NEIGHBORHOOD STORE FORMAT & VISUAL MERCHANDISING ...14.139.111.26/jspui/bitstream/1/479/1/Neighborhood Store Format...i | P a g e Graduation Research Project NEIGHBORHOOD STORE FORMAT

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Graduation Research Project

NEIGHBORHOOD STORE FORMAT & VISUAL MERCHANDISING

ASSOCCIATED WITH IT

Submitted by

SHIVANI

IN PARTIAL FULFILLMENT OF THE POST GRADUATE DEGREE "MASTER OF

FASHION MANAGEMENT (MFM)"

Submitted to

Department of Fashion Management Studies (FMS)

National Institute of Fashion Technology (NIFT)

Sector-4, Kharghar, Navi Mumbai- 410210

Web: www.nift.ac.in

May, 2016

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Graduation Research Project

NEIGHBORHOOD STORE FORMAT & VISUAL MERCHANDISING

ASSOCCIATED WITH IT

Submitted by

SHIVANI

Under the Supervision of

Mrs. Sonali Saldhana

Assistant Professor

IN PARTIAL FULFILLMENT OF THE POST GRADUATE DEGREE "MASTER OF FASHION

MANAGEMENT (MFM)"

Submitted To

Department of Fashion Management Studies (FMS)

National Institute of Fashion Technology (NIFT)

Sector-4, Kharghar, Navi Mumbai- 410210

Web: www.nift.ac.in

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CERTIFICATE

This is to certify that Ms. SHIVANI of National Institute of Fashion Technology

(NIFT), Mumbai, has successfully completed her GRP work titled Neighborhood

Retail Concept & Visual Merchandising Associated With It in partial fulfillment of

requirement for the completion of 2 Years Post Graduate Programme "Master of

Fashion Management (MFM)" as prescribed by the Department of Fashion

Management Studies (FMS), National Institute of Fashion Technology.

This 'Graduation Research Project' report is the record of authentic work carried

out by him/her during the period from 7 January 2016 to 15 April 2016 under my

mentorship.

Signature

Name of the Faculty Mentor

Designation

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DECLERATION

I, hereby declare that this project entitled “NEIGHBORHOOD RETAIL

CONCEPT AND VISUALMERCHANDISING ASSOCIATED WITH IT” has

been written and submitted under the guidance of Prof, Sonali Saldanha and is my

original work.

I understand that detection of any copying is liable to be punished in any way that

deems fit.

Shivani

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ACKNOWLEDGEMENT

I am really grateful to all the people who supported me in executing out these

projects.

Mrs Sonali Saldhana, my college mentor who guided me throughout and gave me

valuable reviews and helped me out whenever I was stuck.

Then I want to thank my Industry Mentors Berit Linashcke who gave me

interesting projects, showed faith in my ideas and gave me liberty to experiment.

The project was carried out successfully with guidance of these people.

(SHIVANI)

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(External Jury Examination Proceedings)

NIFT: MUMBAI

Proceedings of the MFM GRP External Jury Examination of Mr./Ms.

_____________ held at am/pm on 20th May 2016 in NIFT,

Mumbai.

The GRP Internal Jury Examination of Ms. SHIVANI on her MFM GRP

report entitled “

“was conducted in < NIFT Mumbai> at am/pm on 20TH MAY 2016 .

The following members of the External Jury were present:

1. <Name, Designation & Address>

2. <Name, Designation & Address>

3. <Name, Designation & Address>

4. <Name, Designation & Address>

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RECOMMENDATION

The Research scholar Ms. SHIVANI presented the salient features of her

GRP work. This was followed by questions from the External Jury

members. The questions raised by the Jury Examiners were also put to

the scholar. The scholar answered the questions to the full satisfaction of

the jury members.

