BW Confidential - Issue #10 - May/June 2012 - (Page 46)

Retail Inspiration from Apple A is for retail Apple has been lauded for its retail strategy. We analyze what lessons beauty could learn from the tech giant by Oonagh Phillips A sk any expert about who they think is doing good retail, and they’ll probably say “Apple”. The US-based technology giant’s stores are constantly applauded, and retail analysts like to point out that if perfumeries and department stores borrowed a few of Apple’s strategies, their stores would be better places to shop. The main areas where beauty stores are advised to take inspiration are from Apple’s design, store layout and service. Apple’s stores are praised for evolving with each new opening, rather than just applying a cookie-cutter approach, and for having one-ofa-kind architectural features at each location. For example, at the Apple store in Shanghai there is a 40 foot-high glass cylinder at the entrance. The company also manages to secure prime real estate for its outlets, such as Fifth Avenue in New York or Regent Street in London. Inside, the stores are airy, spacious, have attractive lighting and simple, beech wood furniture. And while many brands have beautiful stores, the difference with Apple is how much attention the company devotes to each detail of its design. But perhaps the most striking element is how the products are merchandised and organized. 46 “The stores are extremely simple and uncluttered. The product is the hero and everything else is secondary,” says UK-based retail design firm The Attic Room sales director Kevin Price. Or as US-based consultant Kate Newlin puts it: “Everything is streamlined and pared down to the essential elements.” And this is not just the case in large flagships. Even Apple’s small-format outlets are not cluttered with product. This is one element that beauty retailers should try to re-create. “Fragrance stores are overloaded with product, if you want to adapt the uncluttered Apple experience to beauty, you need to cut down what’s on show in the main part of the store to the bestsellers for example, and then have the other products in a different area of the boutique,” comments Price. It’s the people, stupid… Not only is product staged as the hero, but consumers are encouraged to try out and play with the items in-store. The equivalent in beauty may be to have more testers in more prominent positions and presented in an accessible way so shoppers feel at ease to try. “What works at Apple is the levels of service, the fact that you can touch and play with the products with absolutely no barriers, no counters and the sense of adventure and community that the experience offers,“ explains US-based consultancy WSL Strategic Retail ceo Wendy Liebmann. Another central part of Apple’s retail strategy is its staff. Unlike at other retailers, staff is trained not to sell, but to “help customers solve their problems“ and “to understand customer needs.” Employees aren’t paid commissions and don’t have sales quotas. The staff is also rigorously trained about the products and how to talk to consumers before stepping into the stores. Once in-store, new recruits shadow experienced staff before they are allowed to interact with customers—a rare thing in a retail world where most staff now learn while on the job. In terms of finding staff, it helps that the Apple brand has a devoted following, meaning many aspire to work at the company and are enthusiastic when talking to shoppers about the products. Another important point is that the stores are staffed aggressively. For example the Apple store at New York’s Grand Central Station has 315 employees, while its Sydney store has a staff of 125. May-June 2012 - N°10 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #10 - May/June 2012

Cover
Comment
Contents
Update
- Brand & retail news recap
- Companies on the move
Take note Market facts, figures & trends
Best of BW Highlights from our e-publication
Launches The latest in fragrance, skincare & make-up
Interview Clinique global brand president Lynne Greene
Insight: Skincare
- Category overview
- Retail technology
- Retail viewpoint
- The latest trends
Wellness
- Spas & healthcare
- Spa case studies
Retail
- Inspiration from Apple
- Store concepts
Market watch: China
- Country overview
- Industry viewpoint
- Prestige retailing
- Taobao & the internet
Digital focus Social media strategies
Strategy spotlight Case studies to inspire
Travel retail: Asia Pacific
- Regional overview
- India
- Interview: Delhi Duty Free Services coo Arun Barathi
Radar Six up-and-coming beauty brands
Packaging
- Make-up packs
- Innovation showcase
Last word Metis Insights director Stéphanie Morou

BW Confidential - Issue #10 - May/June 2012