3 anjini v dugal ma buying class 1 thesis

Changing shopping experience to attract new customers

By Anjini V Dugal/MA Contemporary Fashion Buying /5th June 2018/ Word count:3000

CONTENTS

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1. Abstract

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2. Aims & Objective 3. Literature Review 3.1 Understanding the customer in 2018 6 3.2 Problems faced by customers 10 3.2.1 Lack of emotional connect 3.2.2 The paradox of choice 3.2.3 Unsure Customers 3.2.4 Value for time 12 3.3 Solutions offered by retailers 14 3.3.1 Encouraging emotional investment 1. Customisation/personalised service 2. Converging digital & physical 3.3.2 Less is more 3.3.3 Increasing customer confidence 16 3.3.4 Quicker shopping experience 1. Smart Mirror 2. Frictionless checkout 3. Interactive play: experiential retail 18

4. Research Methods

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5. Conclusion

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6. References

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1. Quantitative Annalysis 37 2. Qualitative Annalysis 45 3. Customisation 55 4. Augmented Reality 56 5. Smart Mirror 57 6. Experience becomes product 58

http://www.tomjellett.com/editorial/

7. List of illustration 8. Bibliograpghy

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9. Annexure

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As Issey Miyake once said “ Many people repeat the past. I’m not interested. I prefer evolution.”

The same applies to today’s dynamic customer who is always looking for something new, forcing retailers and developers to constantly improvise and produce one of a kind experiences. This paper focuses on highlighting the changing shopping experience that retailers are creating in order to attract new customers.

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ABSTRACT

The methodology relied on for this report was online research, which was further supported by primary research, within which both quantitative and qualitative methods were used by sending out questionnaires as well as hosting a focus group. The results from both demonstrated, that customers look for innovative, exclusive and customized experiences while shopping.

Sustainability and digitalization are key trends that are evolving at a rapid pace to shape the future. Digital touchpoints in a store are still a relatively new concept for customers who are inclined towards the idea but still like the emotional connection created by a person involved, at the same time not always thus a balance between the two is what they actually seek.

Like any other industry the retail industry has been continuously evolving, however, its transformation is far from over. Examples range from everyday items to high-end fashion. In Rebecca Minkoff’s flagship SoHo location, shoppers can now interact with a huge wall display to browse styles and send them to the dressing room. On the other end of the spectrum, Domino’s lets you order a pizza by tweeting a pizza emoji and Amazon’s new Dash Button lets you re-order dish soap while doing the dishes. These present-day examples are just a hint as to what the future of commerce will look like. The most exciting experiences will be powered by technology that we haven’t yet considered, and sprout from teams of developers based anywhere in the world (ClarkJul, 2015).

While it is impossible to change the shopping experiences overnight, it is quite reasonable to want to make a change. For which, developers and brands are working day and night to create a seamless experience for their customers.

Fig1: Clockwise Emoji ordering Dominose, Teachnoloy takeover, Rebecca Minkoff’s flagship SoHo location.

Key Words: Technology, experience, social media, frictionless, resale, e-commerce, m-commerce, omnichannel.

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The aim of this report is to analyze changing shopping experiences in order to attract new customers.

To understand how shopping experiences are being redefined, their causes and the impact they have on society by highlighting the needs of different customer groups.

The objective is to understand and create awareness about the changing shopping experiences.

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AIMS & OBJECTIVES

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3.1 Understanding the customer in 2018

Generation z Charecteristics

Brand-savvy, fashion-conscious shopper, super active on social media

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LITERATURE REVIEW

Behaviour

Obsessed with newness, exclusivity and one-off retail experiences.

Attracted to the FOMO-inducing nature of drop shopping – where a brand or retailer releases a (much-hyped) limited edition item or collection sporadically, usually announced online via social media at very short notice.

How to reach them Capitalise on the hysteria generated by drop culture by partnering with other companies to create FOMO-inducing, multi-layered events.

Use social media to create a buzz Creating a sense of scarcity by releasing limited edition items will help to regain excitement in a stagnant brand, while mass retailers should look to exclusive collaborations with streetwear labels, one-day pop-up shops, and FOMO-inducing activations to engage these experiencehungry, brand-savvy consumers.

Exclusivity - want to be seen as the first to own a unique item (and to show it off on social media).

Fuelling the resale industry - looking to make money

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Millennials Charecteristics

Poorest generation to date (student loans...)

Boomers

Behaviour

How to reach them

More interested in spending Ethos dedicated to quality and savings their money on experiences.

Try-before-you-buy initiatives, as well as charitable or sustainable Value-conscious - willing to missions try out new brands as long as the price is right.

Mass retailers should consider investing more in a private-label strategy Fuelling the resale industry With mindful -  cash-strapped, eco-conscious sustainable Millennials shaping the future of resale, more initiatives such as shoppers.

Luxanthropy, a website that enables people to resell their fashion items and contribute a portion of the proceeds to charity.

