Retail by design
It is becoming increasingly important in travel-retail to offer an experience that travellers are not likely to forget. Marek Kolasinski asks two design companies how their involvement can improve this experience
Travelling used to be the prerogative of the rich and duty-free was as much a symbol of one’s status as an opportunity to impress neighbours, friends and family. In those days it was all about the products, and brand name was more important than the surrounding environment. But things have evolved rather dramatically since then. Notwithstanding the proliferation of retailer and available duty-free locations, travellers have become ever more discerning in what they want and what they are looking for, and having a certain item on offer whose only appeal is its slightly cheaper price is certainly not going to be much of a selling point to many – if not all – travellers.
There is also the increased competition between airports but also within an airport itself. Going through JFK Terminal 4, a traveller will find no less than three outlets selling watches, for instance. In such a competitive environment, retailers have to find a way to appeal to potential customers that does not rely solely on the brand name of the products on display, but also on the way they are merchandised and the overall feel of the shop itself. In other words, retailers have to call upon design to make a difference.
“Customers in airports are often short on time,” explains Austin McGinley of design consultancy JHP Design, “and so immediate impact and easily negotiable store design is critical. If a store is too deep or circulation too complex, you will not get the customer penetration.”
After passing through all the increasingly tedious steps required for security purposes – and which seem to involve seemingly unending queues at check-in and security screening for instance – the average traveller will not be in a mood necessarily conducive to buying anything, so making it easier for them, removing the hassle and stress inherent to these security measures and steering them gently into the retail environment certainly is vital.
Michael Fern, creative head of environment for Portland, another design company, tells Frontier that “it’s about getting the balance right between the functional and emotional aspects of the shopping experience. It’s critical to try and engage with consumers on an ‘experiential’ level. The same retail rules apply that we see on the high street, but some duty-free operators forget this.”
And it is true that until recently, airport operators were more concerned about functionality than retail. Airports were the opportunity for an architect to show off his or her skill and in their mind, retail is usually too base and unimportant to be worthy of any amount of space. However, non-aeronautical revenues have been steadily increasing over the years and have become more important to operators who have shown a willingness – even an eagerness – to dedicate more space to retail. And design has been an increasingly important part of the mix. “Design is as important as aviation fuel to a jet-powered flight,” enthuses Fern. “Design should be embedded in the commercial and brand proposition.”
This statement is echoed by McGinley who says that “retail design is critical to the success of a brand – consumer expectations are continuing to grow and they are exposed to more and more great designs from all over the world. With the speed of communication ever-increasing, a poorly designed and marketed company can fall from grace far more quickly than ever before.”
Both JHP Design and Portland have worked on a series of important retail projects in the duty-free industry, including the Diageo Bar and the World Duty Free beauty store (pictured) at Heathrow T5 for JHP; and projects ranging from Abu Dhabi Duty Free and Charles de Gaulle to Bangalore (pictured) and Dubai’s new Terminal 3.
One of the elements common to both companies and that should be present in most – if not every – store is the much-touted concept of theatre. “Bringing the store to life either through theatre, product or environment is critical to a successful travel-retail store,” explains McGinley. “With WDF at T5, the vast majority of customers will pass through the store up to six times a year, so it is critical that the store evolves and its appearance is ever changing.”
Portland insists however that design is just one element that makes a travel-retail store successful. “Design is not the holy grail,” Fern says. “It’s one key party of the mix, which includes the product offer, service, price, promotions, etc. From our experience, if retail is well located and well designed, and engages the customer, then it invariably leads to sales uplift. Of those that have been measured, Portland’s travel-retail projects have achieved sales uplift of an average 48%.”
However, as has been mentioned, once the traveller comes through security, he or she is usually in a state of stress and even anxiety, and it is vital that retailers keep on taking this into account. The issue here, according to Portland, is that with operators trying to create an environment that is as efficient as possible and retailers that have to deliver minimum guarantees, the scope of possibilities for design are sometimes rather limited.
“The focus has tended to be on issues such as maximum densities and relationships between brands and the retail operators rather than on delivering a compelling and unique customer experience,” Fern explains. “Traditionally, travel-retail operators are more conservative and more risk-averse than their high street counterparts, which is often understandable due to the financial models the industry employs.”
But airports cannot afford to offer a bland environment where all the brands are the same and the way they are put on display are comparable from one country to the next. And indeed, despite the consolidation in the industry, it would seem that retailers and operators are understanding this aspect more and more and taking it on board when planning both the space dedicated to retail outlets, and the outlets themselves.
With retailers’ branding becoming more prominent and new terminals trying to outdo each other in terms of the quantity and quality of services, shops, brands on display and overall experience, there is hope for a future where travel-retail is an experience in and of itself, rather than a by-product of going to the airport to travel. And with the help of increasingly proficient and knowledgeable companies such as JHP and Portland, retailers have no excuse to not realise the full potential of every store, and thus boost their revenues while at the same time improving the travellers’ overall shopping experience.
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