The Future of Design in Retail? Revolutionary Retail Brands Have Soul

WIRED UK
27 Mar 201913:15
EducationalLearning
32 Likes 10 Comments

TLDRThe presentation on the future of design in retail emphasizes a shift from transactional to relational experiences, focusing on three key areas: embracing the move from ownership to access, adopting a circular economy mindset, and transforming shopping into a home-based experience. The speaker highlights the importance of experiential retail, where digital elements blend with physical spaces, and the role of people in creating meaningful connections with products and brands. Successful businesses will adapt by leveraging technology to enhance experiences, hiring staff with the right skills to engage customers, and fostering a company culture driven by a strong sense of purpose. Authentic relationships, built on purpose, are crucial for sustainable brand growth and differentiation in the competitive retail landscape.

Takeaways
  • 🚀 **Design Evolution**: The speaker's company has evolved from product design to experience and service design, now focusing on designing change for companies and sectors.
  • 🔄 **Shift from Ownership to Access**: There's a notable shift from owning products to accessing services, exemplified by companies like Boober and Uber in the gig economy.
  • ♻️ **Circular Economy**: Sustainability is becoming a critical aspect, moving beyond just environmental concerns to creating an ecosystem for new value, which will be a consumer expectation.
  • 🏠 **Home as the New Retail Front**: Retail experiences are shifting to the home, competing with leisure activities like Netflix, with services like Chapa offering a personal styling experience at home.
  • 🛍️ **Transactional to Relational**: The future of retail is moving from transactional to relational, focusing on building lasting relationships with customers through experiences.
  • 🌐 **Online-Offline Integration**: A blend of online convenience and offline experience is key, with digital elements like personalization and peer reviews being integrated into physical spaces.
  • 🎉 **Experiential Retail**: Brands are creating unique in-store experiences, such as Sonos allowing customers to experience sound in context and Casper offering a nap trial with meditation.
  • 🤝 **The Role of People in Retail**: The importance of human interaction in retail is highlighted, with staff serving to build confidence and connection with the brand and products.
  • 👥 **Adapting Workforce Roles**: As technology advances, the roles that people play in retail need to adapt, requiring different skills and a focus on building rapport and engagement.
  • 📊 **Technology for Purpose**: Technology should be used to enhance the customer experience and align with the brand's purpose, rather than being implemented for novelty's sake.
  • 💡 **Purpose-Driven Brands**: Brands that understand and communicate their purpose effectively, like Rapha, build a loyal customer base and differentiate themselves in the market.
Q & A

  • What is the main focus of the presentation titled 'The Future of Design in Retail'?

    -The presentation focuses on the changes in design, particularly in the retail sector, and how companies are shifting from product design to experience and service design. It discusses the future of retail, moving from transactional to relational experiences and the importance of designing change for companies and sectors.

  • What is the first shift mentioned in the retail sector?

    -The first shift is from ownership to access, with examples like Boober, Uber, and Spotify, where the focus is on utilizing products and services rather than owning them.

  • How does the circular economy differ from traditional sustainability approaches?

    -The circular economy is about creating an ecosystem of new value where everything cycles back to create value, as opposed to traditional sustainability approaches that may focus on the environment or the materials used to build products.

  • What is the significance of the Chapa service mentioned in the script?

    -Chapa is a personal styling service for men that allows customers to try on clothes at home, turning the shopping experience into a personal and entertaining event, which competes for share of mind rather than just share of wallet.

  • How does the blending of online and offline experiences contribute to a relational retail model?

    -The blending of online and offline experiences creates a holistic shopping experience that moves beyond transactions to build relationships with customers, enhancing brand loyalty and engagement.

  • What role does technology play in the new retail model?

    -Technology is used to enhance the customer experience, provide context, and personalize interactions. However, it should be implemented with a holistic view and purpose, avoiding the pitfall of technology for technology's sake.

  • Why is it important for businesses to shift from a product focus to a purpose focus?

