store in store marketing

Flexibility Study of Shop in Shop Concept

Cyril So

Marketing Consultant

Karma.saca@yahoo.com

Store in Store Concept for Brand Owner

A SMALL STEP BUT A BIG LEAP FORWARD

Store In Store Concept - SISC

Store in Store Mechanism

RETAIL BRANDINGSISC

SHOWCASE

Store in Store

Incity Store – A summary

RETAIL: a big leap forward for a Brand owner who would engage in retail market.

BRANDING: Is the place to meet our end users face to face and deliver Brand Owner message directly to them.

SISC SHOWCASE: is where we integrate with what Brand Owner distributors’ need

What is SISC?

SISC = Store in Store Concept

A business cooperation formulated by Brand owner and distributor

A retail mix supported by high level sharing of business expertise (production + retail)

A localized alliance that strengthens both parties for global competition

A co-branding operation to seek an unique mission

Famous SISC brand owner: Levi’s, Addidas, Tom Tailors and others…

What is SISC?

Store in store concept is

“when BRAND OWNER and DISTRIBUTOR are in

joint force to create an image brand store that leverages

on each other knowhow to new business alliance .”

What is SISC?

BRAND OWNER

production /Image

DISTRIBUTOR

retail /market

BRAND IMAGE STORE

SISC Defined by Business Experts

“SISC is a clear example of how collaboration between brand owner and distributor which is developing to become a long term oriented working partnership.”

“SISC is the balanced composition of the retail mix of a brand owner and distributor.”

M. Mossinkoff (U Amsterdam) W. Smith (Erasmus University, Amsterdam) Looking Behind the Scenes of Shop in Store concept. sprout.aisnet.org

Why Consumers like SISC

Direct product: consumers are delaying purchasing decision until they see the real product in a shop especially as Internet is full of tricks and confusion (i.e. fake product or grey product) – Cobb 1997

Total experience: consumer looks for not just product but experience, only a shop can provide a total experience.

Stronger confidence: as consumers access the brand from production to retail.

Unique Brand Image: Consumers also access to the company’s mission and commitment. They’re not just buying a product but a mission.

Why Brand Owner needs SISC – Longer term reason….

Brand owner is rapidly involved in global marketing and global competition, we need alliance to fit into regional needs. (Global Brand with a local touch, language, market information)

Competition from all directions (copy cat, low cost competitor from developing countries, even distributor-come-brand owners)

Consumers data has never been that important but it is all controlled by distributors.

Profit Structure: SISC can change the way how profit is shared…..

Why Hape needs SISC – Shorter term reasons……

Stronger bargaining power in wholesale price

Stronger control of brand message and brand development

Eliminate competition from distributor (when distributor creates their own OEM brand)

Involvement in retail profit by leverage on distributor’s knowhows

Create new OEM business (distributor becomes friendly potential brand partners)

Cost and Profit Structuration

Traditional Market:

(20% production + 30% profit) Vs (50% distribution + logistic)

Online Market

(20% production) Vs (80% marketing + distribution + logistic)

SISC market

Hape: (20% production + 40% marketing + 10% SISC shop)

Distributor: (10% marketing + 10% Brand Image Shop + 10% logistic)

These are the costing/profit structure between brand owner & distributor

Why distributor joins SISC

Tighten connection with production (brand owner)

Access to important information even trade secret in production because of closer connection

Leverage from huge production setup (claiming to consumer that they have their own production line to reinforce consumer confident)

Earn profit from marketing effort from brand owner

Long term collaboration benefit (i.e. inventory guarantee)

Problems

What are less favourable to Brand owner?

Unstable if rely only on few distributors

Slower way to setup Brand Owner Store

Distributor may influence on our design format (look and feel)

Conflict between SISC distributor and non SISC distributor

Danger of taking over from strong distributor

Distributor may learn our expertise and create their own

What are the format of SISC?

1. Shop within a shop (i.e. leasing booth in department store, dedicated corner within a shop) – (i.e. Brandowner’s counter in other mall)

2. ID Corner: brand owner provides the design, visual merchandising and shopfitting. Both parties pay for the shop and share profit.

3. Depot: no significant changes only soft-ID signing (logo display)

Different levels of SISC distributor

It is possible to implement system for a different level of distributor based on their royalty, sales Volume or other criteria. For examples:

Label StoreAuthorized ShopRetailerPremier Shop

How to Implement an Image Store?

Design: Look and Feel (Brand Image)

Modularized Furniture System

Business Formats

Look and Feel: Image store

Simplistic, Minimal and European feel

Stylish – clean and warm style rather than supermarket

International and high brand

Functional – size and dimension of furniture fit into different venue setting

Design Reference

• Classic High Brand• White and simplistic shelf

Design Reference

An Accessories Shop

Simplistic style, white

European Flavor

Design Reference

Wooden floor and furniture in warm homely setting

Intuitive shelfing

Spotlighted area

SISC Store Design

SISC Store Design

SISC Store Design

SISC Store Design

• Simple, whitish

• Neo Classical and European

• Easy to build

• Elegant and High brand feel

• Strong Logo impact

• Friendly and Warm

SISC Store Design

• Focus on touch and feel

• Elegant on Detail

• Open shelf for product experience

• Spacious and relax

• Creative flooring

Modularized Storefront Fixture

A Modularized storefront system

Modularized fixture system is to create a way how some distributor can select from a list of our designed system to create their own Hape Store.

It should include 1) furniture & fixture (shelf, stand, light box etc) 2)marketing collaterals & visual merchandising

(poster, leaflet, B2C catalogue) 3) internet module (online catalogue, QR code) 4) logistics (outsource) 5) Shopfitting & contracting (outsource)

Modularized Storefront Elements

Window Display

Thematic display or stylish showcase that change every two months to create surprise and gimmick

Modularized Storefront Elements

Raised Floor Experience Area

Modularized Storefront Elements

As most of the product are boxed in the shop. It is suggest an home like experience area used to display some item without box. Customers can play and touch the product to show our quality in material.

Bench or Sofa

Modularized Storefront Elements

Modern stylish shop also provides client a sofa or a chair. For parents (esp. father) need a short rest after shopping. It is suggested to use stylist chair or designer chair.

Cashier Counter

Cashier Counter

Cashier Counter

Logo

Wall Mounted Shelf

Island Display Stand

Chair and Sofa

Multi level stand fixture

END

Presenter:Cyril SoMarketing Expert Karma.saca@yahoo.com