Posts Tagged "omnichannel"

Unicorn with a contagious smile

Smile direct club store front

Breaking Moulds

The health sector is not inmune to digital transformation and improved customer experience. Smile Direct Club has identified as an opportunity to facilitate a smile with well-aligned dentures without having to go through the brackets, frequent visits to the orthodontist and with a 60% smaller budget.

In just 3 years it has already  more than 300 stores of its own in Usa, and it has recently started (3T 2019) its expansion in Canada, UK and Australia.

It makes the experience more accessible. The customer chooses how and where to start it: at home or in one of its stores

The innovation focuses on making an orthodontic treatment easier and more accessible by means of invisible moulds, made using 3D printers that the customer changes without having to go to the physical consultation of the specialist. Using an initial kit that is received at home or on a visit to its stores, the treatment is initiated and it is monitor by the specialists remotely used an app on the mobile. The duration of treatment has been reduced by half (6-8 months) of the traditional and cost by 60% less.

doctor-directed-SDc-Rempte-controlled

Sales growth and astronomical losses

Belonging to the “unicorns” league (start-up with a valuation of over USD 1 billion) listed since this September 2019 on the Nasdaq. As appropriate, it has been doubling annually its income and losses over the past 3 years. Customer experience at the stroke of a talonary.

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losses-sdc-compressor

 

Specialists in Strategy and Retail Operations

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Initial challenges. Their main supplier and corporativism of specialists

Not everything has been pink in their way. After a frustrated initial collaboration with its Invisalign supplier, it has currently  the largest existing global plant of moulds made using HP 3D printers (produces 20 million moulds per year).

The main challenge it faces now is the corporate struggle undertaken by the collectives of orthodontic professionals who are trying to stop their expansion.

Lab-ed

Extreme Omnichannel

Its website, with more than 5 million visits, feeds its store network  in shopping centers and urban centers. It also has a fleet of travelling buses to bring the experience to new places before the opening of new shops.The channel with the highest growth is the progressive opening of up to 1,500 “implants”  corners with reduced dimensions within CVS pharmacies/drugstores in the USA.

The management team has already extensive experience in this type of situation. They have previously developed similar businesses in:

  • Contact Lenses (1-800 contacts)
  • Diabetes Care (Simplex Health)
  • Hearing Aids (Hearing Planet)

standard-bus

Retail Implications

In all these cases they have applied the same recipe:

  • Simplification of product/service range with the implementation of technological innovation
  • Competitive priced
  • Elimination of friction points in the customer experience
  • Greater self-control by the customerl of the process Omnichannel
  • Selective use of a physical network of stores, own and third parties

With an initial overvaluation (like good Unicorn it is) and downward stock exchange quotation , Smile Direct Club is an example of the current transformation taking place in Retail.

There are no exceptions. Which subsector will be next one?

More info: carlos.dominguez@mheconsumer.com

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Glossier. The new paradigm of cosmetics: From a Blog to the Store

Glossier, the millennial cosmetics brand created in 2014, and which since last March has become a new technological “Unicorn” (a term granted to companies with a valuation of more than one billion euros), has more than 200 employees and with activities in US,  Canada, UK, Ireland, France, Denmark and Sweden.

In 2018, the company’s revenue doubled from the previous year, surpassing $100 million. It has just achieved, in its last round of funding, 100 million from the Private Equity Firm Sequoia Capital.

Glossier_Personal_Apoyo_Venta

Its origin is a blog called  Into the Gloss, whose first articles date back to 2010. The founder and CEO, Emily Weiss, model in her youth and closely linked to the world of fashion, interviewed famous people about her beauty habits. From day one, Lancome was their sponsor. Its beginnings were purely online, and it currently has 3 stores, in New York, Los Angeles and Seattle.

