Traditional bricks-and-mortar retailers are facing fierce competition from their old rivals as well as big and small e-commerce brands, As a result, many retail businesses have suffered significant setbacks, all because their traditional approach failed to address the pain points of consumers. A smart ‘Experiential Retail Store’ that goes beyond addressing the touch points of its target audience by also providing compelling reasons to customers to visit often, allows retailers to increase their market share. There are numerous ways by which a traditional physical store can evolve into a smart retail store as there is no end to technology. A few of the leading stores are also using in-store navigation, digital assistants or bots, recycling technology, fashion shows through VR/Laser to show coordinated dresses, magic mirrors, 3D printing, smart fitting rooms, 3D scanners to create made-to-measure garments, AR/VR, metaverse and much more.
Scenario in India
In the Indian retail scenario, many brands and retailers already have a tilt towards experiential retail stores. Overseas brands and retailers Zara, Decathlon and Bestseller India etc., already have an upper hand using state-of-the-art technology as they are bringing the global shopping experience under one roof to India as they aim to reimagine the phygital experience through innovation, creativity and design which further offers their consumers a unique shopping experience.
Zara’s store in Mumbai features the latest technological innovations from Zara’s integrated online and physical store platform. Its services integrated with the brand’s app include a fitting room reservation service, the ability to search online for items in the store, order and collect them within two hours and check available stock. The store also boasts an advanced self-checkout area and a special area for collecting online orders.
The interior of Bestseller Mumbai store highlights minimalistic visual language set against indoor foliage to bring out the uniqueness of all the three brands. To elevate one’s shopping experience further, the store is equipped with Wi-Fi, super-cute ‘Instagrammable’ corners, shoot-friendly lighting and boasts an in-store café that doubles up as Alfresco coffee joint and a smart workstation.
Decathlon’s stores include self check-outs (SCO), an in-house, custom-built, RFID-enabled self check-out application to enhance the overall value offered to customers and on-the-spot quick printing to give customised sportswear.
Recently opened Lee®’s first flagship store in India at Bengaluru, spread across 4,200 sq. ft., is an omnichannel-enabled retail store that provides customers with a unified and superior shopping experience across online and offline channels and touchpoints. Consumers benefit from a unified view of inventory and price parity and they can also order online and pick them up from the store. They can also order products not available at the store using the endless aisle application and get them delivered to their preferred address.
| Shoppers Stop, BIBA, Azorte are also incorporating technologies in their stores as they have already deployed smart fitting rooms in some of their stores. Indian brand Madame has partnered with Trace Network Labs to create the experience of a digital clothing store in the Pariz Metaverse. The virtual store is designed to offer an immersive shopping experience. |
The Smart Mirrors provide innovative experiences to shoppers by engaging and delighting them with personalised recommendations and effortless product discovery. A special Lee Studio has been set up in the store to offer a variety of services such as express alteration, badging, rip and repair, embroidery and lifetime mending. The store also has 13.3-inch tablet screens to update consumers about the entire gamut of offerings from Lee® in real-time.
On a similar track, adidas’s flagship store in Delhi creates connect with consumers as it is designed in such a way that there are dedicated zones for categories like women, kids, men, outdoors and originals. An exclusive floor dedicated to its football collection, features a digital footwear wall, victory mannequins, a lit crest and LED field lines on the ceiling.
| A smart ‘Experiential Retail Store’ goes beyond addressing the touchpoints of its target audience by also providing compelling reasons to customers to visit often, allowing retailers to increase their market share. There are numerous ways by which a traditional bricks-and-mortar store can evolve into a smart retail store and address consumers’ pain points. |
With all these developments, stores also have a growing focus on sustainability for which they have a dedicated ‘Sustainability Zone’, in line with their long-term vision and commitment to the environment and sustainability. Adidas’ Delhi flagship store has received the LEED (Leadership in Energy and Environmental Design) certification which is considered the most widely used green building rating system in the world.
Now Shoppers Stop, BIBA, Azorte are also incorporating technologies in their stores as they have already deployed smart fitting rooms in some of their stores. Indian brand Madame has partnered with Trace Network Labs to create the experience of a digital clothing store in the Pariz Metaverse. The virtual store is designed to offer an immersive shopping experience.
Even affordable apparel retailers like Reliance Trends are updating their stores with modern and tech-enabled amenities like self-checkout counters and electronic shelf labelling, RFID enablement and dual-sided cash tills. The stores will also get a fresh look, from the exterior to the fittings, lighting, ceiling and flooring, making them more enticing for the customers.
Experiential Retail Store is a solution for many challenges
The concept of experiential retail stores is attracting customers the most. It is a solution for the traditional stores that face challenges like limited inventory, limited information about products, limited convenience. The use of latest technology is addressing these issues well which has resulted in more sales. Experts believe that these technologies in retail will be a game-changer, unlocking the next phase of growth for bricks-and-mortar stores.
The cost and benefits of implementing innovative technology in retail can vary depending on the particular circumstances. Keeping the target audience in mind, rough estimates suggest that setting up a tech-enabled experiential fashion retail store in India can cost anywhere between Rs.50 lakh to Rs.5 crore or more. It is crucial to conduct thorough research, planning and budgeting to ensure that the investment is worthwhile and aligns with the overall business strategy. Real estate costs can vary depending on the location.
