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SONALI	
  GOGIA	
  	
  

Service	
  Innova,on	
  in	
  Luxury	
  Retail	
  
	
  

Prepared	
  by	
  Sonali	
  Gogia	
  
sonaligogia@gmail.com,	
  @sonali_gogia	
  
June	
  2013,	
  Mumbai	
  
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	
  
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	
  
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	
  
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	
  
CODESIGN	
  FOR	
  SUCCESS	
  
The	
  process	
  of	
  design	
  in	
  a	
  retail	
  enviornment	
  requires	
  all	
  actors	
  to	
  work	
  together	
  
	
  

©	
  2013	
  Sonali	
  Gogia	
  
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	
  
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	
  
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	
  
	
  
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	
  	
  
	
  
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	
  
	
  
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	
  
	
  
THANK	
  YOU	
  

Prepared	
  by	
  Sonali	
  Gogia	
  
sonaligogia@gmail.com,	
  @sonali_gogia	
  
June	
  2013,	
  Mumbai	
  

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Service Innovation in luxury retail

  • 1. SONALI  GOGIA     Service  Innova,on  in  Luxury  Retail     Prepared  by  Sonali  Gogia   sonaligogia@gmail.com,  @sonali_gogia   June  2013,  Mumbai  
  • 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. 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. 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. 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. CODESIGN  FOR  SUCCESS   The  process  of  design  in  a  retail  enviornment  requires  all  actors  to  work  together     ©  2013  Sonali  Gogia  
  • 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. 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$ve  design     Brainstorming  with  retail   team  on  Customer  needs     Compe,,on   benchmarking     Codesign  with  other   stakeholders  –  Retail   partners  and  women’s   publica,ons   A  pilot  workshop     Developed  a  beauty  workshop   partnering  with  a  women’s   publica,on  customer  base     Offered  a  express  version  of  our   instore  experience  to  service  200   women  a  day     Completed  the  experience  with   a  luxury  venue,  educa,on,   sensorial  pleasures  
  • 9. INNOVATION  EXAMPLE  2  :  INTERACTIVE  EDUCATION   Increase  engagement  by  using  Ipad’s  to  consult  and  educate  Customers     NEW  SERVICE   APPROACH   CHALLENGE   Customer  engagement     Customer’s  are  unaware   of  high  tech  skincare  like   serums  and  make  up   applica,on  techniques     Beauty  advsiors  find  it   difficut  to  engage   customers  for  long  and   explain  complex   scien,fic  terms   ©  2013  Sonali  Gogia   Observa$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$on     Use  an  ipad  at  every  point  of   sale  as  a  tool  of  engagement   and  educa,on     Revise  service  protocol  to   integrated  new  tool     Train  the  Retail  team  on   usage,  care    
  • 10. INNOVATION  EXAMPLE  3  :  BEAUTY  PARTY   Taking  the  Brand  experience  home  with  a  personal  touch  in  low  season     NEW  SERVICE   APPROACH   CHALLENGE   The  low  season     Every  monsoon  Luxury   Customer  fooaalls  drop     Beauty  Advisors   complain  Customer’s   don’t  turn  up  for  events   or  replenishments,  and   sales  are  low   ©  2013  Sonali  Gogia   BoMom  up  design     The  instore  staff  suggested  an   at  home  service     Marke,ng  team  created  a   mobile  beauty  party  concept     Conducted  role  palys  and  dry   runs  to  create  a  smooth   professional  event  concept     The  beauty  tea  party     Beauty  Advisors  (BAs)  deliver   products  to  Customers.  They   provide  beauty  services,  take   testers  and  samples  for  trial     Plan  Brand  style  tea  par,es  at   Customer’s  homes,  offering   complimentary    beauty  services   and  trials      
  • 11. INNOVATION  EXAMPLE  4  :  FACIAL  AT  HOME   Start  Luxury  home  facial  service  to  cater  to  the  cultural  beauty  trends     NEW  SERVICE   APPROACH   CHALLENGE   At  home  culture     Doing  beauty  rituals  at   home  and  long  massages   are  part  of  Indian  culture     The  global  15  minute  in   store  massage  was  too   quick  for  customers   ©  2013  Sonali  Gogia   Colloborate  across  con$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. 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. THANK  YOU   Prepared  by  Sonali  Gogia   sonaligogia@gmail.com,  @sonali_gogia   June  2013,  Mumbai