The Timeless Classics

Work

A New Luxury In-store Retail Engagement for

Hong Kong Millennials

Feb 2017

Customer Engagement Innovation | Group Project

Innovative Product & Services Development

The Hong Kong Polytechnic University

Intro

In a nutshell

At luxury stores, it's not only about the goods, but more so the experience. This project, with its name "The Timeless Classics", aims at motivating Hong Kong local customers to re-visit the luxury stores by providing an in-store co-creation experience where artists would embellish their old handbags, giving them tailored new styles.

Challenges

Hong Kong millennials are more individualistic compared to past generations and place a higher value on personalized experiences than their past generations. Meanwhile, they are adept at online shopping. The rise of "experiential" luxury empowers service industries such as travel agencies and restaurants more than luxury goods stores.

Solutions

Every handbag carries its own story. "The Timeless Classics" breathes new life into used handbags. Customers will engage in the whole creation process - from brainstorming, style selection to the actual renovation. Artists demonstrations in-store not only provide a learning experience for customers on-site but also act as a real-time live show, which customers can record and share on social media platforms for marketing purposes. Unique items like badges or pins & patch sets designed by artists after the in-store event will be available on flagship stores and the official website with limited numbers.

25

47

50

% of Hong Kong's population

are Millennials

% of millennials' buying decisions

are influenced by social media

% of all luxury spending worldwide

will be on experiential luxury

( For visitors in mainland China, please click HERE )

Field Trip

To gain a first-hand knowledge of Hong Kong's luxury retail market, we went to several famous shopping sites, including traditional luxury shopping malls such as Harbour City, The Landmark, and stand-alone stores such as Gucci, Chanel, and Fendi. Below are some interesting findings.

Distant and cold salesperson

in empty stores

Pop-up stores serving

coffee & souvenirs

Customers with luggage

getting better service

Bored customers waiting for

relatives & friends

Research

Desk Research

After visiting the stores, we identified broad social, economic and technological changes in view of consumer engagement trends and proposed new product directions based on our discoveries.

Allow product customization

Increase value of exclusivity

Integrate with local culture

Hold social media-friendly events

Opt for second-hand products

User Interviews

We conducted interviews with more than ten Hong Kong residents aged between 20 to 35 and asked for their brand preferences and store experiences. The three main reasons for buying luxury products are quality, durability and social status. Here are some key findings.

Craftsmanship is well-appreciated
Feeling of premium is important for
a good in-store experience
No one likes being judged by what he or she wears
Peeking at price tags is embarrassing

Ideation

Eco-friendly

Service

Lifestyle

Experience

Social

Media

Exposure

Local

Arts &

Design

Unique &

Customized

Product

"IN-STORE, CO-CREATION EXPERIENCE TO MAKE NOSTALGIC OLD HANDBAGS UNIQUELY STYLISH."

Concept

Target Market

Age between 25-35
Hong Kong Residents
Monthly Income of 30,000HKD

Knowledge

of Luxury

Brands

Eco-friendly

Love

Shopping

& Travel

Phase I Marketing & PR Campaign

Event webpage
Build an "upcoming event" webpage where customers can sign up for future events
Lucky draw ticket
A portion of the customers will see their fees go to support charity
In-store events with artists
Main scene for the service to retain customers back to stores
Social media presence
Hashtag campaign & viral videos

Lucky draw

In-store events

Local artists

Phase II Upgraded Services

Personalization items designed by artists
Badges or pins & patch sets will be available on flagship stores and official website with limited numbers

Private and unique artist services
Customers can get one-on-one exclusive customized service

Scenario & Storyboard

The whole story was designed from the perspective of an old handbag. Through a trip to the luxury store, the bag goes through the whole embellishment process, giving the audience a glimpse of what "The Timeless Classic" experience is with a linear visual story.

Customer engagement scenario for Phase I

Opportunities

The extendable business model could be replicated throughout major cities around the world.

Each city may have its unique featured artists and collections that could finally lead to a worldwide collection. Frequently traveling customers may feel eager to collect all the special sets from different cities.

And the bag is no longer an accessory but a piece that represents the "continuity of existence".