    -Shifting from a product focus to a purpose focus helps businesses build authentic relationships with customers, creates a brand with soul, and allows for sustainable growth and differentiation in the market.

  • What is the role of people in the new retail model?

    -In the new retail model, people play a crucial role in engaging with customers, providing personalized experiences, and helping customers connect with the brand and its products. The roles people take on may change, but they remain essential.

  • How does the company Bonobos utilize its guide shops to enhance the customer experience?

    -Bonobos uses its guide shops to provide a personalized experience where customers can try on clothes with the help of a guide who provides feedback and helps them feel special, building confidence in the brand.

  • What is the significance of the 'One Laptop Per Child' initiative mentioned in the script?

    -The 'One Laptop Per Child' initiative is mentioned as an example of technology implemented without considering the full system, leading to laptops being unused and stored in cupboards. It highlights the importance of considering the broader context and purpose when implementing technology.

  • How does the presentation suggest companies should approach the future of retail?

    -The presentation suggests that companies should focus on moving from transactional to relational experiences, reinventing the roles of people within the company, and building authentic relationships based on purpose to succeed in the future of retail.

  • What are the three key takeaways from the presentation?

    -The three key takeaways are: 1) Moving from transactional to relational experiences, 2) Reinventing the roles of people within the company, and 3) Building authentic relationships based on purpose.

Outlines
00:00
🔄 Shifts in Retail Design

The speaker introduces the topic of the future of design in retail, highlighting the evolution of their company from product design to designing change for companies, systems, and sectors. They discuss three key shifts in the retail sector: from ownership to access (e.g., Boober, Uber, Spotify), the rise of the circular economy with a focus on sustainability and recycling, and a new perspective on shopping as an experience that competes with other forms of entertainment at home, such as Netflix. The speaker emphasizes the move from transactional to relational interactions in retail.

05:01
🛍️ Experiential Retail and the Role of People

The second paragraph delves into the experiential phase of retail, using examples like Sonos's showroom and the Dreamery by Casper to illustrate how brands are creating immersive experiences that allow customers to engage with products in context. The speaker also discusses the concept of 'guide shops' like Bonobos, where the focus is on providing a personalized experience that helps customers connect with the brand and its products. The importance of hiring the right people who can build rapport and effectively engage customers with the product is highlighted. The paragraph concludes with a cautionary note on the misuse of technology for novelty's sake, emphasizing the need for a holistic view of the customer journey.

10:01
📈 Moving from Product to Purpose

In the final paragraph, the speaker stresses the importance of shifting from a product-centric to a purpose-driven approach in retail. They provide examples of brands like Rapha and Zalando that have successfully implemented this strategy by focusing on storytelling, quality, and creating physical spaces that align with their brand values. The speaker also emphasizes the need for businesses to understand their customers as humans and to build authentic relationships based on purpose. They conclude with a recap of the key points: moving from transactional to relational, reinventing the roles of people in retail, and fostering authentic relationships driven by purpose.

