Boundaryless Retail: Day Three at NRF’s 2012 BIG Show

Day three at NRF’s 2012 BIG Show kicked off with a new term that will soon be common jargon among the retail industry: Boundaryless Retail.

Mindy Grossman, Chief Executive Officer, HSN, Inc. introduced the concept of boundaryless retail. It implies that through innovation and collaboration, companies can leverage the power of technology to create an engaging experience for customers. It goes beyond omnichannel strategy and marketing; it’s about creating stories that cross channels and media.

One retail category that is harnessing the power of technology and emerging as an industry leader is luxury apparel. David Lauren, EVP of Advertising and Marketing for Ralph Lauren, shares his father’s talent for storytelling and recanted the last 11 years of Ralph Lauren’s commitment to digital innovation. He stressed the importance of leveraging technology to enhance the story of the brand. Lauren’s focus on merchantainment, the seamless blending of merchandising and entertainment to create context that inspires customers, has been the litmus test for all of their “experiments” in boudaryless retail.

From 4D (multi-sensory) building projections and interactive window displays to augmented reality fashion shows and virtual shops in a brick and mortar environment, Ralph Lauren demonstrated that shifting the focus from selling shirts to selling dreams can elevate a brand holistically.

Other luxury brands, like Burberry, are investing heavily in digital (digital signage, mobile and social). Over 60% of Burberry’s marketing budget is devoted to digital. And rightfully so. Burberry sales are up over 22% year after year as a result of this investment.

Luxury retailers are finding that digital allows them to engage directly with fans and tell a better story in retail. Harrods’ goal with digital is to become the pioneer of digital signage in luxury retail. To achieve this pioneer status, Harrods has set out to create a multi-site and multi-zone digital signage network—evolving from light boxes and signal screens to today’s high impact video walls. This endeavor requires sophisticated hardware and content management.

With face time being noted as the last asset brick and mortar stores have left, those retailers reaching out into the boundaryless realm of engagement should look to leaders like Ralph Lauren, Burberry and Harrods to learn the balance of applying digital strategies to enhance their brand story, all while ensuring a human is at the end of the experience.

Quote of the day:
“We never want a flat screen to scare you away, so we make it personal,”
– David Lauren, EVP of Advertising and Marketing, Ralph Lauren

Stay tuned for more insights from NRF’s BIG Show and read our post from Day Two.