Why Most Experience Stores Miss The Mark
Last Saturday I was in Paris and visited the Nespresso boutique on the Champs-Élysées. Nespresso started in 1989, but only recently started to grow strongly. (PS: interestingly, of total Nespresso sales, 48% comes in via the Web, 29% through boutiques and 23% by telephone.) Like many other flagship stores, the ‘raison d’être’ appears to be to lure visitors into the brand experience by choosing a top location and relying on impressive interior design . This got me thinking. Even though Nespresso nails these two elements - I like the way the walls are completely decorated with the coffee capsules – I still believe they miss some opportunities. And therefore my question would be: is money spent wisely?
In my view, successful experience stores:
- Leverage the brand’s heritage. One reason brands survive over time is because its heritage, or promise, is strong enough to attract a profitable group of consumers who are generally very loyal to the brand. Think Kiehl’s, Abercrombie & Fitch, or Ben & Jerry’s. Experience stores – especially those with a long history – should build on this and take people back in history to where the brand originates from, what the founders really envisioned, or how/why the product was invented. Nespresso unfortunately doesn’t do this while its brand image “a genuine experience that combines perfection and pleasure, simplicity and aestheticism” gives enough room to play. Even though the highest quality is a key trait, nowhere in the boutique we can really experience this. Where is the story told that the beans are of ‘highest quality based on sustainable practices’ or how ‘unmatched experts in roasting and grinding’ actually work? The closest we get is a section where we can smell the different flavors ourselves in front of a wall with difficult-to-read text with product promises.
- Collect additional consumer insights. Nespresso has 12 flavors of coffee, about 15 different machines, and just over two dozen of accessories, yet they managed to completely fill two floors with it. What if only a few square meters were dedicated to collecting new consumer insights in order to develop the Nespresso experience further? Maybe tasting sessions? Or observing how non-users try and make their first cappuccino themselves? Or letting people complete in-store questionnaires in return for a €6,00 free cup of coffee? It can be extremely useful to include these fans in your product development process.
- Share what’s coming in the near future. Might be tricky as you reveal ideas to your competition and loose the first-mover advantage. But, why is it that only the automotive industry – and not consumer electronics or sport goods – reveals concept models which sometimes don’t even make it to production? Managers of experience stores should try to share what new products are lined up to being launched soon, but also play the exclusiveness game by offering (variations of) products that cannot be bought anywhere else. This way you also keep the experience valuable to your brand fanatics.
In short: Flagship stores have way more potential than showing off the product portfolio through a prime location and excellent interior designs.


