Market： MG2 Advisory

Research & Insights – November 2024

Women’s Beauty: Do You Fit in Her Beauty Journey? Your Consumer is Evolving, Ensure You Evolve With Them.

Today’s beauty landscape is a diverse one, especially as it relates to varying generational preferences. The oldest Gen Alpha consumer may only be 14 years old however in 2023 they drove nearly $4.7 billion on beauty purchases, outspending every other demographic.* And while it is important for brands and retailers to identify strategic ways to engage and connect with this young consumer in-store, it is of equal importance that Gen Z, Millennials, Gen X, and Boomer consumers do not feel alienated, undervalued or underserved, especially considering their collective spending power. In our investigation, we took a deeper dive into understanding these cross-generational beauty consumer behaviors and preferences to reveal future-forward store design and programming opportunities that encompass a holistic lens around the diversity of today’s consumer, the affinities and differences around new routes to discovery, as well as drivers to in-store engagement and customer loyalty.

*AYTM 2024

The full report is available for download at the bottom of this preview. Take me there now!

What We Learned

Per our investigation, our respondents shared the following key insights as it relates to their experience with and their perception of women’s beauty environments, and which offerings and touchpoints in-store would deliver the most value:

Motivating Factors

MORE THAN HALF of all respondents indicated it is of equal importance to be both educated and inspired when shopping in-store, rather than one over the other

Product Engagement

NEARLY 70% of all respondents desire the ability to freely touch products and styling tools in-store, with 51% desiring a test/try experimentation bar for this very purpose

Merchandising Preferences

#1 for all respondents is a desire for regimen-based merchandising year-over-year (e.g. face, skin, hair)

Sustainable Initiatives

MORE THAN 60% of all respondents are interested in beauty product and packaging recycling receptacles being featured in-store

Technology Integration

3 OUT OF 5 respondents find skin scan or makeup mirrors for personalized product recommendations and education to be a value driver to the shopping experience

Multigenerational Relevance is Key to a Beauty Brand’s Longevity

The beauty landscape is an increasingly competitive one, and from Gen Alpha to Boomers, consumers are doing their best to keep up with the latest social media trends while identifying which brands and products will best support their individual needs along their beauty journey. In-store, product education, and inspiration are table stakes. Consumers are eager to learn and discover in an environment that prioritizes a sense of empowerment and play, giving them the freedom to test products at their leisure. They also value informative displays and visuals, both digital and physical, as a means to learn and discover. When it comes to merchandising, consumers value a convenient and efficient shopping experience, desiring regimen-based planning at the shelf to help them find an effective solution quickly. Consumers of all ages are intrigued by emerging trends, such as clean beauty and inclusive beauty, and they value product and peer recommendations in-store to help inform their purchase-making decisions. In exchange for their loyalty and repeat spending, beauty consumers want rewards programs that are points-driven and result in perks such as free shipping, gifts, and exclusive events. Most importantly, as beauty consumers face new life changes, they want the brands they have come to trust to continue to be there for them while giving them the opportunity to explore something new. No matter their age or where they are on their beauty journey, consumers are ever-changing, and they expect brands to evolve and adapt with them.

Interested in More? Download the Full Report!

MG2 creates specialty retail experiences that are informative and empowering.

Explore our Specialty Retail expertise

‘They’re spending their money elsewhere’: Brands are more cautious about holiday pop-ups this year

With more customers focused on value and scarcer real estate, brands and retailers are rethinking their holiday pop-up strategies.

Melissa Gonzalez, principal of Seattle-based architecture and design firm MG2, said she has also noticed fewer brands pursuing pop-ups. For the ones that do, the companies are focused on really getting the best bang for their buck.

“For brands that are targeting holiday pop-ups, it’s just really important — probably even more so than other times of the year — that they’re really understanding the unique value proposition because it is such a competitive time,” Gonzalez said. “The consumer’s mindset is so much more around holiday deals, and there’s already brands that they know and have relationships with, so what are you going to do to entice with something special, something unique?”

Read more at Modern Retail

MG2 Named #2 in Puget Sound Business Journal’s Largest Architecture Firms List

MG2 has been named the #2 firm in Puget Sound Business Journal’s list of the Largest Architecture Firms in the Seattle Area.

