and the news Social: #HAYxMYHOME about HAY‘s universe connects the consumer, they gain status - Pop-up store : Exhibition, Pains Virtual Reality room, pos- sibility to shop online in - Lack of expert knowledge about Pain Relievers the sotre store furniture - Lack of imagination - Expert knowledge is provided through the educational - Driving to a mall or the city center is - Branded VR device section and news page of HAY‘s app time consuming - AR functionality helps the consumer to visualise the appea- rance and dimensions of the furniture - Placing the pop-up shop close to public spaces
Consumer Mindset Map Technologically savvy Aesthetic Curious Steven Pilger, 25 Future orientated Early adopter Malene Hasse, 53 Bioninformatics Interior designer & Function orientated Passionate teacher at KEA student Modern Creative Design Open minded Digital enthusiasts at the age Interior design Interior design range bet- hobbyiest professional Artistic ween 20-55. Traditional Sustainable Brand conscious Experienced in de- Analogue sign business Imaginative Late Mainstream Critical Inquisitive Technologically challenged Victoria Großardt, 30 Jens Holm, 47 Architecture student Sales agent for MP Denmark
Why does it make sense for HAY to incorporate my proposals? - additive value for their company - strengthen their competitive strategy - not one of HAY‘s competitors has incorporated technology or real customer experience in their pop-up shops before - trends shift from America to Europe - could attract a new target group
Pros and Cons - VR devices‘s retail price might be too - DK is an easy country to adapt my low proposals - digital pioneer and de- sign history - might be a risk to not sell items at - HAY would be the first to heighten the store except for the posters and VR devices the standards in terms of in-store expe- rience - annually exhibitions could be too long to constantly attract visitors - incorporating the newest technology could offer HAY new collaboration partners and might attract a new tar- get group
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