Semir
As a homegrown Chinese apparel brand, Semir has enjoyed steady growth since its launch in 1996. Its retail network has expanded to over 7,000 stores in China. Semir defines its brand personality as “Youthful Vitality” through its store design and modern, interactive marketing tactics, such as the use of SNS (Simple Notification Service). It also capitalizes on the influence of young celebrities by having them serve as brand ambassadors; most recently, it hired Korean heartthrob Lee Min Ho. Impacted by the market slowdown and the competition from e–commerce players, Semir has suffered weak selling and profit decline over the last year. Semir is taking a series of actions to adjust its retail structure, improving individual store performance and increasing investment in e–commerce.
It’s safe to say modern shoppers are grateful to online–only players like Amazon.com and eBay for their problem–solving power. But if everything we craved was online, why are thousands of global fans of British fashion retailer ASOS.com clamoring for the brand to open a store?
Granted, traditional retail looks different than it did before e–commerce and the Great Recession. They hastened the demise of already weak players. But they also kicked stores into gear, reinvigorating the game. When it became largely impossible to win on price, a swarm of improved experiences appeared, experiences that deliver value the customer can relate to, whether it’s stylish frugality, an earth–friendly cause or a well–edited lifestyle assortment.
As a homegrown Chinese apparel brand, Semir has enjoyed steady growth since its launch in 1996. Its retail network has expanded to over 7,000 stores in China. Semir defines its brand personality as “Youthful Vitality” through its store design and modern, interactive marketing tactics, such as the use of SNS (Simple Notification Service). It also capitalizes on the influence of young celebrities by having them serve as brand ambassadors; most recently, it hired Korean heartthrob Lee Min Ho. Impacted by the market slowdown and the competition from e–commerce players, Semir has suffered weak selling and profit decline over the last year. Semir is taking a series of actions to adjust its retail structure, improving individual store performance and increasing investment in e–commerce.
Granted, traditional retail looks different than it did before e–commerce and the Great Recession. They hastened the demise of already weak players. But they also kicked stores into gear, reinvigorating the game. When it became largely impossible to win on price, a swarm of improved experiences appeared, experiences that deliver value the customer can relate to, whether it’s stylish frugality, an earth–friendly cause or a well–edited lifestyle assortment.
Experience is Everything
A prominent technology investor stirred up discussion recently when he declared traditional retail dead, thanks to e–commerce. It’s only a matter of time, he asserted, before stores become economically unviable, disappearing from main streets and malls, leaving consumers no choice but the online channel. Stores, he argued, will stop making sense.
Granted, traditional retail looks different than it did before e–commerce and the Great Recession. They hastened the demise of already weak players. But they also kicked stores into gear, reinvigorating the game. When it became largely impossible to win on price, a swarm of improved experiences appeared, experiences that deliver value the customer can relate to, whether it’s stylish frugality, an earth–friendly cause or a well–edited lifestyle assortment.
People like to shop. Shopping fulfills a deeper need than just filling the pantry and getting stuff. Young shoppers especially look to retail for new and exciting experiences, ideas and inspiration. We all love to get away from home and work to socialize, learn and be enlivened by bright lights and novel experiences. Predicting that people will do without stores is like saying that movies will disappear. If we can read the script online, we won’t need to see the film.
It’s safe to say modern shoppers are grateful to online–only players like Amazon.com and eBay for their problem–solving power. But if everything we craved was online, why are thousands of global fans of British fashion retailer ASOS.com clamoring for the brand to open a store?
ASOS has websites targeting Europe, the U.S. and Australia and ships to over 190 other countries. According to the blogosphere, “The only thing that could make ASOS even better (you know, something other than its vast inventory, on–trend products, affordable prices, free shipping and free returns) is a brick and mortar store we could visit on our lunch breaks.” Shoppers want to feel the fabrics, look at the colors, try out styles—all those things that can be lost online, even with advances in virtual technology.
The store is the experiential center of the brand
A retailer’s brand experience brings its relevant differentiation to life. It helps sell more. Customers love a great experience as much as they love great products. The store, as the heart of the brand and its emotional center, cannot be starved of investment and innovation, or appropriate levels of design, media and technology. It needs to be the showcase for interesting new collaborations to keep things exciting, whether it’s a luxury jeweler or a humble dollar store.
In the future, retail stores will look different than they do today. The digital dimension and corresponding consumer behavior continue to evolve and change the way a brand experience is delivered. Now that the idea of shopping can’t be anchored in geography or managed as an event, the brand experience is too important—and holds too much promise—to be ignored. It’s critical that retailers focus on enhancing brand experiences no matter where they are.
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