Strategic Insights

Recently Walmart’s CEO Mike Duke reaffirmed the company’s central goal of serving “the next generation of customer”. Those striving to join the emerging global middle class and who are connected through smart phones and social media. They are in charge of when they shop and how they shop, and they know who has the lowest prices.”¹

It’s tempting to think of empowered consumers as those simply looking for the best prices — especially the Walmart shoppers. However, we believe that the everyday transactional experience between buyer and seller is much more complex than simply how much or how little cash leaves the wallet. Today’s consumers have high expectations: They seek a more meaningful relationship with the brands they buy. They want to be empowered and educated. Something that on-line brands understand really well.

As example, Warby Parker (www.warbyparker.com) is an online retailer of prescription eyeglasses. Their prices are highly competitive, virtual shopping provides try-on capabilities (enabled by one’s webcam), and shipping is free. The final clincher to the sale? For every pair of eyeglasses sold, Warby Parker will donate money and a free pair of eyeglasses to Vision Spring, an organization that “delivers high-quality, affordable eyeglasses to individuals in the developing world with a network of local entrepreneurs” (www.visionspring.org).

One recent happy consumer had this to say:

“I solely purchased them online (Warby Parker)… I used their online virtual try-on system and… knew they were going to donate a pair of glasses to someone in need because I purchased through them. That says something about their brand to me, without me ever even laying eyes on the package of the glasses. It is the total experience I had digitally that made me love them.”

The ability of on-line retailers to offer consumers a deeper Brand experience presents a challenge to traditional retailers.

A new study from the Aberdeen Group (sponsored By Hewlett Packard) said “personalization of the in-store customer experience will be a key objective for retailers over the next two years” and that interactive solutions located throughout the store will play an increasingly important role in delivering a highly personalized sales strategy.

Consumers increasingly demand a rich, multi-media in-store shopping experience– they get it on-line, after all — but sadly so many traditional retailers fall short of these expectations. Visit your local chain supermarket or mass merchandiser and you will discover that in-store merchandising and displays have not evolved much from the traditional end-caps and pre-packed display shippers of the 70s and 80s.

77kids’

Which is why we are intrigued by some new digital in-store solutions showcased in the April-May, 2011 issue of DDI Magazine. Design and display ideas that meet the consumers’ need for engagement and education.

77kids’ flagship store (American Eagle) has two interactive screens that involve kids in the shopping process. Young users can select in-store music, play games, try on virtual items of clothes, and take photos of themselves that can be customized and printed out. (Source: 77Kids: R/GA)

Adidas Store

Adidas stores in the UK will feature a large interactive screen. All items will be able to be viewed in great detail from any angle. Shoppers can browse information and promotional videos about the shoes as well as arrange orders for in-store pick up or home delivery. (Source: Adiverse by Adidas: Start JudgeGill)

Jugo Juice Bar

Jugo Juice bar in Canada has installed an interactive window that uses gesture-recognition technology to help customers select and design their own smoothies. Using hand motions the customer selects her favorite fruits and receives smoothie suggestions, and then pays and collects her drink inside the store. (Source: Jugo Juice: D-Sign Interactive) 
¹ Walmart 2011 annual meeting, quoted in the Morning Newsbeat June 7, 2011

Marilyn Phillips is the Brand Strategist for BAKER and spends countless hours scouring the planet for new trends and strategies to help our customers thrive in the marketplace.