Based on the scholar’s research work, his/her presentation and also the

clarifications and answers by the scholar to the questions, the board

recommends that Ms. SHIVANI, be awarded the Master Degree in

"Master of Fashion Management (MFM)"

1. (Name of the Jury Member with Signature)

2. (Name of the Jury Member with Signature)

3. (Name of the Jury Member with Signature)

4. (Name of the Jury Member with Signature)

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TABLE OF CONTENTS

Serial

No.

Content

1. Company Profile

2. Project 1

3. Executive Summary

4. Introduction

5. Store Docket

6. Components of Store Docket

7. Fixture Docket

8. Primary research

9. 5 W’s of Fixture Docket

10. Format of Fixture Docket

11. Blue print of the Fixture Docket.

12. Efficiency

13. Functionality

14. Conclusion

17. Executive Summary

18. Literature Review

19. Visual Merchandising

20. About Originals

21. Originals Target Customers

22. Product Hierarchy

23. Retail Concepts in Originals

24. Atelier Retail Concept

25. Fixtures- Atelier/ Studio Concept

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26. Execution Examples

27. Neighborhood Retail Format

28. Journey of Formation

29. Excelling Factors

30. Fixtures of NBHD

31. Execution Examples

32. Future of NBHD Retail Format.

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COMPANY PROFILE

Adidas is a German multinational corporation that designs and manufactures

sports shoes, clothing and accessories headquartered in Herzogenaurach, Bavaria.

It is the largest sportswear manufacturer in Europe and the second biggest in the

world. It is the holding company for the Adidas Group, which consists of the

Reebok sportswear company, Taylor Made-Adidas golf company (including

Ashworth), 9.1% of FC Bayern Munich and Runtastic, an Austrian fitness company.

Adidas revenue for 2012 was listed at €14.88 billion.

During the mid to late 1990s, Adidas divided the brand into three main groups

with each a separate focus:

Adidas Performance was designed to maintain their devotion to the

athlete;

Adidas Originals was designed to focus on the brand's earlier designs which

remained a popular life-style icon; and

Style Essentials, which dealt with the fashion market; the main group within

this being Y-3 (which is a collaboration between Adidas and renowned

Japanese fashion designer Yohji Yamamoto - the Y representing Yamamoto

and the 3 representing the three stripes of Adidas).

"Adidas is all in" is the current global marketing strategy slogan for Adidas. The

slogan aims to tie all brands and labels together, presenting a unified image to

consumers interested in sports, fashion, street, music and pop culture. There

appears to be connection with the phrase "all-in" meaning "exhausted" in some

English speaking nations.

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Everything they do is rooted in sports. At the very heart of 'creating the new' are

the brands. With 'Creating the New', we will get closer to customers than ever

before. To achieve that, their plan is based on three strategic choices:

Speed: We will become the first true fast sports company: Fast in satisfying

consumer needs, fast in internal decision-making.

Cities: We have identified six key cities in which we want to grow share of

mind, share of market and share of trend: New York, Los Angeles, Shanghai,

Tokyo, London and Paris.

Open source: We will be the first sports company that invites athletes,

consumers and partners to be part of our brands

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The adidas company owns three major brands Adidas Performance, Originals and

Reebok. The further categorization of Adidas is shown in the table above. All the

three sub brands targets different customers and have different brand attributes.

Sports Performance Style Originals

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PROJECT 1

Fixture Docket

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EXECUTIVE SUMMARY

OBJECTIVE

The objective behind this project is to provide an online platform to the

stores with same retail concept to share fixture data which directly

affects the visual display of merchandise.

PURPOSE

The purpose of this project is to make possible an online platform

which provides helps to merchandising team, visual merchandising

team, on floor staff and store managers. To keep a count of all the

fixtures those are there in a store and are used for the display of

articles. To provide further help in planning of merchandise assortment,

stock replenishment, and visual merchandising executions.

