Channel Checks: Digital Beauty Stores - Home - … · 2017-05-11 · • Sephora Flash opened in...

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April6,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

May9,2017

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OurChannelChecksreportsfeatureobservationsfromourrecentstoretours.Inthisreport,welookatnewdigitalstoreformatsinEuropeanbeautyretailing.

1) Beautystoresareusingdigitalizationtocreatecaptivatingin-storeexperiences.Thetechnologyinuserangesfrominteractivemirrorstoscreensshowcasingsocialmediacontent.

2) TheEstéeEditstoreinLondonusesaselfie-takingmirroralongsideinteractivescreensandin-storetabletstocreateastrongdigitalexperience.OtherLondonstoressuchasFabledsimilarlyleveragesocialmediaandprovidedigitalin-storemakeuptutorials.

3) TheSephoraFlashstoreinParisbridgesphysicalanddigitalshoppingchannelswithitsuseoflarge-screenbrowsingandbuyingpoints,aswellasathree-hourclick-and-collectservice.

Channel Checks: Digital Beauty

Stores

Deborah Weinswig

Managing Director,

Fung Global Retail & Technology

deborahweinswig@fung1937.com

US: 917.655.6790

HK: 852.6119.1779

CN: 86.186.1420.3016

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April6,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

May9,2017

IntroductionInthepastyear,ourEuropeanteamhasseenaglutofnewbeautyspecialiststoreformatsthatintegratedigitaltechnologiestodifferentiatetheirexperiencesandengagecustomers.Inthisreport,weshowcasesomeexamplesfromourrecentstorevisitsinLondonandParis.Webeginbyprovidingsomecontextononlineandofflineretailinthebeautycategory.

InContext:TheDigitalizationofBeautyStoresBeautye-commercecontinuestogrowrapidly:EuromonitorInternationalexpectsUKonlinebeautyandpersonalcaresalestoclimbby10.5%thisyear.Yet,only12%ofUKbeautyandpersonalcaresaleswillbemadeonlinethisyear,indicatingthestrongholdphysicalstoresstillenjoyinthecategory.

Onlineandofflinechannelsareincreasinglyblended,however,assmartphone-equippedshoppersbrowseandbuyacrosschannels.Thisispromptingretailerstocreatecaptivatingin-storeexperiencesforconsumersthatcombineanaloganddigitalexperiences.

InlateApril,forinstance,BritishdepartmentstoreDebenhamsannounceditsstrategyshifttobecome“aDestination,DigitalandDifferent”retailerthatconnectswithcustomersmoreviasmartphonesandcreatesamoresocialshoppingexperience,includinginthebeautycategory.

Andonlineconnectivityisaboutmorethanjuste-commerce.Socialmediaplaysavitalroleinthebeautyindustry,especiallyformillennialsandGenZerswhooftenlooktosocialmediaforinformationwhendecidingwhatproductsorbrandstobuy.Accordingtoa2016UKsurveybyImogenMatthewsAssociates,27%ofconsumersgoonsocialmediaorwatchonlinevideostofindoutaboutbeautyproducts,whilst35%ofconsumersareinspiredbyhow-tomakeupguidestofindoutmoreaboutbeautyproducts.

• Seeourreport,GenZandBeauty:TheSocialMediaSymbiosisformoreonthistopic.

Inthiscontext,itisnotsurprisingthatbrandsandretailersarestartingtoleveragesocialmediain-store,frominteractivephotoboothstoscreensshowcasingcontentfromInstagram.

In2016,theCharlotteTillburybrandblazedatrailbyusingaugmentedreality(AR)“magicmirrors”inselectedUKstores.Themirrorsallowcustomerstotryondifferentmakeuplooksinseconds,thencomparelooksside-by-side,andultimatelycreatesanengagingandrealisticexperience.Notonlydoesthisincreaseup-selling,butitcanboostcustomersatisfactionandsavetimeformake-upartists.Whilethisisnotanewconceptinthebeautyindustry,itwasawake-upcalltootherretailerstoinnovatetheirin-storeexperiences.

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April6,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

May9,2017

ChannelChecks:DigitalBeautyStoresTheFungGlobalRetail&TechnologyteamvisitednewconceptstoresinLondonandParis.InLondon,wewenttoTheEstéeEdit,FabledbyMarieClaireandfinallythenewUKflagshipstoreforNYX.InParis,wevisitedtheSephoraFlashconceptstore.

TheEstéeEdit• TheEstéeEditopenedonLondon’sCarnabyStreetinNovember

2016.

• ThestandoutfeatureatTheEstéeEditistheselfie-takingmirrorwhichproducestwoinstantphotographs—oneforthecustomerandoneforthe“selfiewall.”

• InteractivescreensdisplayInstagramcontent,whichusesthebrand’sin-storehashtag,andcountersfeaturetabletswithhow-totutorialsforcustomers.

• Astrongdigitalplatformtopresentbeautytutorialsencouragesshopperstoexperimentwithnewproductsandstyles.

Source:FungGlobalRetail&Technology

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April6,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

May9,2017

TheEstéeEdit,LondonSource:FungGlobalRetail&Technology

FabledbyMarieClaireandNYX

FabledbyMarieClaire,LondonSource:FungGlobalRetail&Technology

• FabledbyMarieClaireopenedonLondon’sTottenhamCourtRoadinAugust2016.NYXopenedintheWestfieldStratfordCitymallinApril2017.

• LikeTheEstéeEdit,FabledbyMarieClaireandNYXintegratetabletsthroughouttheirstorestoshowcustomersmakeuptutorials.

• FabledbyMarieClaireevenhasdisplaysshowingwhichbrandsarebestsuitedforeachlook.

• Reflectiveofthesocial-media-savvybrand,NYXusesInstagramcontentfrominfluencersinitswindowdisplays.Usingits“TagUs”marketingtactics,NYXisabletocreateeffective,freecontentfortheirbrand—apopulartacticamongstbeautystores.

NYXusesInstagramcontentfrominfluencersinitswindowdisplays.

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April6,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

May9,2017

FabledbyMarieClaire,LondonSource:FungGlobalRetail&Technology

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April6,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

May9,2017

NYX,LondonSource:FungGlobalRetail&Technology

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April6,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

May9,2017

SephoraFlash

SephoraFlash,ParisSource:FungGlobalRetail&Technology

• SephoraFlashopenedinOctober2015,makingitoneofthefirstdigitalbeautystoreformats.

• Thesmall,140-squaremeterstorefeaturesnear-fieldcommunication(NFC)technology:thisenablesshopperstoviewinformationaboutfragranceproductsonin-storetabletssimplybyplacingNFC-taggedproductsnexttothescreen.Shopperscanthenaddtheproducttotheironlinebasket.

• Thestorealsoincludeslargeselfiemirrors,touch-screensforbrowsingandbuyingfromtheSephorawebsite,andphone-chargingpoints.

• Thestorealsoboastsanimpressivefreethree-hourclick-and-collectservice.

SephoraFlash,ParisSource:FungGlobalRetail&Technology

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April6,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

May9,2017

SephoraFlash,ParisSource:FungGlobalRetail&Technology

• FindmoreimagesfromourstoretoursworldwideonourFacebookpage,atfacebook.com/FungRetailTech.

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April6,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

May9,2017

DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comJohnMercerSeniorAnalystKatieMarshallResearchAssistantHongKong:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406London:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017

FungGlobalRetailTech.com