VIRTUAL STORES RETAIL
“I don’t think they’re going to take over, but I think they’re going to be hugely important, particularly for a younger demographic.” And Selvey’s thought process is being seen – in real life – on the shop floor.
SHOPPERS FLOCK BACK IN-STORE In spite of these new virtual spaces sprouting up, there is evidence that customers still crave bricks-and-mortar. According to NPD Group, in the first week that non-essential retail reopened in the UK, bricks-and-mortar stores took more than £23m in prestige beauty.
For the week ending 17 April, just five days after restrictions were lifted in England, in-store shopping accounted for 70% of total sales in luxury beauty, while e-commerce took just 30% of the sales that week.
Lockdown fever or not, customers want
“These metaverses are an exciting digital experience. But actually, people still want to try things, particularly in colour, I think people still like to try things actually on their skin and see what it looks like,” says brand and retail strategist Wizz Selvey.
“What I always say about technology is how do you integrate the human touch with technology? Because I feel like a lot of these tech solutions, they’re quite fun – AI is quite fun to try your make-up on and try different looks – but you still would want to go and see what that product looked like on your skin; and it’s the same with these virtual rooms, you can go and have a browse, but actually, sales conversion is still much higher and much more powerful when people are physically trying things.
in-store shopping – but is there a balance to be struck with in-store and online? Zara’s new 37,000sqft UK store is the first of its fleet to launch with the brand’s digital and in-store integration model. To speak to online-savvy shoppers and those that prefer to peruse in real life, the Spanish fast fashion and beauty group has kitted out its UK Bluewater Shopping centre destination with in-store self-service checkout and dedicated refund tills for a seamless shopping experience. And with these strategies comes slick fulfillment, something Selvey believes should be top of brands’ priority lists. “There’s a huge expectation of slick fulfilment now, because Amazon’s been around for so long and if a brand doesn’t have great fulfilment they will find it hard to compete.”
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I think people still like to try things actually on their skin and see what it looks like
So, with evidence there to suggest that in-store is still a priority among shoppers, will these virtual spaces be a flash in the pan? Not according to NARS’ Peschko. When asked if digital experiences would be the future of retail, she was in no doubt that “the future of beauty is all about digital innovation and connectivity”.
“NARS is committed to evolving within the virtual space, staying true to our modern and audacious brand code,” she says. “The virtual store strikes a balance between celebrating brand heritage and hero products, while also incorporating the best possible digital experience.” It’s a point that Selvey does not deny: “For future generations, these metaverses are important. If [brands] want to be here for the long term, then yes, at some point, they do need to first convert to that world.” Be they techy, digital metaverses or in-store, retail spaces are seated for an upheaval, but the question remains whether these new methods will be around to stay and be part of the ‘new normal’, or if old habits die hard
cosmeticsbusiness.com June 2021 55
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