Charecteristics

Behaviour

Not only living longer but are living more active and digitally connected lives.

Combine online and offline with many taking time out to browse in malls or department stores to check the quality of an item before making a decision.

How to reach them Brands should not think of old age as a separate entity but as a continuation of a rich and creative life.

Think female first. On average, women live longer than men, so product and tech developers should think about designing with women in mind as the default user.

Retailers must ensure they are servicing this demographic They seek products that are age-appropriate without seamlessly across all channels. feeling old, and look for size consistency and availability in store, while quality is also a key purchase driver.

Table 1: Understanding the future customer Source: Made by author Based on (Saunter, 2018), (Wgsn, 2018), (Spiegel and Barr, 2018)

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3.2 Problems Faced By Customers Over the course of both primary and secondary research, the following problems faced by the customers during a shopping experience were highlighted 3.2.1. Lack of an emotional connect Even though technology is rapidly changing retail shopping with the prediction of Robots eventually replacing human workers in the retail industry, as per Richard Liu, chief executive of Chinese e-commerce company JD.com, it will still take another decade for technology and shoppers to be ready for fully automated stores (Berezhna, 2018: Online). Also highlighted in the primary research (refer annexure 1&2) customers are not so comfortable with a fully digitalized experience and like to have an emotional connection that is brought in by a human person but in limited measures only.

3.2.2. The paradox of choice When confronted with too many options (many of which irrelevant), consumers will opt most often to make no purchase at all. This is increasingly putting pressure on retailers to increase visibility and collaborations, Instagrammable stores are just a few strategies leading the way in that direction.

Collaborations provide an opportunity to share manufacturing and marketing resources while leveraging each brand’s reputation to increase consumer exposure. Rewriting the rules of collaboration for a new, Instagram-obsessed generation of consumers, who are increasingly demanding real meaning from the things they buy. Some retailers are choosing to align with competitors, creating new and convenient options by generating variety and incorporating a surprise element while others indulge in Artistic collaborations (Barneys X Martha Graham Dance Company) and some exploit, nostalgia-driven collections – like that of Opening Ceremony and Disney, Bloomingdales, and Nintendo, or Christian Louboutin and Star Wars (Chiquoine, 2018: Online).

On the other hand, Instagrammable Stores are a great way to attract experience-hungry consumers by encouraging discovery and interaction with products in new, interesting ways using experimental elements, such as product trials and VR, to create memorable and sharable in-store moments (Yee, 2018: Online).

Fig 6: Clockwise Supreme X Photographer Nan Goldin, Source: www.refinery29.com/ Human VS Tech, Source: www. hrmagazine.be/ Opening Ceremony X Disney Source: www.harpersbazaar.com/ Instagrammable stores Source: www.wgsn.com

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3.2.3. Unsure customers Even with the steady growth of e-commerce customers are still not as confident in a purely online purchase. An online study by Statista.com on E-commerce worldwide e-retail made for only 12.1 percent of retail sales In Asia Pacific (statista.com, 2018: Online). As they like to physically try on a garment because of the unsurety of size and quality when buying online or get advice on how they look (refer Annexure 2).Thus retailers are actively working on building customers confidence as they become less loyal and tend to buy the product and not the brand.

3.2.4. Value for time Today everyone seems obsessed with the idea of making the most of one’s life: the popularity of motivational books and life-style coaches is incredibly high. Even though online shopping makes it easier to find the needed item, it still requires lots of time. The process becomes even slower if you are looking for the best deal on the market. Meanwhile, Programs such as AI-Driven Blockchain Platform - Eligma offers a simple and effective solution for making the most of everyday shopping, by Discovering the product for you, optimizing the shopping experience , managing the inventory & rewarding for shopping (Sayapina, 2018: Online).

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3.3 Solutions Offered By Retailers 3.3.1. Encouraging Emotional Investment 1. A customized/personalized service Customers especially Generation Z and Millennial’s want to feel special they want to stand out from the crowd by owning distinctive and unique products that they participate in creating (Marian, 2017: Online).

This was evident in the primary research (refer Annexure 2), when asked if the group would buy a simple sweatshirt, not all were convinced, however, as soon as customization was introduced almost all were ready to buy the garment. Even though customized goods come at a higher premium, customers do not making the “emotional investment “making a great way for retailers to instigate impulse purchases (Marian, 2017: Online). Retailers are starting to look to in-store on-demand manufacturing that allows customers to co-create a garment with a perfect fit. Adidas led the way with a pop-up store in Berlin last March (refer Annexure 3)

Northface

2. Converging digital & physical The way we shop is changing, websites are behaving more like stores and stores like websites. With customers not fully being comfortable with a totally digitalized experience retails are increasingly trying to make them more comfortable by converging digital & physical touch points in every step of the way (The Store of the Future, 2015). A real challenge faced by e-commerce brands is to get their users through the entire purchase funnel without losing interest. In fact, 70% of shopping carts are abandoned before completing the check-out process. A major reason for this would be the lack of any emotional connect as highlighted in the primary research (refer Annexure 2). Certainly, strategies such as customer reviews can be effective, but the key ingredient is someone helping the buyer through each stage with confidence. Introducing personal shoppers online that can guide users via chat is a great way to help them find what they want while staying engaged. However, this solution is extremely expensive at scale.

