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Service Innova,on in Luxury Retail SONALI GOGIA Prepared by Sonali Gogia [email protected] , @sonali_gogia June 2013, Mumbai

Service Innovation in luxury retail

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An overview of how Luxury Brand can use quick and collaborative design methods to innovate and adapt their service experience to the local needs of Customers in new and emerging markets

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Page 1: Service Innovation in luxury retail

Service  Innova,on  in  Luxury  Retail    

SONALI  GOGIA    

Prepared  by  Sonali  Gogia  [email protected],  @sonali_gogia  

June  2013,  Mumbai  

Page 2: Service Innovation in luxury retail

©  2013  Sonali  Gogia  

GLOBAL  BRAND  CHALLENGES  

Adap@ng  or  crea@ng  new  services  in  emerging  markets  can  be  challenging  as:      

─  Global  brands  need  to  strike  a  balance  between    adapta,on  and  brand  heritage  

─  The  global  team  needs  to  work  in  collobora,on  with  the  local  Brand  team  

─  The  talent  gap  in  Luxury  segments  effects  service  nega,vely  

─  Customer  understanding  and  mapping  is  low  

─  Customer  evolu,on  is  rapid  and  loyaly  is  low  

─  Compe,tors  are  adop,ng  new  innova,ve  routes  

─  Coordina,ng  across  func,ons  and  countries  can  be  complex  

─  Usually  in  new  markets  Brands  lack  scale  and  resources  to  make  huge  investments  

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©  2013  Sonali  Gogia  

INDIAN  LUXURY  CUSTOMER  

Highlight  key  features  of  the  Indian  Luxury  Customer  and  their  buying  behaviour  in  the  Beauty  Segment    ─  Prefer  shopping  in  Bou$ques  versus  departments  stores  

─  Need  orienta$on  to  evolved  beauty  products  and  usage  

─  Take  $me  to  adopt  sophis,cated  regimes  like  serums  and  eye  creams  

─  Have  low  brand  awareness  and  loyalty  and  use  a  mix  basket  of  brands  

─  Service  differen$a$on  plays  a  larger  role  in  a  rela,onship  driven  Culture  

─  Luxury  Customers  usually  indulge  in  weekday  ladies  lunches  and  social  events    

─  View  make  up  as  occasional  wear  versus  daily  wear  

─  Culturally,  in  big  ci,es  having  everything  delivered  home  is  a  norm  

─  Preference  for  tradi,onal,  natural  and  at  home  beauty  remedies  

─  Have  beau$cians  come  home  to  provide  rou,ne  services  

─  Appreciate  and  expect    massages  and  pampering    

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INNOVATIVE  LUXURY  SERVICES  

Lack  of  scale,  @me  and  resources  can  oNen  limit  a  Brand’s  ability  to  develop  India  specific  products,  so  Brands  can  turn  to  small  scale  and  local  Service  innova@on  

Beauty  Workshop   Interac$ve  Educa$on   Luxury  Bride  

Beauty  Party   Facial  at  home  

Page 5: Service Innovation in luxury retail

©  2013  Sonali  Gogia  

ACTOR  MAPS  These  are  the  usual  set  of  stakeholders  in  the  back  and  front  end  that  are  involved  in  the  retail  service  design  process    

Marketing

Service  Experience  

Retail Team

Training

Supply Chain

Brand Zone

Customers

Retail

Partners

Finance

Legal

IT

Merchandiser

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©  2013  Sonali  Gogia  

CODESIGN  FOR  SUCCESS  

The  process  of  design  in  a  retail  enviornment  requires  all  actors  to  work  together    

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©  2013  Sonali  Gogia  

SERVICE  DELIVERY  APPROACH  

In  a  new  and  complex  Retail    environment,  test  innova@on  before  inves@ng  in  full    service  rollout    

1.  Service  Design  &  Tools  are  ready  

2.  Pilot  test  –  in  one  store  or  a  

city  

3.  Measure  results  and  

KPIs  

4.  Staff  and  Customer  Feedback  

5.  Adapt  Service  and  full  roll  out  

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©  2013  Sonali  Gogia  

INNOVATION  EXAMPLE  1  :  BEAUTY  WORKSHOP  

To  build  brand  awareness  and  provide  educa@on  conduct  Luxurious  beauty  workshops      

Customer  recruitment      Poten,al  Customers  had  low  beauty  knowledge    They  felt  in,mated  to  enter  the  Luxury  stores    Low  awareness  of  complimentrary  services  we  offered  

CHALLENGE   APPROACH   NEW  SERVICE  

Collobora$ve  design    Brainstorming  with  retail  team  on  Customer  needs    Compe,,on  benchmarking    Codesign  with  other  stakeholders  –  Retail  partners  and  women’s  publica,ons  

