Best Buy's Damian Simplifies the Complex

James Damian is a self-described retail history buff. As vice president of visual merchandising and store design for Best Buy Co., he now finds himself making retail history. Never has technology been more central in consumers' lives, and never has the nature of the products been more difficult to merchandise. Damian's solution to the complex in-store marketing dilemma is simplicity.During his keynote address at The P-O-P Show/Chicago on June 27, Damian will explain how Best Buy simplifies complex technologies and messages so that consumers are able to see how technology products can directly impact their lives. His presentation, titled "Complexity Simplified: How to Communicate With Customers in the Digital Age," will provide attendees with insights into Best Buy's in-store philosophy and where the Eden Prairie, Minn.-based electronics retailer is headed.Over the past three years, Damian has worked to reduce visual clutter in Best Buy's in-store environment and simplify the shopping experience for consumers. In addition, he has worked with manufacturers to improve their product packaging and graphics to enhance their in-store presence.He is responsible for the design, development, merchandising and graphics in Best Buy stores. With more than 25 years of experience in visual merchandising, he most recently served as president of Damian Randd (Resources Advancing New Design Directions). His career began with the London-based architectural firm Howard Sant Partnerships in 1973. He has also held posts at Harvey Nichols, London; B. Altman, New York; RH Macy & Co., New York; and Hindsgaul Mannequins Worldwide, Copenhagen, New York, and Paris. He is a graduate of The Fashion Institute of Technology in New York with a degree in retail store design and exhibition design.P-O-P Times: What is Best Buy's current merchandising situation and attitude toward P-O-P?Damian: Our merchandising philosophy is to take our products out of the boxes and plug them in so that the consumer can get educated on the sophisticated technology that we're selling, and see how it can be adapted to their lives. Our mission statement is "Best Buy at the intersection of technology and life." What that means is that we are no longer the intermediary that we once were. We are now the "infomediary." As opposed to being product-centric, we're taking a consumer-centric approach to merchandising. That means we have to be a smart friend to our customers, filled with knowledgeable sales associates. We're also using our technology to inform, educate and entertain our customers, whether they are in-store or at home on the Internet.P-O-P Times: How does P-O-P fit into that equation?Damian: P-O-P is very, very important, just like every other component in the store. The overhead signage is our first message to our consumer. What that means is that the consumer, upon entering our store, must be able to see our entire portfolio and our key categories in three to five seconds. Our approach is to use distinctive photographic murals along with departmental signage to produce what we call our "aerial attack" that makes it easy for customers to see where they want to go. Then we carve out clear, uninterrupted runways that take them into the depths of the store.The next layer down is what we call "category signing," which is around balance height -- in the neighborhood of eight feet. That means that if I'm there to shop for a scanner, I will see the overhead lifestyle graphic for computers, and I will see the categories within computers.The next layer is the most important layer -- our "product signs." They convey features, benefits, promotions and special offers, price points and a complete solution message. We put those five things into our product signs so that if I'm comparing one scanner to another, I have my key bullets. That way, consumers are empowered on their own to determine what's right for them.The next step in information is interactivity -- custom ordering. Those elements are there so that consumers are empowered to get what they need. If they still require further assistance, that's where our smart, friendly sales associates come in.P-O-P Times: Where does manufacturer-supplied P-O-P fit into this?Damian: Manufacturers will have to work with us because our number one brand is Best Buy and the thing that makes us different from other retailers is that we keep it simple for the consumer. When I came here three years ago, we had visual clutter. We had every piece of collateral material that you could possibly imagine in our stores. We did extensive research with consumers about our environment, and they said "It's confusing. It's muddled. We block it out. The more information you throw in front of us, the less we read." We learned that simple is best. Less is more. That's a philosophy that I impress on my design teams.What we like to do with our manufacturers is to share this philosophy with them and work with them. We've incorporated this philosophy into a style guide. The ones that don't follow this will not participate in the program. We have seen a tremendous rally. Manufacturers want this kind of information.P-O-P Times: How has your relationship with your manufacturers changed since you have been at Best Buy?Damian: They've become our partners. Just take a look at the packaging. Our shelves used to be stacked with brown corrugated boxes. Now manufacturers are using tremendous graphics on their boxes. Part of that is in response to changes that we've