The company's Runwell Desk Clock, as well as a Shinola-made alpaca throw blanket and signature candle, are showcased in each of the property's 129 guestrooms.
Back in 1999, Westin was among the first hospitality brands to make a major retail move with its Westin Heavenly Bed mattress. Since then, the concept of hotels padding their bottom lines with retail sales has evolved significantly.
For proof, one need look no further than Detroit's Shinola Hotel, which officially opened earlier this month and marked the first hotel for the Detroit-based luxury watchmaker Shinola.
The company's Runwell Desk Clock, as well as a Shinola-made alpaca throw blanket and signature candle, are showcased in each of the property's 129 guestrooms.
All three items are also available for purchase, making Shinola the latest consumer brand looking to marry retail and hospitality in an immersive hybrid concept.
Retail expert and consultant Bruce Winder said the trend is a natural market evolution triggered by the growth of e-commerce.
"Companies are trying to get consumers to experience their brand," Winder said. "And gone are the days where most consumers go to a store to buy things. They can do that online.
“To thrive as a retail brand, you need to have a store that offers community, trial, education, expertise or inspiration, and hotels can really create all of that. Hotels are the ultimate experiential stores."
Winder added that a hospitality component gets consumers to pay to experience a brand, making the "economics more favourable" than a traditional retail venue.
Among the slew of other consumer brands making the hotel crossover are LVMH's Bulgari, which formed a joint venture with Marriott to open Bulgari Hotels & Resorts in Milan, London, Bali, Beijing, Dubai and Shanghai, and Japanese retailer Muji, which has unveiled properties in Shenzhen and Beijing, China.
Home goods and furniture retailers Restoration Hardware and West Elm are slated to open their inaugural hotels soon in New York and Indianapolis, respectively.
Chekitan Dev, professor of marketing at Cornell University's School of Hotel Administration and the author of ‘Hospitality Branding’, said, "This try-before-you-buy strategy can help niche brands reach a broader market."
He added that LVMH's recent acquisition of ultra luxury hospitality player Belmond was likely driven in part by a desire to create "a living showcase for LVMH brands”.
The cachet associated with boutique and high-end hotels can also help put a consumer brand on a fast track to becoming more of a lifestyle brand.
Ivar Yuste, a partner at the consulting group PHG Hotels & Resorts, said, "The hospitality industry is by its very nature global and associated with lifestyle, fashion, fun, exclusivity, etc. All these values generate a lot of PR opportunities for brands."
Yuste also pointed out that guests often share moments from their stays over social media, transforming a hotel into "a unique brand-awareness platform”.
But brands could also risk alienating guests who might be turned off by any less-than-subtle product placement.
"Millennials are extremely sensitive about being sold to, versus the older generation, which has had more of the attitude of 'bring it on, sell me'," said Erich Joachimsthaler, CEO and founder of global brand strategy firm Vivaldi. "And that's part of why the industrial complex of advertising and marketing has had to move away from interruption marketing to this new form of connecting by creating community."
Roger A. Allen, group CEO of Resources for Leisure Assets, a hospitality consultancy, agreed that brands making their foray into the hotel sector will need to strike a delicate balance.
"Clever product placement is essential for its success," Allen said.
"If it's too obvious, guests will know that they are being given a hard sell. And if there is a hotel and brand mismatch, it will fail. The greatest challenge is to ensure that the retail or consumer brand is synergistic with the hotel experience."
Source: Travel Weekly USA