Form and Function of Concept Stores - Literature review Example

Form and Function of Concept Stores Chapter Introduction 1 Research Context and Background 2 Research Rationale 3 Aim and Objectives 4 Methodology (in brief) 1.5 Outline of the Thesis Chapter 2: Literature Review 2.1 Introduction This chapter aims at providing an in depth analysis of literature addressing the emergence, development, and present day status of concept stores. The analysis of literature seeks to primarily focus on the design aspects of concept stores and their correlation with the fashion industry. The chapter begins with an evaluation of physical environment within the context of a retail store. This provides a backdrop for understanding why a store’s environment, whether internal or external contributes immensely toward improved customer perceptions and consequent increase in sales. The subsequent section provides a detailed overview of concept stores, thus giving insight into the inception of this retail store concept and the principal features that characterize it. This chapter also covers the factors that contribute to the widespread adoption of concept stores in the fashion sector, under the key drivers section. Other factors addressed under this literary analysis segment include the format of a conventional concept store, the potential size and popular locations of these retail stores, as well as, the distribution hierarchy adopted by most concept stores. The latter section provides information on strategic function, design or architectural form of a concept store, and the overall language concept of this category of stores. The concluding part of the literature review chapter identifies research gaps that exist in study information available on concept stores, their design and overall operation. 2.2 Physical Store Environment The physical environment of a store is one of the principal issues that retailers are supposed to take into account when launching a business venture. This is because it plays a significant role in affecting consumers’ decision to purchase and experience the entire shopping experience. Management of a store’ retail setting, therefore, affects both parties with the store owners’ enjoying increased revenues from enhanced customer loyalty, and shoppers gaining pleasure from the ambient shopping environs. Referred to as “atmospherics” the concept of managing the physical environs of a store was initially proposed by Kotler (1973). In this case, management of the atmosphere of a store is delineated as concerted effort to conceptualize a design that evokes certain emotions, which increase purchasing probability. Stimuli spurred by in-store setting directly correlates with the amount of pleasure that customers derive from shopping at the store. Ambient aspects related to the physical background of a store usually influence customers subconsciously. The most considerable and influential design elements include colour, lighting, temperature, and spatial organization, as part of the interior décor. These features are deemed most noticeable to customers and if favorable, they inspire individuals to make additional shopping visits. In contrast, if the ambient conditions cause dissatisfaction, customers are unlikely to come back to the store. It is important to take note of the fact that a store’s environment does not include customer relations and services, among other intangible elements. Rather, the exterior, interior, indoor visuals, window displays, and other design considerations would help significantly in bolstering both the functional and aesthetic aspects of a store. The physical environment of a store is particularly important in a fashion retail venture, where visuals are deemed imperative in enticing customers. This means that, fashion retailers must strive to adopt sustainable approaches in designing stores. 2.3 Overview of Concept Stores A concept store refers to a shop, varying in size from small to relatively large, which specializes in providing customers with fashionable and elite items. The inception of concept stores can be traced back to Ralph Lauren’s launch of a shop selling fashion apparel and accessories in New York. This was in the later part of the 20th century, that is, in 1986. The renowned fashion brand sought to create a store that embodied its prestige, through both the interior and exterior architectural and design details. The novel concept rapidly spread globally and is still a fashion and design force to reckon with, in the contemporary environment. Other renowned fashion houses have embraced the model, in an effort to use their environs to convey what their brands signify. Key attributes of concept stores include provision of a special blend of items characterized by creativity, motion and an exclusive experience. The stores also address a specific customer segment, with particular interest in high net worth individuals and those interested in high fashion. There are also several primary differences between concept stores and conventional department stores (Chasser and Wolfe, 2010). For instance, concept stores maximize their floor spaces through design considerations. Further, unlike department stores, concept shops regularly change design themes to keep up with popular trends and to delight, as well as, entice more customers. It is also imperative to take note of the fact that concept stores invest heavily in interior design and architectural elements, working with professionals in these fields to create flexible contemporary spaces, which are constantly alluring to clients. These stores stock merchandise that bear a higher price than the average department stores, principally specializing in designer brands which offer customers alternatives to commodities available in mainstream shopping platforms. Much like modern art museums, concept stores create spaces where fashion enthusiasts feel welcome, and at the same time, gain ideas and inspiration. 