How experience stores influence your behaviour?
Back in 2001, Apple Inc. launched its first retail store. It had distinct sections, segregated based on the products that were offered. Ranging from "home and education" to "business and work". It had it all.
Samsung followed, launching its first experience store in 2004. The idea was to provide the customer with a hands-on experience of their products. Many tech companies followed the idea, Xiaomi being one of them. Xiaomi's largest experience store called the "Mi-Home" was launched in Bangalore in early 2018.
What could be the reason behind the transition from a traditional retail store to an experience store?
A major chunk of a company's resource is spent on trying to provide excellent customer experience, especially in a B2C company. The Ikea store is yet another great example to understand the concept. To provide an excellent experience, time must be spent on understanding human psychology and behaviour.
One of the most important things I observed was the acceptance of experience stores, mostly by tech companies. Technology is expensive. More so if it is novel. For a majority of the population, iPhones were a status symbol back in the day. And the idea of getting to experience it hands-on before spending out cash was great.
The romance of buying costly things is real. It's human psychology.
Remember how you'd felt when you first bought yourself a car? The feeling is real. It might (or might not) be as romantic as it was once you've paid, but it's there. It surely is. And that's where smart companies play.
Apart from having innovative products out there at the store, Apple also had a Genius bar. The Genius Bar was one of a kind tech support station located inside every Apple retail store. Although it was discontinued in 2016, the learnings are forever valuable. The display at the Genius bar said: "The smart place to get repairs".
Indian electric vehicle manufacturer, Ather Energy launched their experience centre in Bangalore and Chennai. One of the most prominent features of the experience centre is the all-aluminium naked chassis that sits inside the store. The motor, the specs, all add to customer experience.
For a "layman" customer, understanding the engineering and experiencing it first hand even before shelling out money is precious. Not every customer is aced at understanding engineering and tech, but Apple's "smart place" approach makes him feel belonged to the environment. He feels himself to be a part of a bigger picture. He feels connected to the engineering behind the technology. Ather's chassis does the same.
It instils a belief of belongingness and smartness in a consumer's mind. Key elements like this play a very important role in helping companies sell.
While there may be multiple reasons behind the experience store concept in retailing, human psychology is one very important aspect of it. What do you think about it? What could possibly be the reason behind such innovative ideas?
Feel free to share your opinions in the comment section below. Connect with me over LinkedIn for a chat!
Capgemini E.L.I.T.E | IIM Lucknow (exploring about future of our world, life as a game, & leadership)
4yGood point about experience stores here. But it is equally important that you have great products to showcase in those experience stores, which brings us back to rule 101, you can't win if you have mediocre products. Also to notice is that good companies provide you with great products, whereas great companies provide you with great Eco-systems. I feel that ultimate aim of any world class company is to provide great products in tandem with their other products which support, as well as compliment each other and thus, capture the consumers in their Eco-system. The other reason why companies tend to have experience stores is basically so that they can showcase what a great ecosystem they have. Taking examples from amazon prime to apple, that is what great companies tend to do. Having said that, no Indian company has been able to do this until now, i.e, creating an Eco-system to capture consumers. Very few Indian IT/electronics companies have had a successful stint in the B2C arena. With the Indian Government exhorting its citizens under the banner of self sufficiency, it would be interesting to see what the post-covid world has in (experience) store for us. But the question is, have you ever wondered why no Indian company has reached the stage to showcase it's ecosystem?
Strategic Communications, Brand and Marketing professional
4yThe war between online and offline store is real especially around this time. While there is no denying the fact, experience stores with customized service is a win-win, retailers have to find innovative ways to sell products online. Digital shoppers and need of the hour raises demand to merge the two into one unified experience.
Co-founder, Gurucool | Founder, The Alms Tree
4yLiked the way you presented you ideas👏🏻
Consultant at Deloitte India (Offices of the US)
4yI think the concept of Retailtainment also comes into the picture how customers just want more than the retail experience. For example, The House of Vans in London works seamlessly with Vans’ “Off the Wall” brand strapline. Here customers can catch a film, listen to live music, eat, shop – and, of course, skate. Beneath the buzz of the 30,000 square foot building is a free-to-use ramp and street course for skaters and BMXers. Customers can simply drop in and enjoy a few hours of socialising and skating, providing an immersive retail experience with the brand identity at its heart. This is how great and impactful the idea of an experience store could be. The example of OnePlus you have used is a splendid one.
Senior Consultant at Deloitte India (Offices of the US)
4yIt’s the new approach of not just relying on product benefits and features but bringing customer back to you through supreme customer experience - Bringing the brand to life. Buying should be fun and not just transactional.