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SCOPE

The scope of this project is to come up with a tool which can be

updated online from various across. This tool connects various teams

such as visual merchandising, merchandising, on floor staff. It plans to

simplify the procedure of stock replenishment, visual merchandise, and

visual composition of store and merchandise assortment. The tool is

made out very simple so that the on floor staff can update it easily and

comprehend it without difficulties.

METHODOLOGY

All the data has been traced from the various visual merchandising

manuals of Originals.

Also, primary research about whether a tool like fixture docket will be

helpful was done. Visual merchandising team, merchandising team and

as well as on floor staff of CP Originals, Pop Up store in Hauz Khas

Village were questioned.

The making of Fixture Docket was with the help of VM Manuals and

Visual Merchandising team.

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INTRODUCTION

Store docket is something which is a quintessential tool of visual merchandising

for any brand. But the idea behind making a tool known as Fixture Docket for

Adidas originals is to ease the procedure of merchandise assortment,

merchandise planning, stock replenishment and visual display of the store.

Fixture docket which is an online tool has the updated fixture count of each

originals store depending on the retail concept. Online updates help VM team,

merchandising team and on floor staff to perform their tasks easily and save time.

It also connects the store with other stores and with corporate office. Makes

exchanging data and information easy.

This Fixture docket is made from the VM manuals of particular retail concept.

There are three concepts in Originals

ATELIER

NEIGBORHOOD

STUDIO

SIS

Four types of manual as per the concepts will be there to simplify and make

recording of data easy and accessible.

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Store Docket

Store docket is a collective data file which includes all the details related to VM

elements such as windows, mannequin clusters, focal point display podiums, VM

stationary, props inventory and details, mannequin inventory, promotion

collateral stationary, pillar and common areas such as negative areas, cash

counter walls, trial room doors etc.

Store Docket can be of various types. In basic terms it is an accumulation of all the

fixtures, elements of visual display, VM tools, communication tools used in any

store. A brand can have single store docket which has the entire element or

different store docket for different elements.

Store docket is a great tool which can encapsulate wide information in numbers

which makes it easier to plan the store at store level as well as at regional and

global level.

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Components of Store Docket

A store docket will have all the elements which are used in store from hard

fixtures to movable fixtures, communication tools, mannequins, hangers, hang

rails etc.

When any store is planned, the first thing required is a blueprint, in retail

terminologies known as store layout. A store layout usually has the description of

what section has to be where and what percentage of each section has to be

there in whole. Below is the store layout of Zirakpur Factory Outlet.

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Since this is a Mega Factory Outlet retail format it has both brands Adidas

Performance and Originals. A store layout clearly demarcates each section and its

whereabouts as well as the percentage it should have in the store.

Above store has the ratio of 50:50 that of performance to originals.

The left side is for originals.

Below is store layout for the originals in the store.

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According to the respective store layout further planning are done. Fixtures that

are to be put in a store depend on the store layout and the retail concept. As per

the size of the store and what section makes how much of the store a fixture list is

drawn out. Below is how a typical fixture count sheet looks like.

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This kind of list is made for every store which is coming up. The project planning

team with visual merchandising team decides the place of each fixture in the

store.

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Fixture Docket

This fixture docket is intended to provide all key information required for the

preparation, planning and implementation of merchandise assortment, stock

replenishment and visual merchandise display respectively.

Implemented correctly, the store docket format will help in keeping account of

fixture count of any store with any concept. Different fixture docket will be for

different concept, keeping in mind the diversification the concepts have. The

format can be rotated PAN India whilst being flexible enough to accommodate

local requirements.

The manual includes guidelines about the retail concept it is been made for,

intended to achieve a common approach to store planning, procurement and

implementation across India.

All renderings, graphics and images within this manual are meant for illustration

only and not as accurate representations.

The idea behind this concept is that fixtures used in any retail concepts play a very

important part. Fixtures are used as per global guidelines. But since each store’s

size and concept vary, the fixtures used in a particular store differ too from all the

other stores. In that sense, every store is unique in terms of the store plan, store

display and visual merchandising. And a great deal about store display and visual

merchandising depends on the fixtures used in the store.

