It was a scorching summer day, and my mission was clear—find myself a pair of soccer trainers for my weekend shootouts. As I arrived at the store, I was expecting the familiar smell of musty shoeboxes and fresh sneakers.
Instead, I found myself staring at an outdoor cage where a bunch of young teenagers were playing soccer. And that’s it – I became a Decathlon fan for life.
My first memory of Bangalore’s Decathlon store told me everything about the brand, long before I stepped inside. Here was a store that didn’t just sell shoes. It pitched the fun and accessibility of sports. It enabled me to discover the sheer joy of sport.
In the age of seamless online shopping, Decathlon gave me a reason to venture into a physical store. Because they understood that every store tells a story.
Rethinking retail
The challenges faced by the retail industry are undeniable. The impact of Covid-19 has quickened the move towards digital commerce. Escalating costs fueled by supply chain disruptions have compounded the difficulties. The current cost-of-living crisis has tightened consumer spending.
But these challenges have also ushered in an opportunity.
An opportunity to rethink retail. Traditionally, the industry has revolved around the notion that stores are primarily transactional spaces. Yet, fundamentally, the essence of shopping has always been more experiential than transactional. Retail stores now have the opportunity to connect with consumers through emotions and experiences—- rather than leave that task to ATL communication.
From transactions to experiences
In an era where consumer expectations are soaring, traditional retail faces the challenge of not just selling products but delivering an experience. Enter experiential retail, a strategy that transcends the transactional and aims to etch a lasting memory in the minds of consumers. Through an amalgamation of digital signage, interactive displays, audio systems, content management platforms, and data analytics strategically inter-connected to captivate customers and enhance their shopping journey.
Welcome to the future
Virtual try-on technology, with its AI and machine learning integration, is reshaping the online shopping experience. D2C brands, early adopters of this tech due to their online exclusivity, connect with customers sans a physical presence. The trend has the potential to revolutionize traditional retail, reducing operational costs by scaling down physical stores. Brands like Mamaearth and SUGAR Cosmetics are leveraging virtual try-ons not just as replacements but as enhancers, adding a fun element and increasing consumer engagement.
Examples that inspire
1. PUMA’s Digitally-Enabled Experiential Store
PUMA took shopping to a whole new level with its digitally-enabled experiential store at Cyber Hub in Delhi-NCR. This store wasn’t just about buying; it was about living the brand. The store featured a jaw-dropping F1 Simulator, showcasing PUMA’s Motorsport category. Shoppers could virtually navigate multi-country tracks, adding an adrenaline rush to the shopping experience. The PUMA x YOU personalization studio was a game-changer, letting customers customize footwear, apparel, and accessories using various techniques like painting, dipping, dyeing, patchwork, embroidery, 3D knitting, laser printing, and pinning. An interactive retail experience allowed shoppers to virtually scan through the entire range, place orders directly, and have products delivered to their homes.
2. McDonald’s “Famous Orders” Promotion
In 2020, McDonald’s took a bold step to boost revenues with its “Famous Orders” promotion. The fast-food giant collaborated with celebrities like Travis Scott and BTS, showcasing their favorite McDonald’s meals. This innovative marketing initiative, running from fall 2020 until September 2021, featured different celebrities every few months. The success was undeniable—McDonald’s not only reversed a declining sales trend in 2020 but continued the momentum into 2021. By leveraging the influence of celebrities, the “Famous Orders” promotion turned ordinary meals into a cultural phenomenon, demonstrating the power of storytelling and personalization in driving sales.
3. Tanishq’s Augmented Reality Jewelry Experience
Tanishq, a leading jewelry retailer, partnered with Milestone Brandcom to bring augmented reality (AR) to Delhi and Bangalore airports, elevating the jewelry shopping experience. Using VR-enabled technology called ‘MirrAR,’ customers could virtually try out jewelry as many times as they wished, all without actually wearing them. Tanishq collaborated with StyleDotMe, a startup focused on AR and AI applications in the Gems and Jewelry industry. This innovative AR kiosk, a marriage of technology and elegance, allowed users to try on jewelry in real-time, providing a next-generation shopping experience. Tanishq’s forward-thinking approach and the adoption of AR showcase the brand’s commitment to offering customers a unique and immersive way to interact with their extensive range of jewelry.
4. Cadbury 5-star’s Nothing Bank in Mumbai
In 2021, at the peak of the Bitcoin mania, Cadbury 5-Star launched a satirical crypto-currency called NothingCoin, a new form of currency that gets mined while you do nothing. With no expensive hardware or large investments needed, NothingCoin challenges the traditional notion of how only hard work helps people earn. To dramatize the point, the chocolate brand actually opened a ‘branch’ at Nariman Point in Mumbai. Here’s the deal: swing by, step inside, grab yourself a Cadbury 5-Star (because why not?), find a comfy spot, and well, do absolutely nothing.
Ideas and hacks to think about
To truly stand out in the retail crowd, consider these three tips:
1. Fuse technology with humanity: The magic happens when cutting-edge technology meets genuine human connection. Utilize in-store media networks, AR, VR, or AI-driven personalization to enhance the shopping journey. However, remember the human touch—balance is key. Ensure that your technology elevates the experience rather than overshadowing it. It’s not just about the flashy displays; it’s about creating memories.
2. Create shareable moments: In the age of social media, your retail experience doesn’t end at the store exit; it continues online. Craft moments that are inherently shareable. Whether it’s an interactive display, a personalized try-on experience, or a quirky in-store event, make it something your customers want to capture and share with their network. Turn every shopper into a brand ambassador by giving them an experience worth talking about, streaming about, and, most importantly, coming back for.
3. Think about the ‘Story’ behind the service: One compelling instance is the Genius Bar—an integral part of Apple’s retail strategy. The Genius Bar is a concierge-style, face-to-face support for customers from “Geniuses” who are specially trained and certified by Apple. But the branding and the communication at the store go way beyond a technical support station. Instead, the Genius Bar tells a story of customer empowerment and problem-solving.
So the next time you’re thinking about your Retail POS, rethink the paradigm – think stories, not stores!
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