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New DIY-store Concept for Hagebau Werkmarkt
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10 Mega Trends for Success in retail
Trend 1: Ease
Consumers are looking to save even more time. 82 percent of consumers in both Western Europe and Northern America list timesaving as a priority. The consumption of ready-to-eat meals is expected to double in the next ten years.
Trend 2: Healthy
Nearly every consumer sees health improvement as an important aspect. This is why companies that produce functional food have a future. But consumers are also looking for health in pure products, which makes the use of organic ingredients increasingly important. The annual growth in these segments exceeds 10 percent according to Datamonitor.
Older consumers are acting younger every day, whereas young consumers would prefer to grow older as quickly as possible. Manufacturers who develop products that take advantage of the consumers’ age aspiration have the future in hand. Young consumers more often have a larger independent budget and develop brand loyalty at an increasingly young age. Older consumers want products that support a society in which old age is denied.
The traditional family as a basis for consumption is vaporising at a rapid pace. People are more often on their own, live a lot longer and more and more children return to live at home, after their studies for example. This is changing the consumption patterns.
An increasing number of consumers with a low disposable income has become used to buying luxury products at a low price. Well-to-do consumers have become just as price conscious. Top brands with a top quality at a low price are set for the future.
Consumers are increasingly on the look-out for products that support their personal lifestyle. They are buying more and more products that they can also enjoy. Manufacturers will have to aim their future products at smaller target groups and give consumers more of a say in taste and volume.
Trend 7: Experience
Consumers are looking for products that offer a more intensive experience. They are therefore prepared to experiment more with new products.
Consumers are increasingly often using food articles as a way to escape the pressures of everyday life. The majority of consumers uses so-called ‘comfort food’ as small temptations to enjoy life for a moment.
Despite the hunger for individualism, the consumption pattern of many consumers is actually looking to join a certain group with standards and values that attract them. This results in an increase in sale of ethnic products.
Men are after healthy food at an increasing degree and are leaving behind the traditional macho behaviour. On the other hand, the sale of typical macho products, like beer, is going very strong. By now, both men and women are attaching a lot of value to health improvement through a change in their food pattern.
Source: Datamonitor, written by Joep Meijsen
Development and opening of new showroom Collishop (Belgium)
Collishop offers more than 15.000 non-food products which can be ordered by catalogue or by internet. The assortment is huge: house hold articles, multi-media products and more products and product groups. The (online) catalogue offers a lot of information, but there was an increasing demand to see and touch the products and not only see it on paper or at the computer screen.
What do we experience in this store?
Jos de Vries The Retail Company was responsable for the design and development of this new showroom-concept. Based on the years of experience in the retail sector (for example with the recently opened new Venca-store, Spain biggest online-fashion company.
The showroom is not only a place where the products are presented. Here you also can experience presentations of suppliers presenting their products. Furthermore there is a big number of personell to answer possible questions. Children have their own kids corner in the store. Parents can take their time to look around, compare the articles or to drink a coffee in the bar of the store. A unique shopping experience has been created, a trip for the whole family. This is also one of the main reasons the store is opened on Sunday´s.
For further questions on this project you can direct your questions to Maurice van der Kooij maurice@josdevries.eu
Introduction of new retail library concept
The most important development in this traject is the new system of booking shelves, which has been redeveloped. The books are now presented in a more frontal way. Furthermore throughout the whole area you can see books being presented in an attractive way on the display tables. The desired dynamics will be guaranteed by the personell of the library in Zwolle, which will be trained on presentation techniques.
Ten golden rules of succesfull visual merchandising
One of the most underrated, but also most decisive parts of the store formula is product presentation or visual merchandising. It is also a part of the formula that cannot be developed and supervised by others, but which you should create in the store in collaboration with the employees. Even if you have successfully linked a fantastic layout to an attractive store design with the best possible lighting, your store will not achieve the desired result without a proper presentation. So this part of the formula also entails an additional difficulty.
The purpose of store formula management is to think in processes as much as possible and to develop systems in order to manage the store by remote control at low management costs. Visual merchandising should be created by experts in the store. This requires vision and skill on the part of the employees. However: you also want to keep the costs under control!
