Industry reports.
in-store experience.
In this report, Deloitte explore the significance of the rise of consumers incorporating digital devices into their shopping journey. Deloitte assess the effect digital devices have on the consumers purchase decision process, how they analyse product information, shop for the product and finally purchase the item, physically in-store or digitally online. The report examines fundamental factors such as the digital influence on retail and the store types greatest effected, path to purchase and in-store strategies.
As shown in figure 2, Health and Beauty stores rank 3rd in the stores highly effected by digital devices. Figure 1 shows consumers spend more when interacting with a digital device whilst shopping, this could be due to technology offering accessible information, personalisation and product reviews, which are extremely influential in a beauty consumers purchasing decision in today's industry.
Figure 1
Figure 2
'...as the technology becomes more sophisticated it will inevitably change the parameters of what can be achieved in a bricks-and-mortar store,' (WGSN, 2014).
Tech & Retail Experience, 2014
WGSN explore the possibilities of what technological advances have to offer, allowing brands to adopt to the techniques that tailor to its needs. The idea that in-store technology integrates the omnichannel shopping journey is established, those that employ digital techniques in-store will experience the personalisation and convenience qualities that e-commerce offers.
Many of the digital techniques analysed in this report would be beneficial to Boots to innovate its in store environment. 'Magic Mirror' allows individuals to interact with a mirror through touchscreen technology. 'Beacons' are useful to encourage footfall into stores whilst individuals are close by. 'Augmented Reality' would be incredibly beneficial for Boots to trial as it offers a realistic, 3D vision. Possibilities could include digitally trying on lipstick shades and accurately matching foundation shades to individuals skin tone.
TECHNOLOGY.
'Retailers’ over-emphasis on speed, convenience and price has led consumers to crave experiences in brick and mortar spaces more than ever,' (Mintel, N.D.).
'The fact that consumers are leading increasingly digital lives has an impact on how they consume products and services and the way that they interact with retailers and brands,' (Deloitte, 2015, p. 1)
Mintel have introduced 'Experience is all' as a trend, investigating the movement of consumers favouring intangible experiences rather than tangible goods. The competitive nature of retail has influenced consumers to demand unique and innovative experiences that encourage emotional connections. Mintel have classified this trend as 'established', suggesting this movement is becoming modern culture. If Boots were to digitise its store and innovate its business in-store strategy to concentrate on offering memorable and engaging experiences, the brand experience will be enhanced.
Beauty.
'Retailers are using digital touchpoints to create a more immersive, sensorial and personalised shopping experience,' (WGSN, 2017).
In this report, WGSN outline the emerging retail trends within the beauty industry. Digital technology is a prime subject evident throughout the report, indicating that a large majority of brands are beginning to adopt digital touchpoints within its stores. It is suggested that incorporating technological devices in-store creates interactive and educational spaces, establishes a more personalised beauty service for consumers and offers an authentic in-store experience.
The report illustrates brands that have implemented technological devices in-store to innovate the customer experience. Many of the brands sold in Boots are featured, such as NYX and Estee Lauder, as well as promoting a main competitor of Boots: Sephora. The digital touchpoints used to enhance the in-store environment include elements such as; 'Play Stations' offering advice and interactive make up tutorials using the products on offer, 'Olfactory Exploration' which features information regarding the making of fragrances and the notes infused within the products, 'Virtual Artist' augmented reality and virtual reality is utilised to create an engaging experience, 'Personalised Touch' highlights the importance of focusing on creating a personal experience allowing an individual to customise their experience, and finally, 'Social Interactions' ensuring Social Media is implemented into the in-store experience to act as a form of advertisement and fulfilling the 'selfie' culture.
'Stores remain vital to the beauty purchase process; and by investing in new services and technology, retailers are able to add value to their offering that cannot be replicated by the perceived cheaper alternatives online,' - Alice Goody, Retail Analyst (Mintel, 2017).
The in-store experience and environment is one of many topics covered in this report. Alice Goody, the retail analyst that wrote this report expresses the importance of physical stores in today's industry despite the growth of online sales. A point is made in the report that the older consumers go into stores to discover new and interesting products rather than using online resources such as bloggers for recommendations. It is suggested that to satisfy the target market as a whole, beauty retailers, such as Boots, should give the consumer the option. Adopting digital devices in-store would give the opportunity for the younger consumers to have access to online platforms such as make up tutorials and beauty bloggers, whereas the older consumer may still shop in-store and engage with the employees and utilise their advice and knowledge on beauty products.
Figure 3
Figure 3 illustrates Boots as the preferred shop of choice for individuals shopping for beauty products. Statistics also show that Boots are market leaders in the BPC (Beauty and Personal Care) market, owning 16.3% shares. This means, as a market leader, Boots must innovate its business strategy to satisfy customer demands and evolve with modern culture and consumer buying habits.
'...retailers must maximise their omnichannel offer while also creating a compelling store environment,' (WGSN, 2016).
WGSN explore the opportunity that Augmented Reality and Virtual Reality offer to help generate sales and footfall into stores. This report exhibits many examples of brands successfully utilising this technology such as Charlotte Tilbury and Max Factor. 2016 was the year for technological advancements that provoked immense consumer interest, particularly in the beauty industry. WGSN split beauty technology into two segments: the personal - Augmented Reality and the immersive - Virtual Reality.
Statistics show that 70% of beauty research is conducted online and 90% of the beauty products are bought in-store. This reiterates the point that installing new tech into stores will improve the store experience, as well as utilising the technology to integrate the physical and digital environments.
Adopting digital devices will likely increase sales and footfall into stores, it will also educate your consumers and create a memorable and engaging experience, building an emotional connection, which is known to develop a loyal customer.