Called to revolutionize art, Andy Warhol said that it was not time that changed things but that it should be the human being who decided to change them. A lesson that brands should take into account today: if they do not adapt to the new changes, they run the risk of ceasing to exist.
Consumers are changing and, with them, the way they consume fashion is transforming.
Just a few years ago the e-commerce revolution took place. Physical stores even came to be threatened by the overwhelming evolution of digital stores. And that is why questions about the future of physical stores multiplied:
New technologies are not only creating challenges to adapt to new consumer habits, but are also challenging the brands themselves. It is no longer enough to sell products, but brands have to sell experiences.
"The physical presence is still very important. The idea is to make the stores a kind of showcase in which the customer can see beyond the product, so that they feel identified with what lies behind the brand," says Inés Arroyo. , founder of Laagam, one of the native digital brands emerging from the Spanish fashion scene.
Meanwhile thousands of stores, in Spain and in the rest of the world, have been closing in recent years. According to data from a recent Geoblink report, 46% of retailers closed establishments last year, a figure that rises to 69% in the case of franchises.
However, in an era in which the balance seems to lean more towards the closure of establishments, there are still brands that continue to bet on offline.
"Despite the narrative of the retail apocalypse that frightens the industry, 68% of the participants plan to open more establishments in 2019," the document underlines.
The stores, yes, will not be like before. The showrooms that function as shop windows with their own life and where the exclusivity of the garments prevail, the guideshops that mix the physical point with ecommerce, where you can look, touch, try on but not take the garment immediately; or even the concept stores that mix art, culture and fashion.
Added value is a vital element to survive the competition
The current consumer has nothing to do with the one of 10 years ago. It is becoming more demanding and unpredictable. At the same time, millennials are characterized as a generation that does not seek so much luxury, as it is traditionally defined, but rather focuses on living: on what gives them a differential value and provides them with a good experience.
Over the years, luxury has ceased to be a question of price and has become more focused on value. It is not a coincidence that travel and experiences are what most attracts the attention of this generation. In Spain, 99% of young people between 18 and 30 years old have traveled at least once, according to a report by OpinionWay. This luxury is no longer necessarily linked to the high cost of the product, but to the experience that the consumer will have with it.
"We are talking about a totally digital generation that expects a different approach from brands. They have stopped believing in them and have started to trust their digital micro-community," says Pau Lepage, head of the online marketing department at TLG Commerce, an end-to-end agency dedicated to helping all types of businesses define a correct digital strategy.
All this creates a challenge for new brands: the consumer no longer only demands a good product but also a good experience. “The main challenge for brands will be to reach the final consumer, with a differential value proposition both in the online channel and in the physical store. Online reputation will be increasingly important to generate consumer confidence and physical stores must take advantage of all the information from their customers to personalize the experience”, says Lepage.
It is true that consumers do not care as much as companies about the future of the retail sector. However, it is precisely they who will be responsible for creating this future.
Digital brands in the fashion world focus on selling experiences, not just products
Inés Arroyo is a young Spanish woman who, at the age of 24 and without much prior knowledge in the sector, decided to launch herself into the world of entrepreneurship. Her brand, Laagam, is a digital native firm whose mission is to inspire women to take on the world. With the sale of affordable luxury and with a business model in which collections are not designed but products are launched every week, Laagam has managed to create a community around her brand.
While many establishments were closing the doors of their stores, Laagam gave this physical space a chance. This is how his first guideshop came about, a store without stock that sought to offer something different from what already existed. “We want our client, when entering our physical space, to feel part of our universe. Our goal is to create an experience behind the purchase.”
While it is true that the product matters, many are confident that fashion no longer has to focus only on its sale. To obtain great results, the important thing will be to offer these added values based on experience. “I think that the product in the end is a commodity, in fashion everything is invented, divine creation no longer exists. Everyone is inspired by things that have already been seen, so everything is focused on the experience that the brand can create”, says Arroyo.