Mindmap
Keywords
💡Design
Design, in the context of the video, refers to the strategic process of creating and shaping experiences, services, and systems to meet the needs of users and clients. It has evolved from traditional product design to encompass experience and service design. The video discusses how design is now used to create change within companies and sectors, particularly in the retail industry.
💡Ownership to Access
This concept highlights a shift from traditional models of ownership to newer models where access to goods or services is prioritized over owning them. The video cites examples like Boober and Uber, which have moved from a model of car ownership to one where cars are utilized as needed, reflecting a broader trend in the 'gig economy'.
💡Circular Economy
The circular economy is a system aimed at eliminating waste and the continual use of resources. It is presented in the video as a sustainable approach where everything created cycles back to create new value, much like in nature. It is suggested as a future expectation for consumers and a key consideration for retailers looking to incorporate sustainability.
💡Experiential Retail
Experiential retail focuses on creating memorable experiences for customers, rather than just selling products. The video discusses how retailers are now competing for 'share of mind' and moving into the entertainment space, with examples such as personal styling services that transform the shopping experience into a home-based event.
💡Transactional vs. Relational
The video contrasts transactional retail, which is focused on the immediate sale, with relational retail, which builds long-term relationships with customers. Relational retail is seen as the future, where experiences extend the brand and engage customers before, during, and after the sale.
💡Amazon Go
Amazon Go represents a new type of physical retail store that is heavily integrated with digital technology, allowing for a seamless and personalized shopping experience. The video uses Amazon Go to illustrate how digital elements like localization and peer reviews are finding their way into physical retail spaces.
💡Sonos Showroom
The Sonos Showroom is an example of experiential retail where customers can experience products in context. The video mentions how Sonos allows customers to sit and experience the sound quality in a setting that simulates their own living room, emphasizing the importance of trying before buying.
💡Bonobos Guideshops
Bonobos Guideshops are retail spaces where customers can try on clothes with the help of a guide. The video describes these shops as offering a premium experience where customers receive personalized assistance, which helps build confidence in the brand and facilitates a more informed purchase decision.
💡People-Centric Approach
The video emphasizes the importance of a people-centric approach in retail, where the roles and types of people involved in the retail process are reimagined. It discusses how companies like Nespresso and Goochy hire staff with specific skills to engage customers in a way that goes beyond the product itself.
💡3D Holographic Displays
3D holographic displays are a technological innovation mentioned in the video, used in advertising to create an immersive and engaging experience for consumers. However, the video warns against using technology for its own sake, advocating instead for a holistic view that aligns technology with the overall shopping experience.
💡Purpose-Driven Brands
Purpose-driven brands are those that have a clear mission or goal beyond just selling products. The video discusses how brands like Rapha and Zalando have successfully created a sense of purpose that resonates with consumers, leading to a stronger brand identity and customer loyalty.
Highlights

The future of design in retail is shifting from product design to experience and service design, focusing on designing change for companies and sectors.

A significant shift from ownership to access is observed, exemplified by services like Boober and Uber, indicating a move towards the gig economy.

The circular economy is emerging as a key sustainability concept, creating new value through an ecosystem that cycles resources similarly to nature.

Retailers are now competing for share of mind, not just share of wallet, as seen with services like Chapa that turn shopping into a home experience.

The future of retail is moving from transactional to relational, with a focus on building experiences that extend the brand across all customer touchpoints.

Amazon's Full Star and Amazon Go represent the blending of digital elements into physical retail spaces, such as localization and personalization.

Sonos and Casper are examples of brands that excel at creating experiential retail environments where customers can engage with products in context.

Bonobos' guide shops and Buy Kitchens demonstrate the importance of human interaction in retail, with staff serving to enhance the customer's connection with products.

The role of people in retail is changing, with a need for different types of staff who can build rapport and engage customers with a focus on experience rather than just product.

Technology should be used to contextualize and enhance the shopping experience, rather than being implemented for its own sake.

Provision, a company in 3D holographic display advertising, illustrates the potential of technology when integrated thoughtfully into retail experiences.

The shift from product to purpose is crucial for brands to build authenticity and loyalty, as demonstrated by brands like Rapha and Zalando.

Zalando's lab drives innovation and helps to instill company-wide purpose, showing how internal culture can align with brand values.

Purpose-driven brands understand humans, giving them soul and helping them stay ahead in the competitive retail landscape.

Three key takeaways for retail brands are to move from transactional to relational, reinvent the role of people in retail, and build authentic relationships based on purpose.

The presentation emphasizes the importance of aligning with consumer expectations, particularly regarding sustainability and experiential retail.

Transcripts

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Related Tags
Retail DesignExperientialService DesignCircular EconomySustainabilityGig EconomyCustomer ExperienceBrand LoyaltyDigital RetailPhysical StoresPersonal StylingRelational MarketingPurpose DrivenBrand CultureInnovation LabCycling CommunityHolistic ApproachTechnology Integration