Concept Stores: An Experience-oriented Retail Concept for Luxury Brands and their Customers

15 Pages Posted: 29 Mar 2024

See all articles by Paula Pingen

Paula Pingen

International School of Management

Jens Kai Perret

International School of Management

Audrey Mehn

International School of Management

Date Written: February 29, 2024

Abstract

Online retail is growing and provides consumers with permanent accessibility and transparency. Conversely, this means that industries such as retail must create new incentives to remain relevant to consumers. The industry has now recognized that a simple product sale in combination with a classic service offering is no longer sufficient. Experience oriented brand strategies are becoming increasingly important and are proving to be elementary, especially in luxury retail. Consequently, the emergence of new retail concepts can be observed. The Concept Store business model pursues the goal of combining luxury goods and experience management in the stationary sector. This raises the important questions: ‘What does the concept of a Concept Store look like?’ ‘What are the key features that identify the model?’ ‘And to what extent does this form of operation offer added value for luxury brands and their consumers?’ This paper identifies key factors that define the ‘Concept Store’ retail concept and describes the extent to which it is an experiential approach for luxury brands and their consumers. Based on a theoretical analysis and a qualitative as well as quantitative study, essential key elements of the novel form of operation are captured.

Furthermore, it is investigated to what extent Concept Stores represent an experience-oriented concept and how they create added value for luxury brands and consumers in this way. The aim of this research work is to advance the conceptual version of the manifestation of the concept store and to provide an enrichment for retail research.

Keywords: luxury, retail, experience, business model, concept store

Suggested Citation

Pingen, Paula and Perret, Jens Kai and Mehn, Audrey, Concept Stores: An Experience-oriented Retail Concept for Luxury Brands and their Customers (February 29, 2024). Available at SSRN: https://ssrn.com/abstract=4742972 or http://dx.doi.org/10.2139/ssrn.4742972

Paula Pingen

International School of Management ( email )

Otto-Hahn-Str. 19
Dortmund, 44227
Germany

Jens Kai Perret (Contact Author)

International School of Management ( email )

Otto-Hahn-Str. 19
Dortmund, 44227
Germany

Audrey Mehn

International School of Management ( email )

Otto-Hahn-Str. 19
Dortmund, 44227
Germany

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