Observation Research--Solo buildings for new startup small fashion company

Subject: Research and communication

Lesson 2: Design and Research

Topic 2: Observation Research

Student: Wong Chi Fai (Marcus)

Research Background:

In the previous project, I just did a study on the O2O(Online to Offline) model on fashion industry. According to my research result, most people think they would like to have a pick-up point to receive and return products rather than using delivery. At the same time, more and more people are doing their e commerce business as a part time job.

I am also interested in the ecommerce and want to know more how to use a small amount of money to start ecommerce with pick-up points to provide services and of course increase sales.

I like shopping so I always walk alone to find something people may not be notice. Yes, I always observe this world. And I found that HK is famous for its high rent, it is hard for people without too much money to start business. However, I found that SOLO HK is doing something different to attract those who want spend little money to try for starting own business.

Introduction:

SOLO HK offers workshops, self-study room, retail shops, workshops, etc in their buildings. (SOLOHK, 2021) They even provide hourly rent so that everyone can use it to work or study. However, the space they can provide is rather small. I have been there a few years ago, and my classmate had opened a shop there. Unluckily, he was failed and closed his shops in just half year. So, I would like to know if now we have more online channel, is it possible to combine such small place to increase selling? Is it suitable for someone who want to startup a small fashion business? Besides, can this place offer any advantages other than just low rent? Because low rent also needs to pay money, it is not free.

Therefore, I decided to observe the Tsim Sha Tsui TST SOLO, Causeway Bay CWB SOLO and MongKok MK SOLO in order to know the situation as there is lacking the presence of secondary data.

Aims:

-To observe the customers, what kind of people would go to there?

-To observe the shops/workshops. What can be done with such small sizes?

-If it is possible, to generate the data to find insight for my further development

What is observation research?

Observation is a key data collection technique.

It happens in the users’ home, workplace, or natural environment and not in a lab or controlled setting. The advantage of this kind of research is you can understand how people naturally interact with products and people and how they face the challenges.

Besides, inspiration and ideas can also be founded for improvement and innovation.

(Sauro, J, 2015) And here, I am the observer and the participant who to play a neutral role as much as possible. Because I didn't go there for many years, everything is new to me, I can act as a normal customer.

Before the observation:

Mitchell, A. (s.d.)

Here the questions are breaking down and then identify the factors and sectors involved with. It is considered as the following situation:

1. A small fashion business means start the selling of clothing or related items by person or small group.

2. The starting cost is small. (i.e below HKD$100,000)

3. For those who are try to start own fashion business with limit amount of money.

Here are the hypothesis based on the previous question and problems.

The observation is based on Dr Spradley 's "Descriptive Observation Matrix" (Visocky O'Grady, 2017). This matrix helping to consider the interaction of different categories and made me more clear for the area that need to be focus.

However, I found some of the parts are similar so I highlighted some of the important components and did the following summaries.

Describe the observation:

Explain the observation:

Prescribe the observation

This additional value is based on the use of Blue Ocean Strategy Canvas (Profitworks,s.d.) to the effectiveness of a small fashion company that have online store first. Because without a online store, the value of SOLO for starting fashion business is overall too low to compare. So here I used it as an additional value to compare.

As reference to the analysis, we can see Solo’s advantage is offering a easily accessible location to most of the customers which is a online shop is lacking( 5 -10 mins near MTR station) in which people can browse on website/app only.

For the e-commerce shop, it has advantage is reach more people in a short time(however, this also need money for online promotion depends on the scale) and this is on the other hand, the disadvantage of SOLO as the customer flow is relatively low.

Therefore, if a small online fashion company have already followed by a amount of loyal customers, open a store in SOLO can help to increase customer experience and services with an accessible locations for customer to try and pickup. Actually, I have observed some customers have made appointment to try clothing there and the owners asked if I have an appointment of not.) Of course, not all of them ask me for appointment, just walk in is also ok in most cases.

