Why innovative brands are creating new third places
As the boundaries between home and work blur, forward thinking brands are reimagining physical spaces as vibrant new ‘third places’ - transforming retail environments into immersive experiences that go beyond transactions, writes Meredith Cranmer, co-founder and managing director at Because ANZ.
News that Aussie eCommerce giant Adore Beauty is making a bricks-and-mortar play attracted considerable media attention, and for good reason.
With plans to open 25 stores over the next three years, with highly curated product selections, state-of-the-art digital skin analysis, and an experiential space designed to bring beauty lovers together, the stores will be much more than a place to buy products. They will be spaces where customers can engage, learn, and connect.
Our everyday experiences are changing – particularly when it comes to retail. Physical spaces should offer so much more than just a transaction. These environments are quickly evolving into the ‘third space’ – vibrant, communal hubs that bridge the gap between home and work, that offer a welcoming arena for connection, learning, and genuine human interaction.
Urban sociologist Ray Oldenburg coined the term ‘third place’ in his book The Great Good Place to describe social environments that exist outside of home (the first place) and work (the second place). Traditionally, these were cafes, libraries, bars, or gyms – spaces where people could gather, build community, and foster interaction. Today, as lifestyles evolve and work-from-home culture blurs the lines between home and office, the need for new third spaces is growing.
The smartest brands are recognising this and transforming physical retail, in the case of Adore Beauty and others such as Lululemon and Apple, into more than just transactional spaces, turning them into living, breathing experiential spaces through deliberate brand activation.
At its core, brand activation is about creating meaningful interactions between a brand and consumers, interactions that are best and really only achieved in real life. As our digital lives intensify and the lines between personal and professional blur, innovative companies are reimagining physical spaces, and it doesn’t just have to be in bricks and mortar, to serve a similar purpose. I’ve seen firsthand how these new environments are being designed with intentional experiences in mind – spaces where digital meets personal engagement.
Airlines seem particularly cognizant of leveraging digital and physical. Virgin Airlines launched a 1 Point Rewards Store in Melbourne that saw hundreds of people take advantage of spending just a single Velocity Point on more than 1,000 rewards. Qantas Frequent Flyer has also done something similar at Melbourne Airport with an in-airport activation to explain how members could redeem their points.
What is truly exciting is the power of these real-life experiences. They’re not just about showcasing products or services, but about creating memorable moments. From immersive masterclasses and product showcases to exclusive loyalty gatherings, each serves as a catalyst for deeper connections. These approaches transform a simple visit into an opportunity to engage, learn, and even celebrate shared passions. And while online interactions are convenient, nothing quite compares to the sensory stimulation and emotional resonance of being in a space designed to spark curiosity.
Physical spaces are a stage for storytelling and education. They invite us to step away from the routine of shopping and immerse ourselves in a narrative that connects us more deeply with the brand, transforming casual visits into unforgettable experiences.
Meredith Cranmer
But the magic doesn’t end there. When the digital world meets the physical, the result is a powerful customer experience loop. By blending online insights with in-store behavior, brands can tailor interactions to each customer’s unique preferences. Imagine walking into a store where your online shopping habits inform a personalised experience, creating an environment where data drives a more intuitive and engaging service. This seamless integration of clicks and bricks not only boosts loyalty but also crafts a journey that resonates on both a personal and memorable level.
As brands such as Adore Beauty integrate physical and digital experiences, we’re witnessing the emergence of a transformative new third space. Transcending the traditional notion of a shop, they offer a focal point where customers can step away from the screen and immerse themselves in collective experiences that are as memorable as they are meaningful.
These innovative spaces create a powerful loop of engagement that not only drives loyalty, but ultimately sales. Where the boundaries between home and work are increasingly blurred, these evolving third spaces remind us that genuine human connection is irreplaceable.
Related Content
SUBSCRIBE
Sign up to our free daily update to get the latest in media and marketing.
Brilliant piece Meredith,
These companies have challenged a reluctance by Australian firms to innovate ..we seem to operate with the axiom . “we will only experiment if we know it works” .. well done to these firms.