Read more in Puget Sound Business Journal

The Health & Wellness Wave

“As the idea of holistic health has taken root in society, marketers are exploring new ways of communicating with customers to promote wellness. ‘There’s a variety of promises that brands can make from a lifestyle point of view,’ says Melissa Gonzalez, principal at MG2. ‘It can be everything from new product offerings to sections of beauty departments that explain benefits in a wellness context to awareness of environmental issues.’

“A January 2024 report on holistic health from the MG2 Advisory group explores how marketers can capitalize on what it sees as the next wellness frontier: the retail store. ‘By evaluating traditional store design elements through the lens of wellness,’ the report states, ‘brands have the opportunity to create environments that are more holistic, rather than simply physical, and inclusive of cognitive, emotional and spiritual health attributes.'”

Read more in Path to Purchase Institute

Eatertainment Venues Must ‘Earn’ Customers’ Time with Community and Camaraderie

Recently highlighted in Retail TouchPoints by Editor Adam Blair, For the Thrill of It: Eatertainment Experiences That Cater to All dives into the key drivers of a successful eatertainment venue.

“There’s a reason that ‘eat’ comes first in ‘eatertainment.’ ‘People want to have a one-stop destination, and if you can do that successfully, you’ll earn more of their time and wallet,’ said Melissa Gonzalez.”

Read more on Retail TouchPoints

Energized Growth: Russ Hazzard

Hear from Russ Hazzard, President of MG2, in his Q&A with The Zweig Letter Correspondent, Liisa Andreassen.

“Hazzard first joined MG2 in 1993. He says that they’re always looking to grow their shareholder base and to bring younger contributors into the fold – people who want to grow the company and take over when the old guard retires.

“‘It will be exciting to watch as the next generation leads the firm and the industry into the future,’ he says.” Find the full interview in the link here:

Read more in The Zweig Letter

Unlocking the Value of Fit Tech: Personalization and Recommendations

“MG2 Advisory research found that in-store fit tech is […] a big draw for footwear shoppers. Up to 68% of consumers reaffirmed the importance of a ‘customized fit,’ and 40% said fit scan technology would benefit their in-store experiences.”

“I think the industry is benefiting from not just the acceptance of this technology but the overall fluidity that consumers are experiencing with technology,” said Melissa Gonzalez, Principal at MG2, to Retail Touchpoint’s Alicia Esposito.

Read more at Retail TouchPoint

MG2 Listed in Building Design+Construction’s Top 200 Architecture Firms for 2024

MG2 ranked among the top 20 in Building Design+Construction Media’s recently released Top 200 Architecture Firms for 2024.

Read more in Building Design + Construction

Architecture Firms See Billings Change – MG2 Ranked #18 in Architectural Firms list for 2024

So excited to see that The Orange County Business Journal has ranked MG2 #18 in its Architectural Firms list for 2024.

“The firm has seen an uptick in retail, industrial, and affordable housing markets, according to chief executive officer Mitch Smith. ‘The growth in all three of these sectors has had a substantial impact on architectural billings in our Irvine office, reflecting the adaptability and agility of our team,’ Smith said.”

Read more on The Orange County Business Journal

The Orange County Business Journal ranked MG2 #18 in Architectural Firms list for 2024

So excited to see that The Orange County Business Journal has ranked MG2 in the top 20 of its Architectural Firms list for 2024.

Read more on The Orange County Business Journal
Research & Insights – August 2024

For the Thrill of It: Eatertainment Experiences That Cater to All

Eatertainment has been called the most disruptive force in the industry since the launch of fast casual*. As part of the “experience economy”, eatertainment taps into longtime favorites like bowling and mini golf, as well as newer entrants like pickleball, surfing and escape rooms. And while these environments are often designed with a specific activity in mind and include elements such as interactive dining, live performances and innovative technology, it is important that owners, operators and designers consider 什么 their audience truly desires in these spaces as a way to unlock a sense of connectivity, and ultimately drive repeat visitation and spend. In our investigation, we sought to understand and identify the eatertainment environment features that deliver the most value to consumers and the on-site amenities and programming opportunities that contribute to making the experience an unforgettable one.