The limitation is the space is small, storage may lead to another problem if the company do not have sufficient space to store their products. However, as this is writing in review of a small fashion company, the owner can still store some in their home instead of place a lot of products in the small SOLO stores.

Lastly, it is not suggested to open a store in SOLO if the business don’t have a proper online stores/online channel as there have low customer flow. And what I observed was almost every shop placed their online channels in front of their front doors and request to look on websites, IGs or FBs. Therefore, the exist of online stores and stores established in SOLO (same brand) has correlation relationship.

These hypothesis test is simply base on observation only, as there is lacking quantitative result ,no numeral calculation is included.

Based on the use of "The Four Actions Framework". The possible way of a new start small fashion company without too much amount of cost should open the online store first. When the customers are kept and loyal to the shop, then it is possible to continue to improve the service of trying, fitting or pick-up/orders.

For those who don't have a proper online channel to attract customers, invest in SOLO may cause waste of money if not providing tailer-made or workshops which the customers must have a real place to try.

Last but no least, if the business can combine some of the key features like retail and service, for example, select shop with service of purchase overseas products and fitting services can certainly make better reputation than just a small e-commerce stores.

Critical Reflection of Observation research

1. What?

This is my first time to observe a place and analysis if this is suitable for business and how to use it if start a business. Although I can't observe it everyday and all the time, the pictures should look like the observed situation.

2. So What?

The importance of this practice is not just for submit a homework but to identify if there have any chance for limited cost to start a personal fashion business. Nowadays, HK 's designer's salary is very low if compare to other industry. A new joined designer may have just 12K and almost unchanged for 10 years.

Therefore, personal business is very important for HK designers. Don't dream that you work is worth to pay as a doctor/lawyers or even drivers in HK. Designer is working as a drawing assistant even in higher position and these is also my observation in these few years.

Another reason is that HK companies tend to fire designers from time to time. What I can say is design is not a stable job( I have been advised by many senior designer that if possible find other jobs as early as possible) and that's why I would suggest all named as" Designer" job title's people should have at least one part time job or personal business. It is a real exist problem and not a joke.

3. What now?

This observation practice made me once again confirmed that I need to find somewhere to start personal business. But how to design the business is a main topic first.

For example, if SOLO is not a good place for new starts, how might we start online part first ? This part maybe more important as this is already became a trend although I have suggested to my previous boss 5 years ago. Then another problem is what kind of products can make profits. In this observation I can only observe what is happened but I can't really see what are going to be happened, so this is the limitation if we just use 1 method to do research.

I would start to study the online part afterwards and also the delivery system of handling orders as some of my friends who are already owned fashion boutiques faced this problems and still improving the delivery speed so there is a need to do deeper research before a real start. I hope I can learn more from the class to know how to do better design, innovation and brand management.

Reference:

SOLOHK(2021) At: https://www.solohk.com/ (Accessed 12/1/2022)

Sauro, J. (2015) '4 Types of Observational Research' At: https://measuringu.com/observation-role/ (Accessed 12/1/2022).

Mitchell, A. (s.d.) 'Problem Solving - Analysis “Breaking Down” or Synthesis “Building Up' At:https://eesqld.com.au/problem-solving-analysis-breaking-down-or-synthesis-building-up/ (Accessed 12/1/2022).

Visocky O'Grady, J. & Visocky O'Grady, K. (2017) 'A Designer's Research Manual. (2nd edition.) Beverly: Rockport Publishers.

Profitworks.(s.d.) 'Blue Ocean Strategy Formulation - The Strategy Canvas' At: https://profitworks.ca/blog/378-blue-ocean-strategy-formulation-the-strategy-canvas (Accessed 12/1/2022).

Ariel lim consulting.(2021) 'Developing Your Strategy Using the Four Actions Framework and ERRC Grid' At: https://ariel-lim.com/blog/four-actions-framework-errc-grid/ (Accessed 12/1/2022).