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Ales Kernjak Head of Global Store Concept Puma

Ales Kernjak Head of Global Store Concept Puma

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www.innovate1st.com<br />

Interview with <strong>Ales</strong> <strong>Kernjak</strong><br />

<strong>Head</strong> <strong>of</strong> <strong>Global</strong> <strong>Store</strong> <strong>Concept</strong><br />

<strong>Puma</strong> SE<br />

<strong>Ales</strong> joined PUMA in 2010 as <strong>Head</strong> <strong>of</strong> <strong>Global</strong> <strong>Store</strong> <strong>Concept</strong>. In this<br />

role, he developed and launched the new PUMA Retail 2.0 concept,<br />

which focuses to elevate the sportlifestyle brand into a unique, joyful,<br />

and sustainable retail shopping experience for consumers in retail and<br />

wholesale environments.<br />

His pr<strong>of</strong>ession in the fashion industry has spanned more than 18 years,<br />

including a prominent position at Timberland, running the <strong>Global</strong> Visual<br />

Communications Department. His passion for retail lays in <strong>Store</strong><br />

Design and In-store communication, in particular story-telling and<br />

consumer engagement principles. During his tenure at Timberland he<br />

received many worldwide recognitions and awards for <strong>Store</strong> design, Instore<br />

Marketing, and Sustainability activities.<br />

Interview conducted by Doug Berger, managing director, INNOVATE doug@innovate1st.com<br />

Doug: <strong>Ales</strong>, one <strong>of</strong> your aims for the redesigned store concept was to deliver a strong<br />

emotional message and experience. What you were looking to accomplish?<br />

<strong>Ales</strong>: We looked at what we want to convey to the consumer in terms <strong>of</strong> a particular<br />

shopping experience and 360 0 environment. From a retail point <strong>of</strong> view, we aimed<br />

for a clear positioning <strong>of</strong> how PUMA presents sports and lifestyle. We are aiming to<br />

“bring more joy into sports” compared to our competitors that are high performance<br />

driven. Our message is delivered through real people and their sportlifestyle rather<br />

than icons. We are telling one story and delivering one consistent message.<br />

For me it is all about the emotion. Maya Angelou, the novelist says, “Emotion is the<br />

key, because people will forget what you say. People will forget what you did, but<br />

people will never forget how we made them feel.” In today’s retail world, the<br />

consumer has overwhelming buying opportunities, multiplied in the online world.<br />

So this emotional experience from the retail store is most important. Under the<br />

umbrella <strong>of</strong> joy we developed a couple <strong>of</strong> emotional points, like celebration. We<br />

celebrate in our products; we celebrate in our marketing campaigns. We talk about<br />

passion, because passion is one <strong>of</strong> the values that everyone possesses for the<br />

sportlifestyle he or she loves.<br />

Conversations<br />

On the Cutting Edge<br />

Social is a point around joy. For PUMA, retail means a social environment, a place<br />

to relax and explore. We have introduced our ‘Dylans’ which are iconic pumas in<br />

the store. People are taking photos next to the Dylans and sharing them on their<br />

social network. Another point is desirability. A retail environment can create<br />

desirability to come back and discover the store a next time. The store can create<br />

© Copyright 2012 INNOVATE LLC. Publisher <strong>of</strong> The Innovators electronic magazine www.innovate1st.com<br />

June 2012


the environment to showcase the hotness <strong>of</strong> products and the desirability <strong>of</strong> the<br />

brand.<br />

Doug: Looking at pictures <strong>of</strong> your new retail environment, I can see that you set out to<br />

create a varied visual experience.<br />

<strong>Ales</strong>: You need to be different, which sometimes involves taking risks. In particular, you<br />

have to be unexpected. We included different surfaces, features and spaces within<br />

the store. We split the store<br />

into several focus areas. We<br />

have a clear navigation <strong>of</strong> what<br />

we are <strong>of</strong>fering the consumer in<br />

which area <strong>of</strong> the store. The<br />

most important thing we have<br />

done is taken the footwear and<br />

brought it from the walls into<br />

the middle <strong>of</strong> the store.<br />

Footwear is the heritage <strong>of</strong> the<br />

PUMA brand, which means it<br />

belongs in the core <strong>of</strong> the store. We call it, ‘the CAT walk’ like the cat in our logo.<br />

