Space is 'Amusing one'

Jooyun Kim's 
Spacebranding vol.04


“The great brands are created by those who provide unique experiences”


<From store to amusement space _ 'Retail therapy'>
'The Hyundai Seoul' Department Store in Yeouido's concept is 'Forest'. It is a department store with a bright and spacious garden concept with natural light on all floors. For the experience of healing and recovery, 30 times the average department store visitor flocked during Korean Independence Movement Day on March 1.

'Forest' The Hyundai © Jooyun Kim

The Hyundai, which opened on February 26, 2021, removed the word 'department store' from its name. It is a declaration to change the framework of business. It is a cultural and relaxation space that goes beyond the stereotype of the existing department store.1)

'Waterfall Garden' The Hyundai © Jooyun Kim


The spacious and pleasant indoor garden, 'Sounds Forest' and 'Waterfall Garden' have become psychological comforts for citizens who are tired of the covid-19 situation. Then, on March 22, the entire existing culture hall was emptied on the 7th floor of Hyundai Department Store in Mok-dong, and ‘Glass Haus’ opened as a ‘retail therapy’ space. Why is that? This is because 'amusement' with physical and mental well-being became the reason and purpose of the visit.


<‘Amusement’ is _ ‘the reason and purpose of visiting’>
These days, rather than going to a department store to buy something, people go to play, eat, or just to enjoy their time. Amusement is the purpose. The business environment has changed. In a situation where everything is solved online, there must be a reason to go to the offline space. Eventually, space became meaningless to customers if there is no amusement, fun, or experience. Bernd Schmitt says, "The great brands are created by those who provide unique experiences"2)


'Waterfall Garden' The Hyundai © Jooyun Kim


<Fountain Effect through 'amusement'>
The Pangyo Hyundai Department Store, which opened in 2015, had a hip space for young people through its high ceiling atmosphere of high ceilings in the basement food hall. In addition to attracting Italian food brand Eataly, where you can taste Italian ingredients and fresh Italian food, the composition of F&B (food and beverage) MDs for young people in the Techno Valley was very interesting. 

Since it is a large area the size of two soccer fields combined with the high ceiling, there is no psychological contraction due to the limitation of the underground space. Despite being underground, many young people, young couples, and children seem to be gathered in a large square. Within 5 days of opening, the company made 18.1 billion won in sales. The fountain effect in marketing begins in the underground food hall.

Instead of going to the department store to buy things, they go to eat, buy ingredients naturally lead to shopping upstairs. It has been shown that when a product or service has no absolute differentiation or comparative advantage, the impression of space and the program of space function as a tool to confirm the absolute value of consumers.3)

<Optimization of experience value is _ ‘space’>
In an era where experience means everything, customers have various contact points for companies or brands, but 'space' is an optimized place where companies can provide tangible and intangible services to customers through experience value. 

Gerald Zaltman, a professor at Harvard Business School, said, "Consumer preference and motivation are greatly influenced by subconscious senses and emotional factors derived from the total experience."4) 'Total experience', 'subconscious sense', and 'emotional factor' are all closely related to the experience of space. In the space, customers experience immediate satisfaction and communication, and the clues of experience there become the overall impression of the company or business.5)


<The only feature provided by ‘space’>
When a product or service cannot be said to have absolute differentiation or comparative advantage, the difference between the product or service is that the increase in space acts as a major determinant of the mind. Eventually, the impression of space will function as a tool that creates absolute value in business.6) Paco Underhill, the founder of ‘The Science of Shopping’, describes the three unique features that offline space can provide unlike online space: sensory stimulation, immediate satisfaction, and social interaction.7)

<Space _ ‘makes advertising unnecessary’>
Space is an effective means of showing and experiencing the identity of an enterprise to existing and potential customers. Customers crave the excitement and fun that they feel in the space. Looking forward to something that will be remembered and cherished for a long time beyond just buying things. Rolf Jenssen called this ‘Dream Society’, and Pine and Gilmore called ‘Experiential Economy’.

Pine and Gilmore tell them to stop advertising and order businesses to create a dream space where they can actively experience the reality of the business. They even borrow Peter Drucker's quote, "The purpose of marketing is to make sales unnecessary," and said, "The purpose of space creation is to make advertising unnecessary."

It is told to stop delivering the effect that is hard to verify and fabricated messages that are not true. In a physical space where the identity and consistency of the business can be demonstrated, the customer is asked to provide a fundamental experience while understanding, using, and enjoying the output of the enterprise. They also formulate the efficiency of the space creation experience as follows.8)

Efficiency of space creation experience = (number of people X time X interest X impression X memory) / cost

The customer wants to fee the opportunity of 'amusement'.9) Space is the optimal medium for conveying corporate dreams and creating an emotional aura and is also responsible for psychological, relational, and social functions.10)








<Summaries>


"The great brands are created by those who provide unique experiences"

"In the space, customers experience immediate satisfaction and communication, and the clues of experience there become the overall impression of the company or business."

" 'space' is an optimized place where companies can provide tangible and intangible services to customers through experience value. "

"When a product or service has no absolute differentiation or comparative advantage, the impression of space and the program of space function as a tool to confirm the absolute value of consumers"

"The purpose of space creation is to make advertising unnecessary"


1) “공간과 체험을 파는 백화점”, 북저널리즘 뉴스, 북저널리즘, 2021.02.23. from https://www.bookjournalism.com/news
2) Shaun Smith & Joe Wheeler, Managing the Customer Experience: Turning Customers Into Advocates, Pearson FT Press, 2002., pp. 8
3) 김상훈 지음, 비즈트렌드연구회, "2015 2017 앞으로 3년 세계 트렌드", 한스미디어, p141
4) Shaun Smith & Joe Wheeler, Managing the Customer Experience: Turning Customers Into Advocates, Pearson FT Press, 2002., pp. 107
5) Kim, Ji Hyun, ‘A Study on Value-driven Spatial Design Marketing’, Hongik University Ph.D, 2016., pp.29.
6) 김상훈 지음, 비즈트렌드연구회, "2015 2017 앞으로 3년 세계 트렌드", 한스미디어, 2015.01.05., 141쪽
7) Paco Underhill , Why We Buy, Simon & Schuster, 1999., pp. 293
8) James H. Gilmore, B. Joseph Pine II, What Consumers Really Want, Harvard Business, 2007., pp. 307
9) Dan Hill, body of truth : leveraging what consumers can't or won't say, Wiley, 2003., pp.807
10) Kim, Ji Hyun, ‘A Study on Value-driven Spatial Design Marketing’, Hongik University Ph.D, 2016., pp.29.

Jooyun Kim

jykim@hongik.ac.kr




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