2.4 Key Drivers There are several factors that have led to the high and progressing popularity of concept stores not just among clients, but also among investors interested in the fashion industry. One of the primary drivers of concept shops lies in the fact that customers are progressively becoming educated, widely travelled, and more conscious about emerging fashion trends, than in the past. This has effectively led to emergence of a sophisticated clientele, who are willing to spend a relatively larger than norm amount of money, in order to fit in the advanced fashion landscape (Kacen and Lee, 2002). People in the modern society are also striving hard to be distinctive from ordinary folk. This calls for adoption of unique dressing and accessorizing tendencies, which showcase some level of affluence. Concept stores have taken the opportunity to fill this gap with a significant measure of success. This is because each provides exclusive fashion commodities being sought after and with which individual customers can identify, since every store has its unparalleled character (Lane, 2000 Another key driver of concept stores that cannot be overlooked is the increasing competition in the global fashion industry. The fact that apparel and accessory designers are outdoing themselves in their jobs every day means that, trends are changing equally fast. Consequently, it has become irrational to overstock certain fashionable items, only for them to become obsolete within a short span of time. Therefore, concept stores provide investors with an opportunity to stock fewer items, with higher selling potential while keeping up to date with swiftly emerging trend. This effectively translates to acquisition of a wider competitive margin over rivals in the industry (Newman and Patel, 2004). The changing retail environment is also an instrumental driving force in the widespread adoption of concept shops. Traditional retail and marketing methods have become ineffectual, given the ever changing propensity of consumer tastes and preferences. For instance, conventional malls and department stores are forced to keep providing out of date fashion items, in the effort to clear their large stock, or incur losses for restocking afresh. This has had a negative effect on sales, as customers look for alternative shopping channels that meet their present fashion needs. The diminishing effect of conventional marketing methods, therefore, has instigated a significant shift towards the more effective ones like concept stores. The fashion industry is also characterised by emerging designers, who provide individuals with an opportunity to explore apparel and accessories that have not previously been in the market. These budding designers find concept stores to be an effective foundation for launching their exclusive designs. Heightened consumer preference for and acceptance of emerging designers has, therefore, been a major driver of this store concept. Finally, in the effort to ensure that their stores are synonymous with brands they represent, players in the fashion industry are increasingly finding it necessary to homogenise the design of a store with its constituent brands. Many have found this strategy to be an effective way of fostering brand awareness among current and prospective clients, while increasing shoppers’ traffic within the store. Overall, concept stores present a better shopping and revenue generating experience for shoppers and investors, respectively. 2.5 The Concept Store Format Following inception of a Ralph Lauren concept store in New York in 1986, many prestigious fashion brands followed suit in the subsequent years. Even though there is no clear cut definition of a concept store design or format, the predominant idea is that it represented a specific fashion brand. Establishment of 10 Corso Como, what many consider to be the first authentic concept store, in 1990 emphasised the format of a concept store, as different and unique to every shop. This is evident from concept stores that were launched during this early phase of the novel trend, as described in subsequent paragraphs. The London-based Conran Shop, conceived in the year 1964 later became a concept store in 1987. This store was a pioneer in utilization of cluster design approach. The latter is characterised by an interior design, which allows inclusion of several retail activities within one location. The store not only provided exclusive furniture items, but was also a highly popular food focused bazaar (Carr, 2007). The other exemplary example of a concept store format is embodied by the Colette in Paris. Launched in the year 1997, the store is a popular destination for fashion enthusiasts visiting the capital of France. This concept store embraces minimalist design, which features a simple and sleek concept with only the essential elements. The store, which stocks a wide array of commodities ranging from popular women and men’s fashion, to home furnishings and emerging designers’ apparel, is designed in a manner that characterises advanced technology and simplicity, at the same time. The Walter in Antwerp is yet another exceptional concept store. Launched in 1998, the store is a boutique which is partly a gallery, a playroom, and an obstacle course. Formerly a warehouse, the store’s window gallery and its aforementioned elements are rather alluring for customers purchasing apparel and jewellery. Judging from the preceding examples, concept stores do not adopt a specific design format. Rather, the stores are unique to their