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PRIMARY RESEARCH

Visual merchandising team, merchandising team and on floor staff were

interviewed. The interview was conducted to understand following points-

Is it feasible?

Is it can be made an online tool?

Will teams use it?

Will it be of any help?

Will it make any tasks easier?

1. Do you think this type of tool will be of any help?

Ans- “I guess if executed as per the plan, it can be a help in knowing what

fixtures are there and that way we can experiment and change visual display of

store. Moreover, store people will have clear guidelines and changes can be

made on a consistent basis. Merchandising team can use that too.”- Krunal

Kapadia, PAN India Visual Merchandiser for Originals.

Ans- “Yes, at least we will know what capacity per article to display because as

per the stock we keep on changing that.” Priyanka, Store Manager- CP N Block.

Ans- “I think it is good. Here in Chandigarh we don’t have frequent visits from

VM team. We’ll have a track of what is going on in other EBO’s and thus, it will

help us in maintain consistency. Rahul, Store Manager- Chandigarh.

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Ans- “I don’t think so. Though there is no tool as such but yes we can keep a

track of merchandise”- Kartikeya, Merchandising team.

2. Do you think it will be possible to execute some tool like

this?

Ans- “I think just an excel sheet will be possible.”- Krunal Kapadia

Ans- “Yes, on DAB it is possible to make such a thing.” - Rahul Chauhan, Project

Planning Team.

Ans - “Sounds Interesting. A format is required. Updating on DAB can be

done.” Fridaus, VM Team.

Ans- “If constant updating is done, then can work quite well.” Justin Varghese,

Project Planning Team.

3. Will it be easy to use and can it be updated regularly?

Ans- Yes, if we are being told how to use it can be updated regularly. You just

have to put data when capacity changes, that won’t be tough. Priyanka, Store

Manager, CP Originals.

Ans- In fact it will be easier. Updating on an excel sheet will be easier. Also the

feature that we can have contact with other stores as well is good. It will help

in retaining customers who can’t find their sizes.” Dipean, Store Manager, DLF

Place Saket.

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CONCLUSION

As per the answers received, this tool, if executed properly, can be of great

help. Also, it is efficient and doable. The three teams who were interviewed

were positive about it. The conclusion came out to be-

Yes, it is feasible.

Yes, an online tool can be made easily and that would be better.

Visual merchandising team and store team found it useful.

Merchandising team is onboard too.

Yes, all the three teams agreed that it is of use.

Yes, if something like this is done will be of great help and at various

levels.

So, with the positive reviews and opinions from people this project was taken

forward and a format has been prepared. This format is just for graphic

representation. Also the images used in the projects have the rights issued by

Adidas. The pictures and all the data used are just for the project and are not and

should not be used for any other purpose at all.

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What?

The whole idea behind fixture docket is to ease the whole process of merchandise

assortment, visual planning, and stock replenishment. Merchandising team, visual

merchandising team and on floor staff, store managers can use the fixture docket.

Fixture docket is made to encapsulate only those fixtures which hold any sort of

merchandise whether shoes, apparels, accessory. The whole idea is to keep track

of only those fixtures which are required for the merchandise display.

Why?

In every store visual merchandising, stock keeps on changing. Almost every month

there are, if not apparent, subtle changes in every store as per the campaign or

any launch. Moreover, stock keeps on changing everyday because of sales.

Also, experimenting with fixtures can give a new look and feel to the store. And

with every new launch or stock replenishment and at times of sales changes in

fixture are made.

There are always guidelines to follow up when any store is being set up. How

much quantity and capacity of merchandise has to be displayed is all mentioned

in a visual merchandising manual. The guidelines may vary as per retail concept

but it is quintessential to follow these guidelines so as to maintain the consistency

in each store

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All the stores have to follow these guidelines which are mentioned in the visual

merchandise manual of that concept. Above are the guidelines from Atelier

Concept of Originals. All the stores with atelier concept are supposed to follow

these guidelines for merchandise display.

