Perspectives · Fashion Industry

Fashion physical stores: a place to sell or a place to build trust?

When orders are processed through the app, the physical space has one remaining task: to make customers believe and remember.

Quick summary

As online channels handle most transactions, physical stores no longer exist primarily to sell. They exist to build brand perception. At this point, space is the environment, one of the four elements that create a brand according to Wally Olins. Materials, lighting, scents, and the way staff stand all communicate what the brand cannot express through advertising banners. The design for this role must stem from the brand strategy, not from an interior price list.

The Vietnamese e-commerce fashion market is projected to reach $3.10 billion by 2026 and continues to grow steadily according to Statista. For many brands, especially those that have established a well-structured online channel, physical stores are no longer where most orders are generated. The question arises: if they keep the store, what is its purpose?

Most Vietnamese fashion stores currently answer that question by designing as a transaction point. Products are hung by size, price lists are clearly displayed, promotional screens are shown, and staff stand waiting. This is the architecture of a sales place. However, customers can buy online faster, cheaper, and more conveniently. If it is just a transaction point, physical stores do not have enough reasons to justify the cost of the space.

The new role of space

Wally Olins, who built the theory of modern branding through the book On Brand, identifies Environment as one of the four vectors that create a brand. The other three vectors are Product, Communication, and Behaviour. According to this framework, the physical space is a unique layer of language for the brand. It conveys what the brand wants to say in ways that advertising banners cannot. Whether the materials are real or fake, whether the atmosphere is relaxed or hurried, whether this brand treats customers as buyers or as welcomed guests, all of this is expressed through the space.

Kapferer refers to this physical dimension as "physique," the tangible part that sets the stage for the other five dimensions of brand identity to emerge. If the stage is not right, everything above it becomes empty.

A brand is not a logo. A brand is the gut feeling customers have about a product, service, or organization.

Marty Neumeier, The Brand Gap

In the online era, that perception is largely created on screens. However, screens have limitations that cannot be overcome: they lack smell, temperature, and the feeling of touching fabric. Physical stores are the only places where brands can leverage all of the customers' senses, and that is an advantage that cannot be digitized.

The forgotten touchpoints

Most fashion brands invest in what customers see immediately: signage, mannequins, product lighting. However, consumer behavior research shows that brand memory is often formed by things customers do not consciously notice.

  • Scent: international luxury retail brands use signature scents not for customers to smell, but for them to remember when they are no longer there.
  • Music: tempo and genre directly influence the pace of customer movement in the space and the feeling of relaxation when trying on clothes.
  • Temperature and lighting: fitting rooms are the decisive point for purchases, yet most Vietnamese stores still use cold white lighting and distorted mirrors.
  • Employee behavior: how employees stand, how they approach customers, how they package items, all constitute brand language. Olins categorizes this under the Behaviour vector, equal to visual design.
50 millisecondsThe time it takes for the human brain to form the first visual impression of a space or interface. Source: Lindgaard et al., Behaviour & Information Technology, 2006.

Fifty milliseconds is a thought-provoking figure. Customers walk through the door and their brains immediately categorize: is this place expensive or cheap, trustworthy or not, for them or not. That decision occurs before they touch any product. Good spatial design is about designing for that moment.

When the store becomes evidence

There is an interesting paradox in modern fashion shopping behavior: customers research products online, visit stores to confirm their decisions, and then go home to purchase online. Brands that understand this journey will design stores not to close sales on the spot, but to make online purchases afterward feel inevitable.

This means that physical space needs to be designed to maximize the confirmation experience. Customers can touch real materials, try them in good lighting, and hear explanations from knowledgeable staff. Each of these experiences does not create an order at that moment. But it removes the last reason for skepticism before customers click "order" on their phones.