To this end, good visual merchandising concepts always combine two factors. First, they are developed on the basis of a system, whereby the presentation can be created using the product itself, without using too many tools. Secondly, the concept is connected to a training programme for employees focusing on the use of the system created and its application in the store.
The costs of a good visual merchandising concept are always recovered. Examples are known where, without any further adjustments to the store formula, a 5% rise in turnover was realised plus a remarkable margin improvement, merely by enhancing the formula. Just by offering the right combinations of products. And this, without investing a penny in hardware!
In actual practice, a good visual merchandising formula means:
> That the focus is on the product in the store;
> That the desired ambiance in the store is created by ‘merchandise pressure’;
> That the consumer is almost unable to avoid buying the product;
> That impulse buying is stimulated in this way (‘It really looks delicious’, ‘what a great offer’, or ‘what a fantastic product, I want... no, I have to have this!’)
A good visual merchandising concept provokes this emotion in the consumer.
Therefore visual merchandising does not only determine the ambiance in the store, but is also the driving force behind the turnover. When a store designer starts work on a new store formula, he first has to think about how to fit in the visual merchandising concept when he draws the initial sketch. This is because the desired result will only be achieved if the store design and the visual merchandising concept are approached in an integrated manner. To achieve the best result using this concept-based approach, a few rules should be observed. These can be briefly summarised as follows:
Ten golden rules for Visual Merchandising
The basic visual merchandising concept has to match the identity and positioning of the formula. Massive and exuberant versus modest and high-quality.
‘Product is the hero’. It is all about the product; all the furniture and display materials are merely intended to reinforce the product presentation.
Think in systems. A good presentation is easy to make, without many explanations and complicated tools.
Rule 4
Think three-dimensional. Height is important to create product dominance.
Do not use too many products in one presentation. Many repetitions of a few products are more effective than displaying many different products.
Combine, in a single presentation, attractively priced products (eye-catchers) and products carrying a wide profit margin. This creates the maximum impulse buying effect.
Rule 7
Using attractive colours and supporting combinations of materials is important as the basis of the presentation's dynamics.
The right lighting and clear price information are basic preconditions for a good build-up
Graphics and photography can support and add distinctiveness to the presentation. The product's use should be central.
Evoke emotions. A good presentation that has the right product build-up, atmosphere and lighting not only impresses the consumer but also generates extra sales.
Retail Literature, what to read to follow the latest retail trends
We would like to keep you updated with some interesting websites in this sector. This week we would like to present Retail Week. This English based website is a giant in the retail sector. It has a big international retail news section with news from all sectors of the retail industry, including food, fashion, electricals, entertainment, health & beauty, home & DIY, department stores and general merchandise.
Furthermore it offers a wide variety of retail jobs, database and a selection of the new stores.
We invide you to take a look at this website and be surprised of the wide variety of retail information they offer.
Creating a Retail Brand: Retail specialist Jos de Vries The Retail Company
Since many years Jos de Vries The Retail Company is a well-known organisation in the retail business. We are specialised in analysing, designing and realysing shop concepts all over Europe. We know for a fact that the successful presentation of shops and products can not only bring about a positive image but also achieve above-average successes. But how can the retailer anticipate and react to the trends of today and the developments of tomorrow? And how do you transform a shop-identity into a brand-identity and still be distinctive from other shop formulas? Your total solution supplier in retail! |
Creation of a store concept
In the last phase of the process of creating a store concept, we make use of a toolbox. This practical toolbox includes instruments required to deliver a complete and discerning shop interior. The toolbox prevents decisions regarding the image of the store from being made at random. These must always be rooted in the framework of the concept.
For more information about using the toolbox, we refer to the book ‘The store manual’, which can be ordered from this website. |
New Globus Hypermarket opens in Czech Republic
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New retail concept: Drive-through in do-it-yourself center
Furthermore,we developed a drive through concept that will make BouwCenter stand out from the competition.
Theme Trip to North-East Asia: Strong Contrast in Retail Developments between the Various Countries
Countries such as South Korea and Taiwan are keen to open their doors to the west, for instance, whereas Japan remains a very close society as yet.’
