my stockmann

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my stockmannJuuso Andersin / Jukka Manni / Roope Kolu

Design Strategy and InnovationAalto University

Fall 2015


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HISTORY OF STOCKMANN

Stockmann is a department store, founded in 1862 by German merchantGeorg Franz Heinrich Stockmann. Stockmann have had an immensive effect

on Finnish history by moving Finland closer to modern Europe. Stockmannis known of having the first escalators in Finland and as a host of the firstnational television broadcast. Stockmann can also be considered as thefirst actor that focused on the user experience and is still known of severalStockmann-like factors like the elevator-girls.


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Many areas of retail and services are under bigreformation and new ways of paying and using

services are taken into use. Business is not any moreworking only in traditional way when the customerpay first by cash or card and then gets what he/shepaid for. More and more automatic and recurrenttransaction methods are used mostly on the internet/application based services. When people get morefamiliar with these new ways of paying the revolutionof retail will start. Usually people are willing to payconstant fee of the things that they do several timesa week. Those are for example bus tickets (HSL), gymmembership (Esport), movies and series (Netflix),computer programs (Adobe CC) and music (Spotify)and many more. There are many areas where this newtransaction methods or continuous membership feesare not taken into use yet. The possible services couldbe related to eating, sports, working, commuting, andother activities. One challenge would be to lower the

threshold of joining and creating the feeling that thecustomer is not married with the service provider.Especially younger generations are more eager to

RETAIL IN CHANGE

have control of their lives and want to retain freedomto select what services and products they buy. They are

also less brand loyal and that makes it more challengingfor traditional companies to get these people to buy.

All the products these days are shown and reviewedon the web and even the prices are lowest on the webstores. Therefore it doesnt make that much sense touse a lot of valuable physical space to show the sameproducts live in the department stores. Question is howto get people out from the web stores and to makethem buy your companys products and services andbe loyal to your brand? How to provide something thatthe web stores can not provide? Answer is actuallypretty simple. By providing people with experiencesand activating them to use the products and servicesas essential part of their life. Companies should letpeople to use the products and services in real lifeand let customers to make the decision of purchase

by themselves. The company that provides the bestexperiences will be the winner in this game.


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FUTURE OF STOCKMANN

Moving the focus away from the traditional model of selling goods

Enhancing the user experience

Simplifying the portfolio of offerings

Taking trends into the DNA of Stockmann

Continuous evolution

Being the early adaptor

Stepping out from the building

Activatingpeople


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When joining into My Stockmann, customer createsan own profile with credit card details for automaticand easy transactions. Transaction method could becompared to the services like Spotify and Netflix.Customer selects the services that he/she wants to

join in from the categories of e.g. Activities, Work andFood. To improve the feeling of freedom and controlthe customer can always modify his/her own selectionand by that way to control how much money will be

transferred automatically. Transaction happens weeklyinstead of monthly to decrease the negative feeling ofengaging with the big corporation.

Experiences are in the essential role in My Stockmannand and the co-operative brands are activated to takebigger role in providing the services where they havepossibility to do marketing of their own products. Thisrequires Stockmann to make deeper collaboration

with the brands and create the new services togetherwith them. Constant evolution of the services is invery important role when getting people to engagewith Stockmann. Its necessary to renew and improveservices all the time to get customer happily surprisedover and over again.

When joining in My Stockmanns services, customersare introduced with many high quality and well

selected products that are closely related to the topicof the service. When starting a Nike running school,customer can buy new running shoes when he/sheneeds them. Professional service providers from Nikehelp the customer to select the right shoes and lethim/her to try shoes before making the final decision.Since the running school is mostly about learning theright technique and planning the training, the productsare not in the core of the running school.

mySTOCKMANN


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CATEGORY 1 CATEGORY 2 CATEGORY 3

CUSTOMIZED SERVICE

PACKAGE

Automatic weekly transaction

according to the selectedservicesCUSTOMER

SERVICE MODEL


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STOCKMANN BRAND X

Providing platform

and spaces

Facilitating Service X

Marketing Products X

Product X

SERVICE X

Customer of Service X

Potential customer of Product X

Automatic

transaction

Service X


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Key Partners

Cost Structure Revenue Streams

Key Activities Value Proposition Customer

Segments

Key Resources

Customer

Relationships

Channels

Main focus is to deliver variableservices hosted by Key Partners.

Continuos evolution of the serviceoffering is crucial in enabling newand interesting experiencescontinuosly (giving a reason forcustomers to come back).

Stockmanns target consumersinclude people seeking newexperiences.

- Generation X - Generation Y - Generation Z

o Stockmann as a platform

o Key Partners

Customers are the most importantasset of Stockmann.

Its valuable to offer services that are

valuable for customers in many

ways.

The main focus is to offer spaces for

customers to spend time.

o Selling services

o Getting money from the products sold by the Partner companies

Provide new experiences tocustomers

Provide a platform that bringsbrands and consumers together

Maintain affordability by providingdifferent levels of activities andservices

Stockmann is partnering withdifferent brands that are bothupcoming and steadily valuable.

The main direction is to partnermainly with nordic brands, buildingan image of new nordic.

There are also some brandscoming outside of Scandinaviathat are included in the serviceportfolio (such as Nike).

Main focus is to deliver variableservices hosted by Key Partners.

Continuos evolution of the serviceoffering is crucial in enabling newand interesting experiencescontinuosly (giving a reason forcustomers to come back).

Example partners:

- Iittala - Acne - Suunto - Halti - Lumene - Anton & Anton - Diacor

Superior knowledge and know-howfrom the Key partners.

Central location

Stockmanns long history

Stockmanns new cost structure is a mixture of cost driven and value drive.

o Costs: - salaries - utilities - advertisement - maintainance of properties


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EXAMPLE CUSTOMERSWITH THEIR SELECTIONS FROMmySTOCKMANN SERVICE OFFERING


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name: Thomasgender: male

age: 42 (1973)

occupation: engineer

residency: Espoo

Thomas is a sporty

engineer. He feels likehe needs exercise to

balance his days in the

office. Thomas likes to

eat healthy.

THOMAS WILN


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name: Juuliagender: woman

age: 29 (1986)

occupation: designer

residency: Helsinki

Juulia is a busy

co-founder of a startupand a mom of two small

kids. She does yoga to

keep her mind in

balance.

JUULIA NIEMI


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ANNA FALCK

name: Annagender: woman

age: 17 (1998)

occupation: student

residency: Helsinki

Anna is an outgoing girl,

studing in High School.She is really into fashion

and is highly concious

about new trends.


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USER INTERFACE


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my stockmann

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