*Robert Thompson, CEO of Angevin & Co. 

The full report is available for download at the bottom of this preview. Take me there now!

What We Learned – Consumer Personas Defined

Per our investigation, each of our respondents self-identified with one of the following consumer personas, providing a deeper look into their experience with and their perceptions of an eatertainment environment, and which enhanced offerings would deliver the most value to them:

48%, Funclusives

Defined as individuals whose preferred experience is one where they don’t need to be an expert to enjoy themselves and there is a level of accessible and social fun; appeals to first-timers, those newer to a game or activity; food is a secondary component of the experience.

29%, Food Fanatics

Defined as individuals whose preferred experience is one where the food and beverage offering is on par with or exceeding the entertainment; appeals to those who view the entertainment component as icing on the cake and secondary to the food offering.

23%, Competitively Social

Defined as individuals whose preferred experience is to participate in a certain activity (i.e., pickleball, golf, sports betting); appeals to more avid fans and those who want to get in on the action and compete; food is a secondary component of the experience.

The Opportunity, Evolution, and Growth of Eatertainment

Eatertainment has a rich history, from traditional bowling alleys with finger foods and pitchers of beer, to mini golf with ice cream and snow cones, to arcades with soda fountains and bubble gum machines. What gives this genre staying power is its function as a “third place”, a welcoming destination to convene with others, offering a unique blend of entertainment, dining and social experiences that foster a sense of community and belonging. If we look at key drivers of society today, and the near future, the transformation of how we work, naturally interact and discover have all evolved consumers’ needs and wants. Digitization continues to open up access to information and communities on a global level creating an always connected society while also fostering a paradoxical sense of disconnection. This juxtaposition opens an underlying yearning and craving for real, in-person activities, connected through shared experiences of joy and laughter and escapism. By studying the cross generational influences from Gen Z to Boomers, we uncover the opportunities that exist for these environments to embody the pillars of desire, blending the nostalgia of traditional pastimes with modern innovations and providing experiences that become a beacon for socialization, joy, camaraderie and thrills. Experiences that keep guests wanting to come back again and again.

Interested in More? Download the Full Report!

MG2 creates unforgettable culinary and entertainment experiences that engage the senses and inspire play.

Explore our Food, Beverage, and Entertainment expertise
/

Nordstrom Bellevue

Nordstrom partnered with MG2 to design and remodel an existing store in Bellevue, spanning multiple buildings with the intent to develop a new fleet-wide strategy. This new dynamic for the Nordstrom customer will set the stage for future retail success.

The goal is to establish a seamless, discovery-driven customer experience showcasing the most sought-after brands in the world. All areas of the store will be updated to create a designer-level experience—clear, light, warm, and flexible. The design and implementation of the new Fleet-Wide Strategy will focus on the following: customer experience, brand attraction, innovation, flexibility, budget, and operational efficiency.

Press Coverage

Research & Insights – June 2024

Going Beyond the Transaction: Building Cross-generational Connectivity & Trust

Over the next 20 to 30 years, an estimated $68 trillion of wealth will transfer from Boomers to their Millennial and Gen Z offspring. This generational shift means banks need to think about how they can appeal to both their existing and future clients. While there have been attempts at attracting new customers through features such as cafes and coworking spaces, the question remains if consumers find value in these features and whether they deliver a real sense of connection with the bank. In this report, we investigate consumer banking perceptions and preferences, and identify design strategies and opportunities that can positively impact the consumer at a physical branch, resulting in increased visitation, improved consumer sentiment and trust.

The full report is available for download at the bottom of this preview. Take me there now!

