brandknewmag.com
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BCG suggested that brands add more retail locations in cities
such as New York and Milan to account for waves of tourism,
while many Asia-Pacific cities were deemed to be filled with
too many stores.
More discerning
Additionally, consumers are becoming less deferential to
brand opinions and prefer to gather recommendations
from social media and word of mouth. Forty-four percent of
global purchase decisions are influenced by word of mouth
and social media.
BCG emphasized that a store in New York should have a
different product assortment than a store in Houston. After
all, consumers in both these cities have distinct shopping
patterns and if the store is shaped in a way conducive to
these patterns, then sales will likely rise.
Also, the shopping habits of tourists must also be factored in,
adding further complexity to the equation.
Among Brazilian and Chinese consumers, more than 50
percent of luxury goods are purchased abroad. Consequently,
store locations within these countries may benefit by acting
as showrooms and introductions to the brand.
Fifty-three percent of of surveyed consumers said that the
Internet influenced recent purchases. Seven percent made
purchases purely online, eight percent researched in-store
and purchased online, while 38 percent of those surveyed
said that they researched online and made a purchase instore.
While this research challenges the traditional role of retail
spaces, brands have tremendous room to grow if they are
up to it.
“Experience in-store is becoming increasingly important, but
it can complement selling a product,” Mr. Bellaiche said.
“For example, customization and following the process of
building your own product can combine both objectives,” he
said.