A  pilot  workshop    Developed  a  beauty  workshop  partnering  with  a  women’s  publica,on  customer  base    Offered  a  express  version  of  our  instore  experience  to  service  200  women  a  day    Completed  the  experience  with  a  luxury  venue,  educa,on,  sensorial  pleasures  

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©  2013  Sonali  Gogia  

CHALLENGE   APPROACH   NEW  SERVICE  

INNOVATION  EXAMPLE  2  :  INTERACTIVE  EDUCATION  

Increase  engagement  by  using  Ipad’s  to  consult  and  educate  Customers    

Customer  engagement    Customer’s  are  unaware  of  high  tech  skincare  like  serums  and  make  up  applica,on  techniques    Beauty  advsiors  find  it  difficut  to  engage  customers  for  long  and  explain  complex  scien,fic  terms  

Observa$on  for  insight    Observed  different  Customer  scenarios  in  store    Used  mystery  audits  for  insights      Involved  beauty  advisors  in  brainstorming    Selected  one  bou,que  for  pilot    

Technology  for  educa$on    Use  an  ipad  at  every  point  of  sale  as  a  tool  of  engagement  and  educa,on    Revise  service  protocol  to  integrated  new  tool    Train  the  Retail  team  on  usage,  care    

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©  2013  Sonali  Gogia  

CHALLENGE   APPROACH   NEW  SERVICE  

INNOVATION  EXAMPLE  3  :  BEAUTY  PARTY  

Taking  the  Brand  experience  home  with  a  personal  touch  in  low  season    

The  low  season    Every  monsoon  Luxury  Customer  fooaalls  drop    Beauty  Advisors  complain  Customer’s  don’t  turn  up  for  events  or  replenishments,  and  sales  are  low  

BoMom  up  design    The  instore  staff  suggested  an  at  home  service    Marke,ng  team  created  a  mobile  beauty  party  concept    Conducted  role  palys  and  dry  runs  to  create  a  smooth  professional  event  concept    

The  beauty  tea  party    Beauty  Advisors  (BAs)  deliver  products  to  Customers.  They  provide  beauty  services,  take  testers  and  samples  for  trial    Plan  Brand  style  tea  par,es  at  Customer’s  homes,  offering  complimentary    beauty  services  and  trials      

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©  2013  Sonali  Gogia  

CHALLENGE   APPROACH   NEW  SERVICE  

INNOVATION  EXAMPLE  4  :  FACIAL  AT  HOME  

Start  Luxury  home  facial  service  to  cater  to  the  cultural  beauty  trends    

At  home  culture    Doing  beauty  rituals  at  home  and  long  massages  are  part  of  Indian  culture    The  global  15  minute  in  store  massage  was  too  quick  for  customers  

Colloborate  across  con$nents    Research  if  the  brand  had  similar  trend  in  other  countries    Set  up  a  cross  country  team  to  develop  a  solu,on    Created  customer  journey  maps  to  simulate  a  new  at  home  flow    Involve  user  in  developing  and  do  actually  dry  runs  in  their  homes      

Home  beauty  service    We  launched  a  mobile  facial  service  offering  longer  facial.    Adapted  several  instore  touchpoints  to  recreate  the  experience  at  home    Set  up  a  separate  team  who  were  trained  by  interna,onal  brand  experts    

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©  2013  Sonali  Gogia  

CHALLENGE   APPROACH   NEW  SERVICE  

INNOVATION  EXAMPLE  5  :  LUXURY  BRIDE  

Create  a  Luxurious  and  pampering  Bridal  Service  to  tap  the  great  Indian  wedding  season    

Missing  Bride    An  Industry  es,mated  at  over  20$  billion,  the  Indian  bride  will  spend  anything  to  look  her  best    Brides  don’t  associate  with  the  Brand  –  we  need  to  bridge  the  gap  

Wedding  ecosystem    Included  more  stakeholders  in  the  development  process  –  beauty  stylists,  make  up  ar,sts,  fashion  designers  to  understand  the  full  Bridal  ecosystem  of  needs    Compe,,on  benchmarking    Brainstorming  with  internal  team  across  func,ons      

The  wedding  collec$on    We  put  together  a  signature  wedding  collec,on  based  on  India  Bridal  shades    Designed  a  trousseau  vanity  box  as  a  touchpoint    Offered  exclusive  Bridal  make  up  services  that  included  offers  for  other  family  members    

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THANK  YOU  

Prepared  by  Sonali  Gogia  [email protected],  @sonali_gogia  

June  2013,  Mumbai