Concept for heightened experience

The question that’s on everyone’s mind is how is a concept store different from a regular outlet? Answering this question Mr Eric Braganza, President, Haier India says, “An experience centre or a concept store is a platform that combines quality and choice across all product categories offered under one roof. The centre is designed to give the customers a first hand experience of the latest in technology, innovation and design.”

What an idea! Since in a regular multi brand outlet the ‘touch and feel’ idea is lost, and it’s tough for the consumers to know which product is best for their needs as they can’t use the product on the spot. Also, it’s a rare situation wherein a consumer will get all varieties of products of a brand arranged in a particular area at a multi-brand outlet. Having everything under one roof at experience stores sure helps a consumer to make a better decision. The practice also helps the company to interact with its consumers and make them feel closer to the brand, hence position the brand better.

It’s different!

The regular multi-brand retail outlets are less focused on the ‘experience’ factor and also their display area is not as large as compared to an experience store. Also, multi-brand retail outlet have products from various brands, the competition factor rises, so does the confusion in consumers mind, which makes buying a tedious process. To this, Nirupam Sahay, Senior Director - Marketing, Philips Lighting say, “Each experience centre works on three paradigms which are inspiration, education and experience. Therefore, the design theme, range showcase, merchandising, retailing aids, consumer walkthroughs, etc. are conceptualised and executed with these three parameters in mind. Hence, the experience centres are completely different.”

These stores give complete solution to the consumers. They not only have the sales model which is to not let consumers go empty handed, but also the emotional model, which is to see a smile of a satisfied consumer.

Who is the consumer?

Both the regular and a concept stores are so different, so does the consumer base change?

“We have 3 brands which are sold at Planet Acer. Besides Acer, there is Gateway - targeted at customers who are looking at stylish products with premium look, and E-machine - which caters to customers who are looking at basic computing machines at affordable prices” says Mr S. Rajendran, CMO, Acer, India.

As all the variety is present from high end to value products, this surely increases the band width of the consumers that are catered to. The customer base includes anyone and everyone.

Employee Training

Training surely is a huge part of every store, but when it comes to concept stores, it’s a more thorough scenario. Everything is dependent upon sales and profitability as these stores are particularly designed for these two operations. Other than the normal behavioural training, product training and demo training, concept stores require something extra. “The in-store promoters have been trained on the latest technology, followed by product knowledge test. The shop floor training is conducted how to handle customer queries, irate customers and taught how to up-sell” enlightens Mr Rajendran. Up-selling is a very important part, which shows the diligence of a sales person to make customers buy something going beyond the planned budget. A concept store accentuates the charm of any high-end product and ideally is the perfect touch point of such products.

Talking returns

So, how does it affect the business? Does it even give as much as it takes? Do these retailers make good profits? “These stores serve both our purposes - of educating the consumers about the product, as well as assisting sales. We will continue to invest in these stores as it’s a great business opportunity and try to innovate to achieve better results from these in the future”, says Sahay. Sounds promising!

Talking about revenue generation and also contemplating on the relation with their trade partners, Mr Moon B Shin, MD, LG Electronics, India adds, “There has been consistent increase in revenue with high contribution in premium product range. These stores will provide the company a new communication channel with its trade partners. It would give the company better insight into current customer needs and help it tailor solutions and proposals to offer more effective marketing promotions.”

Future Investment

“We will continue to invest in increasing our retail presence from the current 183 exclusive touch points (150 Shop-in-shops and 33 Light Lounges) to 450 exclusive touch points (400 Shop-in-shops and 50 Light Lounges) by 2010 end” proudly says Mr Sahay.

Revealing expansion plan Mr Braganza says, “We currently have 18 experience centres, and are hoping to extend them to 100 soon. Our target areas will be metros and mini-metros and our dealer network is across India.”

All these brands are also looking forward to get into tier II and III cities in their second phase of expansion. For now we will see a lot of these stores across metros.

Retail has embarked on a new trend to come closer to its customers. Soon all retail categories will foray into concept stores. We keep our fingers crossed to see better stores in play, which will make shopping an experience for all!

QUICK FACTS

LG SHOPPE

Year of launch: 2000, New Delhi

No. of stores: 750

Future Expansion:

“The future for us lies into catering in tier I and tier II cities”

Moon B Shin

MD, LG Electronics, India

HAIER EXPERIENCE CENTRE

Year of launch: 2009, Dwarka, New Delhi

No. of stores: 10

Future Expansion:

“We currently have 18 experience centres, and are hoping to extend them to 100 soon. Our target areas will be metros and mini-metros and our dealer network is across India.”

Eric Braganza

President, Haier India

PHILIPS LIGHT LOUNGE

Year of launch: 2009, Kolkata

No. of stores: 33

Future Expansion:

Nirupam Sahay

Senior Director - Marketing, Philips Lighting

PLANET ACER

Started in year: 2010, Bangalore

No. of store: 1

Future Expansion: