building brands with bricks and mortar

Building brands with bricks and mortar

Retail is a wonderful world!

1. Why you need to build wonderful worlds

2. Who’s building wonderful worlds

3. How you can build a wonderful world

Why you need to build wonderful worlds

We live in a sophisticating world

Why build wonderful worlds

1. Sophisticating consumer/sharper, wiser

2. Sophisticating media landscape

3. Sophisticating competition/direct, indirect

1. Customers today:– Know it all– Are up with the latest– Want things yesterday– Demand great design

2. Great price and quality are ‘hygiene factors’

3. 59% have all the material things they need

4. Recession is an accelerator

*Source: Fitch/Chain Store Age, May 2006

Sophisticating media landscape

The media landscape has exploded and sophisticated

Source: CEASA Report YE 31 December 2005: data represented in $AU M

The growth is in ‘me media’

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Internet $85 $80 $167 $236 $388 $647

Pay TV $40 $55 $74 $93 $123 $160

Cinema $69 $64 $58 $66 $74 $83

Outdoor/Transit $276 $271 $261 $297 $328 $357

Radio $684 $695 $702 $737 $841 $890

TV $2,746 $2,490 $2,592 $2,923 $3,142 $3,335

Mags $971 $889 $988 $1,057 $1,191 $1,298

Press $3,184 $2,946 $2,739 $3,000 $3,341 $3,564

2000 2001 2002 2003 2004 2005

Time spent online continues to grow

1.8

3.3

3.3

3.0

6.1

6.8

6.7

10.9

9.4

2.1

3.3

3.4

3.5

3.6

6.0

7.9

7.6

10.7

2.3

2.8

2.9

3.7

4.5

4.0

5.9

6.0

8.1

9.1

10.0

10.2

11.7

5.4

8.8

1.4

5.8

8.8

2.6

11.0

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Reading magazines

Reading newspapers

Accessing the Internet at work

Playing console games

Playing computer games

Watching DVDs/Videos

Reading a book

Exercising

Listening to music/CD

Accessing the Internet

Watching Pay TV

Watching TV

Listening to the radio

Average hours per week

On average, how many hours do you spend on each of the following?Base: Australian adults aged 16 plus who use the Internet (n=500)

Simultaneous usage growing

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% A

ustra

lian

adul

ts

All the time 7% 8% 4% 6%

Often 13% 11% 4% 5%

Sometimes 14% 20% 13% 36%

Never 66% 60% 80% 53%

Don't know 1% 0% 1% 1%

Using Internet and TV

Using Internet and listening to Radio

Be listening to Internet radio or

Podcasts

Be using your mobile

When using the Internet, how often will you also….Base: Australian adults aged 16 plus who use the Internet (n=500)

Sophisticating competition

The changing shopper dynamic

Trade-Up “Where I care”

Trade-Down “Where I need to”

The middle market is disappearing

Lower end continues to smarten up

Was Is

B&M

Bodycare

Primark

‘Pop Up’ Store

UNIQLO

• http://www.uniqlo.jp/uniqlock/• http://www.uniqlo.com/utloop/

Why you need to build wonderful worlds

1. Retail space is the ultimate consumer interaction touch point

2. Retail space is the ultimate 4D media space

3. Retail space is the place where you get to express your brand

Who’s building wonderful worlds

TOPSHOP

TOPSHOP

KWIK E MART

KWIK E MART

KWIK E MART

KWIK E MART

KWIK E MART

KWIK E MART

KWIK E MART

KWIK E MART

Dior Homme

Dior Homme

H&M

House of Hoops

Nike, London

The Quarter Pounder Store, Japan

VillaModa

SNOG, Soho

Aesop

Bape: A Bathing Ape

Kymka

Sevva

Villa Sofa

Best Buylayout

magnolia entertainment lounge

home entertainment

speakers

TV’s

gadgets

white goods

floor carefurniture

computers

computer peripheralsmobile

entertainment

music

customer service

checkouts

DVDs

games

digital photography

software

assistance

kids

mobile phones

mobile music

entry/ exit

Best Buy layout

WOW & NOW

How you can build a wonderful world

Know your customerKnow how they behave Identify with them Understand the competitive environment Know the future trends and opportunitiesBe brave … go further than you thinkIdentify key consumer touch points & influence

The 9 steps to building a wonderful world

1.Attract attention2.Entice & seduce3.Make it WOW4.Explore & navigate5.Find & discover6.Inform & secure7.Add value8.Close with confidence9.Reasons to return

Attract Attention

1

Make itwow!

3

Explore &Navigate

4

Find & Discover

5

Inform &Secure

6

Close withconfidence

8

Reasonsto return

9

The customer journey

Entice &Seduce

2

Add value

7

30m

The customer journey

1. Attract attention

Champs Elysees, Paris

2. Entice & seduce

3. Make it WOW

4. Explore & Navigate

5. Find & Discover

6. Inform & Secure

7. Add value

8. Close with confidence

9. Reasons to return

Attract Attention

1

Make itwow!

3

Explore &Navigate

4

Find & Discover

5

Inform &Secure

6

Close withconfidence

8

Reasonsto return

9

The customer journey

Entice &Seduce

2

Add value

7

30m

Strategic approach

Identity Experience

Idea

In Summary…

1.Today’s sophisticating consumer and competitive landscape demands all retailers build wonderful worlds2.The world’s most successful retailers have built wonderful worlds3.To build a wonderful world you need to first identify your brand’s core idea, second articulate its identity and then follow the nine step process to creating the experience

Retail is a wonderful world!

Any questions?

Thank youPlease contact me

stephen.kulmar@retailoasis.com