[폴인인사이트] Popular stores in Paris and New York have ‘3S’

The evolution of offline business is still focused on’space’. It changed the composition and efficiency of the space through organic linkage with online. On the other hand, the phenomenon that offline stores become media has changed the central axis of offline stores. From space to’time’. Whether you’re getting information or having fun, the nature of media is to catch people’s attention and spend time in the media. As the offline store’s center of gravity shifts, several factors change, such as the revenue model, core competencies, and operating methods.

Lee Mo, a retired student, thought that if the essential attributes of offline stores changed, the profit model would also change. Because the media earns money by receiving subscription or advertising fees, offline stores can also do that. Although D2C branded offline stores are operated for the purpose of advertising their own brands, they may not be interested in exposing advertisements for other brands, but in department stores and marts, you can introduce an advertising model. Then came to mind an interesting attempt I had witnessed when I went to the’Galeries Lafayette’ department store in Paris.

The Galleries Lafayette department store opened a new store on the Champs-Elysees in Paris in 2019. Opened on the most famous street in Paris, this department store didn’t look like a sign. The name of the department store was hung at the entrance in an unconventional font. I thought it was about expressing the personality and image of the department store through the font, but when I entered the department store, the font was a visual identity that penetrated the entire department store. It is standard to use this font on the signboard in the department store, and the brands in the store also hang their brand name with the gallery Lafayette department store font, rather than hanging signboards using their own font and logo. It was a strange landscape.

To some extent, luxury brands were no exception. Brands, which are reputed to have high snots, also had to put down their identity, expressed in logos or fonts, to enter the department store. It was an insight into the status of the Galleries Lafayette department store, located on the Champs-Elysées, where tourists from all over the world. In addition, it was the result of the galleries Lafayette department store’s traces of concerns about branding and differentiation. With the unification of the signboards of the brands that entered the store, not only did individual brands stand out, but the department store looked like a huge editing shop. Therefore, the function of selecting and suggesting brands becomes more important, and accordingly, the identity of the department store is revived.

Nevertheless, there were exceptions. It was a brand that was launched as a sponsor. As for this brand, you could use a unique font when placing the brand name. ‘Roger vivier’ came in when Lee Mo, a retired student, visited, and the way of exposing the brand was exceptional. As soon as we entered the main entrance, we not only drew attention to the pop-up store, but also gave Roger Vivier all the spaces in the form of a skybox surrounding the upper floors. I could see Roger Vivier everywhere I looked.

Not just the logo outside the Skybox, but the entire Skybox space so that Roger Vivier can display products like a showroom based on their brand identity. The purpose of promoting the brand was clear. You wouldn’t have to use all of these skyboxes for sale. In a space composed of fonts at the Gallery Lafayette department store, only Roger BB only used their brand name completely, which made the brand stand out. The advertising effect as a sponsor is clear.

Of course, this revenue model is not a model that did not exist. It is the same model as selling the stadium’s nomenclature to sponsors at a ballpark or placing sponsor’s advertisements on billboards or fences in the stadium. It monetizes the attention of people gathered in the offline space. However, Lee Mo, a retired student, thought it was remarkable in that the attempt of the Gallery Lafayette Department Store was also introduced to stores that already have a profit model that sells goods.

Not only department stores. Retailers such as marts have also begun to seriously view the advertising model attracting sponsors as a revenue model. Wal-Mart, which has been advertising P&G and Unilever in stores, has internalized this advertising area, which has been outsourcing to advertising agencies, into a single revenue model. The fact that the advertising model that attracts sponsors becomes a profit model also demonstrates the phenomenon that offline business is becoming media.

Lee Mo, who is preparing to leave the company, was in doubt. In-store advertising requires a lot of traffic. Paris’s Galleries Lafayette department store is located on the Champs-Elysees, which attracts tourists from all over the world, and Wal-Mart also attracts more than 300 million customers annually from across the United States. There is a clear incentive for sponsors to pay for advertising. So, can’t you use advertising as a monetization model for offline business unless you were born in a place that drives traffic like a department store or a mart? Not necessarily. If you don’t have traffic, you can generate traffic. It’s like New York’s editorial store’Story’.