general concept, formed on the basis of their merchandise, and brand image that proprietors intend to convey to customers. In the modern environment, a concept store supposed to appeal to ‘street’ or ‘urban’ trendsetters could have brick walls, with decorations of artistic graffiti. These are elements unique to an ‘urban’ concept. The same idea applies to other popular cultures, like hipster, hip hop, and rock n roll, among others (Pentecost and Andrews, 2010). Concept store design systems present several advantages. For instance, the time required to for planning and implementation is reduced, since the design is already conceptualised by the proprietor and only requires a design or architecture professional for successfully execution (Mores, 2006). The concept store format is also created with the principal aim of utilizing available space optimally, while avoiding design related disorganization. As a result, a concept store design makes it possible to meet a retail center’s highest requirements. In addition, because concept stores are usually designed on the basis of a specific cultural trend, social structure or fashion in general, they may occasionally be reinvented, in order to stay up to date on fashionable trends. This means that unlike ordinary retail platforms such as malls, department stores and traditional boutiques, concept stores have a highly flexible design format. This is an invaluable attribute given the dynamism of modern fashion trends. Other concept store format considerations and their implications are discussed further herein. Figure 2.1 Concept Store format 2.6 Size and Location The concept stores are located in major Capital cities all over the world. This is because these are places that have a high flow of customers. The population in such urban areas are high and people are always influenced by principal international fashion trends (Urde, 2001). For instance, New York and Paris are the two major global fashion capitals that have high influences. They provide a fashion edge that is not experienced in other major cities. This is attributable to the premium shopping streets where people of high status go to shop (Wigley and Larsen, 2010). The following diagram illustrates why New York is a global fashion capital. Figure 2.2 New York as a Global fashion capital Evidently, concept stores have the ability to access high network individuals in the fashion industry. This is because they can be able t reach many VIP persons that have the ability to buy expensive and fashionable clothe. Additionally, there is a vast fashion market which is extremely values all over the world. Fashion houses are trusted to deliver quality and stylish clothes. Additionally, the fashion innovators are able to make sure that people in the region have the most trending clothes before reaching other parts of the world. Therefore, the location of the concept stores in the capital cities is extremely advantageous and will be able to reach a huge populace of customers (Mossinkoff and Smit, 2001). 2.7 Distribution Hierarchy Distribution is another aspect that Concept stores are utilizing. In order to have an exclusive aspect in the distribution, they have hired some of the most influential companies that deal with distribution. For instance, DHL is able to supply their clothes to their customers with the shortest time possible taking into considerations their location. 2.7.1 Language of Concept Concept stores have realized that it is imperative to have goods and unique designs for their clothe line. This is because many individuals in want to be identified with a certain stature of prestige, therefore, by boosting their designs to fit these people’s needs, they have become marketable and this has assisted in boosting their sales all over the capital cities (Summers, Belleau and Xu, 2006). Additionally, people are obsessed with trends and that is why Concept has made sure to always consider trends for their customers. This way they have been able to diversify their consumer target and make more profits. 2.7.2 Strategic Function For any business to become successful there has to be strategies that are put in place. The primary objective of the store is to sell their product and at the same time maintain brand superiority. This is why; the quality of the clothes is an imperative aspect that has been adopted by all Concept stores. This means that the prices of their products are high and at the same time, they maintain a very high level of quality. Brand name is extremely crucial in fashion business especially in high-end areas. 2.7.3 Form and Function of Architecture and Store Design within Concept Stores The store design and Architecture are very crucial to the fashion brands because they have for a powerful communication media to the customers. The design of the Concept store provides an expression of brand image which many people are attracted to and would like to be identified with (Ruiz, Chebat and Hansen, 2004,). Store designs and architecture has played a major role in the fashion industry. For instance, Biba, Fiorucci, and Pierre Cardin have improved their image over a long period of time by utilizing their store designs from early the 1960s (Riewoldt, 2002). Capital has therefore utilized this concept to create a collaborative relationship between architecture and fashion which is embryonic and an area that has provided growth for them. It is evident that modern fashion is utilizing space designs to create a better environment for their customers to shop. This is why Concept stores extended their synergetic creativity of products in giving cultural experiences that is commercially significant. Therefore, Concept stores have tried their best be mindful of brand issues, desires and