With the help of these manuals a tool has to be made which keeps a sync of all

the merchandise with respect to fixture.

So, an excel sheet can be made which can be put on DAB, every store will have

access to DAB as well as visual merchandising department and merchandising

department can check on the DAB things such as what is the visual display of

store , what fixture has what capacity and quantity and what quantity and

capacity is displayed. Merchandising team can check how much stock is still on

display and how much in stock room and thus can decide the stock

replenishment. Also the store staff will have clear idea of how much and what to

display on a particular fixture to maintain consistency. That is the whole idea

behind designing a fixture docket.

The excel sheet for the fixture docket would look like this. First column is of the

fixture with the picture. Again, fixtures which have any sort of merchandise

display are put in this fixture. Next column is of total quantity of fixture. In this

the fixtures that have been used on the floor are recorded. Next column would

be of whether the fixture used is for display of men’s merchandise or women’s.

Next column would be of minimum, ideal and maximum capacity that the fixture

can hold at various points of time. Next column would be of article displayed.

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HOW?

Each store with the atelier concept will update the following information. It can

be done at the start and end of each month. And whenever any campaign is being

launched and at the sale time as these are the times when most merchandise is

changed.

EFFICENCY

Through this tool an easy planning of merchandise assortment can be done. As

soon as quantity of a particular article is lacking it will be updated on DAB and

merchandising team can plan the stock replenishment.

Moreover, the most distinguishable feature of this tool will be that all the stores

are inter connected and hence, if any customer is asking for an article which is not

available in that store an easy check can be done on DAB and any store which has

the availability can be connected and the article can be delivered. This way every

stock exchange among store is in records and chances of misplacement of the

stock diminishes.

Also, it becomes easy to know that how many fixtures are used in a store at a

particular time and what is the maximum capacity of a store. And as per that the

new stock can be delivered. An exact idea of how many articles and how much

capacity of merchandise can the store put on display makes sure that only the

stock required is delivered otherwise an excess of stock goes lying in the stock

room.

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FUNCTIONALITY

A tool that connects all the stores of same retail concept. Every store

updates the fixture that are there in the store and how much stock

(quantity * capacity) is displayed per fixture. Now that way following things

are known-

How much is stock is on display.

Stores being in contact with other stores can always get stock delivered for

customers.

Since the stock on display is always updated, merchandising team can know

what stock is required and what size.

The visual merchandising team can decide what style and theme to put on

display as per the capacity of various fixtures.

Also, the visual composition can be changed knowing the fixture of the

stores.

The Visual Merchandising team has started rotating the excel sheet to the store

to start with. If it goes per plan it might get converted into online tool.

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PROJECT 2

NEIGHBORHOOD RETAIL

CONCEPT AND VISUAL

MERCHANDISING ASSOCIATED

WITH IT

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EXECUTIVE SUMMARY

Background

The India Retail Industry is the largest among all the industries, accounting for

over ten per cent of the country’s GDP and around eight per cent of the

employment. The Retail Industry in India has come forth as one of the most

dynamic and fast paced industries with several players entering the market.

India is now the main attraction for many global brands and Adidas being one of

them. These brands know the potential India has and hence, are tapping, almost,

every area which is related to customers. Visual Merchandising is one of those

areas and not to mention, it is the most important one.

This project entails with one of the most exciting retail concept- NEIGHBORHOOD

RETAIL CONCEPT, which is coming in India for the very first time. Also, the visual

merchandising associated with it which is followed by expectation from and scope

of this retail format and ultimately, a comparison with Global Neighborhood

store.

PURPOSE

The purpose of this project is to understand the experience different retail

formats bring for customers. Does it help in escalating sales numbers? How

different the impact of these retail formats is in India and Global? What role visual

merchandising plays and how it differs from region to region?

