A virtual reality concept for the Middle East consumer (Harrods)

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HARRODS

A virtual reality concept for the Middle East consumer

BY BIJAL CHAUHAN 1


CONTENTS Page 7.....The brand Page 10...Consumer profile Page 13...The concept Page 14....Concept justification Page 22....References

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The virtual changing room is to be launched in the one hundred and fifty year old institution Harrods

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Harrods is a key luxury destination d

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department store in the UK

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Harrods can be seen as a favourable store as it was selected as a top activity store by one in five respondents

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T

THE BRAND

he virtual changing room is to be launched in the one hundred and fifty year old institution Harrods (Bennett & Cameron, 1999), which is a key luxury destination department store in the UK (Rogers, 2014). Although there is no factual quantitative information from Harrods, the store has said that visitors from the United Arab Emirates and Saudi Arabia are among the top spending Middle Eastern nations (Kane, 2013). Therefore, showing the importance of the focus on Middle Eastern consumers and why Harrods should invest in the virtual reality concept.

“rich Arabs spend the most cash in the run up to Ramadan”

Furthermore, London can be seen as a place for Middle Easterners to spend the summer away from the scorching heat of the Gulf, as well as the shopping infrastructure of London being in sync with Arabic shopping habits than other capitals (Pratt, 2015). This is because the demographic does not like to move too much, as they have to deal with the usual heat in the Middle East so prefer indoor spaces (Pratt, 2015), where all brands share the same space like in Harrods, which is more convenient. Therefore, this also means that the consumer does not need to go to separate stores to try on different clothing, as the changing room will be accessible for all brands from Max Mara to Dolce and Gabbana. Moreover, shopping in Harrods can be seen as a favourable store as it was selected as a top activity store by one in five respondents (Felstead, 2014). Although this was only a small positive response (20%) it is likely to increase not diminish. In addition to this, Harrods being located in Knightsbridge, London - a fashion capital where rich Arabs spend the most cash in the run up to Ramadan (Pratt, 2015), shows the prominence of the store. This time period is also known by retail analysts as the ‘Ramadan Rush’, to describe the influx of affluent Middle Eastern visitors (Pratt, 2015). Therefore, making it one of the most important shopping events in the UK, which points to the appropriate timing of the concept launch- falls on the ninth month of the Islamic lunar calendar (Hui, 2014). Furthermore, the virtual reality concept has been trialled in other department stores like John Lewis (Bennett, 2012), which lacks exclusivity as it is located in many cities, so consumers may be more inclined to go to Harrods instead. This is because of what Harrods as a brand conveys- exclusiveness of being in London solely. This can be further emphasised with there being a difference between saying a bag being purchased from Burberry in Dubai and at Harrods in London (Rogers, 2014), because Burberry is arguably a symbol of western luxury fashion, therefore purchasing from Harrods has added value. 7


London can be seen as a place for Middle Easterners to spend the summer a

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away from the scorching heat of the Gulf.

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CONSUMER PROFILE

he consumer group the virtual reality concept is to target are affluent Middle Eastern Muslim shoppers. This is because traditional attire of Middle Eastern Muslim women consists of a headscarf like the hijab and long sleeve, full length garments, such as the abaya (Aly, 2016), which is worn on top of other garments. Therefore, the process of changing clothes may be time consuming and stressful. The reasoning for a wealthy demographic links to the fact that the Middle East is one of the ten largest luxury goods markets, with sales exceeding $6.74 billion (Levy, 2015), therefore rich Middle Easterners can be seen to favour luxury brands (Felstead, 2014). Also, there has been a rise in ‘modest fashion’ collections by premium brands like Dolce and Gabbana who have designed abayas and hijabs, targeted to Muslim women (Campbell, 2016). So, as the price of these particular garments cost more, consumers may be more inclined to make sure that the clothing fits well before purchasing.

“54% of respondents selected yes to using a changing room regularly”

Furthermore, in a recent survey using a Muslim target group, 54% of respondents selected yes to using a changing room regularly before trying on garments (Chauhan, 2017), which further emphasises the importance of the use of a changing room in retail space.

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On the other hand, the majority of comments from the remaining participants who said they would not use a changing room stated it was

because of “not having enough time” (Chauhan, 2017). Therefore, by the consumer instantly being able to look into a technological mirror to change clothes would potentially save time. Another key finding was that a selection of participants were moth ers with children (Chauhan, 2017) and therefore an implication of changing clothes whilst looking after their child would be stressful, thus the virtual reality concept would also save them time and be convenient.