You enter the store and you get engaged right from the entrance with the footwear<br />

running down the middle <strong>of</strong> the store. This drives you backwards into the<br />

sportlifestyle area <strong>of</strong> the store. We created a clear sports area in the back <strong>of</strong> the<br />

store, which we hadn’t done before and we can see the uplift <strong>of</strong> sales into each <strong>of</strong><br />

these individual areas.<br />

Doug: You are also using bright colors as a consumer trigger for the emotion <strong>of</strong> joy. What<br />

else went into the design principles <strong>of</strong> the store, through which you were looking to<br />

connect the consumer with the emotion <strong>of</strong> joy?<br />

<strong>Ales</strong>: The second thing about the store format is our emphasis<br />

on the color red to convey the sense <strong>of</strong> joy. We have<br />

introduced the PUMA Un-Smart phone. They are red and<br />

very old style, and when you pick one up you get fun<br />

messages. Some <strong>of</strong> the messages are PUMA facts, and<br />

some <strong>of</strong> the messages have nothing to do with the brand.<br />

They are just fun messages out <strong>of</strong> nowhere.<br />

We created an interactive space on the walls …. a red box with a door. When you<br />

open the door you have different visual sequences. For<br />

example, you open the door and you see a hamster in a<br />

hamster wheel. You close the door, open the door again and<br />

you see another sequence, like a guy or a girl in the fitting<br />

room. It is not brand-related; it is just a fun thing, which is<br />

unexpected from a retailer. We call them the PUMA<br />

Peepshow. Each time you open the door you get an<br />

unexpected image or animation. We have red iPads with videos highlighting the joy<br />

in sports. The result is a clever, fun, and engaging shopping environment.<br />

The third element is the way that we introduce local influence, such as the iconic<br />

red telephone booth in London. Typical for Amsterdam Old Town are houses with a<br />

mirror on their windows so that you can look out and see down the street or see<br />

your door. Moving from one house to another is so different in Amsterdam than<br />

anywhere else in the world because buildings are so narrow and staircases so steep,<br />

you have to move furniture out <strong>of</strong> windows using winches. We incorporated these<br />

elements into the store.<br />

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Local Influence: London Amsterdam<br />

We want the consumer to be connected. “That’s the London PUMA store. It<br />

belongs to this city and it can’t be placed into another city.” That is why we are<br />

cooperating with local artists for developing more and more creative pieces.<br />

We have done about 25 pilot stores all over the world. We have taken learnings,<br />

landed something that works for the regions, and are now rolling it out on a global<br />

basis. In retail store design you get immediate response on how it works from the<br />

consumer and from staff. We had 360 0 feedback <strong>of</strong> this concept in a very short<br />

time period.<br />

Doug: I want to highlight the notion <strong>of</strong> designing the store so that the consumer wants to<br />

explore the store and the brand. The store becomes a destination. In the United<br />

States, Apple is one <strong>of</strong> the few retail stores seen as a destination.<br />

<strong>Ales</strong>: Regarding PUMA, we are talking about elevating some stores to premium locations<br />

on the street. We have a fantastic project right now in Osaka, Japan, where we<br />

have the ro<strong>of</strong>top completely open and where we can play football, mini-golf, or<br />

other kinds <strong>of</strong> activities.<br />

Doug: You are also incorporating sustainability into the retail store design.<br />

<strong>Ales</strong>: We already talk a lot about sustainability within the industry. We wanted to get into<br />

how we elevate our sustainability down into a retail environment. We got involved<br />

in the LEAD certification process. This is focused mainly on buildings and is not<br />

specific for retail environments. We set out to be better. We then started working<br />

together with the Fraunh<strong>of</strong>er Institute for Building Physics, a well-known<br />

independent organization to develop a distinctive <strong>Puma</strong> system. This means that<br />

we needed to start building tools to support a strategy. We started working on a<br />

different set <strong>of</strong> environmental indicators, not just carbon footprint. We have<br />

environmental indicators like the LCA (large circle assessment) <strong>of</strong> the materials<br />

used. We have social indicators on level <strong>of</strong> comfort or accessibility. Our target is<br />

25 percent reduction <strong>of</strong> the environmental footprint by 2015.<br />

Doug: How do you see technology evolving the in-store consumer experience?<br />

<strong>Ales</strong>: My future point <strong>of</strong> view is that multi-sensorial enhancement will be implemented in<br />

store environments, but in selective ways that are valuable for the consumer and<br />

the brand. If we talk about digital, augmented reality it is really a question <strong>of</strong> how<br />

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we begin to implement. Where is the value and how can we implement this in a<br />

way that it is related to the brand and the brand message?<br />

The store isn’t just a destination for buying what you had in mind. We are aiming<br />

to place the consumer is in a very different mentality. We need to sell. We need to<br />

make money. It is just a question <strong>of</strong> how you create the environment to display the<br />

product and engage the consumer. We are seeing increases in store traffic, time<br />

spent in store, and uplift <strong>of</strong> sales.<br />

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