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Store in Store Marketing


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This is a flexibility study for how store in store concept can help brand owner creates a new alliance working with various levels of stakeholders of the brand. I focus more on the change in relations between brand owner partners while building up an alliance for win win strategies.

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Store in Store Marketing

  1. 1. Flexibility Study of Shop in Shop ConceptCyril SoMarketing
  2. 2. Store in StoreConcept forBrandOwnerA SMALL STEP BUTA BIG LEAP FORWARD
  3. 3. Store In StoreConcept -SISC
  4. 4. Store in Store MechanismBRANDINGSISCSHOWCASE
  5. 5. Incity Store – A summary RETAIL: a big leap forward for a Brand ownerwho would engage in retail market. BRANDING: Is the place to meet our end usersface to face and deliver Brand Owner messagedirectly to them. SISC SHOWCASE: is where we integrate withwhat Brand Owner distributors’ need
  6. 6. What is SISC?SISC = Store in Store Concept A business cooperation formulated by Brand owner and distributor A retail mix supported by high level sharing of business expertise(production + retail) A localized alliance that strengthens both parties for globalcompetition A co-branding operation to seek an unique mission Famous SISC brand owner: Levi’s, Addidas, Tom Tailors and others…
  7. 7. What is SISC?Store in store concept is“when BRAND OWNER and DISTRIBUTOR are injoint force to create an image brand store that leverageson each other knowhow to new business alliance .”
  8. 8. What is SISC?
  9. 9. SISC Defined by Business Experts“SISC is a clear example of how collaborationbetween brand owner and distributor which isdeveloping to become a long term orientedworking partnership.”“SISC is the balanced composition of the retail mixof a brand owner and distributor.”M. Mossinkoff (U Amsterdam) W. Smith (Erasmus University, Amsterdam) LookingBehind the Scenes of Shop in Store concept.
  10. 10. Why Consumers like SISC Direct product: consumers are delaying purchasing decisionuntil they see the real product in a shop especially asInternet is full of tricks and confusion (i.e. fake product orgrey product) – Cobb 1997 Total experience: consumer looks for not just product butexperience, only a shop can provide a total experience. Stronger confidence: as consumers access the brand fromproduction to retail. Unique Brand Image: Consumers also access to thecompany’s mission and commitment. They’re not just buyinga product but a mission.
  11. 11. Why Brand Owner needs SISC –Longer term reason…. Brand owner is rapidly involved in global marketing andglobal competition, we need alliance to fit into regionalneeds. (Global Brand with a local touch, language,market information) Competition from all directions (copy cat, low costcompetitor from developing countries, even distributor-come-brand owners) Consumers data has never been that important but it isall controlled by distributors. Profit Structure: SISC can change the way how profit isshared…..
  12. 12. Why Hape needs SISC – Shorter termreasons…… Stronger bargaining power in wholesale price Stronger control of brand message and branddevelopment Eliminate competition from distributor (when distributorcreates their own OEM brand) Involvement in retail profit by leverage on distributor’sknowhows Create new OEM business (distributor becomes friendlypotential brand partners)
  13. 13. Cost and Profit Structuration Traditional Market:(20% production + 30% profit) Vs (50% distribution + logistic) Online Market(20% production) Vs (80% marketing + distribution + logistic) SISC marketHape: (20% production + 40% marketing + 10% SISC shop)Distributor: (10% marketing + 10% Brand Image Shop + 10% logistic)These are the costing/profit structure between brand owner & distributor
  14. 14. Why distributor joins SISC Tighten connection with production (brand owner) Access to important information even trade secret inproduction because of closer connection Leverage from huge production setup (claiming toconsumer that they have their own production line toreinforce consumer confident) Earn profit from marketing effort from brand owner Long term collaboration benefit (i.e. inventoryguarantee)
  15. 15. Problems
  16. 16. What are less favourable to Brandowner? Unstable if rely only on few distributors Slower way to setup Brand Owner Store Distributor may influence on our design format (look and feel) Conflict between SISC distributor and non SISC distributor Danger of taking over from strong distributor Distributor may learn our expertise and create their own
  17. 17. What are the format of SISC?1. Shop within a shop (i.e. leasing booth indepartment store, dedicated corner within ashop) – (i.e. Brandowner’s counter in other mall)2. ID Corner: brand owner provides the design,visual merchandising and shopfitting. Both partiespay for the shop and share profit.3. Depot: no significant changes only soft-ID signing(logo display)
  18. 18. Different levels of SISC distributorIt is possible to implement system for a different levelof distributor based on their royalty, sales Volume orother criteria. For examples:Label StoreAuthorized ShopRetailerPremier Shop
  19. 19. How to Implement an Image Store? Design: Look and Feel (Brand Image) Modularized Furniture System Business Formats
  20. 20. Look and Feel: Image store Simplistic, Minimal and European feel Stylish – clean and warm style rather than supermarket International and high brand Functional – size and dimension of furniture fit intodifferent venue setting
  21. 21. Design Reference• Classic High Brand• White and simplistic shelf
  22. 22. Design Reference An Accessories Shop Simplistic style, white European Flavor
  23. 23. Design Reference Wooden floor and furniture in warmhomely setting Intuitive shelfing Spotlighted area
  24. 24. SISC Store Design
  25. 25. SISC Store Design
  26. 26. SISC Store Design
  27. 27. SISC Store Design• Simple, whitish• Neo Classical andEuropean• Easy to build• Elegant and Highbrand feel• Strong Logo impact• Friendly and Warm
  28. 28. SISC Store Design• Focus on touch andfeel• Elegant on Detail• Open shelf forproduct experience• Spacious and relax• Creative flooring
  29. 29. Modularized Storefront Fixture
  30. 30. A Modularized storefront system Modularized fixture system is to create a wayhow some distributor can select from a list ofour designed system to create their ownHape Store. It should include 1) furniture & fixture (shelf, stand, light box etc) 2)marketing collaterals & visual merchandising(poster, leaflet, B2C catalogue) 3) internet module (online catalogue, QR code) 4) logistics (outsource) 5) Shopfitting & contracting (outsource)Modularized Storefront Elements
  31. 31. Window Display Thematic display or stylishshowcase that changeevery two months tocreate surprise andgimmickModularized Storefront Elements
  32. 32. Raised Floor Experience AreaModularized Storefront Elements As most of the product areboxed in the shop. It issuggest an home likeexperience area used todisplay some item withoutbox. Customers can playand touch the product toshow our quality in material.
  33. 33. Bench or SofaModularized Storefront Elements Modern stylish shop also providesclient a sofa or a chair. For parents(esp. father) need a short rest aftershopping. It is suggested to usestylist chair or designer chair.
  34. 34. Cashier Counter
  35. 35. Cashier Counter
  36. 36. Cashier Counter
  37. 37. Logo
  38. 38. Wall Mounted Shelf
  39. 39. Island Display Stand
  40. 40. Chair and Sofa
  41. 41. Multi level stand fixture
  42. 42. ENDPresenter:Cyril SoMarketing