A Cello Business
The first online course from The Massachusetts Innovation & Technology Exchange (MITx) earlier this year had more students than the entire number of living students who have graduated from the university. In fact, it isn’t far from the total of all the students who have ever been there since the 19th Century.
Sources: BBC & Universities News
Intrigued to discover what a joint venture between Tesco and a small independent business called Taylor Street had in store for the high street, and even more excited to hear that the first of its kind had opened just down the road in Amersham, I could not resist venturing in.
Harris and Hoole; a name derived from the coffee-loving characters in Samuel Pepys’ diary, has a San Francisco meets East London air to it yet without any of the over-the-top quirk: metal beams collide with ornate cornicing; vintage sofas and wooden chairs form intimate huddles within the open urban space; retro board games and intriguing artefacts scatter themselves liberally on the wooden shelves and large black boards display the latest community events and drink recommendations for the day, such as the ¾ Flat White (gently differentiating, while coolly hinting that these people really know their coffee).
But however good my first impressions were, I knew I could not judge a coffee shop purely on look and feel, as ultimately the coffee was going to make or break this new venture’s success – and by coffee I do not mean simply the finished product, I mean the whole process including the service received from those making my coffee. To my delight, the baristas were enthusiastic and totally relaxed, though this should by no means be mistaken for carelessness. To my surprise my first coffee never made it to my side of the counter – instead it was discarded down the sink, and for once this was not my doing. The barista went on to explain that each coffee was made to a specific recipe; a recipe that for some reason or other the first coffee quite clearly did not live up to. So with my revised coffee in hand, I went in for the kill. The coffee was silky smooth and rich in flavour, and the hazelnut shot wrapped itself around the cup with just enough sweetness to take the edge off the coffee. Not only was the coffee great, I was delighted to see that the glazed pottery cups and saucers were all made in England… bonus!
Feeling rather smug with ourselves my friend and I found a comfy sofa on which to park ourselves and sat back to watch the world go by. The staff swept through the room with an ease that emanated throughout the shop, whilst content customers settled into their chairs to read their books, tap away on laptops (taking full advantage of the password-free Wifi) or simply to have a good natter.
So you may well be thinking: “ok, where’s the negative?” The truth is we did try, but this place was everything I would want from a coffee shop and more. I shall, however, save some judgement for the Harris + Hooles that are set to follow in the next couple of months. It will be interesting to see how well the charm and the quality that has been so carefully embedded throughout this shop carries itself across the chain. If indeed it does, then the likes of Starbucks and Costa should look up and take note – this new coffee shop has hit right on a trend for authentic independents, and with the support of one of the biggest retailers in the world this chain has set its sights high and will not be afraid to take on the giants.
On my drive home the other day I chanced upon a talk on Radio 4’s Four Thought: architect Ali Mangera on ‘The Future of Shopping’. Given the closely-connected futures of the urban environment and shopping behaviour this made for some interesting listening.
In 2010 Mangera’s firm won a competition to design a new Tesco store in Nottingham. Identifying shopping not just as a function, but an experience, they started to draw inspiration from a number of other experiential environments. They looked at customer behaviour in museums and airports. They looked to the barrios of Spain, in which shopping is more intimate and the retailer and customer become lifelong friends. They looked to the likes of Ronnie Barker’s Arkwright in Open All Hours, serving one customer at a time, while the others chatted about so-and-so’s wayward daughter and the price of ham.
As it stands, today’s supermarket is just a large, hermetically-sealed box. Goods go in one end and are dispatched at the other. What it’s lacking in windows it makes up for in parking, and how! But is parking-a-plenty sufficient for today’s consumer? Ali Mangera and his team didn’t think so.
Consider your most recent trip abroad – what do you remember most? A vibrant Moroccan souk or buzzing bazaar? Or perhaps the local specialties of a French farmers’ market or Thai floating market? Those memories that stick with you are unlikely to be of the nearby hypermarket or shopping mall.
With their Tesco store design Ali and his team wanted to find a way of recreating the hustle and bustle of a market, whilst giving the supermarket what it wanted – a box. So they placed the box in the middle of the space, creating a hive of activity – piazzas, gardens, artists’ workshops etc. – around it. They reasoned that with shopping perfectly simple (and often easier) from home, customers need a reason to go out. And with the gradual transformation of shopping from necessity to leisure pursuit already underway, the idea of the supermarket as a social and entertainments hub made perfect sense. After all, those visitors to Arkwright’s store were arguably as much there for the gossip as they were for their fruit and veg.