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THE CONCEPT

irtual reality involves real time simulation with the environment (Burdea & Coiffet, 2003). Thus, the concept is a virtual reality mirror that record’s the user’s measurements and displays garments on a virtual version of themselves (Hah & Shekhtman, 2016). This also allows the consumer to try on clothing in different sizes, colours and lighting without having to spend time on changing clothes or finding substitutes (Clothing Retailing-UKOctober, 2014). The aim for the virtual reality concept is to launch virtual reality changing rooms in Harrods to improve the in store experience for Middle Eastern consumers. In order for the aim to be met, there are objectives to be completed. The first objective is to create awareness of the virtual changing room for the Harrods customer. This can be measured through asking a simple question like “Do you know about our virtual reality concept?” when customers are at the checkout to see if they know about this new concept, during the week the concept campaign is launched. A week is an appropriate time period, as Harrods has thousands of visitors a day. If customers are unaware, then this means that changes need to be made to the promotions of the technological mirror, which can be made through working with the marketing department. Therefore potentially within a month of new active promotions material the question can be asked again.

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Next, another objective is to show the beneficial use of the virtual changing room to new customers. This can be measured by implementing a touch screen rating system that would appear on the technological mirror after the consumer has used it. Therefore, the

the question “How satisfied are you with the system?” would appear and the following choices can be selected; very satisfied, satisfied, dissatisfied and any further comments or improvements. Results of this would be collected at the end of every week from the beginning of the launch. Then by using this data, it would help to improve the changing room experience and make it more user friendly for the customer. Furthermore, the final objective is to present how virtual changing rooms will bring new opportunities to Harrods’ from the west. This can be done as Harrods’ technological mirror allows the customer to try on high-end designer clothing from multiple brands in the same location, which is not currently offered anywhere else. This would show Middle Eastern consumers what services are exclusively offered in the west, which would in turn persuade them to continue seeing Harrods as a key shopping destination. To further increase this interest, the consumer could sign up to a mailing list to ensure that they receive any improvement updates on the technological mirror that they may be interested in.


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CONCEPT JUSTIFICATION

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iven that approximately seven in ten shoppers try on items in store before purchasing them (Clothing Retailing-UK-October, 2014), changing rooms should be seen as focal to the shopping experience as “54.55% of consumers can be seen to depend on this feature to decide respondents whether or not to purchase a garment. In addition to this, the technology used is to be similar to Microsoft’s motion sensing technology- Kinect selected yes to 30 (Clothing Retailing-UK-October, 2014), which works by showcasing potentially using the clothing on a digital scan of the user’s body as well as the user being this equipment in able to interact with the mirror for different options. Therefore, the shopper does not have to spend time searching through different garstore.” ments, sizes and brands on a potentially busy shop floor, which eases the changing room action.

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the retail environment and make it more fun for the shopper.

Furthermore, the reason for incorporating virtual reality into an in-store environment is to create an efficient store experience, as the virtual reality changing room would decrease stress and time of changing clothes and time consumers spend shopping (Clothing Retailing-UK-October, 2014) if they are short on time. This type of technology can also be seen as fascinating by women of all ages (Clothing Retailing-UK-October, 2014), therefore attracting a wide range of consumers that would be excited to try out the innovative equipment. Also, the technological dressing room could be seen as a successful entity to the store and consumer. This is because in a latest survey it was found that 54.55% of respondents selected yes to potentially using this equipment in store (Chauhan, 2017). So, this concept can be seen to be successfully utilised in store, which would transform

Moreover, this concept has been used before in department stores like John Lewis for a trial six-week period (Bennett, 2012). The mirror used a combination of cameras and scanning software, so the technology can match clothes to the shape of the users body (Bennett, 2012). The user is able to simply hover their hand over on screen icons to carry out actions like ‘try on’ and ‘scroll through items’ (Bennett, 2012). The popularity of this technology can be seen from the number of users, twenty to thirty customers a day since the launch with an average of thirty minutes spent with the mirror (Bennett, 2012). Thus, the virtual reality changing room can be seen to be an effective source of equipment, which creates a fun digital shopping experience. From this research, it means that Harrods can implement these strengths as well as take into consideration any weaknesses which can be further explored in the below marketing model, thus improving the consumer’s in-store experience. To further justify the concept the SWOT model can be applied, which is a key tool when implementing new technology for a business (The SWOT Analysis: A key tool for developing your business strategy, 2015) like Harrods that has a prestige reputation. This model can be used to showcase what the concept entails for the brand as well as the consequences it would have for the consumer.