needs of their consumers by establishing well designed stores (Matilla and Enz, 2002). Concept stores have focused on the intimate and innate relationship between architecture and fashion in their basic roles of organizing and influencing space. Despite the fact that the design palette could be different, the aspects shared between fashion design and architect towards space organization space form a perpetually united discipline in the fashion industry (Diamond and Diamond, 2007). The Concept stores design is extremely responsive to the retail space theme. People get amazed by the kind of lavish interiors of the stores especially in the major capital cities like Spain and New York. This is the reason why the stores appreciate retail spaces designed in a creative, very catchy and impressive way. Their main aim in venturing into well designed spaces is to attract more consumers hence more traffic in their stores. 2.8 Conclusion Despite the fact that there has been extensive research on concept stores, there are still gaps in literature that researchers should strive to address. For instance, there is limited information on the target market. This is because the stores target the rich but do not provide statistics of people who can afford their products. It is imperative to have information about the number of people that have the ability to visit their stores in different cities. Additionally, there is limited information regarding the distribution hierarchy and how the stores guarantee that their products reach customers on time. There are gaps in the literature regarding the familiarity of customers with concept stores and their importance to the fashion industry. Chapter 3: The Methodology (the methodology should be developed by following Saunders et al’ research onion to make sure you address all the relevant aspects) 3.1 Introduction Exploratory The information above was attained from the research questions provided to the customers and the staff members. The research questions provided the basic knowledge about the Concept stores. Inductive The inductive approach basically involved search for patterns in the available information but the concept stores in different places. This was also made possible by use of already existence observations made by customers and consumers. Qualitative A survey was conducted by studying the focus groups and interviews to gather information on fashion and trends. The responses provided by the focus group assisted in determining the number of consumers that shop in the stores. Observation (Quota/Purposive) Observation was also used in determining the Concept stores traffic in different regions. This was especially helpful in the high end areas where people are interested in luxurious and expensive clothes compared to other shops where they focus more on trend. Thematic/Content Analysis Analysing the already existing information from different Concept stores enabled to have well established information regarding their products, prices, designs and market. Chapter 4: The Findings Results 4.1 Introduction 4.2 From the information discussed above it is evident that Concept stores are developing fashion stores with ample space focused towards serving many customers. They have exclusive and multi products which are available in their well designed stores. Their architecture and interior design is focused towards attracting more customers. The interior is mad of luxurious materials of chrome, marble and stone. This ensures that it attracts customers interested in expensive and fashionable clothes. Concept serves by communicating and integrating brand identity into their products. They have a signature design and architecture for their stores which makes it possible to identify them all over the world (Battissta, 2010). The organization has also focused on sustainability thus creating awareness among their customers. People neither are nor focused on identity and simplicity but at the same time maintaining their status in the society (Bingham, 2005). Therefore, Concept stores are focused on providing products that are well blend to avoid muddled designs. They have also ensured that the esthetics as well as functionality of their products flow well with their customers’ needs. Individuals are ready to spend on products that re elegant and portray rich brand-symbolic aspects. Concept stores aesthetics and design assist in forming a backdrop to the clothes on display. They have focused more on customers comfort as well as actual functional aspects. Functional aspects available to the customer are changing rooms, storage spaces and retail space that are not too cluttered. Their main challenge is creating their store deigns, architecture and brand. Additionally, they also have a challenge of price setting, consistency in their image, as well as, multiple stakeholders (Barreneche, 2005). 4.3 Summary of the main findings Concept stores have become one of the emerging research topics which are relevant to branding, disciplines of retail, as well as, communication. Competition has enhanced relevance in mass marketing, consumer sophistication and store image homogenisation. Luxury fashion Concept stores have depicted the importance of architecture and design in the fashion business because it communicates the value of the brand as well as identity and differentiation of competition. Chapter 5 5.1 The original contribution of the thesis (you discuss your aim and objectives here see intro) 5.2 The managerial implications of the findings 5.3 Limitations 5.4 Directions for future research Bibliography Barreneche, R. 2005. New Retail. London: Phaidon Press. Battissta, A. (2010) Architectural Fashionscapes. [Online]. 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