By Ann-Marie Alcántara
Retailers such as Ralph Lauren Corp., Groupe Clarins SA and Gap
Inc. are experimenting with virtual stores, letting web users
navigate digital versions of their physical locations and try out
features such as one-on-one consultations.
The virtual stores are arriving during a tumultuous holiday
shopping season, with some countries in Europe under lockdowns
again and cases in the U.S. rising to new heights.
Coronavirus-induced retail upheaval is complicating some
experts' usual forecasting. The National Retail Federation delayed
its annual holiday forecast for the first time in decades,
releasing it in late November as opposed to its usual early October
reveal. But e-commerce sales are slated to increase 33% this year,
with consumers expected to spend $189 billion, according to a
report from Adobe Inc.
Charlotte Tilbury Beauty Ltd. on Nov. 4 rolled out a virtual
store, allowing the makeup-and-skincare retailer to evoke the
bricks-and-mortar experience for customers 24 hours a day, said
chairwoman and chief creative officer Charlotte Tilbury. Puig S.L.
bought a majority stake in the company in June.
"We all have to become a bit more digitally native in this
Covid-19 world," Ms. Tilbury said. "But it's exciting and it
doesn't have to be at the cost of one or the other."
Digital stores aren't new. Levi Strauss & Co., for example,
made some of its flagship locations into temporary virtual
experiences last year.
Some of those efforts, such as an online simulation of a store
introduced by Alibaba Holding Group Ltd. for China's Singles Day in
2016, required shoppers to wear a virtual-reality headset. And they
tended to be flashy, one-off moments for companies.
But the pandemic is prompting more companies to use technology
in new ways to connect with consumers, said Mikey Vu, partner at
Bain & Co., a consulting firm. And some retailers now
introducing such experiences say they will continue to operate, at
least for a few months.
Ralph Lauren's virtual store lets consumers browse an online
rendering of an actual store in Beverly Hills, re-created down to
the music that consumers would hear there. While Ralph Lauren's
stores in the U.S. remain open, the virtual edition is a way to
introduce new customers to the company's retail experience, said
David Lauren, chief innovation and branding officer at the
"When Covid-19 is done, we expect to see a very big increase of
traffic into our stores, higher than it's ever been and we're going
to stoke that fire with experiences like this," Mr. Lauren
The virtual Clarins store, which is accessible only in France
for now, illustrates the look planned for some of the company's new
shops in 2021. It also offers interactive activities such as a skin
Bustle Digital Group, a digital-media publisher, on Black Friday
will introduce a virtual bazaar with seven digital booths, each
dedicated to a brand such as Kohls Corp. and Gap.
The company has previously organized in-person events for the
event, but from now on plans to create a hybrid of digital and
in-person experiences, said Jason Wagenheim, chief revenue officer
and president of Bustle.
Gap's booth, featuring a mix of products for sale and a quiz for
visitors to take, was designed to mimic the experience of shopping
in a mall, said Mary Alderte, chief marketing officer at Gap.
Ralph Lauren and Charlotte Tilbury's experiences run on
technology from Obsess Inc., a software company that specializes in
creating virtual stores.
Retailers want their virtual stores to be more than gimmicks,
said Neha Singh, founder and chief executive of Obsess.
"For some brands, it's still an experiment, and they want to see
what happens with it and it's still a trial," Ms. Singh said. "But
a lot of brands have progressed much further and they're kind of
thinking around this virtual-stores-as-a-concept and how they
integrate it strategically into their plan."
Not every virtual store will succeed, said Mr. Vu, the Bain
executive. As more companies test the concept, they'll need to
better personalize the experience for visitors, make it easier to
discover products and make it a fun experience, he said.
"If more virtual retailers can hit more elements of that, that
is the possible path to success here," Mr. Vu said.
Write to Ann-Marie Alcántara at firstname.lastname@example.org
(END) Dow Jones Newswires
November 23, 2020 14:27 ET (19:27 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.