Re-vamping, re-building, re-branding

A new approach to improving customer experience is infiltrating telecom operators’ strategies. This year, some companies have started to look at new ways to trumpet their latest technological releases by either re-vamping old stores or opening new branches under a fresh and updated concept to make the way customers experience last generation technology more interactive. Business Review talked to the operators about design, investments and future plans for these outlets.

Otilia Haraga

What drives the creation of a new store concept? It depends whom you ask. If you ask Hewlett Packard, for instance, which quite recently opened a concept store in Bucharest which is also its first in Europe, representatives will tell you that “fashion and design are key arguments for HP consumers” so a space in tune with these requirements was needed.

“We wanted a non-conformist space, different from what exists at the moment on the Romanian IT market. The store will surprise clients as it expresses the personality of the brand, through the complexity of the portfolio, innovative design and accessibility of products,” Tiberiu Dobre, personal systems group manager at HP, tells BR. “It is currently a unique space for IT products in Romania, a space where innovating branding elements are being used, on-screen graphics, touch-and-try presentations, and interactive demonstrations.”

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In order to offer this customer experience, HP opted for British style, to ensure display solutions in line with the latest world trends and flawless execution. The outlet was designed by Briggs Hillier and construction was done by HJ Martin.

The concept store is divided into several areas dedicated to notebooks, netbooks, printers and accessories. In the center of the store are two “experience tables” with the newest products ready for testing.

The location was chosen by HP in partnership with retailer Altex. It covers a surface of approximately 100 sqm. The company did not disclose the value of the investment but said it was “considerable, given the design and the location of the store.” In the first year since its launch, HP estimates the shop will post sales of RON 2.5 million.

This project will definitely continue but not in the near future. Next, the company will open concept stores in European countries such as Spain, the Czech Republic, Croatia and Serbia.

Telecom operator UPC decided to open a new type of concept store out of its desire to make its interaction with clients proactive. “This type of store was born after a thorough analysis of the habits of our subscribers who interacted with the representatives of our work points once every two months on average, particularly to pay their bills,” Iulia Florea, director of customer relations & retail sales at UPC Romania, tells BR. This new approach towards customer relations is a natural continuation of the changes UPC started making two years ago, with the target being a customer-centric approach. The change started within the organization and then continued at external level, resulting in a series of measures meant to increase customer satisfaction and loyalty, says Florea. “The new UPC store concept reflects a different approach towards customer relations, transforming the traditionally reactive cashier-client relation into a pleasant experience,” she explains.

Visitors can test UPC products such as DVR, HD and WiFi in the demo area. They can look up their own information using touch screens, which is a first step in the implementation of self-care services. Thanks to the technical time management system, customers will spend less time waiting in the store and their experience will be much improved, says Florea.

The concept behind UPC Romania’s new network of stores was created by Grapefruit and Arcsett. Starting from the UPC brand’s vision that the technologically complex and captivating world should be accessible to all, Grapefruit identified the types of interactions and functional areas, defined the circulation flux and created the branding components of the new concept. Arcsett created the architectural concept, the retail design and also supplied project management and implementation services for the pilot store.

UPC’s strategy for the new concept of stores involves two main elements. In big cities, the company will entirely change its shops. In other cities that are also important, it will carry out an up-lift, which means that significant changes will be made to the current design. Modernization will take place in a large number of cities, especially where there are digital television services. This process will be accompanied by the modernization and refurbishment of the entire network of UPC Customer Relation centers.

“In certain cities, we are talking about existing locations that we want to showcase better, and in other cities we are looking for new locations,” says Florea.

UPC launched the first store under the new design on January 27 in Bucharest, on Mihai Bravu Street. The company injected approximately EUR 200,000 into the new concept at the 130-sqm location.

Three more were then opened in Bucharest, and one each in Ploiesti, Bacau, Galati and Cluj. The shops were opened mainly in street locations on a surface of 100 sqm. Over the next year, the concept will be rolled out to other big cities, Timisoara being on the list. For the refurbishment of the other stores, investments in each location will not be as high, as the concept already exists. Therefore, depending on the location and surface, investments will be around EUR 70,000 on average per location.

Meanwhile, Romtelecom chose to apply a new concept to some of its stores is because needed to reposition itself. “Romtelecom launched a new concept of store this spring, based on Deutsche Telekom standards, which should reflect Romtelecom’s positioning as an entertainer on the Romanian market, offering presentation solutions based on the newest technologies,” say company representatives. Even though the new concept was a Deutsche Telekom model, it was adapted locally with the support of a firm of architects.

What these stores offer as an added value compared to the typical Romtelecom store is a multimedia section where the firm’s products and services are presented to individuals and companies.

Romtelecom now has four such stores trading, two in Bucharest, one in Constanta and the other in Braila. On average, an outlet is around 80 sqm. Each required an investment of several tens of thousands of EUR. The operator has also opened three kiosks in AFI Cotroceni and Baneasa Shopping City in Bucharest and in Polus Mall in Cluj.

“These stores have more functionalities than traditional branches, depending on the profile of the clients in the area where they are opened. They are fully equipped and the difference is that they cover inclusively the multimedia area. The design is the same, but the surface can differ where the stores also include this multimedia area,” say Romtelecom representatives.

The outlets include a consultancy and a demo section, where Dolce TV services, IPTV, fixed and mobile internet can be tested. In the consultancy area, customers can receive personalized information about to Romtelecom services and bills. “Depending on our development strategy, we are considering opening a significant number of stores in this new format over the coming years,” say company representatives.

Elsewhere, GSM retailer Cosmos Mobile also sees growth in this area. “Expansion of the concept store network is an important part of our expansion agenda for 2010. We believe that being close to our customers through a tailored product range and services is fundamental for our business success,” says Michalis Kontos, general manager of Cosmos Mobile.

Since 2009, the firm has built a network of four concept stores in Romania, three in Bucharest and the most recently opened inside Gold Plaza, in Baia Mare. In the capital, Cosmos Mobile opened two concept stores in 2010 alone. The Bucharest outlets are located in shopping malls Sun Plaza, Plaza Romania and AFI Palace Cotroceni. “Over the last two years, we were able to benefit from more flexible rents from commercial centers and mall operators, which was a natural and positive business opportunity for our company,” says Kontos.

The firm’s average estimated investment in opening a concept store is around EUR 50,000. Depending on the location, the retail area of a Cosmos Mobile concept store is on average 40 sqm.

“The concept stores developed by Cosmos Mobile are mainly designed to offer an enriched and exclusive product range, one-on-one client service and orientation, multifunction, dynamism and harmonizing diversity in order to function as a brand builder and sustainer of Cosmos Mobile’s telecom retail objectives. The concept stores’ objective is also to bring a very large range of products such as phone accessories and gadgets,” says Kontos.