SONALI	
  GOGIA	
  	
  

Service	
  Innova,on	
  in	
  Luxury	
  Retail	
  
	
  

Prepared	
  by	
  Sonali	
  Gogia	
  
so...
GLOBAL	
  BRAND	
  CHALLENGES	
  
Adap@ng	
  or	
  crea@ng	
  new	
  services	
  in	
  emerging	
  markets	
  can	
  be	
 ...
INDIAN	
  LUXURY	
  CUSTOMER	
  
Highlight	
  key	
  features	
  of	
  the	
  Indian	
  Luxury	
  Customer	
  and	
  their...
INNOVATIVE	
  LUXURY	
  SERVICES	
  
Lack	
  of	
  scale,	
  @me	
  and	
  resources	
  can	
  oNen	
  limit	
  a	
  Brand...
ACTOR	
  MAPS	
  
These	
  are	
  the	
  usual	
  set	
  of	
  stakeholders	
  in	
  the	
  back	
  and	
  front	
  end	
 ...
CODESIGN	
  FOR	
  SUCCESS	
  
The	
  process	
  of	
  design	
  in	
  a	
  retail	
  enviornment	
  requires	
  all	
  ac...
SERVICE	
  DELIVERY	
  APPROACH	
  
In	
  a	
  new	
  and	
  complex	
  Retail	
  	
  environment,	
  test	
  innova@on	
 ...
INNOVATION	
  EXAMPLE	
  1	
  :	
  BEAUTY	
  WORKSHOP	
  
To	
  build	
  brand	
  awareness	
  and	
  provide	
  educa@on	...
INNOVATION	
  EXAMPLE	
  2	
  :	
  INTERACTIVE	
  EDUCATION	
  
Increase	
  engagement	
  by	
  using	
  Ipad’s	
  to	
  c...
INNOVATION	
  EXAMPLE	
  3	
  :	
  BEAUTY	
  PARTY	
  
Taking	
  the	
  Brand	
  experience	
  home	
  with	
  a	
  person...
INNOVATION	
  EXAMPLE	
  4	
  :	
  FACIAL	
  AT	
  HOME	
  
Start	
  Luxury	
  home	
  facial	
  service	
  to	
  cater	
 ...
INNOVATION	
  EXAMPLE	
  5	
  :	
  LUXURY	
  BRIDE	
  
Create	
  a	
  Luxurious	
  and	
  pampering	
  Bridal	
  Service	
...
THANK	
  YOU	
  

Prepared	
  by	
  Sonali	
  Gogia	
  
sonaligogia@gmail.com,	
  @sonali_gogia	
  
June	
  2013,	
  Mumba...
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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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Service Innovation in luxury retail

  1. 1. SONALI  GOGIA     Service  Innova,on  in  Luxury  Retail     Prepared  by  Sonali  Gogia   sonaligogia@gmail.com,  @sonali_gogia   June  2013,  Mumbai  
  2. 2. 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   ©  2013  Sonali  Gogia  
  3. 3. 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     ©  2013  Sonali  Gogia  
  4. 4. 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   Luxury  Bride   Interac$ve  Educa$on   Beauty  Party   Facial  at  home  
  5. 5. ACTOR  MAPS   These  are  the  usual  set  of  stakeholders  in  the  back  and  front  end  that  are  involved  in  the   retail  service  design  process     Retail Team Marketing Customers Brand Zone Training Service   Experience   Retail Partners Merchandiser Supply Chain Finance Legal IT ©  2013  Sonali  Gogia  
  6. 6. CODESIGN  FOR  SUCCESS   The  process  of  design  in  a  retail  enviornment  requires  all  actors  to  work  together     ©  2013  Sonali  Gogia  
  7. 7. 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   5.  Adapt   Service  and   full  roll  out   4.  Staff  and   Customer   Feedback   ©  2013  Sonali  Gogia   2.  Pilot  test   –  in  one   store  or  a   city   3.  Measure   results  and   KPIs  
  8. 8. INNOVATION  EXAMPLE  1  :  BEAUTY  WORKSHOP   To  build  brand  awareness  and  provide  educa@on  conduct  Luxurious  beauty  workshops       NEW  SERVICE   APPROACH   CHALLENGE   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   ©  2013  Sonali  Gogia   Collobora$ve  design     Brainstorming  with  retail   team  on  Customer  needs     Compe,,on   benchmarking     Codesign  with  other   stakeholders  –  Retail   partners  and  women’s   publica,ons   A  pilot  workshop     Developed  a  beauty  workshop   partnering  with  a  women’s   publica,on  customer  base     Offered  a  express  version  of  our   instore  experience  to  service  200   women  a  day     Completed  the  experience  with   a  luxury  venue,  educa,on,   sensorial  pleasures  
  9. 9. INNOVATION  EXAMPLE  2  :  INTERACTIVE  EDUCATION   Increase  engagement  by  using  Ipad’s  to  consult  and  educate  Customers     NEW  SERVICE   APPROACH   CHALLENGE   Customer  engagement     Customer’s  are  unaware   of  high  tech  skincare  like   serums  and  make  up   applica,on  techniques     Beauty  advsiors  find  it   difficut  to  engage   customers  for  long  and   explain  complex   scien,fic  terms   ©  2013  Sonali  Gogia   Observa$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$on     Use  an  ipad  at  every  point  of   sale  as  a  tool  of  engagement   and  educa,on     Revise  service  protocol  to   integrated  new  tool     Train  the  Retail  team  on   usage,  care    
  10. 10. INNOVATION  EXAMPLE  3  :  BEAUTY  PARTY   Taking  the  Brand  experience  home  with  a  personal  touch  in  low  season     NEW  SERVICE   APPROACH   CHALLENGE   The  low  season     Every  monsoon  Luxury   Customer  fooaalls  drop     Beauty  Advisors   complain  Customer’s   don’t  turn  up  for  events   or  replenishments,  and   sales  are  low   ©  2013  Sonali  Gogia   BoMom  up  design     The  instore  staff  suggested  an   at  home  service     Marke,ng  team  created  a   mobile  beauty  party  concept     Conducted  role  palys  and  dry   runs  to  create  a  smooth   professional  event  concept     The  beauty  tea  party     Beauty  Advisors  (BAs)  deliver   products  to  Customers.  They   provide  beauty  services,  take   testers  and  samples  for  trial     Plan  Brand  style  tea  par,es  at   Customer’s  homes,  offering   complimentary    beauty  services   and  trials      
  11. 11. INNOVATION  EXAMPLE  4  :  FACIAL  AT  HOME   Start  Luxury  home  facial  service  to  cater  to  the  cultural  beauty  trends     NEW  SERVICE   APPROACH   CHALLENGE   At  home  culture     Doing  beauty  rituals  at   home  and  long  massages   are  part  of  Indian  culture     The  global  15  minute  in   store  massage  was  too   quick  for  customers   ©  2013  Sonali  Gogia   Colloborate  across  con$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    
  12. 12. INNOVATION  EXAMPLE  5  :  LUXURY  BRIDE   Create  a  Luxurious  and  pampering  Bridal  Service  to  tap  the  great  Indian  wedding  season     NEW  SERVICE   CHALLENGE   APPROACH   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   ©  2013  Sonali  Gogia   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    
  13. 13. THANK  YOU   Prepared  by  Sonali  Gogia   sonaligogia@gmail.com,  @sonali_gogia   June  2013,  Mumbai  
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