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SCOPE

The scope of the study is to find out the importance of coming up with new retail

formats constantly for the customers who are always in search of new

experiences. Further, to find out does the same retail concept can have same

impact in India and Global and if not, what are the differences.

Also, the importance visual merchandising plays in providing customers with such

experience and the impact it can have in sales figures. How visual merchandising

in Neighborhood store differs from other retail formats of Adidas.

METHODOLOGY

To conduct the project and to figure out the visual merchandising a thorough

study of the global manual for neighborhood retail concept was done. All the

images are retracted from the manuals. All renderings, graphics and images

within this project are meant for illustration only and not as accurate

representations.

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LITREATURE REVIEW

The retail format is the store ‘package’ that the retailer presents to the shopper.

Store Formats are formats based on the physical store where the vendor interacts

with the customer. It is the mix of variables that retailers use to develop their

business strategies and constitute the mix as assortment, price, transactional

convenience and experience.

The practice of retailing is continuously evolving. New formats are born and old

ones die. Incessant pressure to improve efficiency and effectiveness and a

continual effort to serve the customer better forces the retailers to find new ways

of doing business. This has also resulted in a shortened lifecycle for retail formats.

For example, Originals Pop Up Store which came in Hauz Khas Village, Delhi and

will be in service for around 3-4 months. The idea behind this, coming up with a

store with a short span, was to publicize and bring to notice the brand Originals

which in India is not performing that well despite its overwhelming success

globally. The Pop Up concept only puts on display the latest collection and is

doing great business. Hence, bringing up new concepts which are able to create

excitement in customers is very significant to attract customers who are striving

for new experiences.

Hence, this project tries to understand the uniqueness of Neighborhood concept,

how it is different from other retail formats.

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Visual Merchandising

Visual merchandising is a retail strategy that maximizes the aesthetics of a

product with the intent to increase sales. Visual merchandising can also play a

role in the look, feel and culture of a brand. Done well, it can create awareness

while simultaneously increasing brand loyalty. Most importantly, it can draw

customers in and close the sale – all based on the aesthetic quality of your retail

display.

Visual merchandising is also coined as the Art of Retailing. Related o the world of

apparel and fashion visual merchandising has great impact and utmost relation in

retailing.

There is a saying -“Give the customer a reason to buy”. Visual merchandising has

increased tremendously in importance with the growth of self-service retailing.

The purpose of such visual merchandising is to attract, engage, and motivate the

customer towards making a purchase.

The project also the visual merchandising associated with the Neighborhood

Retail Format. Visual merchandising that plays important role in any store is done

differently in this concept. Many inspirations, new ideas are put together and

then the visuals to be used, fixtures and in store communications and all the other

elements associated with visual merchandising have been decided upon.

Together with retail format and visual merchandising the project also tries to

understand what the expectations from neighborhood concept are. Also, a

comparison of this store is done with global stores of Adidas that already have

this concept to understand how formats and concepts have to be adapted as per

the customers.

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About Adidas originals

Adidas Originals is a line of casual sports clothing, the heritage line of German

sportswear brand Adidas specializing in shoes, shirts, coats, bags, sunglasses and

other accessories.

The clothing and the accessories are under the categories Superstar, Adicolor

among others, they are designed under the Adidas Company. There was also a

collection named "Originals Denim" by Diesel a concept being trialed in New York

and Berlin.

The brand uses the famous Trefoil logo, which was originally used on all adidas

products until the company decided in 1997 that the trefoil logo would thereafter

only be used on heritage products, and was replaced on other products by the

Performance logo, which has previously been used on the "Equipment" range of

products since 1991. Adidas Originals covers sports fashion styles with strong

references to the decades between the 1940s to 1980s. The brand has a

distinctively retro old school feel.

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The Originals Target Consumer

• The target consumer spectrum for the Adidas group is composed of 6 consumer

groups.

