Experiential retail is a form of retail marketing where customers walking into a space are offered over and above "traditional" retail experiences. According to a study by Forbes in 2019, these customers are largely millennials who prefer expending their microscopic disposable finances on "experiences" rather than the good 'ol walk into a store, buy what you need, and go home.
We see this pattern of larger brands pick up on this especially in the USA, which is the mecca of consumerism, and a crash course for innovative branding. In the US, both huge and homegrown brands are rethinking retail, and working towards creating experiences for their customer, in order to not just drive sales, but also create a brand loyalty and allegiance by creating a space that involves the consumer and makes them feel like a part of the production of the product they are consuming.
This mindset has been steadily trickling into our consumerism patterns over the years, for example, a Grande Java Chip at Starbucks might be the need of the hour, but the experience of sipping on it while you purposefully type away on your laptop is something you keep going back for. It's no longer a coffee place, it's your workspace now because that's precisely what's being offered, and what is being happily consumed. Starbucks as a brand has taken its USP, which is coffee, complimenting it with something as simple as a space where patrons can come to work. It is a different matter whether the patronage is rooted in the quality of their coffee or the attainable lifestyle it promises for young professionals.
On the other hand we have a giant like the Swedish home decor and design brand IKEA. It is not a stretch to say that IKEA introduced the world to experiential retail, and home decor experience centres today borrowed inspiration from their concept of creating a home-like environment and look and feel to make the buyers see what the products would like in their own homes. Every nook and corner is an experience, including perks like their food court. So much so, that IKEA dates are a thing, where people just go strolling around in their huge stores, manifesting their dream home together, and winding it up with a meal in their cafe.
The focal point of the experiential retail approach is to institute an interpersonal, yet positive bond with the patron that lasts as a memory, and an experience of what and how it made them feel, or how they spent their time — inevitably shaping their perception of a brand. Needless to say, every brand under the sky is leaning towards this, bearing in mind their USP, experience, emotional connection, and/or the stimulus they want to inculcate in their consumers. At the end of the day, experiential retail is all about reeling in consumers so that they come back for more, and providing experiences that inevitably become an extension of the brand itself.
India, as a market place has been steadily picking up on this, with experiential spaces gaining clout as we speak. Brands have soon realised that customer engagement is critical to surviving in the relentless and competitive retail environment, and to set themselves apart from their competitors. It is also great to see how some of these have approached the concept with creativity and made it their own, all to offer more to the customer.
As India shapes up for a fresh retail experience that is set to take precedence, here are a few experiential retail stores worth mentioning.