Non-Food versus Food
According to Christiaan Rikkers the non-food sector shows a rapid advance of western brands and chains in all of the countries that he visited. With the exception of South Korea, the food sector continues to be governed by traditional suppliers, however, who often force western companies to clear off with their tail between their legs... Not so long ago, French Carrefour decided to totally part with its interests in Taiwan and leave. The market share of other western suppliers has come to a halt in Japan.
The strong individual gastronomic cultures of the different Asian countries with assortments that are often impenetrable for western companies, are no doubt the cause of this stagnation. In addition, the Asian consumer traditionally still buys a lot at local markets.
Food Safety and Protectionism in Japan and Taiwan
‘This image was confirmed during our visit to the Japanese Foodex fair. Although quite a few Western suppliers were represented, the Asian stands seemed to attract most of the visitors. When you couple this to the often heavy import restriction measures for western companies, the image of Japan as a very close market is complete.
I was also strongly surprised by the fact that important themes such as food safety and health seem to have an absurd effect on daily life in the countries that we visited. The consequences of Sars and bird flu have obviously left deep marks.’
Another defining factor in the countries that we visited is the explosive growth of their strong neighbour, China. China is expected to chase Japan from its second position in the list of economic world powers. Just like us in the West, Japan has not found a clear answer to this situation as yet.
Open Doors in South Korea
‘During our visit to South Korea it soon became clear that whereas Japan and Taiwan are protecting their own culture and society, South Korea seems to be opening its doors as wide as possible to invite western influences. The western influence is therefore very noticeable. Western companies do not only define the street scene, but they are also increasingly defining Korea’s gastronomic culture, with a MacDonald’s at every street corner. The market share of western retail chains, whether or not in the form of partnerships, is therefore a lot stronger here. There is for example a Carrefour branch right next to the Seoul football stadium.
The visit to North-East Asia was organised by Mutual Interest within the context of Dutch trade missions to important retail markets. Visiting retail chains, companies and economic departments of Dutch embassies (that offer a lot of background information) gives insight in the developments of important and often new retail markets. Visits to upcoming retail markets such as India and China are scheduled for 2010. Participants from all retail sectors are welcome to register. Info: mutual.interest@orange.nl Anthony Snoecks
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Turning Creativity into Results
Linking creativity to the customer’s commercial vision and translating this into result-oriented conceptual solutions. It is this approach that has made Jos de Vries The Retail Company a successful business. “We have grown as an agency in the past three years”, explains General Manager, Christiaan Rikkers. A good example of this is ‘New Value Retailing’, an innovative retail concept that combines price, assortment and value and has already taken shape in a number of hypermarkets. This idea has caught on in the retail sector, as more return can be achieved on the same floor space and shops can create a better market profile for themselves. This is exactly what the retail business is looking for: shopping concepts that work. Rikkers: “We are a pragmatic agency, and retail only comes down to one thing, i.e. the quick recovery of investment. We realise this by thinking along with the customer, all the way into the processes. To achieve this, we use the companies’ know-how and add our vision. After all, we are looking for evolution, not revolution, in a constant process.”
New Value Retailers
After the economic dip of the past years, the mood of the retail business has changed for the better. Rikkers notices that the readiness to invest is growing by the day. An increasing number of retailers are abandoning the focus on price and want to add more value. Several organisations are now achieving success by combining elements of price fighters with elements of full-service retailers in their shops. It allows the customer to count on low prices as well as a decent assortment, without the loss of quality or service. This concept has recently been defined as ‘New Value Retailing’ in Retailtrends magazine. It is a successful formula according to Rikkers: “New Value Retailers such as Mediamarkt, Ikea, Jumbo and the Hornbach DIY centres no longer opt for the traditional choices in the shop triangle of ‘price, assortment and value’. They want to perform in all three of these elements. They want to offer both service and a broad and accessible assortment at a good price. And they achieve this by building a lot of added value into the shop’s image. This approach is increasingly popular in the food and non-food sector. The crux is that the shop’s image needs to propagate the concept. And this means that one needs to understand the formula as soon as one enters such a shop.”
