The Art and Science of Visual Merchandising:

In the market where buyers are now controlling the demand-supply chain, it has become an exercise for sellers to entice the audience via the art and science of Visual Merchandising and retail designing.

It is the science and psychology of the retail and fashion world. VM involves the techniques to draw shoppers into a store and keep them there. It includes understanding buying habits and affects what you see – and how you see it.

The main issue is to make the merchandise extremely attractive, exciting and enticing, stimulating the buyer’s appetite and finally resulting in the decision to buy.  Effective visual merchandising can directly affect the bottom line of any retailer by: 

1. Maximizing walk-ins
2. Increasing sale conversion
3. Increasing average customer billing amount
4. Insuring higher recall value in the mind of the consumer and hence creating a loyal and ever expanding base of customers

Display merchandise as a piece of art.

Innovative headdresses for mannequins is a form of visual merchandising that is unique, directly off the runway, and artistic.

Reuse the same material in serveral ways - relate objects to your "Who".

In this series books are used in a variety of ways.

The Private Label Manifesto

Private Label is so much more than a name, it's a mindset.

We are strong advocates for the idea that any creative person must be open to receiving inspiration from all forms of art or visual craft; because of this, it should be no surprise that our brand concepts are rooted in many forms of design.

In it's simplest definition, private label is a custom brand designed to target a specified demographic. When we create a private label for our clients, we are doing just that. We constantly find ourselves saying "it's all about you" and we can't help but mean it down to our very core. Each project we focus on is approached in a completely different way. It's not about us, our "style" or our specific needs, it's about you, our client, our target demographic. No 2 projects are alike, they are all truly custom. They are strategically branded interiors.

A more known term in the design industry is "boutique" in regards to a hotel, restaurant, or store, to name a few. A boutique space is one that incorporates lifestyle, indigenous elements, specialty services, and is considered a unique "experience", not just a space. Especially in regards to hotels, there has a been a large shift from the corporate hotel to a more meaningful travel experience. From Design Hotels Yearbook 2008, "Mankind with be more sensible and sensitive about its surroundings in the next 15 years. Respect, tolerance, and solidarity will influence the way objects, spaces and technology are designed." Largely due to this type of mentality, corporate hotels want to be in line with this mindset. Ian Schrager specifically said in an article with Men's Vogue that he was partnering with Marriott to create a "private label" hotel brand for their very corporate rooted name. Putting boutique on a large platform isn't changing it's ideals, its only adding to the quantity of opportunities to create unique spaces. This was one thing Schrager found so enticing about the pairing with Marriott.

Another example, and one we found even more refreshing (atypical) is McDonald's launch of their "Less is More" design strategy. They partnered with French designer Philippe Avanzi (in collaboration with Studio Archange) to give their spaces a more contemporary look. The designers supplied McDonald's with 8 different design schemes for franchisees to choose from. The purpose of having several different schemes we feel is the future of franchising, locations that are consistent in service and recognition but do not "all look the same." They are using architecture as a business plan. The goal was not to just create a more contemporary look, but more upscale, and less "fast food." They wanted to appeal to an audience that would typically not eat fast food while also continuing to cater to an ever evolving current loyal fan base. The roll out started in Europe and is intended to make it's way to the US, although some franchise owners have already followed suit in other locations.

 

The notion of Private Label is the way we approach all projects no matter the scope of the contract.  We feel strongly that it is our fiduciary duty to our clients that all design solutions follow our Private Label core design values.   

Our 3 core Private Label values are:

1) Stay true to the values of the brand - Not only our brand, but our client's brand. We support and respect the importance of a brand and the necessity to be crystal clear in the execution and overall perception.

2) Always consider and be driven by what is meaningful to the consumer - Many of our colleagues focus on their client, but not always the end user. We find it is so necessary to focus on both. Our clients' are motivated by their clients' and so are we. 

3) Constantly create differentiation from the competition - how are we different? how can we in turn make our clients different? We constantly analyze the marketplace to see how it's evolving and making sure we're at least one step ahead. One main thing that allows us to do this with depth and efficiency is our large network of creative professionals. 

We have summarized our business strategy as the term the "studio effect." The definition includes our core values and core motivation. It is the act of going back to ones roots of creativity and innovation without the physical or emotional constraints of traditional business practices; fueling a new way of thinking by utilizing all forms of creative inspiration.

The result: A project that enriches our client’s bottom line, raises brand visibility, grows market share and maintains high visibility in the marketplace.

