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Introduction to Retail Design

Introduction to Retail Design

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Introduction to Retail Design

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  1. Introduction to Retail Design Presentation to: Temasek Polytechnic, Singapore ZSTU, Hangzhou, China Bill Webb The London College of Fashion

  2. The University of the Arts, Londonwww.arts.ac.uk • largest university for art, design & fashion in Europe • over 25,000 students • students from more than 130 countries • six specialist colleges • focus on retail & fashion management • Fashion Retail Academies • centres for consulting and industry training • extensive research…”Size UK”…”Mass Customisation”…

  3. The University of the Arts, London Mme Hu Jintao with Sir Michael Bichard, Rector UAL Headquarters, London

  4. Bill Webb • Scholar of Cambridge University • 30 years experience in fashion management, consulting and teaching • Conference presentation and publications (The Fashion Handbook, Fashion Marketing – Contemporary Issues) • Recent visits to Shanghai, Hang Zhou, Beijing, Dalian & Hong Kong • Chinese wife and home in Dalian

  5. The Power of the Visual “You only ever have one chance to make a first impression”

  6. Why it matters…… • “The first bite is taken with the eye” (Larousse) Store design is a key element of fashion brand marketing

  7. Why it matters…. • shop design is the expression of your brand at the point of sale (Zara) • shop design provides a three dimensional brand experience • your shops are expensive assets! New Look

  8. Success Rating of Retail Design(UK retailers - % - source: Mintel)

  9. The Store Development Process • Step 1 – define distribution strategy • Step 2 – select design agency/team • Step 3 – prepare design brief • Step 4 - create design concept (research?) • Step 5 – concept detailing & development • Step 6 – layout & space planning • Step 7 – prototyping & costing (QS) • Step 8 - tendering  appoint shop fitters • Step 9 – open pilot store & evaluate • Step 10 - snagging • Step 11 – roll-out, with marketing support • Step 12 – on-going performance evaluation

  10. Benefits of Retail Design • Differentiation Levi Jeans San Francisco

  11. Benefits of Retail Design • Catalyst for Change

  12. Benefits of Retail Design • Sales & Profit Improvement

  13. Benefits of Retail Design • Operating Efficiency

  14. Benefits of Retail Design • Staff Recruitment & Motivation

  15. Benefits of Retail Design • Customer Loyalty

  16. Benefits of Retail Design • Branch Network Expansion

  17. Benefits of Retail DesignSummary • differentiation • catalyst for change • sales & profit improvement • operating efficiency • staff recruitment & motivation • customer loyalty • branch network expansion

  18. How to Design your Shop • in-house • external agency • design agency • architect • equipment supplier • shopfitter • advertising agency • joint project

  19. The Design Brief • “Know who you want to be” Don Watt • the “bible” for the project • should be drawn up jointly by the project team • should be signed off by the director or budget holder • time and cost of preparing the brief must be allowed for

  20. Contents of the Design Brief • creative brief • operational brief • financial brief • programme • contractual issues

  21. The Creative Brief • background to the project • “big Idea”, “vision”, “USP” – key dimension of competitive advantage • target customer + lifestyle, needs and usage • geographical market characteristics • competitor analysis – positioning • merchandise categories & brands • desired mood & ambiance • brand personality & value • Integration with other brand marketing

  22. The Operational Brief • shop location & site • shop size & variations, space use • methods of operation – stock holding, replenishment, circulation, etc • product mix & characteristics • display method & density requirements • security strategy • promotional & marketing requirements • method of payment • customer service offer • staff and customer facilities • legal issues

  23. The Financial Brief • budget for the project, inc contingencies • trading potential for specific stores, including pilot store • capital v. revenue costs • evaluation measures • (increased) profit return on investment • sales and market share (increase) • space & employee productivity • footfall, visitor profile • conversion ratio • transaction value, multiple purchasing • loyalty, visit frequency

  24. Key Design Elements • store front & windows • interior ambiance • space use & layout • merchandise presentation • signs & graphics • service(s) • visual merchandising

  25. Store Front and Windows

  26. Interior Ambiance

  27. Interior Ambiance • colour • finishes (floors, walls, ceiling) • textures • lighting • temperature • sound/music • smell • products & customers!

  28. Space Use and Layout

  29. Space Use & Layout • principles • footfall • horizontal circulation • vertical circulation • space allocation • adjacencies • use of the cube • densities • flexibility

  30. Space Use and Layout grid boutique rose freeflow loop or “racetrack”

  31. Space Use & Layout

  32. Merchandise Presentation • hanging • lateral • frontal • stacking • dumping • pegging • mixed

  33. Merchandise Presentation • sight lines • vistas • focal points • category coordination • fixtures

  34. Signs & Graphics • information • education • promotion • atmosphere

  35. Levels of Design Application • cosmetic : graphics, paint etc • facelift + secondary fixtures, lighting, uniforms, flooring • refit + fixtures, layouts, equipment • remodel + exteriors, circulation, services, total concept…. • rebuild : start again!

  36. Spend depends on…. • return on investment • local customers • local competitors • shop unit • state of the art knowledge

  37. Visual Merchandising “The First Bite is always taken with the Eye”

  38. Origins of Visual Merchandising • Fashion - creative display • Consumer Goods - merchandising disciplines

  39. Visual Merchandising

  40. Visual Merchandising Douglas Crate & Barrel

  41. Visual Merchandising Objectives • Strategic - supporting your brand • enhance customer experience • improve store intelligibility • suggest customer problem solutions • improve your R.O.I.

  42. Visual Merchandising Objectives • Operational - improving trading results • increasing sales • increasing profit margins • increasing stock turn • increasing space productivity

  43. Visual Merchandising Objectives • Tactical - optimising daily opportunities • supporting new products • supporting supplier promotions • supporting your own advertising and PR • supporting seasonal promotions • supporting “Sales”

  44. Tools of Visual Merchandising • graphics • colour • lighting • texture • display props • electronic screens • the merchandise itself !

  45. Tools of Visual Merchandising Which Brand is this?

  46. Tools of Visual Merchandising

  47. Measuring Visual Merchandising • footfall • dwell time • conversion rates • transaction values • multiple purchases • sell down rates • promotion take-up rates • brand awareness & reputation

  48. Fashion Brand Identity • Stylistic Identity – product design handwriting • Image Identity - marketing communications • Retail Identity – selling environment Saviola & Testa (2000) Burberry

  49. International Flagships Comme des Garcons, New York Louis Vuitton, New York Burberry, New York

  50. The International Brand Building “Flagship stores are those stores regarded as the pinnacle in the retail chain. They are usually large and located in high footfall, prestigious locations. They offer a full range of merchandise, with an emphasis on the more expensive, high quality and high fashion lines. The role of the flagship store is essentially about retail brand building and reinforcement rather than profitability. The media coverage that flagship stores attract adds to the communications process. When entering new international markets, retailers often begin with a flagship store incorporating the latest store design, to test the reaction to the retail concept” (Varley, R & Rafiq, M, 2004 p167)