It was when he was traveling to New York that he first met the story that came to mind. It is a place where I was fascinated by the story of the story. Story is a magazine-like store. It is a magazine of space. Just as a magazine weaves various materials around the theme of the favor, the story sets a theme and dissolves different products in three dimensions. So, at the entrance of the store, an explanation of the theme is written, like the words of the editor. Products are displayed under one theme, such as’Color’,’Made in America’,’Holiday’s House’, and’New York Story’, so the perspective and context of viewing the products come alive.

The story, which aims to be a magazine-like store, changes stores of over 50 pyeong every two months. The interior, products, and accessories are changed to fit the theme and periodically transformed into a completely different store. For example, when’color’ is selected as the theme, colored cellophane is coated on the front of the window, and the space is divided by color to give the floor or showcase a corresponding color, and products that stand out in color are carefully selected according to each color. On display. By breaking down existing categories and classifying products by color, the product composition is also diversified. Plus, it’s fun to discover products with colors that you don’t usually see, such as orange hair dryers, yellow wireless speakers, and green lipstick. But a question arises. If you refresh your store so often, will you be able to cover the cost of the interior?

Stories solved this problem with an ad revenue model. Just as a magazine has advertisers, stories have a main sponsor. Not only are the sponsor classes competing, such as Intel, Target, GE, Levi’s, Pepsi, American Express, and Mac, but the sponsorship amount is great. It ranges from as little as 75,000 dollars (about 83 million won) to as much as 750,000 dollars (about 830 million won). That’s enough to change stores every two months. Sponsoring doesn’t mean that you’re decorating your store around sponsored products. In some cases, the sponsor’s product may not be included at all. At this point, I wonder why sponsors give a ton of money and claim themselves as sponsors.

Sponsors don’t pay for advertising to sell products in the story. It is not a store, but a story that is the media, attracting the attention and attention of customers. Even if it is not directly related to product sales, it is the same as companies spending advertising costs on media advertising spots such as magazines for branding and exposure. The story just proved that there’s no law that offline stores can’t serve as media. Rather, since it is an offline store, it has differentiated competitiveness as it can deliver themes or messages in a way that media such as magazines cannot.

For example, the theme of’Feel good’ sponsored by insurance company’Cigna’ is representative. As the ultimate purpose of insurance is not to compensate for aftercare, but to prevent it, we have built a store with products that make daily life healthy, such as meditation, nutrition, and exercise. In particular, we made use of the characteristics of offline stores by letting you experience chairs for VR meditation or holding trampoline exercise sessions in groups. In addition, in the’Making things’ theme that GE sponsored, only 25% of the space was dedicated to product sales. The rest is organized into spaces where you can experience creating something with GE’s laser cutters and 3D printers. It is a story that uses’experience’ per unit area rather than’sales’ per unit area as a key indicator.

This story, which has been trying to write a new story for offline business, will be acquired by’Macy’s’ department store in 2018. After being acquired, Story tells the story in parallel, not in one store, but in more than 30 Macy’s department stores across the United States. It means that the power of communication as a media has become stronger.

Lee Mo, a retired student, gains essential enlightenment by experiencing a store with a sensuous story like a magazine. In order for offline to become a media, in the end, offline itself has to be content. Of course, it is a place with a large floating population, so it can play a role as a media with a simple exposure effect without content. But where it doesn’t, you have to drive traffic, so you need to be able to provide content that people are interested in and deserve. Offline stores are just a channel of media, meaning that people need to have content to show them in that channel. So, when offline becomes a media, stories that can be made into content become the core competency.

(Slim)

※This content is Paulin’s storybook Episode 6 of 〈Offline Business, Imagination Changes Business〉is. The time to leave the difficult 2020 and talk about the hopes of offline business in the New Year 2021, and the journey of hope for the future of offline begins with the launch of a Jajangmyeon shop by Lee Mo, a retired student.