Sales Machine
Such a shop does, of course, look good. But there is more to it. It is mainly a sales machine. “In order to realise this, we want to be up to date when we start a project. The only way to get there, is by putting ourselves into the retailer’s shoes.” To do this, the retailer’s input is essential. In order to have a shopping concept fulfil the customer’s expectations, shopping processes need to be woven into the concept. The layout needs to fit into the retail context without any fuss. During workshops in the so-called ‘discovery phase’, we lay the foundation for the development of a concept that really adds value. Rikkers: “We do not provide retailers with a shopping concept, but streamline the process that leads to a shopping concept. We are therefore going a lot further. Together with the retailer we determine how his shops are doing in the market at the moment and where he wants to go next. These goals are then the starting point of the formulation of a master vision. This vision contains both content and process. These ideas then form the basis of the design. We have used this same approach for so many international customers by now, that we are capable of managing the entire process. The process from first draft to ready-to-use manual takes a couple of weeks.”
Buying Experience
Ipercoop in Italy, Globus in Germany and Migros in Switzerland are interesting examples of projects that have followed the New Value Retailing concept. Given these good results, we will see a lot more of them. “Hypermarkets are visibly becoming more and more professional. Initially they focussed a lot on price and assortment, now they also have to add value. This explains why there is so much interest in New Value Retailing, in which we have become experts. By adapting your assortment to what your customers expect of you, you can make shopping at a hypermarket into a true buying experience. You will need to provide a good layout and orientation. This will enable your customers to visit all corners of your shop. We are a natural at making this happen, which makes us stand out from competing design agencies. What’s more, we offer a complete solution for any situation.”
Fast Moving
Jos de Vries The Retail Company is also complete as concepts are being developed in an ever increasing number of market sectors. Besides food and non-food there are projects in catering, non-traditional retailing, manufacturing and shopping centres. “We are working on a community shop in Noordwijk, tourist information shops, a retail environment for pharmacists and signs for airport retailers. We are also involved in coffee chains and the restaurants of Swiss department store Jelmoli.”
From Barcelona to Moscow
Jos de Vries The Retail Company is also doing more and more business on international grounds. Especially the strong growth in Spain is noticeable. The Spanish office in Barcelona now counts three employees. Customers include Caprabo, Forum Sport and, of course, Aqui é (candidate for most innovative retail concept at the World Retail Awards). . Jens Bork has been responsible for all projects in Germany and Eastern Europe since 2005. Jos de Vries The Retail Company has been operating in Germany since ‘96. “In Germany, the brand concept is emerging and strong shopping concepts are also being developed. Think about Mediamarkt, for example. This formula is also very successful outside Germany. One of our most recent German projects is the Globus hypermarket in Ludwigshafen.
Our fourth office is located in Moscow. Because of the growing middle class, Russia now has room for the right retailing concepts. This is why we are very active at the Russian market.”
Retail publications: Retail Courier and literature in retail marketing
The Retail Courier
The Retail Courier is a periodical from Jos de Vries The Retail Company. In this Periodical we inform you about the latest trends and developments in the Retail area in The Netherlands and in other Countries. Herein we also discuss the most recent Projects from Jos de Vries The Retail Company and there are a number of interesting subjects like Instore-Communication, Lighting concepts, etc.
At our Homepage is also a foretaste of the Retail Courier and the Web-Courier. If one of these articles raised your interest than you can apply for a free copy of the Retail Courier by way of our “Contact and Information” button on the site. Have you missed one? No problem, you can always back-order a copy. The Retail Courier is printed in Spanish, Dutch, English and German.
Literature in retail marketing
Let me tell you a store (2008)
The world is moving at a breakneck speed. Everyone seems to be looking for new opportunities. Is choice an imposing possibility? Is innovation the magical word? In “Let me tell you a store” European retailers, designers, strategists and trend watchers tell their personal and inspiring stories. No fairy tales but retail in every little detail.
Who are you? Where do you stand for? Let the store be the place to tell your story to the customer. The theory of our successful Store Manual, now described in practice.
You can order this manual for € 35,00 (excl. Postage and Package)
Jos de Vries The Retail Company has been working his way through the marvels of the Retail world since twenty years. Since the Retail branch on its way to professionalism is developing and also scholarly interest was growing, there still wasn’t a manual.
Jos de Vries The Retail Company has made a definite change in bringing out “The Store Manual” a must for every store.
You can order this manual for € 35,00 (excl. Postage and Package) through “Contact and Info”.
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