The industry association INretail is sounding the alarm because of the cost increases in retail. The increased costs are causing entrepreneurs problems with their own income and also with the continuity of their business. Earnings in fashion, shoes, home and sport are particularly under pressure. Because they can’t simply pass on the increased costs—wage costs, rent, energy, and insurance—to customers for fear of losing them to the competition forever. And that mainly consists of the online shopping platforms with their deep or deeper pockets. But could fashion retailers still have a strategic tool to increase prices, sales and margins while retaining customers and – maybe even – expanding their customer base? Melvin van Tholl, Customer Experience Architect at creative agency Bloody Believers, took a look around some hip stores.
Queued for “a slice of transformation”
It may sound like a fairy tale, but I recently experienced it as a harsh reality myself on one of New York’s many shopping streets. For example, I saw banners all over the street promoting a local concept store as the innovative shopping experience. I also had this “game changer” on my visit list. However, upon entering the store, I was overwhelmed by the sadness and desolation of the store. For years I had looked forward to this goal. But where I had reserved a warm place in my emotional world for ecstasy and amazement, disillusionment struck cold and hard. After a short – rather fleeting – sprint through the store, I was back on the street and my eyes caught a very long line across the street. There were crowds of people standing – under their umbrellas against the pounding rain – outside the door of another store. This one also happened to be on my list, but without the accompanying horns, bells and banners. I bravely got in line and asked the enthusiastic couple in front of me if a sale was going on. “No, it’s a normal day at Kith!” was the reply.
Kith is actually the name of the fashion epicenter in New York’s Soho district. And the waiting time at that point was 1.5 hours. Despite the rain shower, they all put up with it. Because something special is going on inside. Kith is not only a typical New York urban lifestyle brand, but above all a platform for unusual and exclusive fashion lines and styles. And exactly the one style that gives your own identity or image the necessary kick. They also release a number of new limited edition products every week, so the stores are often very crowded. And then, when you’re in the dressing room or out with your new favorite in a kith bag, you’ll feel like a different person: a better version of yourself. In short: transformation into action! This is how founder Ronnie Fieg once formulated the customer experience of his brand: the garment that makes you want to start the first day of your new life – like the beginning of the new school year – as soon as possible.
The story of Kith revolves around the feeling of “being among friends”. This feeling inspires customers and fans in their “Empire State of Mind” (in other words: make your own rules, don’t follow societal norms) and reinforces their contagious “can do” mentality with a sense of belonging. This is also reflected in the many collaborations with other brands – such as BMW, Samsung, Niké, Off White, Star Wars (Disney), New Balance – whose products are mostly collector’s items. In addition, Kith often supports initiatives in local – disadvantaged – communities where people want to bring about change in terms of quality of life and personal development.
Kith presents himself as a true master of transformation. The company emphasizes the identity and history behind the brand. And combines this with the desire of the customer to constantly improve. This profiling is the magical, strategic tool that reinforces the fashion retailer’s ability to differentiate to the point where it can keep in-store footfall high and prices – with relatively large margins – in line with the value perceived by shoppers. And that profiling is the harsh reality behind the success and compelling pull of fashion retailers like Kith as their neighborhoods wither away. I myself left the queue early because my trip to New York was too short. That was the harsh reality for me.
Cyberdog’s Future-Proof Case: Rave, Fashion and Retail ‘Reboot’
While Kith is more in the urban luxury segment in terms of price and image, there are also fashion retailers in the more accessible segments who distinguish themselves as masters of transformation. This strengthens their uniqueness and also gives them more leeway in pricing than their competition. This also applies to the very special fashion store Cyberdog in the hip London district of Camden. At first glance, Cyberdog looks like an indoor festival park. With lots of coming and going. Upon entering you feel like you are in a spaceship, with lots of glowing futuristic elements in a cyborg environment. In addition, smartphones blink, because this is the Valhalla for Instagram, TikTok and Snapchat. With the accompanying fluorescent atmosphere, music and performance art, this is a well-done reboot of the 1990’s rave scene.
Cyberdog is originally a rave wear shop whose name was inspired by the owner’s dog: ChiChi – the space Chihuahua. The story of the brand is therefore very creative and blunt. ChiChi has come to earth as a cyberdog from the rave universe to get people dressed up in exciting, futuristic-funky clothes while having fun in the urban underground scene. So you can see that history in the identity and design of the store. It is particularly clever that they have revived their history as lifestyle transformers with contemporary comic influences, modern art installations and futuristic-experimental performances.
But the reboot is not limited to the rave legacy, as the fashion offering has also evolved: from funky rave to funky clubbing & festivals. And that is reflected in an exciting and dazzling mix of fashion styles, merchandise and media. All in all, Cyberdog is the epitome of a retail reboot: They clearly distinguish themselves as an experience platform for futuristic and rapid transformations. And it is primarily aimed at festival visitors, an open-minded audience (urban underground) and cosplay fans – who dress up as characters from films, games or books.
A golden touch, because the young Generation Z in particular is unstoppable. However, this target group is considered difficult to reach by many fashion retailers. In addition, Cyberdog is a tourist magnet as it is rated as a top travel destination on Tripadvisor. It is thanks to their profile as masters of futuristic transformation that they have been able to hold their ground there since 1994. Even via their website with a 3D tour of the store, they can cut the way to cheaper (internet) suppliers.
Make a name for yourself as masters of transformation
Basically, all fashion retailers could be masters of transformation. The biggest challenge is to express this in their profiling and customer experience. It is therefore advisable to do this via the brand history. And when it comes to addressing customers and designing the store, it is also advisable to present yourself as a master of transformation. By guiding customers through a transformation as a style expert and using the store as a stimulating stage for this purpose, for example.
I experienced this in a small punk boutique in London. The owner helped a slightly shy plus size girl into a glam rock corset. As she stood in front of the mirror, she literally said: “I never dreamed that I would look so beautiful in such a corset”. We were all excited. After all, all fashion consumers long for these enchanting moments of transformation. And as far as the price is concerned, as far as I could tell, it no longer had any influence. The customer was already convinced.
This is a contribution from Melvin van Tholl, Customer Experience Architect, of BLOODY BELIEVERS. The creative-strategic agency helps brands and companies to develop groundbreaking solutions for their customer experience. Van Tholl works for companies both in the Netherlands and abroad. In this series, he takes you into the wonderful world of consumers and shows you how you can future-proof your business from a customer experience perspective too.
This article originally appeared on FashionUnited.nl. Translated and edited by Simone Preuss.