What We Learned

Per our study, our respondents shared the following key insights as it relates to their experience with and their perceptions of a physical bank environment and which enhanced offerings would deliver the most value and greater consumer satisfaction:

Importance of Convenience

Respondents overall prefer a branch that prioritizes a convenient experience at nearly 4X the rate of a branch that reinforces a sense of financial confidence and knowledge 

Feelings of Assurance

MORE THAN 60% of all respondent age groups want a physical bank that evokes security and reliability

Fostering Community Ties

Respondents ranked branches that elect to act as community centers, choosing to go beyond just deposits and withdrawals, to be the #1 REASON across all age groups that positively influences their perception of the bank

Hybrid Service Model

NEARLY 70% of respondents desire self-service technology when processing a deposit or withdrawal, while more than 60% desire a staff-supported journey when dealing with something more intensive, such as applying for a loan or getting account help

Interior Design Elements

50% of respondents desire natural lighting in a banking environment, which led across all age groups

The Modern Branch Must Deliver Convenience, Personalized Service & Community Engagement In Order To Be Seen As A Valued Partner

In order for the branch to attract the next generation of banking customers, banks need to create spaces with their consumers and communities in mind, ensuring that their physical locations are prioritizing what matters most, such as being equipped with technology that delivers convenience, financial advisors that are more like allies and partners and spaces that support personalized service as well as connection with others. By testing alternate branch strategies such as ITMs or micro locations, banks can create a bridge to a broader consumer base, establishing roots in communities previously untapped. And through intentional, consumer centric design, the bank branch can become a space of comfortability and trust, featuring elements such as a welcome desk, an open floor plan and privacy pods for more sensitive conversations. If the branch can make the customer’s life easier while demonstrating respect for their business and time, the bank will be perceived as being a place that helps consumers succeed and grow throughout their financial journey, serving as their go to partner for all the major milestones ahead.

Download the full report for all of the key banking insights

Our Banking Experience

Learn More About Our Financial Institution Expertise

Netflix to Open Two Entertainment Venues With Shopping, Dining

In the news: MG2’s Gen Z report was included in a Total Retail article about two new entertainment venues that Netflix is opening in Philadelphia and Dallas.

MG2 also produced a cinema insights report diving into moviegoer personas and theater trends.

Read more at Total Retail

MG2 featured in Architectural Record’s Top 300 U.S. Architecture Firms of 2024

We’re excited to be included among the Top 300 U.S. Architecture Firms of 2024.

Read more in Architectural Record

VMSD Ranks MG2 among Top 5 in 2024 Top Retail Design Firms

We’re thrilled to be ranked among the top 5 in VMSD’s 2024 Top Retail Design Firms. Now in it’s 30th year, the list includes top design firms in the retail industry from around the world.

Read more at VMSD

MG2 Advisory Launched to Offer Strategic Services for Retail Markets

Global architecture and design firm MG2 has formally launched MG2 Advisory, a new service providing strategy and insights to empower emerging and established DTC retail brands, national retailers, and mixed-use developers working with retail tenants.

Read more at VMSD

/

Prestige Beauty Company

Building a Sustainable Store Design Program

MG2 partnered with a prestige beauty company to assess and develop a customized, scalable sustainability program for both new and existing retail stores globally, spanning their family of brands. 

The objective of this more than 12-month endeavor was to establish a framework, along with measurable standards and criteria, that could be incorporated into the built environment across various categories, including store buildout, energy, and water conservation, sustainable sourcing of materials, and operations, among others.

Goals included:

  • Immersion into corporate and brand goals
  • Establishment of standards for sustainability in the built environment
  • Create a set of criteria to measure sustainability
  • Evaluation of the full lifecycle of the brand environments, including design and materials selection, vendor selection, fabrication, installation, operations, visual merchandising, and end-of-lease removal/recycling of all elements

Deliverables included:

  • Stakeholder workshops to establish priorities by brand
  • Toolkit and guidelines, creating standards and specifications for sustainability in the built environment
  • A scoring system to evaluate and rank achievements within the brand’s custom sustainability program

  • Project Details

  • 地点 Multiple Locations, U.S.
  • 客户 保密
  • 设计服务
/

Navy Exchange

The Navy Exchange (NEX) oversees more than 300 NEX retail stores on 92 naval bases worldwide, varying in size from small self-checkout convenience stores to large department stores. In 2020, NEX enlisted MG2 to partner with them in a department-by-department exploration into how to redefine value at its owned locations. This exploration encompassed Beauty, Consumer Electronics, Kids, Footwear, Home, Jewelry, Food Hall and Provisions – all utilizing Oceana base store as the anchor test store. 

