Welcome!
In this issue, we'll explore what I'm calling 'RSVP retail' - the rise in appointment only shopping, which was sparked by the need to restrict shoppers to safe numbers, but might just become a savvy, sustainable long-term strategy.Ā
We'll also turn our attention to China, where retail juggernauts Burberry and Nike have launched fascinating new concept stores that experimentĀ with digital personalization at scale.
Lastly, IĀ share some food for thought from around the web. This week's main preoccupations include breakout brands with interesting pre-sale and membership models.
As always, thanks for stopping by!
Christina
Talking Shop
Would you make an appointment just to pop into your local bike store or book shop?Ā
What if it meant you could skip the line, have personalized attention, and ensure your exact items were in stock?
After seeing the 'appointment only!' sign in my own local bike shop, I've been reflecting on how expected norms can vary so much. We don't bat an eye at making restaurant reservations or scheduling workout classes. So why does it still feel strange to schedule a shopping trip?
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To be fair, the concept isn't completely novel. Luxury brands have long offered private shopping. For example, theĀ MatchesFashion MansionĀ here in London offers stylist appointments in gorgeousĀ personal shopping suites. Provide 48 hour notice and staff will bring in bespoke and online-only items for you to try on while sipping champagne.Ā
But now, brands of all stripes seem to be experimenting with the idea.
Apple has long had the Genius bar, but they recently rolled out āShop with a Specialistā appointments to ensure you have "time to comfortably browse and shop without the hassle of waiting or potentially being turned away at the door.ā
Other brands includeĀ sporting company Runners Need, telecom provider O2, and Walmart affiliate Asda.Ā In the US, Fortune reports that Williams-Sonoma, West Elm, Kate Spade, and Coach are all trialingĀ appointments.Ā
The growth of 'RSVP Retail' started with Covid-19, as a way to ensure only a safe number people were in a shop at any given time. On the surface, it seems like a stop-gap measure. Why would retailers put up more barriers to browsing and purchase?
For some though, the move might actually be savvy, long-termĀ strategy for a few reasons:Ā
Reservations help retailers shape demand.Ā Rather than trying to predict an erratic ebbĀ and flow of shopper footfall, reservations allow shop owners to proactivelyĀ shape their own hours. Employees need only be staffed during the slots when appointments are filled, rather all those dead hours when someone might just pop in.
Appointments allow stores to stock fewer, better things. With enough notice, and an idea of who their guests are, retailers needĀ stock onlyĀ items specific to those guestās visits - Ā rather than trying to carry every color and size. This can be especially useful for small, digitally native brands. Simply said, less speculation leads to less waste. Ā
An RSVP enables theĀ personal touch and heightensĀ intentionality. Though fewer in number, customers thatĀ DO jump through the hoop of making an appointment tend toĀ feel anĀ escalation of commitment bias, which leads toĀ higher conversion rates.Ā Similarly, by knowing who will walk through the door when, shop owners can similarly can be much more creative in offeringĀ engaging,Ā personalized services.
So whatās the downside? Less spontaneity and more planning. Less capacity and missed impulse buys. And clearly, no business model will work for every shop.
I've been impressed at the wide range of brands experimenting with RSVP Retail though, andĀ I'd argue that a bit more planning and intentionality in shopping could be a good thing for an industry plagued by over-consumption.
In exchange for a safer, more secure andĀ resilient high street in the short term ā Iāll take it!
Cream of the Shops
Burberry and Nike, breaking new ground in China
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Burberry has launched a new Shenzhen concept store, in collaboration withTencent, that takes the concept of 'phygital' to a whole new level.
Per Dezeen, "TencentĀ andĀ BurberryĀ have produced a custom mini program that is unlocked via WeChat. Users create a profile and are given a digital avatar in the form of a cartoon fawn that hatches from an egg...Through the app, shoppers book one of the three themed fitting rooms, pre-select the clothes and play their own music while they try them on. They can also use this program to book a table at the in-house cafe and make appointments with stylists and other services."
To encourage engagement, the program has a rewards system to earn "social currency" that unlocks custom content, such as new characters and outfits for the animal avatar and exclusive dishes on the cafe menu.
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While many retailers consider closing up shops, Nike is making moves by opening a 'slew of new stores'Ā - testing a new, hyper-local format called Nike Rise with the goal of offering personalized services, at scale.
Per Modern Retail, "The focus of Nike Rise is to be a store that serves as a hub for local sports enthusiasts, by hosting new in-store events."Ā As with Burberry, appointment booking and a mobile interface power the store, and allow visitors to personalize products, attend workshops, and play in local matches.
I know the moment isn't yet right, but I'm getting ever more eager to make a visit to China IRL and check out these fresh waves of new thinking!
Word on the Street
Articles, podcasts, and store-based buzz from around the web.
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What's better thanĀ reservations? Pre-sales. This break-down of Gymshark andĀ negative cash conversion cycles has been making the newsletter rounds and rightly so!
Pre-sales are the life blood of the publishing industry - or of writers hoping to make it onto best seller lists. I'm a huge David Mitchell fan, and I was impressed with how he went about driving pre-sales by offering special limited edition 'lyrics' to accompanyĀ his new novel, Utopia Avenue. (BTW, highly recommend the read!)
On a similar note, DTC brand Italic has switched to a membership modelĀ - promising to give customers rock bottom factory prices on luxury goods, while still securingĀ predictable, up-front profit. An interesting analysis on The Hustle here.
Interbrand announced itsĀ 2020 'Breakthrough Brands' with a refreshing focus onĀ jovial,Ā optimistic new voices.Ā
HBR has two quick reads on the future of experiential retail. First,Ā a thoughtĀ piece discussingĀ stores asĀ stages and āescapeā spaces. Second,Ā commentary on how enhanced digital and in-store operationsĀ are table stakes, making exceptional experiences matter even more.Ā Amen to that!
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