• Originals focus on three of them.

The Streetwear hound being the main target

Trend cadettes

Sporty teens

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Streetwear Hounds

• Individualist: seeks differentiation, appreciates craft, substance, story.

• Interested in sports as well as fashion.

• Narrow set of inspiration sources, including brands, magazines, travel.

• Selective with respect to items, brands, and stores when shopping.

The Sport Teens

• Active youngster: Confident, outgoing, positive, curious.

• Wide interests: Music, sports, fashion, tech, etc.

• Heavy media consumption: Open to guidance.

• Enjoy shopping: Big brands, larger stores, many items.

The Trend Cadettes

• Grounded young adult: Realistic, social & emotional, likes discovery.

• Music matters: Indie, local pop, hip hop. Low interest in sports.

• Use media for inspiration, but puts looks together.

• Love shopping: Social fun event, mixed stores, brands less relevant.

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Street wear Hound Sporty Teen Trend Cadettes

Style

Requirements

Simple and Plan

Sporty

Elegant

Branded

Mix and Match

Street Style

Urban and Cool

Branded

Mix and Match

Comfortable

Urban and Cool

Branded

The brand originals’ main target is the street wear hound. The brand original is

mostly about street clothing. Clothing which is of street style yet elegant in its

own ways. But that doesn’t leave behind the comfort factor.

Designers like Rita Ora, Jeremy Scott have designed for originals. The collection is

inspired with sportsmen like Stan Smith and with musicians like Pharell. Quirky

yet extra ordinary stylish clothes are the essence of originals.

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PRODUCT HIREARCHY

One of the aims of the Neighborhood concept is to highlight the brands more

fashion/street wear focused products. The product segmentations that need to

be the most focal at all times are highlighted below:

The visual merchandising of the Originals store is done keeping in account the

product strategy and the target customers. The visual merchandising is such that

the statement products are displayed in a manner that they are the first thing

visible when the customer enters any store.

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Retail Concepts in Originals

There are three main concepts in Originals. Depending on the size and location of

the store a retail concept is being chosen.

Atelier

Neighborhood

Studio

A store which is in a B grade city and is small in size will most probably adopt

studio concept. Stores in A grade cities will have atelier retail concept. SIS’s

concept will also depend on the location the store is. Neighborhood retail concept

is exclusively for model stores only.

In total there are 15 EBO’s across India and 23 SIS’s.

The concept atelier is the modified version of retail concept studio. All the stores

of A grade cities which have studio retail concept are in process of being

renovated to Atelier retail concept.

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Atelier Retail Concept

The soul of the trefoil dates back to the brand’s founder, Adi Dassler. His

innovative spirit took on a life of its own as different pockets of culture and

people from around the world started wearing his products outside the courts,

pitches and stadiums. From east coast hip hop, to west coast skate, to graffiti

artists, to graphic art, to reggae, to rock, they saw the genuine passion stitched

into every product and brought their own personalities to create new expressions

of individual style —the true meaning of originality.

Store fixtures have strong references to the adidas heritage but have been

creatively re-engineered to create a modern interpretation of Adi Dassler’s

craftsmen workshop, with white distressed wood and merchandise presented in a

series of boxes and alcoves. The adidas Originals store is an open, welcoming

atelier. An one-of-a-kind destination where customers interact with the brand in a

truly creative way.

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Product Hierarchy for concepts

This product hierarchy remains same irrespective of the retail concept. In every

store the emphasis is on to display statement products. Then moving down as per

the pyramid above. First emphasis is on statement products and the last is on

core sports products and then coming to kids.

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Fixtures for Studio and Atelier Retail Concept

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ATELIER/ STUDIO EXECUTION EXAMPLES

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As from the pictures above the conclusion can be made that both atelier and

studio concept don’t give a premium feel to the store. The merchandise displayed

is more for a premium brand and the fixtures used are beautifully designed but

not much fixtures are there for the display of the statement products. And now if

you compare it with Neighborhood retail concept, the concept only is designed to

give a premium feel to the whole store. The below is the visual merchandising

tools of neighborhood concept to make a comparison.

