The design and development of the concept store was a joint effort between the Design Thinking Alliance (DTA), Phygital Store Retail Solutions, and Landau Associates Ltd. The findings presented will be applied to the existing physical retail location, studied from the four identified case studies, and developed in an operational space model. In conclusion, the key characteristics of the experience-based environment within the physical retail location are Large, Variable, and Interactive. The design of the concept store will evolve around these four primary performance indicators.
In the planning stages, a number of market and demographic research questions were posed to participants with an intention to develop four core components of the physical retail store. These were Physical Attributes, including layout, room size, floor plan, signage, lighting, parking considerations, and entry access; Behavioral attributes, which include customer service, quality/quantity of merchandise, store layout, sales tools, point of purchase entry, and environmental factors, including cleanliness, visibility, security, accessibility, and parking. These core attributes are then implemented in the design of the physical store.
The second phase of development within the phygital retail store involves evaluating the current marketing environment and evaluating the success of previous efforts at the same store. A combination of metrics and statistics are conducted to compare the performance across store locations. The current store performance is compared to Amazon’s (AMazon’s) and Flipkart’s (fka Flip and Jumpstart) Flip Pages store formats and Amazon’s own mobile application store. Metrics and statistics are analyzed to identify strengths and weaknesses and to determine which format may prove more successful.
The third phase of development involves implementation of strategies. Strategies will vary from store location, product line, target demographic, and marketing strategy to name a few. An effective strategy will focus on maximizing the conversion rate to profit margin per revenue earned. A strong focus on customer service, offering value and attracting high-end shoppers will lead to higher profits and success. The strategies should also be flexible enough to allow for thephygital’s rapid growth.
Once a solid marketing strategy has been developed, it will be used to build branding awareness. The branding strategy will include both physical and digital storefront displays. Physical storefront displays should include a layout similar to Amazon’s and Flipkart’s (fka Flip and Jumpstart) formats. Phygital’s goal is to mirror Amazon and its digital stores.
Phygital’s augmented reality platform, Phytopia, bridges the gap between physical and digital formats. Phytopia consists of a combination of physical and digital signage and a virtual world store. Phytopia is the largest augmented reality platform in the world with over 40 stores and thousands of apps across the globe. Phytopia is an entirely proprietary digital network, which allows businesses to integrate physical and digital formats.
The final phase of development includes operational execution. Operational execution focuses on building out the back office. This consists of a software and hardware database which stores all back office information and employee records. Software functionality includes point of sale systems and mobile and web-based terminals. Hardware functionality includes a back office network of telephones, printers, and wireless access points.
We believe the key to the success of Phygital Retail Store is the integration of traditional retail and digital worlds. In addition to leveraging technology to increase traffic to the app, it is critical to leverage physical locations within the shopping complex to attract and convert customers into buyers. As the former begins to transition into the latter, it is important to continue to evolve our Customer Relationship Management skills in order to successfully execute this transition. Our goal is to continue to build upon the strengths of this platform while simultaneously leveraging our current retail locations to further strengthen the overall performance and value of the phygital retail system.