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COZY DAWGS

Discover a possible future scenario of physical retail stores. 
The Challange

With the rise of the internet and the impact of COVID-19, many physical retail stores faced financial losses or were forced to close. In recent years, the market has become even more challenging as some brands have shifted to selling their products exclusively through company-owned stores rather than third-party retailers.

The advent of the Internet significantly impacted the business of physical retail stores, leading to a sharp decline. Over the past five years, Footlocker has seen a reduction in the number of its stores, and overall sales growth in U.S. shoe stores remained stagnant from 2015 to 2020. The onset of COVID-19 in 2020 further exacerbated this trend, causing a historic drop in sales and forcing more stores to close. Without the ability to showcase their products in physical locations, sneaker retail chains like Footlocker miss out on vital customer connections. In a physical retail environment, customers benefit from interacting with sales staff, trying on different shoes, and experiencing the value of a curated shopping experience. In the digital realm, this personal touch is lost. Consequently, brands lose the opportunity to create meaningful connections with customers, and customers miss out on the sensory experience of the product. Additionally, Nike has begun reducing its supply to independent stores, further challenging the retail landscape.

Discovering  customer's key values for the physical sneaker shopping experience

KEY GOAL

Individual Project

MAKE OF THE TEAM

Fall 2022

Ten weeks from start to finish

TIMELINE

MY ROLE

This was an individual project, and I conducted all research and discoveries throughout the process. However, I received valuable assistance from peers, professors, and professionals along the way.

I was tasked with identifying a problem in the sneaker industry and designing a solution to address the current challenges. This process was informed by both primary and secondary research methods that I conducted.

SOLUTION

The solution is a shoe store that provides tailored benefits for various user groups within the Gen-Z target audience.

The future of physical retail stores is uncertain, shaped by customer preferences, potential crises, and suppliers' willingness to maintain partnerships with third-party sellers. Sneaker stores must find ways to retain their customers by offering experiences that make them feel welcome and part of a larger community—something individual brands may not provide. The key advantage of physical retailers is their ability to create spaces where a community of shared interests can gather. For a generation increasingly facing social challenges, these stores can offer positive, anxiety-free interactions with others, fostering confidence and connection. As a solution, I propose an independent sneaker store that prioritizes customer interactions—both with staff and fellow customers. Expanding the number of these stores would create more opportunities for people to connect in various locations, including major cities and airports, thereby enhancing the sense of community.

UNDERSTANDING THE USER

The Target audience was Generation Z (Gen-Z 1997-2004) in North America, but who is this young generation?

Gen Z is the first generation to have grown up entirely in a world of internet and smartphones. While these technological advancements have brought numerous benefits, they have also contributed to challenges in fostering genuine in-person connections. Gen Z values a sense of belonging, authenticity, recognition from staff, excellent service, and diversity in their interactions.

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Generation Z

For Gen Z, identity, purpose, and belonging are paramount. They are constantly seeking to build or experience something meaningful. However, the prevalence of smartphones has drawn many away from physical relationships and into the virtual world. Despite this, they long for authentic, welcoming spaces where they can connect with peers who share similar ideas, beliefs, and interests.

My Design Thinking Process

Throughout the 10-week Project, those were the three stages I worked through after I emphasized a problem. 

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Define
  • ​Secondary Research

  • Market Research

  • Trend Research

  • Primary Research

  • Interviews 

  • Survey

  • Affinitization

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Ideate
  • Ideation Workshop

  • Concept Development

  • Concept Testing

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Prototype
  • Prototyping

  • Prototype Testing

  • Final Prototype

Market Identification

I identified a design management challenge in the sneaker industry, as an area of personal interest. My research revealed that over the past seven years, both the number of physical sneaker stores and their profit margins have significantly declined.

Market Impact

I recognized a design management challenge within the sneaker industry, a field that personally interests me. Through my research, I discovered a significant decline in both the number of physical sneaker stores and their profit margins over the past seven years.

Identifying and Understanding User Stakeholders

Generation Z (Gen-Z) recognizes the benefits of both physical and online shopping. While online shopping is often cheaper and more convenient, it doesn't always guarantee a perfect fit when it comes to shoes.

Generating Insights from User Data

Gen Z is the first generation to have grown up entirely with the internet and smartphones. While these technological advancements have brought many benefits, Gen Z faces challenges in forming in-person connections. They seek a sense of belonging, authenticity, recognition from staff, excellent service, and diversity in their interactions.

Competitor Landscape and Analysis

In the footwear industry, Nike, Foot Locker, and Jason Mark stand out as the main competitors. On the community side, platforms like Reddit, Twitter, StockX, and Sneakercon have created a solid foundation for people to connect, both virtually and occasionally in person.

Prototype + Business Model Canvas

The prototype is a 3D store model designed to address key pain points, featuring amenities like a treadmill for proper shoe testing and a communal space for sneaker enthusiasts to gather.

User + Usability Testing + Validation

During user testing, I found that people prefer a spacious environment with less emphasis on privacy. They also want the store to serve as a communal space where they can openly discuss, evaluate, and share opinions on sneakers, aiding others in their decision-making process.

LESSONS LEARNED

In addition to managing myself and the process, I had to trust in my expertise and skills while recognizing when to seek help. I faced the decision of whether to reach out for assistance or to learn the necessary skills on my own.

I've learned the importance of knowing my audience when presenting my work. During the process, I delivered weekly presentations on my progress, but I often received limited feedback due to a lack of sneaker expertise or interest. In the future, I plan to continue with weekly updates, but instead of presenting them in person, I will record them and share them with personal advisors and experts who are genuinely interested in my progress, rather than just pitching them to my instructor.

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One of the most valuable lessons I learned was the importance of setting deadlines for myself. Creating a Gantt Chart helped me stay organized and on track. In a 10-week project, missing a deadline means significantly more work in the following week.

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© 2023 by Nicolas Nikuradse.

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