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“79% of Middle Eastern consumer have been found to rank their friends as influencers when making luxury purchases�

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ne strength of the virtual reality changing room in Harrods, is that it enables the consumer to mix and match clothing (Bennett, 2012) without them having to spend time going through rails of garments as well as, asking and waiting for a sale assistant to help them- thus saving time and reducing any stress. Also, this software is advanced in that the digital clothing is able to match the movement of the consumer, for example if they were to move their arms up (Bennett, 2012) the consumer would be able to see how well the clothing

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moves with their actions. Furthermore, another strength is that the software used can be translated into other languages (Bobila, 2015), which could be helpful for tourists using the new technology. Thus, the technological mirror can be seen to create a personalized customer experience, as the service is adapted to the customer (McKone,Haslehurt & Steingoltz, 2016). This is especially important as it has been found that Middle Easterners like to purchase of those who speak the same language as them (Boshers, 2013), so they may find the software desirable and thus more inclined to use and trust the new product. On the other hand, there are weaknesses like technological difficulties which would mean that the screen may freeze (Bennett, 2012), which can be frustrating if the consumer is limited on time. But, this may mean that staff would need to be accessible to help maintain the technology. Moreover, clothing is a tangible product so the consumer may not receive the same effect of assurance from virtually trying on the actual garment, therefore the consumer may also want to try on the garment physically. Furthermore, the concept has opportunities to make it a stronger piece of equipment. For example, many consumers like to share their clothing choices with peers to receive opinions


(Clothing Retailing-UK-October, 2014), therefore the mirror could incorporate social media sharing options, such as Snapchat so the users can send images to their friends. This is particularly of importance as in a survey, 79% of Middle Eastern consumers have been found to rank their friends as influencers when making luxury purchases (Schutte, 2014), therefore the consumer would have a more informed decision about purchasing the garment or not. So, this makes the changing room experience more interactive as the customer is able to connect with others. In addition, the changing room can enable shoppers to complete their purchase on screen before they leave the fitting room, removing the time needed to queue at the till (Bobila, 2015), thus enabling a more efficient shopping experience. However, there may be threats to this concept such as privacy of data, as with all technology it can be accessed by any party. This would mean that Harrods would need to make sure that they address the user’s data on the software to ensure that it is secure, as customers want to know how their data like contact details, are being used (Retailers beware privacy issues with in store technology engagement, 2015). Also, regards to the social aspect feature of the technological virtual mirror, some users may not want to connect their outfits to their social media account and so an opportunity to choose no should be given (Retailers beware privacy issues with in store technology engagement, 2015).

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Harrods have developed a reputatio

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on for innovative window displays

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urthermore, the AIDA model can be used to explain how to attract the consumer through persuasive communication.

To begin with, Harrods must bring attention of the new concept to the Middle Eastern target consumer. As previously mentioned, this should be in the run up towards the holy month of Ramadan, as consumers are preparing for the celebration of Eid. As the concept is in store, promotional activity must be implemented, for example through visual merchandising of shop windows, that would showcase the new virtual reality changing room.

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The next step is to create interest (Lamb, Hair & McDaniel, 2011). For example, the shop window could be interactive through displaying a QR code, so shoppers can scan the code on the existing Harrods Application and a video would appear on their phone to showcase how the technological mirror works. This is key as Harrods have developed a reputation for


innovative window displays, in that many customers are attracted to the store because of this (Fernie, Fernie & Moore, 2015). Moreover, window displays can be seen to be of high importance in marketing communications, as studies have found that the positive impact of a window display can serve as the primary cause to why a customer chooses to enter a shop for the first time (Fernie et al, 2015). So visual merchandising plays a key part in the effective promotions of the changing room. In addition, the floor to which the technology can be found on should also be detailed on the window or video, so the consumer knows where to go. Next, desire is the penultimate factor (Clemente, 2002) in which the aim is to bring consumers to the concept and potentially to re-visit it. So, benefits of the technology should be addressed in the shop window video such as exclusively picked styling ideas and various colour choices for the clothing, which would save time. Furthermore, the action factor is through motivating the consumers to try the concept (Lamb et al, 2011). This could take place on the shop floor where the clothing is, therefore the consumer could be informed and directed to the virtual changing room. Also, the fact that the virtual changing room would be the first for this upmarket department store, this increases the exclusivity of the experience for the consumer, so they may be more willing to try it for this status. This is especially important, as Middle Easterners have been shown to have a need for recognition. For example, 74% of consumers claim it is important to stand out (Schutte, 2014) and so they can do so through partaking in new luxury technology. 21