Weiss’s main argument was that beauty companies were not meeting the current needs of women. In 2013, with tens of millions of followers behind her back, Weiss began sketching out what Glossier’s success would be: democratising cosmetics – making women feel good rather than unsure about their appearance (“Real-life beauty products”). First, she found a gap in the market to meet a need. Then she started with a simple product line at really attractive prices, with a basic color gamut, and eliminated unnecessary product in the range. Relying on social media, especially on Instagram, she preached the brand’s goodness and created a legion of loyal followers. Making the shopping experience enjoyable and very easy to share (thanks to its original packaging ).

Afterwards, the path that other e-players previously showed us: pop-ups to generate branding and allow customers to come into contact with their products; make online shopping easier and frictionless; and create a brand around its founder (and not another soulless brand). Recently, Glossier just launched a new brand, Glossier Play, much more extravagant and full of brilliance and color. Until this launch, its assortment consisted of just 40 SKUs, focused on skin care.

Glossier is one of the disruptive brands that is transforming the cosmetics sector, along with Fenty Beauty, the cosmetics brand, and now also fashion, of the singer Rihanna, making traditional retailers rethink their strategies. Department stores and pharmacies have been dedicated to modernizing their beauty departments with a focus on services, technology and agreements with emerging new brands, in an attempt to fight the growing wave of beauty brands that, supported by the “effect influencer”, offer much more interesting experiences for today’s customer.

Mhe works for major chains and brands improving retail strategy and operations

Improved customer experience

Its flagship is located in the SoHo area, NYC. The showcase is nothing more than a translucent vinyl that does not allow you to see the interior. Surprisingly, as soon as you access the store, you will find a kiosk where customers can pick up their orders made through their website.

After going up the stairs (the store is located on the second floor), we come across a fully automated order preparation area, where a crowd of customers are waiting for the products they have just selected in the store, with the help of sales staff. Sales assistants are dressed in pink uniforms similar to the scientist uniforms in a lab, and “equipped” with iPads prepared to serve another client. Service and close contact with the customer is another fundamental aspect of their success. Vendors encourage you to interact with the product and provide you with beauty tips.

The store has areas to test its products and is full of mirrors in which to check the color that we want to take home.glossier. nyc flagship-min

 

At all times, it gives you the feeling that everything pretends to be an Instagram post. You can’t find any limitations when it comes to taking photos inside the store. What’s more, once inside you seem to find yourself in one of the tourist attractions of the city due to the amount of people taking photos and selfies with the decorative elements of the store.

Glossier_Sales_Assistant_Uniform

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Cosmetics have become the pioneer and  leading Retail segment, showing the way to other sectors such as Fashion

The new paradigm of cosmetics: From a blog to the store

 

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NYC Flagship. Reinventing your Third Place: Home, work and Starbucks experience

Temple with more than 2,000 square meters

A new temple for Starbucks lovers opened last December in NYC, in the Chelsea Market area, across Google’s offices in the city. They are more than 2,000 meters distributed over three floors with 5 well differentiated areas including an area for cocktails, Italian pastries and sandwiches (Princi), ice cream and of course, 6 different ways to make a coffee (in addition to the espresso).

Starbucks NYC Flagship

  • 280 employees strive to realise a differentiated experience for customers who are willing to pay 7 to 10 euros for their coffee. The price does not seem to be an impediment to continuing to grow this company that with sales of 22 billion euros (same Inditex and Mercadona league) and annual growth of 10% is making Starbucks that “third place” desired by its customers after home and work.
  • With a local design, copper colour dominates the environment. The central axis of the store is a roasting area that prepares more than 500 tons of coffee to be used in some of the 28,000 outlets that Starbucks has. With a high annual x17 inventory turnover, it is indeed the envy of any other retail business.
  • The plan is to have a total of 6 Flagships with similar globally characteristics. They have already also opened in Seattle, Shanghai, Milan, Tokyo and soon in Chicago.estadatisitcas-min

Declination of formats

Few businesses have declined their format in variants as different as they have, from small kiosks implanted in hotels/office blocks to these 2,000-meter theatre stores maintaining a special aroma and atmosphere.

