Retail Trend10: Successful Retailers Become Experiential
With continuously emerging new technologies, the way we shop is changing rapidly. Today we can buy whatever we want with just a click of a button or a tap on our phones’ screen. This trend also changes the way retail stores operate. What once was mainly a place to transact charges is that today, retail stores have switched to offer experiences to customers rather than just selling products.
Experience has become a key marker in the way how brick-and-mortar shops fit in the customer journey. Retail stores are now looking for different ways to provide things that can not be replicated online, and creating engaging experiences is one of the main things.
Millennials Seek Experiences
Because of easily available online shopping solutions, traditional shopping has been declining, but this is not the only reason. Millennials are visiting stores to buy products and search for a more complex shopping experience.
72% of Millenials say that they prefer to spend their money on experiences, not on actual products.
This trend means that Millennials might be more inclined to buy more products from retail stores if they offer experiences.
What is experiential retail?
Experiential retail is a bit different than traditional retail. It creates a sharable, immersive experience and prioritizes customer engagement. By leveraging in-store services and events, it stimulates the customers’ senses and defies their expectations. And finally, experiential retail addresses consumer needs through store experience.
Experiential retail is immersive and shareable
Many big brands are investing heavily in the creation of experiential stores in New York, Los Angeles, and Boston. This way, they can immerse the consumers in the brand and its culture and showcase what makes them unique rather than just selling products.
The main focus in these stores is shareability – actually, a lot of consumers tend to visit these highly curated stores just for the Instagram pictures.
Experiential retail’s priority isn’t sales; it’s engagement
The main focus for an experiential retail store is providing an on-brand experience from the moment a customer walks through the door.
For example, a brand can center its entire philosophy on the customer – from featuring customer-generated content on their social media to use customers’ feedback for their products.
Experiential retail stimulates your customers’ senses.
Physical stores can engage all five senses, and this way, they can forge an emotional connection with their customers using engaging, personalized experiences.
This is important because it can lead to a revenue increase. For example, allowing the customer to feel, smell, touch the product can create a connection and intensify the desire for owning it.
Since shopping is no longer driven by necessity, it needs other stimuli such as the sense of discovery or the excitement of experiencing something new.
Experiential retail defies customer expectations.
Throughout the years, customers have expected certain things from retail stores. Nowadays, more and more retailers are creating spaces that do not look or even function like stores.
These flexible spaces defy all expectations and provide a new perspective on the whole shopping experience while always keep things fresh.
One of the best companies for developing enticing retail experiences is Untitled Project. Based in Singapore, it has been named Experiential Agency of the year.
Founded in 2014, the company has worked with international brands to create immersive, astonishing, and attractive experiences. They have developed futuristic gyms for Nike, virtual homes for Airbnb, sonic cruises for Heineken, and whiskey journeys for Diageo.
Focused on technology, creation, and production, Untitled Project is specialized in virtual reality, projection mapping, and interactive design. They can also provide video production, 360 content, animation, app development, and complete design – from retail spaces to events, stages, and logos.