Once implemented at Oceana, the NEX team worked with MG2 to leverage learnings from the pilot location to apply a guide for further iterations and eventually a rollout playbook to adapt and scale each department’s evolution. 

Goal:

Due to the continued elevation of the competitive landscape, NEX has invested in evolving and elevating their value proposition to their patrons by reimagining the store experience department by department.  

“Thirty years ago, it was really convenient because everybody lived on base, but now more families live off base.

It’s about creating a sense of excitement, a sense of community, a sense of belonging, and being able to allow patrons to check more off their list.”

– Rich Honiball, EVP and global chief merchandising and marketing officer for the Navy Exchange Service Command (NEXCOM)

Let’s not think of
ourselves as the military store;
let’s think of ourselves as
a retail destination.

Process: 

The MG2 Advisory Team, in partnership with our design team, took a multi-pronged approach to assessing how each department could best support consumer needs. 

This included:

  • An audit of brand insights (both qualitative and quantitative) as well as competitive benchmarking analysis
  • Evaluating consumer trends (for example: identifying the desire to shop for beauty products in store by regimen)
  • Surveying the NEX consumer audience as it relates to opportunities to elevate in-store experiences and identify key drivers to make Navy Exchange their shopping destination
  • In-person field interviews – immersing ourselves on base with new recruits and sailors and talking with store management to learn first-hand where they are seeing gaps both experientially and operationally in store

This evaluation identified opportunities beyond price to deliver value across the fleet of locations. Through a deep dive analysis into trends and customer pain points and desires, including areas that provided demystification, we could identify drivers and preferences to inform the in-store experience evolution, allowing the Navy mission to be more deeply reflected in the spaces visited by sailors and families.

Based on the insights and research the MG2 Advisory Team brought forward, MG2 designed stores that provided greater space for storytelling, fostering excitement and a sense of community. As a result of these findings, the NEX team revamped each department, reimagining the customer journey, merchandising, wayfinding and operational change.

Beauty Initiative Highlight / The Results Are in the Data:

The beauty department redesign was first introduced in the Oceana store in 2022, followed by the Pensacola Navy base store in Florida. Post Oceana’s redesign: The beauty departments now demystifies customer discovery. The products which had been arranged by brand alone are rearranged by regimen instead. New end caps feature educational tips and how-tos and a flexible space in the new beauty department hosts special events and live streaming.

The post-redesign sales increases have been significant:  

  • Oceana beauty department sales rose by over 10% year over year compared to the same period prior. In the remodeled Pensacola store, sales increased by 6% Y/Y. 
  • Beauty Zone increased 510 bps to Tidewater, 820 bps to Enterprise. 

“The way that the departments are structured and organized elevates the product, elevates the experience, and makes it easier for the customer to find what they’re looking for…”

– Rich Honiball

Press Coverage

/

Nordstrom Local

Nordstrom Local

为了更好地服务于客户并扩展其在纽约市场的业务增长战略的一部分，Nordstrom寻求扩大其在当地的商店的经验，以提供新服务，例如在线订单取货，更改和定制，样式以及更多餐饮服务。满足在目标社区生活和工作的客户的独特需求。

They partnered with MG2 / The Lionesque Group to bring their vision of offering boutique, local services to life in New York City’s Upper East Side. Working side-by-side with the Nordstrom team, our designers ensured furnishings, fixtures, customer flow, and build-out met the demands of the local shoppers. The resulting space features a flexible model and floor plan that is adaptable to the changing needs of customers.

Manhattan Beach, CA
纽约州纽约市
Manhattan Beach CA
Manhattan Beach, CA
我们的团队

Melissa Gonzalez

Principal, MG2 Advisory Lead

Melissa leads MG2 Advisory, the firm’s strategy and insights practice. Drawing on her success working side by side with some of the fastest-growing direct-to-consumer companies and well-established brands, she advises clients and our design teams on how to leverage forward-thinking insights with innovative strategy from concept through implementation.

Continually pushing the boundaries of experiential environments, she sits at the forefront of integrating physical and digital with cutting-edge concepts that foster foundational consumer engagement and lifetime value.

Team collaborating around a table

观点