Starbucks NYC

Mhe works for major chains and brands improving retail strategy and operations

Retail Customer Experience Optimisation

Food

Food already accounts for more than 20% of its sales and the alliance, in full execution with Nestlé to distribute its products on supermarket shelves and other distribution channels, will facilitate the transfer of the same experience to theirs home that’s why they will have additional reasons to visit “the third place”.

Strong Competition in China. Luckin Coffee

It is present either directly or through licenses in 80 countries – with varying results – and the strategic points are USA and China. In fact, it is in China where they are encountering a first-timer but strong competing operator: Luckin Coffee. This startup (October 2017) has already opened 2,000 outlets and plans to double them during this year 2019 beating Starbucks in the Chinese market. With -30% lower prices and focused on a queueless service, take away and Home/Office Delivery Luckin Coffee is managing to change habits in their compatriots.

Innovation and size can work together

Innovation and size can work together and Starbucks achieves very high levels in omnichannel, loyalty programs and advanced initiatives in corporate responsibility as support in the secondary and university education of its employees, hiring 22,000 wives of military veterans and a strong commitment to sustainability and the environment. Profit and support local communities live together and feed each other very well.

Beyond the product, beyond the price

Approaching its 50th anniversary, It gets a renewed experience that makes its followers continue to consider it as their third place: Home, Work and … Starbucks. Beyond the product, beyond the price.

More info: carlos.dominguez@mheconsumer.com

www.mheconsumer.com

Starbucks Merchandise

For some conventional Retail chains, flagship adjective is synonymous with point-of-sale that generates heavy losses. Efforts by some brands like the one Nike makes in this new flagship only have a good reason to be when there is a clear focus on omnichannel and core wholesale activity.

Located on NYC’s Fith Avenue and opened on November 2018 with more than 5,000 square meters of surface and six floors. Originally named as House of Innovation, follows  the track of the first opening of this type of Nike store in the Asian continent, not randomly (Shanghai).

It contains within it different new concepts, some of them already tested individually:

  • Nike Speed Shop
  • Nike Sneaker Bar
  • Nike Expert Studio

Nike Flagship NYC

Nike, with a growth of +10% annual sales (with only +1% stock) and consolidating margins, materialises in this new flagship store its three principles:

+ Innovation
+ Speed to market
+ DIRECT to client

Direct to client
“DIRECT” sales to customer already account for 1/3 of Nike’s total including own retail and ecommerce, the latter with year-on-year growth of 25%.

Platforms vs individual products
They are not based on merely releasing new individual products to market. Otherwise they make use of already proven platforms (e.g. Air Max) as a growth vehicle through new models designed much faster than the past.

Innovation
Strong support and development of its app and omnichannel with new features such as:

  • Click & Collect internal in store. Looks and individual items
  • Scan & try
  • Express Check out paying from mobile without going through the cash register
  • Extreme customisation for some products
  • Selection of the goods displayed based on online analytical criteria for the specific geographical area where it is located
  • Members of Nike Plus community enjoy special perks and privileges such as personalised assistance, express shipping and increased product customisation possibilitiesestadisticas-min (1)

Nike NYC Flagship

 

Mhe works for major chains and brands improving retail strategy and operations

Retail Customer Experience Optimisation

For some conventional Retail chains, flagship adjective is synonymous with point-of-sale that generates heavy losses. Therefore efforts by some brands like the one Nike makes in this new flagship only have a good reason to be when there is a clear focus on omnichannel and core wholesale activity.

More info: carlos.dominguez@mheconsumer.com

www.mheconsumer.com

 

Nike Speed Shop

Omnichannel integration, personalisation, and strong correlation between employee and customer experience, main drivers to imporve the retail customer experience

Mhe, retail consultancy, conducted, between 13 and 20 December 2018, a study on the retail customer experience in the main retail chains of Spain and Portugal, in which more than 200 managers from 50 retail chains (various sectors : Fashion, Home, Great Consumption, Multi-Sector).

