2013년 4월 2일 화요일

The Secret of Department Store : Business Perspective


Department store has lots of management issues. It's fun to looking inside those like issues such as five senses marketing, layout, interior, customer sentiment, etc. It will be easy to follow and fun to read.





1. Secret of 1st floor



What shop is at the 1st floor of the department store?
Most of the department store 1st floor is full of luxury fashion brands and cosmetic brands. 

First, prestigious fashion brands shows the reputation, position of the whole store image. They also have lots of show windows and this is not for just selling that product. It is for the dispersion of customer sights. They attract consumers eye's and make them watch around the total store.

Second,
Cosmetic brands are most powerful brands making sales of the department. Specialists say that 30% of the sales come from these cosmetic brands. Some people say that they generate more than 70% of the total department sale.

Recently lots of department stores are moving the cosmetic brands to upper floors.








2. Secret of Marketing (Five Senses Marketing)



(Picture from gettyimage.com)

Five senses marketing is the method of attracting customers sense by smell, sound, touch, taste, sight.

First, Music. It's well known that slow music make customers prowl around, move slowly, stay for a long time.  Other way, fast music make peopel move quickly, rotate fast or leave the store. Recently management study had found a wonderful thing. Scholar tries to touch customer unconsious below the recognition. They had a experiment at the department store. One big issue department managers concern is stealing problems. Lots of products gather at one place and this automatically make there a best target of robbery. Scholar injected some sound like 'Be honest', 'Don't steal' that people can't recognize. Customer can't hear this but the robbery case had dropped sharply.







Second, Smell
Many store are using smell marketing, such as creating their own perfumes. Clothing brand 'Who are U' have their own incense and you can meet it at their stores. Department managers spray perfume at the front of the escalators. Result? stores nearby the escalator had increase their sales of 30~40%.







3. Secret of the Service


First,
 America has three department stores with definitely different service. 'Target Store' has image of selling products at cheapest price although they give up exaggerate services. 'Bloomingdale's' sell trendy, polishing products even if their price are slightly higer than others.  'Nordstrom' is the place give best care of individual customers. There's famous anecdote that one women visit Nordstrom to refund her tire. They give her a cash right away. What's important in this story is that department stores don't sell tires. Another one. One male had visited the department store to purchase the jean. He early listen that Nordstrom held a sales at that brand. But the sales was ended... Employee of the Nordstrom go to the nearby store rightaway and bought the same jean in proper price. After returing he gave it to the cutomer at the sale price. This stories show the best service of this department.




Second,
One department store at Korea made a cafe for mans following their wife. There's 400 seats and PDP TV show them a movies. Employers give free beverages for service. This little consideration takes husbands come out of the house. But what's the real intention of this service? We can figure it out when we track an ordinarly couples purchasing behavior. The first person who block wife's purchase is their husband. 'Stop buying' 'Don't we have one at our house?' 'Let's go home' 'I'm hungry'... So the first enemy of the department store is husbands. Providing the service give them more than just giving rest facility.







4. Secret of Shopping cart
 Famous secret that shopping cart size is too big. Shopping carts have unified form with unified big size. People have unconsious to fill out the place which is empty. After fulling it with their shopping ability, customer feel satisfaction. Big enough for everyone.






5. Secret of Department store layout
This is not the layout from a department store but it's developed by the similar way of designing it. It's famous IKEA store layout. Exit is right next to the entrance. But you should go through the whole store to get out of IKEA. Also the arrangement of the furniture is designed by the customer fatigue, time, etc.












6. Secret of Entrance


Simple secret of the entry. Department store aisle, when your coming inside, is made of stiff woods or marble. Inner the department store flooring is consist of carpet or soft materials. This make customer feel inconvenience to come inside the store.







7. Secret of washroom

Question

How much washrooms make department store make more money?
A. more
B. lack

Answer can be fitted to customer...
But there's a study that shortage of the washroom give impact at sales. They decrease!

At the Ig Nobel prize (Parody of Nobel Prize) there is a research that people who suppress their instinct have tendency of suppressing purchasing desire. Rationality act when we hold our physiological phenomena the rationality also act at the purchasing decision. So some department stores install a waterfall at the front of the front door. This make people go to the washroom first and enjoy their shopping.


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