Inspiring Innovation: An Interview with Jens Bauerle and Mary Rose Gearon, Global Brand Vision

By Vicki Matranga, Design Programs Coordinator

Learn how to develop and launch the right products for the right customer—with the right methods! Be sure to attend some of the free executive-level educational sessions at the Innovation Theater. These programs will give you a new perspective as you walk the Show and will inspire, inform and improve your business.

The four days of the 2015 International Home + Housewares Show will be packed with events and educational sessions. To help you plan your valuable time at the Show, we preview the 21 presentations that will take place in the Innovation Theater in the Lakeside Center. Don’t miss the chance to meet the speakers in person and for the opportunity to ask questions relevant to your work. All programs are audio-recorded and will be available on www.housewares.org after the Show.

From Department Store to Multi-Specialty Retailer—Transformation of Falabella’s South

American Home Business

Sunday, March 8 2:30—3:20 p.m.

Innovation Theater, Lakeside Center, Room E350

Today we are speaking with Jens Bauerle of Boston-based Global Brand Vision, a consultancy that offers varied services to home goods retailers. Jens and Mary Rose Gearon co-founded the firm after more than 20 years of working for Crate + Barrel in the areas of strategy, business development, product developing global sourcing. They each speak and write fluently in five languages, including Mandarin, have lived in many countries and have quick access to buying around the globe for any home product category. They both serve on IHA’s gia Awards jury and have served on IHA’s Gourmet Retailer Advisory Council.

Jens, what is the most exciting or rewarding part of your work?

I enjoy working together with our team and our clients in resolving problems in assortment strategy, sourcing, store design and visual merchandising, be it for a new home concept, a shop-in-shop idea or the remake of an existing business. Each assignment is like a journey that we undertake with our clients and each project has its own challenges.

In recent years, what has changed most in your business? How has your company met these challenges in the way you do your work?

A technological revolution has taken place which has put the consumer/shopper into a much more participatory position, forcing retailers to rethink their business models. The entire shopping experience journey has changed, and understanding the customer’s expectations is key to delivering the experiences shoppers seek.

Also, the aftermath of the financial crisis has had a sobering effect on consumer spending. It is harder than ever to get access to the shopper’s purse, partly because shoppers have become more cautious about how and where they spend their money.

Retailers have responded to this new reluctance in consumer spending by offering a glut of discounting and other promotional incentives. Omni-channel retailers must do a myriad of things to survive in this environment: they need to shrink their store portfolio, reduce the square footage of stores and adapt business processes to effectively meet customer expectations in an omni-channel world. Consumer analytics have become the key to understanding where and how to capture the consumer’s attention, and how to stay relevant.

Outside the U.S., fast-growing economies like the BRIC countries (ed: Brazil, Russia, India and China) have also seen a considerable slowdown of economic activity. Whereas growth in years past was mostly limited by the speed in which new stores could be opened, growth now often depends on creating a better shopping experience. In the intense competitive environment, retailers need to focus on making clear to the consumer what distinguishes them from other retailers. Improving the in-store shopping experience with more private label product, better visual merchandising and an emphasis on creating brand awareness are as important as enhancing the online shopping experience, even at a time when transactional activity is still lower than in the U.S.

Finally, home retail has become multi-national. From Wayfair to Williams-Sonoma, Crate and Barrel and Bloomingdale, online, specialty and department store retailers have taken significant steps towards internationalization.

For us as retail consultants, this is obviously a very exciting time, as we can bring substantial value to our retail clients and assist them to successfully navigate the challenges. Our clients benefit from our exposure to peer clients, our experience, and our hands-on attitude. In fact, we differentiate ourselves from other consultants as we actively participate in our client’s transformation processes. Our project management skills, the experience of our consultant teams and our own commitment to update our teams with the latest and newest information are to the benefit of our clients. Our experience in international retail expansion is probably second to none.

Why did you choose to speak at the International Home + Housewares Show?

We thought that many retailers visiting the Show could be interested in the topics raised in our case study. What we present is real, not theoretical, it represents a practical example of a retail business transformation—something that I think will be exciting for the audience.

Tell us what you will be speaking about and how this topic is important for Show audiences.

Falabella is one of the largest retailers in South America and struggled with a changing retail environment. We were asked to assist them in the transformation of their home business, from their assortment strategy and sourcing, to their store design, visual merchandising and branding. The income discrepancies in South America in and between cities created an additional layer of challenge. We designed concepts for flagship stores and second-tier stores. Finally, by working across three nations (Chile, Peru, Colombia), we also proved that home retail can very successfully operate across different markets with tweaks and adaptations. All in all, I believe that there is sufficient material for thought to all audiences, and we hope the presentation will be followed by a lively discussion.

This is the first time you are presenting at the Theater. What are you looking forward to most from speaking here?

I hope that the presentation will give our audience insights that are relevant to their own businesses. Most everyone is nowadays so caught up with the day-to-day running of their jobs, that there is often little time to step back and think about the areas that are not working well and places that are not getting the necessary focus and attention. We hope that we provide in our presentation some ideas and thoughts how and when an outside source can be useful. Some of our team will be there during and after the presentation to answer questions participants may have.

What do you see as consumer’s biggest concerns regarding housewares products?

At a time of retail retrenchment, customers often find less choice and variety in the brick-and-mortar world, as many retailers seek the “safe” choices. As a result, even more consumer research is directed to the jungle of online browsing. Consumers seek assurance by looking for product offerings from retailers they can trust and who speak with an authoritative voice. The product offering needs to be meaningful, trustworthy, performing and functional. Innovation, be it in materials or technology or design, and product performance are very important. Also, consumers expect that retailers stand behind their product, offer fair value and offer great service.

What are some of today’s trends or issues that new product development professionals and/or retailers face in the housewares market?

There is an overabundance of product offering in any one category. Consequently, there needs to be a more rigorous questioning of the benefits/design/function/innovative quality of new products. If the product is not unique, special and with intrinsic added value, shoppers will not feel compelled to buy it.

The consolidation of the retail and manufacturing landscape means that the abundance of innovation finds less and less access to the consumer through traditional retail channels. Fortunately the rise of Grommet, Etsy and other online platforms offer designers and manufacturers a direct connection to the consumer, thus increasing even further the competitive field.

Thank you, Jens, for this insightful preview of your presentation. It’s sure to be valuable for retailers, exhibitors and varied industry professionals at our Show. We look forward to hearing and seeing what you and Mary Rose will show us on Sunday, March 8 at 2:30 p.m. in the Innovation Theater, Lakeside Center, E350.