The study focuses on the degree of impact of certain initiatives within their respective chains, related to the experience they offer their clients:

  • Today
  • Expected in the next 12 months

For each of the variables, they were asked to define whether the degree of application and impact would be non-existent, Low, Medium, High, or Very High.

Today, the format/concept and location of the physical store have the greatest impact on the customer experience

Despite the emphasis that the chains have made in recent times in terms of personalization and omnichannel integration for an end-to-end improvement, managers think that their chains, at this moment, are still far from generating a big impact on the experience of the client with such initiatives.

Impacto_Actual_Iniciativas_Experiencia_Cliente_Retail-Mhe

Omnichannel integration, customisation and alignment between employee and customer experience will focus the efforts of chains to optimise the retail customer experience over the next 12 months

Chains seek to bring value to their customers through a seamless, more integrated, more personalised omnichannel experience.

They also consider it relevant to ensure an adequate alignment between the customer experience perceived by the employees themselves, and the experience perceived by the customers. This lack of symmetry is also evident within the employees of the chains themselves, between the headquarters, sometimes far removed from the reality of their business, and the employees in the store front.

The non-stop promotional activity carried out by the chains today, and the high degree of impact they have today, make both Promotions and Pricing not be a priority, relatively, within the action plans of the managers as leverage in that customer experience.

Iniciativas_Impacto_Experiencia_Retail_Prevision_Mhe

Impact customer experience – initiatives by sector

Omnichannel integration and Customisation are the initiatives that will generate the greatest impact on the customer experience across all sectors.

Within the Home sector, there is a greater use of Pricing as an element that allows them to improve the experience of their customers. Also noteworthy about other sectors is the location of physical stores as an element that will generate a relevant impact on the customer experience, following the tendency of the main players to settle in downtown locations.

Mhe, retail consultancy, works with brands and chains optimising the retail customer omnichannel experience

“The only thing I want is …everything”

Given this statement of the consumer, “the only thing I want …is everything” in the omnichannel environment, the chains-brands make an effort on selection and prioritization of those initiatives more relevant inside each sector.

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Each functional area has a great specialist

Adidas on Web, Springfield in Mobile, Media Markt in Store, Kiko in Marketing and Apple in Customer ServiceOmnichannel by functional area

 

Strong presence of Inditex group in the top ranking of Store area

There are three brands of the group in the Store’s area top 10: Zara, Pull&Bear and Stradivarius

Amazon … remains the King

Excluding Store area, Amazon is still taking up the first place on Omnichannel initiatives terms although differences with retail operators are getting smallerMhe Consumer

its star omnichannel initiatives

  • Fashion: Click & Collect
  • Home: Stock Visibility
  • Technology: Comments and Track order
  • Health & Beauty: Rating and Videos
  • CPG: Delivery options and Own app
  • E-Players: Returns and Track order
    Omnichannel Index Mhe 2018

Health & Beauty Omnichannel Mhe Retail Index 018

*Other sectors such as Fashion, Home, Leisure & Technology and CPG are available. Please download below.

Priority of those initiatives with higher impact on Customer Experience

  • Given the flood of new alternatives of available omnichannel initiatives, is especially important to prioritize those that have higher positive impact for the Customer Experience in each sector
  • If new initiatives are not going with a format adaptation, commercial planning operations store, marketing and location strategy, the main return of investments will be lost

Omnichannel Mhe Retail Index 2018

 

 Mhe RetailCains coverage

 

Mhe works for retail chains and brands optimizing formats in an Omnichannel environment

SERVICES

International vision, consumer insights and external benchmarking

Omnichannel environment transformation

  • Customer Experience optimization
  • Assortment adaptation
  • Promotional activity optimization
  • Commercial efficiency in store operations
  • Locations strategy and POS typology

If you want to confirm where are you vs your competitors in an omnichannel context and where to go do not hesitate to contact us

More Info: carlos.dominguez@mheconsumer.com

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