Selling the extraordinary

“Everything has become more experiential”

– Dante D’Angelo, brand and consumer development director at Valentino

It is an odd state of affairs indeed for the retail sector at the moment. On the one hand, consumers are flocking to digital devices like never before, particularly for their shopping. Conversely, this means that the physical experience of shopping becomes rarer, creating more opportunities for specialism. An article in the Financial Times a few weeks ago read as if a commercial plague had swept through the UK high street over the past few years. With 4,000 stores affected, 2012 was, according to data from the Centre for Retail Research, the “worst year since the start of the credit crisis in 2008”. Names of erstwhile stalwarts like Woolworth’s, Jessop’s, Peacocks and Clinton Cards have all fallen under the knife. As we wrote at the beginning of last month, what little salvation there is lies in embracing digital technologies.

The luxury sector however has its own special, gilt-edged cards to play. In St. Tropez, the Christian Dior boutique’s ample courtyard has recently been made use of with an all-day restaurant. Louis Vuitton have a cinema screening classic Italian films in their Rome boutique. It’s no wonder such brands have also branched into the hospitality sector, the former working with the St. Regis to develop branded rooms, the latter into full-scale hotel management. Ferragamo have been involved in the hotel sector for years. Two recent examples show how companies can extend the experience for visitors, and help drive revenue at the same time.

The auction house Sotheby’s will tomorrow auction a rather large collection of surrealist art. One of the few things that definitively puts it ahead of Christie’s is that it has its own cafe, which, last week and this week, is pushing the surrealism theme into its catering (see above menu). It’s a simple, creative idea that creates a cohesive brand, celebrates a big event, and ultimately hopes to drive revenue from peripheral streams around the auction. The RA’s current Manet exhibition is taking a leaf from this tactic, opening later but charging double the usual rates for a special experience, including a drink and a guide. The other interesting news of note was a new tactic being employed by the fashion company Valentino. Not content merely with having a major exhibition at London’s Somerset House, the label is also tinkering in an innovative way with its event structure. As detailed last week in Bloomberg Businessweek, Valentino is opening a new boutique in New York later this year, during which the typical glitterati will be in attendance. However, the new idea comes in the form of the company inviting prized customers to the opening for the chance to rub shoulders with said VIPs, for a steep price. Similarly, Gucci is offering its non-VIP customers tours of its Florence workshops for the first time.

Something that Zeitgeist has been noticing for a couple of years now, recently echoed by Boston Consulting Group (BCG) senior partner Jean-Marc Bellaiche, is the importance, particularly for those in their 20s – like Zeitgeist – that people place in defining themselves by what they’ve done rather than what they own: “In an era of over-consumption, people are realizing that there is more than just buying products… Buying experiences provides more pleasure and satisfaction”. On a macro level there is significant bifurcation in the retail market; not everyone will be able to afford in creating extraordinary experiences for their customers. A recent BCG report helps illustrate this, noting that while the apparel sector as a whole saw shareholder returns fall by 1.3% for the period 2007-2011, the top ten players produced a weighted average annual total shareholder return of 19%. Expect then for retailers – those that can – to increasingly provide exclusive experiences to their customers, beyond the celebrity, whether it be early product releases, tours, or events. Just don’t expect it to come without a pricetag.

Turning two negatives into something positive

We all know that catching cancer early can improve our chances of survival. For some charities, such as Coppafeel, the primary aim is to encourage people to know their body and get checked out as soon as they suspect there may be something wrong. Yet our inherent behaviour means we often put off seeing our doctor.

The reasons for stalling are varied, from wanting to ignore reality, a dislike of doctors and hospitals to simply putting it off until tomorrow.

One of the barriers is that you can’t get to see a doctor immediately. You have to book an appointment and then organise your life around it.

All of which makes the Get to Know Cancer pop-up clinic initiative in the Centrale Shopping Centre in Croydon such a great idea. Shoppers can pop in and ask questions to specialists and nurses from the Royal Marsden and Cancer Research UK (for whom Zeitgeist recently did a half marathon – sponsorships still kindly accepted).

Why we like it

It’s obvious to anyone strolling through a UK town that the economic downturn has lead to a depressing number of empty properties along the high street.

The most recent high profile closure was JJB Sports who went into administration last week with the loss of thousands of jobs. The retailer followed a number of famous names, including Clinton Cards, Blacks, Peacocks and Game to either disappear or be sold off to new owners.

For some, the traditional high street is beyond salvation.

In his new book, Sold Out, the former Iceland and Focus DIY CEO  Bill Grimsey, writes that the high street is “as good as dead already“.

He believes that repeated failures by government, online shopping and the recession have created a perfect storm and lambasted the review of sector by the retail expert Mary Portas as “all a waste of money and resources”.

As for cancer, the consequences of this terrible disease are known to us all, lives taken and lives destroyed.

Saving lives and money

Recognising our natural inertia and the need to get illnesses diagnosed as soon as possible the shop interrupts people and overcomes many barriers. And like all great ideas, it’s simple. Now that it exists, it’s strange to think that it has taken so long for such an idea to be implemented.

Aside from the human cost, cancer costs the state around £11bn a year. So quite apart from the emotional benefit of saving lives, the clinic could save us all money.

Bill Grimsey might be right. The traditional high street may well be gone forever. If it has, our challenge is to find new ways to use the empty spaces left by defunct retailers.

Let’s hope that the Croydon trial is a success and the start of the renaissance.