Today's Vocabulary List - Private Label Vernacular

Studio Affect
[stoo-de-oh uh-fect]
-verb

the act of going back to ones roots of creativity and innovation without the physical or emotional constraints of traditional business practices; fueling a new way of thinking by utilizing all forms of creative inspiration
 
American Dream
[uh-mer-i-kan dree-m]
-noun

the innate belief that the future holds limitless possibilities; currently a controversial concept as many Americans believe the American Dream is quickly becoming endangered

Brand Clarity
[brand klaré tee]
-noun

the condition of a brand that is logical, sharply defined, and acutely perceived in the marketplace which insures “stickiness” and aids to a “word of mouth epidemic”

Birds of a Feather
[burds uhv uh feth-er]
-verb

in relation to the “Studio Effect” like minded individuals (birds of a feather) flock together to form mutually beneficial relationships

Word of Mouth Epidemic
[wurd uhv mowth ep-i-dem-ik]
-noun

the act of a brand identity being spread throughout the marketplace by individuals sharing information socially as opposed to through paid advertising ie. “The British are coming!”

Take advantage of recession to position for the upturn

Hotel Design issued this article today and I thought it was a fresh perspective that we all should consider. Now is the time to focus on our brand image making sure that it is distinct to your marketplace.

"The recession is hitting different sectors in different ways. In the UK a rise in bookings for domestically based holiday companies is matched by their own growth in investment. Pontins for example have just announced 2,000 new jobs on the back of a 20% rise in bookings for 2009 - a rise replicated by other similar companies. Millions is also being invested in bringing properties up to contemporary standards.

There are dangers for all hotels in a misplaced step, or a panic action. Current figures suggest that the rise in insolvencies (see Price Waterhouse Coopers release attached) is linked not to a major decline in bookings but rather to difficulties with loans. Some company borrowings were secured on property valuations that no longer reflect reality, especially those of the last two years when the property boom was at its peak. A combination of tightening bank lending criteria with falling underlying valuations (according to Christies values fell by nearly 19% in 2008) can lead to foreclosure.

Jeremy Hill, Head of Hotels at Christie + Co, said: “The end of the year brought the first signs that the economic slowdown and the subsequent drop in trading would leave some companies struggling to stay afloat.Folio Hotels, which operated 36 properties across the UK, fell into administration at the start of December, albeit the majority of its hotels have been successfully transferred to new owners. More businesses are unfortunately set to follow, as banks look to sell underperforming assets, in order to balance their pressurised books.”

Many hotel businesses will be tempted to freeze infrastructure investments, mothball new growth hotel projects and defer integrating the latest acquisition. Advertising and recruiting investments are easily cut, as are loyalty programmes for customers and staff. However the businesses that will benefit will take a different approach and selectively invest where others are cutting back.

“Hotel businesses that understand the need to develop and implement new strategies can navigate the downturn in a way that makes the most of the opportunities arising. Those who don’t know enough about themselves or the external market will be inclined to take the path of least resistance, leading to defensive and piecemeal actions which can result in reduced service levels and disgruntled clients. Most damaging of all, these businesses risk losing out to their competitors,” says Stephen Broome, Hospitality & Leisure (H&L) director, at PricewaterhouseCoopers LLP

Experience has shown that deferring refurbishment and lowering the room price, two typical actions by hotels, both lead to increased difficulties and impact quality. They defer the pain as competitors who continue to maintain rates are able to reap the rewards of those rates when the upturn comes, whilst increasing rates without apparent justification can result in customer flight.

The unrefurbished hotel (and bear in mind most refurbs are long overdue when scheduled) will also lose customers to the competition. Most guests recognised when they are in a room with worn furnishings, worn fabrics and carpets despite the frequent operators blindness in this regard. Currently Travelodge for example are continuing to roll out their rebranding through all their chain, whilst Rezidor will continue to invest in their brands unless their occupancy shows an drop of over 40% on 2008 figures, planning on bringing some 22,000 additional rooms on stream this year (2009).



The increased awareness of design amongst the population at large, the rise of the fashion based hotel and boutique chains, have all emphasized the increased appreciation of the value of well maintained, well designed and attractive properties. Failing to keep pace with these developments will enhance the spiral of decline that many poorly managed hotels will go into in a recession.

If occupancy falls why not turn it to advantage and close a whole floor for refurbishment so that when the upturn comes premium rates come with it? After all, with sterling at its lowest for years there is already a measurable rise in tourists entering the UK."

Patrick Goff, Editor