Strategic Retail Insights for the Chinese Market from 5 Star Plus Retail Design

In celebration of International Women’s history month, we want to highlight some women leaders on the team who specialize in different areas of our company. We kick off the series by highlighting one of our Senior Retail Consultants at 5 Star Plus Retail Design, Phoebe.

With an experience of 15 years in retail operations management, Phoebe started her career in Qingdao’s most upscale department store as the regional director of cosmetics. This was where she learned about the positioning of international brands and gained strong insights on different types of management style and corporate culture. Coming to Beijing a few years later, Phoebe joined FREYWILLE, a decorative jewelry brand, for three years. Managing several stores, Phoebe worked on the front line serving customers and leading the sales team to quadruple their sales performance.

A later step in Phoebe’s career path was to become Operation Manager for Ivanka Trump Fine Jewelry, being responsible for the operations and management of the brand in mainland China. Phoebe opened the first flagship store, developed the distribution network and coordinated media activities such as arranging interviews with Ivanka Trump for the Chinese press.

In addition to jewelry and cosmetics, Phoebe has extensive experience in the fashion industry having worked with fashion brands like Pull-In and Guess. Today, Phoebe owns and operates a business where she imports and distributes international skincare products in China. She plans to expand the portfolio to include other categories as well.

At 5 Star Plus Retail Design, Phoebe helps retail clients improve their operational performance. A while ago, the 5 Star Plus team supported Chinese designer brand Pureones in building up their brand through the definition of a clear brand positioning, development and publication of marketing content, the design of concept stores and pop-up stores, as well as the buildup of strategic collaborations and events. Phoebe defined and implemented target setting and reporting processes in retail stores and facilitated a long list of operational in-store improvements including the training of the retail staff and management team. She also created and implemented a strategy for promotional activities and events in order to increase brand awareness, attract customers into the store and increase sales.

This week, we asked Phoebe to share some of her insights on the outlook of the retail market.

Q: In today’s growing world of e-commerce and m-commerce, how can traditional retail brands with brick-and-mortar stores stay relevant in the shopping ecosystem?

A: I don't think any brand can afford to remain a traditional brand at present. Taking into account the current trends, a brand who can continue to develop and adapt to the fast changing market is a masterpiece.

Three years ago, brands such as Lancome and La Mer did not see the value of live-streaming because they believed that this sales form did not suite their brand positioning. However, today there are no skin care brands in the market who do not want to explore the e-commerce market and live-stream video market.

Q: What is the role of pop-up stores in today’s shopping ecosystem, how do you see this changing or evolving in the next 5 years?

A: Profitability is not a major consideration for pop-up stores today. Pop-up stores bring dynamic and have a positive effect on the brand image and the people behind it. This can lead to an overall positive impact on the brand.

Q: A retail store is often described as a brand’s best advertising medium. Everything that a customer knows and expects of a brand needs to be fulfilled and over-delivered in the retail store. What do you see as the biggest advantages of retail stores for brands besides generating sales? What is the strategic value to operating traditional stores?

A: The advantages of offline stores are more reflected in the transmission of the brand culture and philosophy. Trends can be reincarnated, design can be imitated, but the atmosphere and the spirit conveyed should be correctly represented by offline stores. Offline stores should focus on keeping the brand tone in stores, regardless of whether most customers accept it or not. Do not cater.

Q: Can you share some best practice examples of what some of the retail brands are doing?

A: SKP-S, which opened at the end of last year, I thought was great and opened another door for a lot of people to luxury brands. Not just bags, clothes, shoes, jewelry, but a cultural precipitation, the power of persistence.

Q: How can brands stay relevant and fresh to cater to a continuously changing target market and consumer preferences?

A: At present, Chinese customers are divided into many different types and groups. A brand needs to position itself first. Analyze your target market and don’t develop products blindly.

Q: Which sectors within retail, luxury and fashion do you think will have the most potential in the coming years?

A: It’s likely to be a fusion, the combination of luxury and fashion brands, even personalized customization, can set off a wave. Of course, I personally like brands and designs with a certain sense of history.

Q: Please share your top recommendation on how retail brands can improve their sales performance in stores. What are some factors that are often overlooked by retail brands?

A: A consumer’s sense of value is particularly important. It is not limited to high-priced products that convey the value of brands and products to customers. Some low-priced products can actually do better. Guests feel that they can make a choice. This aspect is sometimes an advantage for offline stores.

Q: As an experienced retail operations manager, what aspects do you consider most important for the retail design including the design of stores and pop-up stores?

A: I think design is sometimes incomprehensible to many consumers. They will only feel good or not good inside the store. Many brands invest a lot of money and time for the design of retail stores and pop-up stores. The results are really great, but only they themselves and the media know the inspiration and reasons for the store design. Sometimes the employees don’t even know and the customers do not understand. My suggestion is to let the customers know more about the design and concept of the store, so that the store employees and products can be integrated. Many of the display cases in Ivanka Trump Fine Jewlery's store have a hexagonal fixture design because they are inspired by the jewelry cabinets of Ivanka’s mother. As a result of the fixture design, many pieces from the collection sold very well. Every detail of the store is closely related.