In the end, the Tesco Nottingham project was canned and Mangera’s ground-breaking design never saw the light of day. But that’s not to say that it hasn’t provided an insight into what might be.
As internet retail expands, the ‘box’ is losing its value. In fact, it makes more sense to dedicate the space to stock for home deliveries, with fresh goods going direct to the consumer from the supplier, thus cutting down on energy and transportation costs. Of those parts that aren’t used for distribution, amongst other things:
Of course, the foods we consume will also change over time, with bio-engineering and digital printing leading to new types of food and food tastes, but it’s the store itself that’s of interest here.
As Ali Mangera observed, retailers and consumers have yet to understand the game-changing impact of digital retail on the design and development of physical space and the redundancy that almost certainly will lead to in terms of the traditional shop. In March 2012, Deloitte reported that up to 40% of high street shops could close over the next five years. In their place will be a high street lined with coffee shops and internet kiosks, as the boundaries between physical and virtual space become blurred.
The big question for TVE and our clients is what brands will need to do to adapt to this changing environment. How do the laws of competition differ on the digital shelf? As shopping centres become more general hubs of activity, what will be the opportunities for brand extension and diversification? With Tesco’s virtual fridges we’re already starting to see fairly significant changes in-store – we just need to keep our eyes and ears open to help keep our clients ahead of the game.
There are many things around us that we do not know – despite how important and massive they are. For instance: Did you know that :
e-bay has about 300 million users in 30 countries, generates 50 petabytes of transactions data per day, and if all the people who made a living from buying and selling through it were employed by one company, they would be amongst the largest employers in the world?
Source: Knowit and The New York Times
In light of the economic changes over the last few years coupled with the recent debt crisis, the Luxury industry’s perceived immunity has certainly been put to the test.
2009 saw Harvey Nichols profits slump 40% and more recently Gianluca Brozzetti, chief executive officer for renowned designer Roberto Cavalli, has warned that luxury goods companies should “brace for weaker growth in 2012”, particularly in Europe where the debt crisis has left consumers feeling unsure and cautious.
One bright spot clearly stands out in the bleak picture, quite literally in all its yellow, luxury imbued glory: Selfridges. The department store has been the consistent forerunner of luxury trends, delivering growth in the sector and reporting a near 20% rise in profits towards the end of 2011. So instead of looking at where brands like Harvey Nichols are struggling let’s take a closer look at why brands like Selfridges are shining unabated.
Experience is an overarching strength of Selfridges and the most important factor in its success. It adds another dimension to the purchase journey, engaging emotional connections to the brand and differentiating it from other retailers. Experience is something that Selfridges not only do well, but is something with which the brand is synonymous. The Selfridge’s experience is brought to life through the following 4 key attributes:
1. Exclusivity. This may be an obvious attribute for a luxury retailer but Selfridges really bring this to life and have created a strong association with exclusivity through grand unveilings, exclusive designer concessions, and VIP events held in store such as the “Corgi flash mob” held for the Diamond Jubilee Weekend.
2. Aesthetic . The window displays, in-store displays and environment are iconic and add to the feeling of being somewhere special, a place where even the smallest aesthetic detail suggests aspirational, desirable and unique goods.
3. Inspiration. Consistency with designer choices and on trend displays have positioned Selfridges as not only the luxury day out but also as a guru of style, consumers looking to Selfridges to lead the way and provide inspiration on the latest trends and ‘looks’.
4. Treats. Whether it’s a hand massage at Jo Malone, lunch and champagne or affordable high street fashion inspired by courageous designer displays, Selfridges provides not only a shopping experience but a luxury day out.
Selfridges have built strong credentials in luxury and fashion, which enable them to credibly provide both inspiration and guidance on trends. Credibility is key in luxury and maintaining it is hard given the fast moving, ever changing nature of categories like fashion and beauty. However Selfridges maintain these four key elements under a simple, clear and iconic brand which provides consumers with a relevant reference point within the often confusing and intimidating luxury goods context.
These four key areas are not specific to Selfridges either, there are many ways to bring exclusivity, aesthetic, inspiration and treats to life and do it differently and to be able to deliver well on all of these things is to be successful within luxury.