22%The rate of online fashion returns due to the actual product not matching the advertised images. Source: fashion retail industry report, a commonly cited figure in Asian e-commerce research, 2023-2024.
The figure of 22% returns is widely cited in reports on regional fashion e-commerce. The specific rate varies by segment and platform. Use this figure as a guiding metric, not as an absolute constant.

Well-designed physical stores address that 22% issue directly. When customers have touched the product and find it meets their expectations, the skepticism about online purchases decreases significantly. The store is the brand's proof that does not lie.

Designing spaces from strategy

The most common mistake when investing in retail space is assigning the task to the interior design unit before having a clear answer to the positioning question. A good interior design unit will create a beautiful space. But beautiful according to trends and beautiful according to the brand are two different things.

A local streetwear brand and a high-end minimalist fashion brand can choose the same interior unit and receive the same style of space. This is because that unit is working according to their portfolio, not according to the client's brand strategy. The result: two different stores look alike, and neither conveys anything specific about their brand.

Environment is one of the four ways a brand expresses itself. Ignoring it is not saving; it allows a layer of language to speak for you about things you do not control.

Wally Olins, On Brand

The correct process begins with the strategic question: what does this brand want customers to feel when they enter? Who is the ideal customer for this brand, and what mindset are they in when they arrive? Only then does the design question follow: what materials, what lighting, and what flow of movement will create that feeling.

+32 points%The revenue growth of companies investing in design is in the highest quartile compared to the rest, in a study of 300 companies over 5 years. Source: McKinsey & Company, The Business Value of Design, 2018.

Consistency from screen to store

A practical issue arises when a brand operates both channels: customers are accustomed to online identity, walk into the store, and encounter a completely different space. Different colors, different photo styles, different staff tones. This disruption does not cause public complaints, but it leaves a gap in perception: is this brand real, or just a digital facade?

Marq (formerly Lucidpress) reports through surveys that organizations maintaining consistent brand identity across multiple channels experience significantly higher revenue growth compared to inconsistent groups. It is important to note that this is self-reported data from surveys, not causal research. However, this trend reflects a principle confirmed by Ehrenberg-Bass: consistent identity helps customers remember the brand longer.

Consistency does not mean copying the website onto the walls. It means having the same color palette, the same feeling, and the same tone, interpreted according to the specifics of the three-dimensional space. Customers walk in and immediately recognize: this is the brand they know, not a strange store bearing that brand's name.

This is precisely why retail space design cannot be separated from the overall brand identity system. When they are developed together from the same strategic foundation, physical stores do not compete with online channels but rather enhance them. Every time customers visit the store, the brand is further embedded in their long-term memory.

References

Wally Olins, On Brand. Marty Neumeier, The Brand Gap. Jean-Noël Kapferer, The New Strategic Brand Management. Statista, Vietnam Fashion E-commerce 2026. Decision Lab, Consumer Behavior Report Vietnam 2024. McKinsey & Company, The Business Value of Design, 2018.

Frequently asked questions

Are physical stores still necessary when online revenue is sufficient to sustain?

Necessary, but in a different role. Physical stores are no longer the main revenue channel; they are places that create trust and brand memories that digital channels cannot replace. Customers who have touched products in-store often have a higher rate of returning to buy online and return items less frequently. Completely abandoning physical space means giving up the deepest layer of experience in the brand journey.

How is fashion store design different from conventional interior design?

Interior design addresses questions of aesthetics and functionality. Brand space design addresses the question: what should this space make customers feel, and what behaviors will follow? Every decision, from flooring materials to product display methods, must stem from brand positioning, not from decoration trends. This is why the process must begin with strategy, not with a mood board.

Can a small brand with a limited budget design a physical space as a brand touchpoint?

Yes, and scale is not the biggest barrier. The bigger barrier is the lack of clarity in positioning. When it is unclear what the brand wants customers to feel, a large area or high budget does not solve the problem. A 30m² store with a consistent identity from scent to packaging often leaves a deeper impression than a 500m² flagship that is only trendily beautiful.

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