A new report has predicted that stores will no longer be focused entirely on sales, with brand awareness and consumer engagement instead becoming the main priority.
Savills’ Retail Revolutions: 2018 Outlook report pointed to examples of Tesla and Dyson; who in the U.K. have no visible tills but a multitude of interactive displays, customisation screens and opportunities to try what’s on offer.
Stylus Curve’s head of retail, Katie Baron, commented on the findings, saying the trend centres on a “new generation of retail thinking” rather than an entirely different set of retailers.
“Brands are understanding the value of plugging into the experiential economy – a key shift driven by the desire for experiences beyond products. Key to this is the notion of ‘soft-sell hangout culture’ – spaces where socialising is key and the old rules of hard sell no longer matter. It’s necessary for brands to boost their bottom line somewhere, and this can be done via a different channel.
“Examples include tech giant Samsung’s 837 flagship in New York, where entertainment trumps selling. It’s got demo spaces, a café and a super-screen theatre space for streaming films, TV specials and major events.
“Microsoft’s Manhattan flagship, meanwhile, houses a broadcast studio that invites teenagers to watch head-to-head gaming competitions by professional e-gamers. And Virgin Megastore’s Abu Dhabi flagship allows visitors to perform on stage of take control of a DJ booth.
“The latter example shows that brands are perceiving stores as a vital ‘third space’ beyond home and school; the brand itself refers to it as a space for ‘un-consumption’. The strategy has also been referred to as Return on Involvement – an entirely new understanding of ROI.”
Expect to see a lot more stores embracing customer engagement with products in 2018.
