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Similar a Case Study - From Department Store to Multispecialist Retailer copy
Similar a Case Study - From Department Store to Multispecialist Retailer copy (20)
Case Study - From Department Store to Multispecialist Retailer copy
- 1. global brand vision home retail experts GB V FROM DEPARTMENT STORE TO MULTICHANNEL RETAILER A MAKEOVER CASE STUDY
- 2. GB V WHO WE ARE We are a Retail Consulting firm specialising in assisting home retailers to better, change, or create their new or existing business. All our consultants have worked in leading retail businesses like Crate & Barrel, Anthropology, Zara Home, etc. before joining us. We like to call ourselves “home retail experts for rent” 2
- 3. GB V CLIENT BACKGROUND Client is a regional player operating in 4 South American markets. Information based on 2011 figures. 3
- 4. GB V4 STARTING POINT Client’s Home department had been under-preforming all other departments for many years and was unprofitable.
- 5. GB V5 KEY REASONS Competitive Landscape Consumer Expectations Specific nature of Home Retail • Other department stores had same offer • Discounter’s success at entry price level • Arrival of home retail specialists • Maturing market • Demand for Emotional Shopping Experience • Demand for better Quality & Service • Time and Convenience Constraints • Increases in disposable income • Not enough understanding of specific home retail • Confused product offer including “house” brands • Treating home like apparel, client was unable to take advantage of the upside potential as market
- 6. GB V6 Competitive Landscape Price HighLow High Assortment Depth/Width Falabella Ripley Paris Casa&Ide as All retailers were fighting for the same piece of the pie – our client’s offer did not offer sufficient choice, and was missing out on the more affluent market (where little competition existed)
- 7. GB V7 Consumer Expectations 18 12 8 8 16 34 38 22 10 22 30 12 Presentation Organized store Staff Quality Product design Variety Consumer ratings of Client were far below best-in-class competitors • Under-investment i n • stores/fixtures • No VM Standards/ Practices • No dedicated Home VM at store level • Communication between Buying/ Operations • No clear definition of buying/planning • Unclear channels of command • Too much individuality rather than structure • Outdated structure with unclear responsibilities • No home specific training and development • No dedicated VM teams for home • High staff turnover • Product quality of supermarket level with occasional spr inkle of expensive product • Supply chain component • In-house design teams replicating same stories every season • Buyers not in contr ol of new product • 100% seasonality i n assortment • Focus on entry pri ce rather than choi ce • Confused percepti on that many skus = variety
- 8. GB V8 Specific Nature of Home Business • In apparel, the image and brand are protagonists. In Home, the product is the hero, followed by presentation and execution • In home, brands work well in some categories, but are mainly related to • Bridal registry/wedding list • Promotions • Technical or specialist product (ex. electricals, mattresses, pots & pans, chef knifes, etc. In all these instances though, we talk about manufacturing and designer brands.
- 9. GB V9 IN OTHER WORDS… “If you do not change direction, you may end up where you are heading.” Lao Tzu
- 10. GB V1 0 Creating a Specialty Retailer in Home ASSORTMENT/ BUYING ORGANISATION STORE DESIGN OPERATIONSVISUAL MERCHANDISING BRANDING Flagships Stores B-Stores 3 Countries
- 11. GB V1 1 1- ASSORTMENT/ ORGANISATION CREATING A NEW SHOPPING EXPERIENCE CREATIVE Private Label Product Designs or Product Exclus ivities More Depth and Width in Product Choices POS-friendly Private Label Packaging Design External Designers for fresh Design approach Introduce Client to New Vendors Goals: • Increase Customer Experience • Increase Sales • Better Gross Margi n • Love and Passion for Home
- 12. GB V1 2 1-ASSORTMENT/ ORGANISATION METHODOLOGY&ORGANISATION Increase Materials, Styles, Pricing Offer Create New SKU Hierarchy and eliminate Duplic ation Define Core-Seasonal Define Style and Price Mix, Win-Play-Show More Sourcing Countries & New Buying Agents New Job Profiles for Buying and Planning Create a Sandbox/Showroom for Product Revie w Goals: • More efficient Organisation • More Motivation • More Clarity and Transparency • Sustainability of Change CREATING A NEW SHOPPING EXPERIENCE
- 14. GB V1 4 KITCHENWARE – TEA & COFFEE
- 22. GB V2 2 BEDDING
- 27. GB V2 7 2- STORE DESIGN CREATIVE Work with Architect on New “Lifestyle” concept Create Block Plan according to New Assortment Create Micro Layouts Design Specialty and other Fixtures Goals: • Create a warm and welcoming store environment • Increase Sales CREATING A NEW SHOPPING EXPERIENCE There is yes, no, and Wow - Wow is the one to aim for”. Milton Glaser
- 33. GB V3 3 3- VISUAL MERCHANDISING CREATING A NEW SHOPPING EXPERIENCE CREATIVE Conceptual Direction of Visual Merchandising Goals: • Create a warm and welcoming store environment • Increase Sales Implementation of Visual Merchandising Creative Direction of Visual Merchandising
- 34. GB V3 4 3- VISUAL MERCHANDISING CREATING A NEW SHOPPING EXPERIENCE Goals: • Create inspiring environment with creative use of product to maximis e sales METHODOLOGY&ORGANISATIO N Visual Merchandising Organisation VM Job Descriptions Visual Merchandising Design Manuals Store Routines and Review Processes Sku Police Support New Store Setup
- 35. 3 5 TELLING STORIES THAT INSPIRE GB V
- 36. 3 6 TELLING STORIES THAT INSPIRE GB V
- 37. 3 7 TELL STORIES THAT INSPIRE GB V
- 38. 3 8 GIVE EACH PRODUCT A HOME GB V
- 39. 3 9 GIVE EACH PRODUCT A HOME GB V
- 40. 4 0 BECOME A BRIDE’S BEST FRIEND GB V
- 42. GB V4 2 4- OPERATIONS/ SUPPLY CHAIN CREATING A NEW SHOPPING EXPERIENCE Goals: • Improve staff proficiency • Create environment where people can thrive • Increase Customer Satisfaction METHODOLOGY&ORGANISATIO N Vendor & Agent Compliance Standard Manual Furniture Home Delivery Process New Staffing Concept and Review Process Review of Customer Service Policies Operations Manual and Staff Training Programm e Sales Aides
- 43. GB V4 3 5- BRANDING CREATING A NEW SHOPPING EXPERIENCE CREATIVE An Own Name for Home Department New Catalogues New Product Benefit Signage New In-Store Navigation Signage New POS Material & Private Label Packaging C oncept Goals: • Increase Customer Experience • Increase Sales • Better Gross Margi n
- 44. GB V4 4 LOGO FOR HOME DEPARTMENT
- 46. GB V4 6 STORE – NAVIGATION SIGNAGE
- 47. GB V4 7 STORE - PRODUCT BENEFIT SIGNAGE
- 50. GB V RESULT5 0 Customers Happy Client and Staff Happy
- 51. GB V FEEDBACK5 1 “This has been the most successful project in our company in the 15 years I’ve worked here.” “Our Home Department has become a specialty business. Other departments will follow the same direction”
- 52. global brand vision home retail experts GB V +1.847.287.8809 enquiries@globalbrandvision.com www.globalbrandvision.com THANK YOU !