made to the store. I have neutralized our environment so that it speaks more to our target consumers -- technology enthusiasts who want value and a good assortment. In our new Concept 5 Stores, which will be rolling out in the fall, the fixtures are now a powder-coated silver. The carpeting is charcoal gray. The flooring is trimmed in our corporate color, which is yellow. Once P-O-P and graphics are placed in there, they can stand out because there is no competition of other color palettes or P-O-P.P-O-P Times: What are your thoughts on corrugated shippers?Damian: I'm not saying that we won't receive shippers, but there has to be a standard holder on the bottom. We have a tremendous amount of foot traffic and people using shopping carts. Those shippers get battered. They degrade the brand. I will not allow that. Those corrugated stands have a life span of about two or three days in our environment. What good is that to the manufacturer?I'll work with a manufacturer so that a shipper can fit into a solid base. We will work with the manufacturers to come up with a Best Buy solution that is tailored for our store experience. To have the same shipper that is in a Wal-Mart or Target store or any other place does not give us any kind of distinction and it does not speak to the standards that we are trying to embody within this organization. I am open and willing to partner with manufacturers so that we can do something that is more compelling. In this new era, partnerships with manufacturers are critical.P-O-P Times: What can manufacturers bring to the table?Damian: An open mind and a willingness to get familiar with our standards and what we are all about, as opposed to making it easy for themselves by making a display and shipping it out to the world.P-O-P Times: What mistakes do you think manufacturers make and what opportunities are they missing in-store?Damian: They assume that it's one-size-fits-all. That's the primary mistake. They don't take the time to shop our stores. Manufacturers don't watch our stores and they don't know what happens in a Best Buy store during the course of a day. They don't ask for retail input from store managers. They don't take the time to interview a general manager and to ask him, "What works and what doesn't work? What's the average life of a corrugated shipper in a Best Buy store?" It's that lack of willingness to better understand who their real client is.P-O-P Times: Can you give me an example of a good relationship that you have with a manufacturer?Damian: Our relationships with Compaq and H-P (Hewlett-Packard) are great examples. This is truly a great example of them understanding us. We have wonderful relationships with both companies. We understand the power of their brands. We've built a beautiful business together, and I say "together" because they understand where we are going. We share that direction with them and they share their direction with us. That sharing of information is what is going to make success stories in the future. The companies that hoard their information will not survive. In the past, there has been this phobia that, "If I share my information, I'll relinquish my power." That is changing. P-O-P Times: How do you leverage the power of manufacturers' brands?Damian: If they have a story to tell, we might give them an endcap presentation where we pull it all together for the consumer so that they can test drive a particular product. When new technologies arrive, we give them endcap placement.P-O-P Times: Do you see differences in how technology products should be branded in-store?Damian: Our job is not to brand. We have a brand style that transcends the entire in-store environment. If you're asking me if I'm going to put up Sony or H-P marquees, the answer is no. The brand we are trying to sell is Best Buy. There will be some exceptions where we will brand an Intel endcap or an H-P endcap. We're not taking the brand identity away from the manufacturers, but we're not going to change our overhead environment. That is Best Buy territory.P-O-P Times: What trends do you see in product design right now?Damian: Technology is breaking out of its shell and starting to embrace translucent-colored plastics that show the actual guts of the product. Color is more important right now. As manufacturers look for ways to differentiate themselves and find ways to stand out on the shelf, that's going to be through package design. It's going to be through the design of the product and the use of color. Companies are now promoting the color of their products more so than the products themselves.P-O-P Times: How does that affect the merchandising of those products in-store?Damian: I think it helps it a lot. It's an enhancement and it's the reason that I had to neutralize our environment. If I didn't, I'd be fighting it.P-O-P Times: As technology products become more complicated, do you find that it becomes more difficult to merchandise them and communicate product benefits to the consumer?Damian: That truly is the challenge right now. For example, take broadband. Once customers have broadband, they can't imagine life without it, but prior to that there are questions: "How do I select it? How do I decide? Are there new technologies that are going to come out that are going to make it better in six months?" What Best Buy has to do is make it easy and simple. The only way that we can do that is to get broadband out of the box. It must get connected and it must get demonstrated so a consumer can push a button and see how