Experiential retail

Some high-end cannabis retail outlets use experiential commerce approaches, such as creative architecture, colored lighting, lit-up glass display cases, artworks, and background music to create a memorable ambiance and attract customers.

Experiential retail or experiential commerce is a type of retail marketing whereby customers coming into a physical retail space are offered experiences beyond the traditional ones (such as in a clothing store: browsing merchandise, advice from salespeople, dressing rooms and cashiers). Amenities provided may include art (often interactive art), live music performances, virtual reality, cafés and lounges, and large video display walls.

Theory

As of 2019, the target market for experiential commerce is chiefly Millennials, who are (supposedly, according to "studies") as a group overall less materialistic than previous generations and prone to spend relatively more of their disposable income on services - for example wellness and gyms.[1] This supposed spending pattern is disputed by the Federal Reserve.[2]

Even where there is a product consumed, such as at Starbucks and its competitors, customers are paying more "because of the experience", not (only) because it might be a better product than at a diner, for example. Apple Stores purport to provide not only a superior product but an "experience" and a "gathering space" or "Town Square" as well.[1]

E-commerce retailers such as Casper, Harry's and b8ta have established a limited number of experiential physical retail locations where customers can view and interact with their products in person.

Such experiential retail spaces are also seen as a response to the reported tendency among Millennials to demonstrate greater brand loyalty than previous generations, who more frequently made purchasing decisions based on price and product interchangeability.[3]

Examples

Examples of experiential retail and experiential commerce are:[1]

  • Samsung's "Samsung 837" pop-up store in Manhattan, a "cavern"-style venue of 560,000 square feet (52,000 m2) with interactive art, virtual reality, lounge areas, a recording studio and a 3-story 96-screen display wall.[1]
  • House of Vans in London, U.K., a 30,000-square-foot (2,800 m2) space with a concrete mini-ramp, and street course for skateboards, cinema, café, live music venue and art gallery
  • Escape rooms
  • Farfetch pop-up stores in the U.K. for online retailers of high-end apparel
  • IKEA events where customers could spend the night in their warehouse in Essex, England and were given massages, could select their bed linens and received sleep and mattress consultations from a sleep expert.
  • Selfie museums, where visitors are encouraged to interact with exhibits and pose for photographs.
  • Space Ninety 8, an offshoot of Urban Outfitters that sells merchandise, has yoga classes, album signings, art classes, and other social space.
  • TOMS, a shoe company that placed virtual reality headsets into 100 stores "virtually transporting" them to Peru to see the impact of a social campaign.

Experiential commerce encompasses experiential retail but also may be purely virtual experiences or not connected to any semi-permanently or otherwise established space owned by a brand, for example:[1]

  • Airbnb "Experiences" platform offering lodging combined with experiences in cities
  • Red Bull that spent $65 million to, with the help of agency MediaMonks, drop the Austrian daredevil Felix Baumgartner out of a space balloon, and live streamed it

References

  1. ^ a b c d e Dhillon, Sunny (17 March 2018). "The rise of experiential commerce". TechCrunch. Archived from the original on 17 July 2019. Retrieved 2 May 2019.
  2. ^ Blumberg, Yoni (December 4, 2018). "Millennials spend less than previous generations because they literally have less money, Fed says". CNBC. Archived from the original on 27 August 2019. Retrieved 27 August 2019.
  3. ^ Woosley, Jason (11 June 2018). "Council Post: The Rise Of Experiential Commerce: Why Relationships, Not Prices, Are The Future Of Commerce". Forbes. Archived from the original on 15 April 2024. Retrieved 2 May 2019.

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