She even appeals to cases like Inditex, in which she mentions that at the operational level they are a monster and there is no one better than them: “logistically they are beasts. They are worthy of learning and admiring”. However, she also considers that they need to create an emotional bond with her brands.
This does not mean that brands should stop offering good clothes. At the end of the day, and as Federico Sainz de Robles, founder of Sepiia, affirms, fashion is dedicated to selling clothing, "clothing is the object with which we spend the most time each day, which is closest to our skin And what else represents us? The user must feel identified with a brand that makes him feel something special, but if this garment hinders him, that feeling can change”.
The key to success is mixing the online world with the offline world, not cannibalization
So what will brands have to do to survive? It is estimated that in 2020, one in three sales in the sector will be made online, as Pau Lepage tells Business Insider. “It is clear that online sales are going to have more weight every day and the consumer takes this channel into account in the first phase of purchase: inspiration”, comments the TLG Commerce executive.
However, there's no denying that physical outlets offer immersive customer experiences: “one where customers can smell products, feel clothes, and interact with brand advocates. No matter how pervasive online shopping is, the reality is that customers still shop more in physical stores,” says Jasmine Glasheen, Retail Thought Leader.
The key, then, will be for brands to efficiently reach that omni-quality: to manage to mix online with offline. “The customer still likes to see and touch the product. We think that in the future the stores will end up becoming exhibition showrooms where customers can try on the garments and enter the universe of each brand, but the purchase will be made online and sent home," says Federico Sainz de Robles.
"The main challenge that physical stores have is to fight with the advantages of the online channel. A channel that is always open, that has infinite stock and that payment and delivery conveniences are no barrier," says Pau Lepage.
Even so, it is known that online shopping sometimes comes with certain inconveniences, such as ignorance of the qualities of the fabrics or doubts about how the garments feel on the buyer's body. This is where the physical store must play a fundamental role.
"There are many opportunities that the online environment will not be able to offer: personalized advice, experience and product touch and feel. Physical stores must also take advantage of the digitization of society," says the marketing manager of TLG Commerce.
Off site: digital native brands reinvent offline
In accordance with this omnicality, initiatives made in Spain have emerged that prove that the future of physical stores is just around the corner and that this does not have to be negative. This is the case of Off Site, a permanent space based in Madrid that seeks to offer a different shopping experience to the consumer.
María Pascual, Alohas, Robin Collection, Laagam, Project Lobster, Vinos Reilón, Apoint and Maracas are the brands that you will find in this space. From men's and women's clothing to swimwear. Accessories and footwear also parade in these few but striking square meters.
Although all brands have stock in the physical store, it is limited. With a guideshop model, what they are looking for is that the client has the possibility of being advised and trying on their clothes in the store, so they will know how they fit. If the product is not available, the order will be placed online and in 24 hours you will have it at home.
However, the initial idea of Off Site was that all its brands, with the exception of María Pascual and some Robin Collection products, would operate under the concept of a store without stock. The truth is that the brands that decide to bet on this model must deal with customer dissatisfaction as a result of the lack of immediacy at the time of receiving their purchase.
This did not mean any problem for Laagam when opening his guideshop. “At first we thought that people were not going to understand it but the truth is that we have not had any problem. It's something to adapt to,” says Inés Arroyo. Even so, the same has not happened with Off Site, who soon after its opening realized that the client wanted to take the complete look at the moment. "It has been a matter of trial and error, we started with an idea but the client demanded something else," they comment from Off Site to Business Insider.
Concept stores and guideshops are called to revolutionize physical stores. A few years ago, even months ago, it was the physical stores that were looking for a space in the online world. However, now the news is different and “native digital brands are reinventing offline”.
At the end of the day and as stated by Orlando Cotado, interior designer and specialist in the design of stores and physical spaces, "the sale will no longer be a transaction but a relationship".