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ABOUT NEIGHBORHOOD RETAIL CONCEPT

By plugging into the pulse of trendsetters, artists and “streetwear hounds,” global

sporting goods giant adidas (Herzogenaurach, Germany) has found an imaginative

channel for balancing brand consistency with localized store design. Dubbed

Neighborhood, or “NBHD,” the new retail concept rolled out in its flagships in

Berlin; Shanghai; Seoul, South Korea; and London enhances the cachet of adidas’

Originals collections by uniquely translating the spirit of each city into regional

store adaptations that connect with these communities’ creative youth cultures.

Adidas met the challenge of conveying brand consistency by establishing

principles that are store-to-store hallmarks, interpreted individually for each

locale. The classic Originals trefoil symbol has been reimagined and married with

a 3-D map of each store’s host city; limited edition ZX Flux shoes have been

designed to coincide with each launch; and “manifestos,” voicing the vibe of each

neighborhood’s streets, influenced the visual artists who translated these

conversations into craft.

Oliver Fehl, adidas’ senior director of retail concepts, explains that the brand

relied on its local teams’ deep-rooted knowledge of resident artists and

influencers to give each store its buzz and differentiation. “The artists we are

partnering with fully understand the legacy of styles and associated facets of the

culture,” Fehl says. “In addition, each store supports local creatives through

exhibitions that showcase their work.”

Key to NBHD’s credibility, the architectural style of each venue should have an

authentic, urban vibe. “The Neighborhood concept provides us with the depth to

use the streets as our inspiration and utilize the raw elements of each building to

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its maximum potential,” Fehl says. “Our aim was for every space to feel real,

honest, unfiltered and experienced.”

JOURNEY OF DISCOVERY

Each location offered unexpected elements hidden behind plastered walls: old

brickwork that was cleanable, closed windows that could be opened and existing

flooring that could be renewed. At the Shanghai flagship, the heritage façade of

the former Jia Hotel was retained to better integrate the store into the historic

architecture of the building. Shanghai brick clads the footwear display walls, while

seating is an interpretation of a northern-Chinese kang – a brick platform warmed

by a fire below. The Seoul location, comprising exposed concrete, masonry and

randomly placed windows, tells the story of past generations housed in the space.

In London, the layers were stripped back to original brick, plaster finishes and

steel beams that add to its gritty authenticity.

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WHAT MAKES IT STAND OUT?

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FIXTURES- NEIGHBORHOOD RETAIL CONCEPT

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EXECUTION EXAMPLES

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The store, as can be seen, gives a very premium feel. Also the inspiration- street

can be seen in all over the store. The walls are not polished. They are grey in color

and with a rugged texture. There are graffiti in store to give a street feel and the

3D Map of the location the store is in.

Future of Neighborhood Retail Concept in India

Recently, in April one store with neighborhood retail concept was opened in VR

Mall, Bangalore. That is the first model store in India.

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FUTURE OF NBHD RETAIL FORMAT

The adidas team in India plans to open 3 model stores in India by 2018. The

research is undergoing for the location. The decision will be made on the

performance of this first neighborhood retail in VR Mall.

But according to the prediction the model store is expected to generate sales

which will be 15% more than the other retail concepts (a comparison of first

month of sales).

Also, the statistics says that to increase the sales of Originals it is very important

to come up with model stores. In India, people don’t know about Originals and

thus to create awareness it becomes quintessential to open stores which draw

footfalls.

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Bibliography

Neighborhood VM Manual 2.0

OCS VM Manual

Atelier VM Manual

DAB – Digital Access Box

www.adidas.co.in

http://retaildesignblog.net/2015/02/11/adidas-nbhd-concept-store-berlin-

germany/