it works. Once they see it, that's what sells them.P-O-P Times: Is it fair to say as technology evolves and becomes more complex that the merchandising is going to have to be more simplified?Damian: Yes, and it's going to have to be more demonstratable. You have to educate the consumer. I also believe that our dot-com presence will play into that in a big way. Say you're interested in finding out about home networking -- you could do research on Best Buy.com to find out what parts and pieces you need to make a home network. You could do all of that online, print it out and come into the store with a list of cables, software and parts that you need. Our sales are enhanced because we're brick and click. That has given us a more educated consumer.P-O-P Times: What advice would you have for marketers who want to introduce a new tech product to the marketplace?Damian: Come to our new technologies division. We have created a special division that is called Business Development and Strategic Alliances. We're very interested in partnering with new companies offering new technologies.P-O-P Times: If you know a new product is going to be released six months from now, when do you start planning the merchandising?Damian: We're always out in the field and there is always a dialogue going on. We know what manufacturers have in R&D. It comes from the building of relationships with our partners. It's an evolutionary process. So the answer is that it is ongoing.P-O-P Times: How can marketers convey a new technology as well as the benefits of their products clearly and concisely?Damian: The way that we are doing it today, every manufacturer has information about their product displayed. They are putting it on their boxes as well. A lot of the manufacturers are not just doing it graphically, they're providing all of the features and benefits written on the box. That becomes the first point of information.The second point is that our own copywriters put together a very, very specific product sign that focuses on the features and benefits of the product. Anything more than that is displayed with the product, which is usually placed out of the box so that the customer can play with it. If it needs to be connected to another device, we have our endcaps or in-line projection points that demonstrate the features of that product coupled with other products. Then there is our non-commissioned salesforce.P-O-P Times: Has the role of the sales associate changed over time?Damian: Absolutely. I can see tremendous differences from this year compared to last year. It is a constant evolution. You're never done with your training and development of people. It is something that is a part of our culture. Our vice chairman is committed to training our sales associates at the point-of-sale.Three years ago, we used to leave products in the box and on the shelf. If you look at that today, you have sales associates that are there when you need them and that can help you. They know about the product. They know what questions to ask the consumer. They are trained to be at the right place at the right time when the consumer needs them to be there.Five years ago, we were in the business of selling commodity products. Today, we're the launchpad for new technologies. We're first to market with many new digital products. That's a much more complex business.P-O-P Times: What kinds of consumer research do you do?Damian: We have an extensive in-house consumer research department. Within our strategic marketing group, we have market researchers who work category by category to better understand the consumer through focus groups, customer intercepts and shopping behaviors. We're always doing research. That direct conversation with consumers never ends.P-O-P Times: How do marketers get access to this information?Damian: We have a series of internal documents that come out on a monthly basis, category by category, with a complete overview of our customer profile. All of that is done month in and month out.P-O-P Times: As for the future, do you anticipate more or less manufacturer-supplied P-O-P in your stores?Damian: I really don't know. I think the customer will decide that. The customer's appetite will drive the types of products that are in our stores and the types of solutions that we provide. The challenge is how well we listen to them.P-O-P Times: Are you the final word on what goes into stores?Damian: There is no real final word. This is done through a lot of cross-functional activity. There are 42 different teams within Best Buy that need to touch something before it goes into stores. We are at the funnel. What we do in visual merchandising and store design combines all of the information based on the strategic intent of the business, married with Best Buy's vision and mission, married with our customer's profile. Then we get all of the people together who are going to make this successful -- everyone from our retail store force to our sales development force -- and solicit their input. Everyone needs to be involved to make a store come to life.P-O-P Times: The topic of your keynote address at The P-O-P Show/Chicago is "simplicity." What advice do you have for manufacturers to help them simplify their in-store messages?Damian: Don't speak in technology jargon. Speak to the general public. Keep a single-minded message and sell the benefit of your product. Don't bombard consumers with too much information.

Best Buy's Damian Simplifies the Complex

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