REFERENCES

Aly, R. (2016). The new modesty: a new age of fashion is dawning. Retrieved from http://www.stylist. co.uk/fashion/the-new-modesty-a-new-age-of-muslim-fashion-is-dawning Bennett, C., Cameron, C., & Deutsch, A. (1999). Harrods, Knightsbridge: Behind the scenes. Bennett, M. (2012). John Lewis’ virtual dressing room technology in action. Retrieved from http://www. v3.co.uk/v3-uk/blog-post/2170834/john-lewis-virtual-dressing-technology-action Bobila, M. (2015). Polo Ralph Lauren Debuts Interactive Fitting Rooms At Fifth Avenue Flagship. Retrieved from http://fashionista.com/2015/11/oak-labs-fitting-room Boshers, J. (2013). The Middle East Arab Consumer Profile [Blog post]. Retrieved from http://istizada. com/blog/the-middle-east-arab-consumer-profile/ Burdea, G., & Coiffet, P. (2003). Virtual Reality Technology. Campbell, K. (2016). Why Western Designers Are Embracing the Hijab. Retrieved from https://www. theatlantic.com/entertainment/archive/2016/01/dolce-gabbana-high-fashion/423171/ Chauhan, B. (2017). Virtual changing room. Retrieved from https://www.surveymonkey.com/analyze/ b18pQ_2F5jzML1BoQKEGE9JWSupAKgREDKxcRasmgIT_2FEiTuPkSq7JBUfLNUKCuntK Clemente, M. (2002). The Marketing Glossary: Key Terms, Concepts and Applications. D.McKone, R. Haslehurt and M.Steingoltz. (2016). Virtual and Augmented Reality Will Reshape Retail. Retrieved from https://hbr.org/2016/09/virtual-and-augmented-reality-will-reshape-retail Felstead, S. (2014). Middle East visitors are UK’s top spending tourists. Retrieved from https://www. ft.com/content/e93d5c8a-1416-11e4-9acb-00144feabdc0 Fernie, J., Fernie, S., & Moore,C. (2015). Principles of Retailing. Hah, A., & Shekhtman, A. (2016). 4 Reasons Why Fashion Brands Are Adopting Virtual Reality. Retrieved from http://www.huffingtonpost.ca/awane-jones/virtual-reality-fashion_b_10069340.html Hui, S. (2014). Wealthy Middle Easterners Are Spending Obscene Amount of Money In London On The Eve of Ramadan. Retrieved from http://www.businessinsider.com/wealthy-middle-eastern-are-spendingobscene-amounts-of-money-in-london-on-the-eve-of-ramadan-2014-6?IR=T Kane, F. (2013). Harrods proving irresistible to Arabs. Retrieved from http://www.thenational.ae/business/industry-insights/retail/harrods-proving-irresistible-to-arabs Lamb, C., Hair, F., & McDaniel, C. (2011). Essentials of Marketing. Levy, O. (2015). Tap Into the Growing Luxury Market By Understanding the Buyers. Retrieved from https://www.entrepreneur.com/article/247441 Mintel. (2014). Clothing Retailing-UK-October. Retrieved from http://academic.mintel.com/display/679590/ Pratt, R. (2015). London Calling in Pre-Ramadan Rush. Retrieved from https://www.businessoffashion. com/articles/intelligence/london-calling-in-pre-ramadan-rush Rogers, C. (2014). The Drapers Interview: Michael Wards, Harrods. Retrieved from https://www.drapersonline.com/people/the-drapers-interview/the-drapers-interview-michael-ward-harrods/5063600.article Saxena, R., & Hill, T. (2009). Management Marketing 4E. Schutte, S. (2014). Why luxury brands should focus on the Middle East. Retrieved from http://realbusiness. co.uk/exports/2014/05/28/why-luxury-brands-should-focus-on-the-middle-east/ Seth, C. (2015). The SWOT Analysis: A key tool for developing your business strategy. Retrieved from https://books.google.co.uk/books?id=-NRmCgAAQBAJ&printsec=frontcover#v=onepage&q&f=false 22


Walker Morris. (2015). Retailers beware privacy issues with in store technology engagement. Retrieved from https://www.walkermorris.co.uk/publications/retailers-beware-privacy-issues-with-in-store-technology-engagement/

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