Retail speaks

Daniel Pink—A Whole New Mind

In his book A Whole New Mind, renowned author Daniel Pink says the Information Age, characterized by left-brain capabilities such as number crunching and computer-code creation, is giving way to the "Conceptual Age," characterized by right-brain capabilities, such as design, story, symphony, empathy, play and meaning. In his GlobalShop session (March 26, 8:30 a.m.-10 a.m.), Pink will discuss the dynamics of this ongoing shift and what the consequences are for retailers.

"It's no longer enough in this world of abundance, where consumers have a variety of choices, to offer something that is simply functional, that simply works," Pink tells DDI. "You have to combine left-brain attributes with right-brain attributes. Every retailer in some fashion is in the design business, even if they're selling garden tools or home improvement tools."

Case in point is Minneapolis-based Target Corp., which Pink says is "democratizing design." Target, Pink notes, is differentiating itself from its competition by having designer products, such as Michael Graves' toilet brushes and Isaac Mizrahi apparel, at discount prices.

The ability to narrate a story is another of the "six senses" that Pink says will become increasingly important in the Conceptual Age. "More and more sellers are using story as a point of differentiation in this crowded marketplace," Pink says. "Looking at retailer Whole Foods Market, you see that virtually every other product in Whole Foods has a backstory to it. Customers read about the farmer that grew the product or about the wine importers around Virginia who cultivated a certain bottle of wine."

During his session, Pink will also discuss other ways retailers can use this seminal shift of ages to their advantage.

Giorgio Borruso—Design trends

Giorgio Borruso, renowned architect and principal of Marina Del Rey, Calif.-based Giorgio Borruso Design will share his passion—retail design—with attendees during his GlobalShop session (March 26, 10:30 a.m.–noon).

Known for creating eye-catching, innovative spaces, Borruso has indeed turned the heads of fellow architecture and design professionals. His work includes such masterpieces as Fornarina, which features unique tortellini-shaped shoe fixtures; Miss Sixty with cocoon-like fitting rooms; Snaidero, in which an unraveling ribbon installation guides customers through the space; and the new sports-and-motion Fila prototype on Madison Avenue in New York.

Named DDI's Designer of the Year in the Portfolio 2005 (September issue), Borruso has a lot to say regarding his inspirations and influences that have shaped his exciting career. He mentions that some current global retail design trends are universal design, interface and fluidity of space simulating fluidity of nature.

"It seems to me that the biggest challenge in global retail design is to be able to create a visual language that allows you to use the space without mediators of any kind (such as 'instructions'), regardless of your language, culture or degree of sophistication," he says. "The concept of 'universal design' describes a designer's ability to communicate successfully and simultaneously at all levels and through many different inter-texts."

In terms of design "interface," Borruso explains, "As the world becomes a global economy, the way to communicate among people of different cultures is really about reaching them in a more intimate manner. When people are inside a space I have designed, I want them to just feel. I design the environment as an extension of the body, an organic interface that allows the intuitive fruition of the space. If you need to find the dressing rooms, I do not want you to have to ask."

Borruso often incorporates organic form in his design projects, which he will expound on in his session. "Since the beginning of time, mankind has chosen where to settle down and build dwellings within the fluid space of nature," he says. "To be true to our nature, we should not assign specific activities to specific containers. The body suffocates inside sealed, static environments, because human interactions and activities are highly complex. In the spaces I imagine, there is no limit to the number of ways we can move through space and time, and customize a unique individual experience."

Panel–China's retail revolution

Jay Valgora, design principal of New York-based WalkerGroup, will moderate a panel discussion (March 27, 8:30 a.m.–10 a.m.) on the emerging Asian marketplace. The panel features Paco Underhill, founder and managing director of Envirosell Inc., and Ira Kalish, director of Global Economics and Consumer Business for Deloitte Research.

Valgora will have panelists discuss the state of Chinese retail as well as the opportunities and challenges that exist across the Pacific. "While it is the fastest growing market, we (United States) aren't participating in it much," says Underhill. "Wal-Mart may go, but I don't see any major movement on the part of other merchant empires." He explains that the retail boom there can be attributed to its own national chains and local businesses. Further, the panel will discuss specific Chinese retail formats that are successful today.

"You are seeing an explosion in consumption, which is fueled by new money (in China)," Underhill suggests. "One of the issues that the retail world is responding to is that there are places across the globe where there are huge amounts of new money. That is prompting a kind of new retail growth that we don't see here in our old money existence." In the session, Underhill will help define the type of "new" retail that is driving significant sales in Asia. "The huge shopping mall is the place to go," he says. "Shopping malls in China are not just about shopping. They are temples of consumption, which is part of what's driving economic growth—the hunger to consume.

A question that has everyone rubbing their chins is Valgora's point: "Despite its massive spending power as a whole, per capita income in China is still one of the lowest in the world. At the same time, China's luxury retail market is experiencing tremendous growth. How do retailers respond to the unusually wide disparity in markets?"

Addressing the issue of catering to the diverse population in China, Underhill points out, "It is a sea of radically different places. We have to recognize China's country is geographically huge and diverse. While people may share a common written language, they speak a variety of different dialects. China sits on the horns of a very difficult dilemma, which is that parts of the country are booming and parts of the country are not."

Brent Green—What's in-store for boomers? From youthquake to agequake

Brent Green knows boomers. Head of Denver-based marketing consultancy Brent Green & Associates Inc. and author of Marketing to Leading-Edge Baby Boomers, Green will enlighten GlobalShop attendees in his session (March 27, 12:30 p.m.-2 p.m.) with the tools to capture this lucrative market segment.

Now between the ages of 42 and 60 years old, the 76-million-member baby boomer generation boasts an estimated $2 trillion in annual spending power and more than $750 billion in discretionary dollars. "As markets get older, they tend to be forgotten as businesses move on to younger, newer markets," Green explains. "We are at a time now where we really can't afford to do that, simply because one out of every three Americans will be over the age of 50 in the year 2010. That's unprecedented in the history of this country and Western countries in general."

In his session, Green will provide examples of how the values and perspectives of boomers have been captured and brought into store environments, and how these ideas can be related to a greater understanding of how boomer sensibilities have influenced the market. "The boomers are just one market, but oftentimes what is of value to the boomer market is shared by other generational markets," Green says. "Effective, well thought out and intelligent store design can make all the difference."

Much like the boomers caused such a stir in their younger years, the same generation will continue setting new precedents into their middle and upper ages. "Boomers will redefine what it means to grow old in America," Green says. "They're not going to stop experimenting and trying new things, and will have tremendous economic effect on the success of new businesses. More companies will identify products and services that will be of value to an aging group of boomers, and they will build a successful retail business around it."

For more information on Marketing To Leading-Edge Baby Boomers, 2nd Edition, see page 21 of this issue.