Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.
Issue link: https://westernrealestatebusiness.epubxp.com/i/873170
70 • September 2017 • Western Real Estate Business www.REBusinessOnline.com TECH GETS TOUCHABLE An innovative new concept is taking the West's retail world by storm, providing unique opportunities for consumers and tech-forward products to get to know each other. By Nellie Day T he internet can put a plethora of products at all price points in front of consumers. The only problem? It can often be a case of buy- er beware if you're purchasing one-of- a-kind products from niche websites or manufacturers. You don't often have the opportunity to touch and en- gage with the physical product until it arrives on your doorstep. On the flipside, brick and mortar stores provide a curated selection of products that are oftentimes not as cutting edge as what's available on- line. One company is trying to change all this, however. Or rather, to marry the benefits of ecommerce with the benefits of brick and mortar. The re- sult was B8ta, a software-powered re- tail showroom that is the best of both worlds. B8ta's showroom provides an in- teractive, hands-on experience to consumers and early tech adopters who are interested in out-of-the-box consumer hardware and technology products. The company was started in 2015 with the goal being to remove the frustrations commonly experi- enced by new companies and early adopters who must contend with the traditional retail environment. B8ta developed a unique and proprietary software stack to give companies full, real-time control over their brand to create the best possible experience for consumers to meet the needs of the quickly evolving technology industry. The San Francisco-headquartered company did this by opening its flag- ship showroom in Palo Alto, followed quickly by three more spaces in Seattle, Santa Monica, Calif., and Austin, Tex- as, with a fourth showroom opening soon in San Francisco. WREB recently sat down with Phillip Raub, B8ta's co- founder and Chief Marketing Officer, and Alison Carr, retail design director for Gensler, which designed the Se- attle and Santa Monica stores, to dis- cuss the resultant offspring from the ecommerce/bricks-and-mortar union, and how it may signal a new trend in retail as we know it. WREB: What brought about the cre- ation of the B8ta stores? What was the strategy behind targeting California first? Raub: The creation of B8ta originated in part from the frustration that mak- ers didn't have a platform or market- place to launch new products in an authentic and cost-efficient manner. The early feedback from both makers and consumers was extremely posi- tive, so we felt compelled to expand into new markets in Santa Monica and San Francisco. We started in California, as we are a San Francisco-based company and the founding team met while at Nest, which is based in Palo Alto. We ul- timately chose Palo Alto due to its proximity to hardware companies, in- vestors in hardware companies, and, more broadly, a diverse group of hard- ware enthusiasts and early adopters. WREB: Why is it important for for- ward-thinking, tech-savvy compa- nies like B8ta to open locations in tech hubs like Seattle and Silicon Beach? Carr: Bringing tech-savvy companies to open locations make the technology approachable to the everyday person or general consumer. It's important to be inclusive and evoke an inviting ex- perience in tech hubs where it's easy for one to feel intimidated. The Seattle and Santa Monica stores are in high-traffic areas. The brand appeals to various age groups. Santa Monica attracts families with the ded- icated space to kid's products. Being in these tech hubs also brings tech- enthusiastic sales associates, which is important. WREB: How have stores like B8ta im- pacted the perception and physical spaces of retail real estate as we know it? How have they impacted the ecom- merce space? Raub: Despite the apocalyptic story that physical retail is dying, there are still big opportunities in the brick-and- mortar space. Retailers simply need to find more unique ways to monetize the physical space. E-commerce will benefit from the changing dynamics of physical retail. Consumers will ul- timately be exposed to new products they never could have found on vast websites like Amazon. WREB: What was the inspiration be- hind the stores' designs? Carr: Gensler's design approach was based on the notion of allowing the products to be the "hero" in the store. Gensler created a concept around a horizon line that created contrast be- tween the upper and lower sections of the store through use of dark and light colors, which allow the products to stand out. WREB: What additional design ele- ments, if any, tend to go into design- ing a tech-forward space like this? Carr: The store is divided into two distinct areas. There is theproduct display area and the product demos/ kid's area, whichincludes a dedicated space contained within a sound-ab- sorbing enclosure that houses demos of virtual reality and sound products. The light side of the store focuses on the products displayed in a continu- ous and clean for- mat. The dark side of the store is dedi- cated to interaction, play, demo and immersive experi- ences. The display fixtures in the kid's area were lowered to accommodate kids. Brand walls are inspired by the fading in and out of technology and messages. Technology is there without being in your face. The design allows consumers to be in- spired to find solutions that improve the home, engage senses, encourage play and more. The power and data of all the prod- ucts had to be considered in the de- sign. There needs to be a level of flex- ibility to accommodate the size and shape of the product. WREB: What brought about the in- clusion of Pepper, the robot? Do you think we will see humanoid robots like Pepper in mainstream retail spac- es in the future, or do you think this is a niche concept? Raub: Pepper was a partnership be- tween B8ta and SoftBank Robotics. B8ta is constantly looking to bring new and unique technology into our stores and recognized that SoftBank Robotics and Pepper were leading the charge to change how consumers en- gage with new technology and retail. Pepper is an amazing product that has empathy and the ability to react to people's emotions. I don't see robots taking the place of humans in the near future, as the tech- nology is still in its infancy and the barriers to entry are extremely high. However, I do see technology playing a much bigger role in the relationship between retailers, makers and con- sumers. WREB: Where do you see the future of shopping centers and store spaces heading in the next five or 10 years? Carr: The future of retail will be un- conventional, personal and experi- ence-driven. Experience is increasing- ly the focus in design. In a digital era, a one-dimensional experience fails to impress consumers. Future retail spaces and shopping centers will con- nect people emotionally at every mo- ment in their journey. Spaces will be enhanced, curated and all-embracing. Spaces like B8ta have seamlessly blended the digital and physical to leave lasting impressions. n Trained employees, known as "B8ta testers," are on hand to educate shoppers on the store's range of cutting-edge products. Raub Shoppers experience the latest tech products in a completely different way at B8ta's Santa Monica store — out of the box, hands-on, and set amongst Gensler's unique design.