Retail & Design Thinking

Retail—the final interface with the consumer—is one sector in which design thinking could enable a distinct competitive advantage.?Tim Brown defined design thinking as a discipline “that uses the designer’s sensibility and methods to match people’s needs with what is technologically feasible and what a viable business strategy can convert into customer value and market opportunity.” [1] In essence, design thinking is a combination of using a creative solution and channeling it into the right direction to obtain an optimum output.?Design thinking in retail can enable the company to enhance interactions with customers at each touchpoint, rendering a distinct competitive advantage to the firm in the long run.?

?Design thinking is a human-centered approach to innovation that integrates the needs of people, the possibilities of technology, and the requirements of business success.?Brands like Google, Braun , Procter & Gamble , ?AirBnB, Uber, Samsung , GE and Apple to name a few are considered as prime examples of brands that have imbibed design thinking in their business. How Indra Nooyi leveraged design thinking as a part of Pepsi’s strategy to regain market share is legendary.

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Way back in 1958, the government of India had asked for recommendations on a program of design training. This was to serve as an aid to small industries and stop the rapid deterioration in design and quality of consumer goods that had become the norm in the domestic market.?Designers Ray and Charles Eames were invited by the government to spend three months in the country and offer their suggestions. The result was “The India Report,” in which the Eames called for “a sober investigation into those values and qualities that Indians hold important to a good life, and for a scrutiny of the elements that make up a standard of living.”?Indian solutions needed to be found to Indian challenges. In fact, these solutions need not be restricted to the realm of product design; they can extend to business models as well.

India incorporates a plethora of cultural differences and lifestyles that demand products with a particularly Indian slant. ?Products and services that are suitable and successful in other countries may not be suitable and successful here. Indian brands that want to lead need to focus on the long term and understand the benefits that design thinking can bring to them. In India, design thinking is embedded in the Indian ethos, yet very few companies and retailers in particular display an understanding of and a need to imbibe the principles of design in their business.

In retail, design thinking can help create customer-centric solutions that enhance the shopping experience, increase loyalty, and drive growth.?A basic understanding of the consumer and the consumer’s requirements can enable a retailer to create the right products and services and the right environment in which to sell them. Understanding of the customers product/ service needs thus comes first.?The next important factor is process. This encompasses all the processes in the organization—from sourcing to the people processes and day-to-day store operations. The environment in which the products and services are sold then comes into play; it may extend from brick and mortar to the world of online and mobile commerce. Service as a design advantage comes next, and this involves loyalty programs, customer service, and finally experience design. This involves elements including how billing takes place as well as the post-purchase environment and to the elements of social media that may become touch-points following a sale. All these elements are interlinked and can offer a distinct competitive advantage if tapped in a synchronized manner.?

Many retailers like Nordstrom, Walmart, Ikea, H & M, Amazon, Decathlon, Nike have used design-led thinking to gain an advantage in the market. For example, retailers adopted virtual trail rooms before the outbreak of the pandemic – a need which arose from an understanding of the customer’s need to see how the product looked on them before they bought it. This could be jewelry, spectacles, clothes, accessories.

Design thinking is inherently a prototyping process, which means it is a process of trial and error.?It is also an integrative and collaborative process that enables the organization to change and adapt to a changing consumer marketplace. The starting point for thinking the design way is often – adopting the 5 why’s approach (Don Norman) to get to the root cause. The Indian retail market is at the cusp of a revolution, and retailers who want to lead in this market will have to learn to adapt to this change.?

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[1] Tim Brown, “Design Thinking,” Harvard Business Review, June 2008.