The Cultivation of Desire
The Cultivation of Desire Simply put, Prada sells the desire for fashionable goods as much or more than the goods themselves.For the SoHo launch, Prada brought in world-renowned Dutch architect Rem Koolhaas, and his Office for Metropolitan Architecture (OMA). The entire team consisted of 20 design firms, media companies and technology suppliers, about 500 people in all. Their mission: to conceive and build a 23,000-square-foot retail space that would do nothing less than reinvent fashion retailing. After all, the purchase of a $500 scarf or a $3,000 dress is not just about the material or design. Its about the experience. "Prada relies a lot on the value of its brand. And by having a store experience that is innovative and uses advanced technologies … it [positions] Prada as a leader in the whole retail experience category," says Bruce Eckfeldt, engagement manager for IconNicholson, a technology consulting company that handled the launch of the Epicenter store. Indeed, what separates retail winners and losers doesnt always come down to price, or quality, or efficiencies, says Retail Forwards Stanek. In Pradas case, it comes down to creating a lust for style. "Everyone can tell youre wearing Prada merchandise," Stanek says. "Therefore, youre saying something about yourself—youre saying that youre with it, that you know what the hot brands are. It also says, Ive got money, and for some people, thats very important." Prada, to date, has excelled at tapping into consumer desires. While it has been in existence since 1913, it has achieved most of its notoriety in the past 20 years, since scion Miuccia Prada—a leftist who studied politics and once trained as a mime—introduced a line of womens clothing and accessories that made fashionistas gasp, even in its homeland of Italy. Miuccias first big success—a small, metallic, triangular bag of black nylon—became a cult item in the 1980s. By 1998, there were more than 100 Prada stores. Sales nearly doubled from 1994 to 1996, and then nearly tripled from 1996 to 1998, reaching $798 million, as she cultivated markets from Europe to Asia to the United States. But a few years ago, profits began to wane as the global economy stalled. Eckfeldt and others close to Prada said the company was looking for a way to "reinvigorate the brand" and came up with an idea to build a store loaded with the latest, coolest retail technologies. "It was time to move to another space. To experiment," says Peter Dixon, the director of the retail practice at branding consultant Lippincott & Margulies. Ms. Prada and CEO Patrizio Bertelli (her husband) decline invitations to talk about how the experiment is going. In the meantime, much of the equipment in the laboratory is not working or not being used as intended. A dozen visits by Baseline to the Epicenter prototype store in SoHo over the past two months, along with interviews with suppliers, contractors and store staff members, finds:
This SoHo store is a lab for tapping into that desire. It is the first in a line of what Prada calls Epicenter—focal point—stores. What works will be deployed next in Beverly Hills, San Francisco and Tokyo.
- Dressing rooms are often out of commission. Even though they are what customers rave about most, the stores fitting rooms werent operating on three out of Baselines dozen visits in October and November. "Remember, its experimental," says Martin of IDEO, which designed the closets.
- Customers cant figure out how to operate them. Even when the dressing rooms are functioning, customers express frustration at figuring out how to work the in-stall screens—or even turn the glass wall opaque so that passersby on the retail floor cant see them.
- Screens are not working. The video displays that hang on clothes racks are not always connected to the stores database about its merchandise. On a recent visit, one monitor simply displayed the words: "PC Anywhere has had a compatibility problem with your system."
- Poorly chosen locations work against image-enhancing equipment such as "aura displays. The interactive atlas and the 23-panel "peep show" are located in front of a sewer line, which can be odorous. These systems, too, were sometimes down, during Baseline visits.
- Customers have yet to see chip-based loyalty cards. These cards are keys to creating add-on sales in future visits. Deployment is behind schedule.
- A complementary Web site has yet to be officially launched. If it were, shoppers would set up virtual closets of clothes they have bought or would like to buy. This, too, is behind schedule.
- The showcase elevator remains "temperamental." The machines single-piston design makes it hard to maintain. Tim Archambault, a project manager at OMA, says that the lift is out of service about twice a month and "theres always going to be something" since it is a prototype elevator.