The North Face is combining the power of big data and artificial intelligence (AI) to tackle this issue and close the gap between in-store and online shopping for consumers. In collaboration with Fluid and IBM Watson, the brand launched an AI-powered personal shopper called XPS. Essentially, the tool acts as a digital brand expert, helping users navigate the online experience like a sharp in-store sales associate (Sanz, 2017: Online).

Zara

Mon Purse

Mon Purse

3.3.2. Less is more Less is more is something extremely important in retail. Customers especially ones who do not know what they want and are unable to make a decision are further confused with too many choices. While Artificial intelligence can execute an initial curation, limiting the set of choices for them while still allowing him or her to be in control of the final decision (Sanz, 2017: Online) initiatives such as Zara’s latest Pop up store in Milano offering limited options and converging online and offline seem to be attracting customers even more (refer Annexure 1).

Fig 8: Clockwise Northface personal shopper, Mon Purse, working with local artists, customising its monogrammed products with painted motifs chosen by customers,Zara Boutique.

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3.3.3. Increasing customer confidence It is predicted that in 2018 more than 10070 million will actively use VR. Thus there is a huge opertunity to engage with products virtully (Omnichannel: Retail (R)evolution | Kilian Wagner | TEDxHSG, 2017).

This was also confirmed through the primary research, 58.8% of respondants would defiantly purchase something online if they were allowed to virtually try on something (refer annexure 1&2). With the rapid growth in technology, this is also made possible with Augmented reality (AR) which is fun for users, but it also provides real benefits. Over 60% of consumers say AR can improve their daily lives, including how they shop and is predicted to attract 1 billion users by 2020 (Quoc, 2018: Online). As a result brands such as, Lowe’s, Adidas, Sephora, Anthropologie, and L’Oreal are among a few to have acknowledged this need and developed suitable solutions using AR applications which are not only growing in popularity but are predicted to reach $108 billion in market size by 2021 (Carroll, 2018: Online), (refer Annexure 4).

3.3.4. Quicker shopping experience Retailers have attempted to make the process faster by not only eliminating long queues for trial rooms as well as the cashier but also making the store experience worth their while by providing customers an experience encouraging them to spend more time.

1. Smart mirrors Intel’s internal research found that a whopping 73 percent of the time, consumers browse online but then buy in a store. When this happens the customer actually wants to make a purchase and will be extremely disappointed to be forced back online. The search also found that people only go into a dressing room once and get undressed once. If they can’t get the right size and the right fit and they leave the dressing room, it’s very hard to get them to go back into the dressing room a second time. This, for retailers, is a problem they’re increasingly looking to solve with technology (Apte, 2017: Online). Enter: the smart fitting room, making the process not only faster but also helps engage customers and keeps them interested eliminating any extra interaction with sale staff as well.

Why the push? Shoppers who use dressing rooms are seven times more likely to make a purchase than those who just browse the sales floor (Townsend, 2017: Online). Also, primary research indicated that long lines for trial rooms or any extra interaction with sales staff sabotaged the shopping experience for customers (refer Annexure 1&2). Brands such as Zara,OVS, Ralph Lauren have incorporated these in some of their stores (refer Annexure 5).

2. Frictionless checkout Primary research suggested that customers are bound to have a bad shopping experience incase there are long lines for the cashier (refer Annexure 1&2). As a result retailrs are offering a frictionless shopping experience that incorporates checkout and payment options, real-time customer service, and incorporates consumers’ delivery preferences with some even introducing their own wallets (wallmart pay).

Clockwise - Fig 9: VR, Ralph Lauren smart mirror, Fendi & Sepphora virtully try products, Starbucks frictionless payment.

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3. Interactive Play: Experiential Retail Strategies With customers tending to spend less time in stores due to leading extremely busy lives. Brands are enforcing experiential retail strategies to make them stay longer and make the visit worth their while.

Take for instance Starbucks ’ customers are fully aware of the price they are paying for the coffee, but do not seem to mind as they like spending time there due to the comfy chairs, free Wi-Fi, and relaxed decor.

Customer preferences have changed immensely take for instance the Millennials, they aren’t as materialistic as previous generations: an Eventbrite study conducted by Harris Poll in 2014 found that 78% of them would prefer to spend money on a desirable experience or event over a desirable object. It undoubtedly has something to do with social media, which has upended the conspicuous element of consumption. Why spend a lot of money on an expensive watch when you can spend the same on multiple photogenic meals and yoga classes that will do more for your Instagram follower and likes count (Dhillon, 2018: Online)?

Aland flagship store

During tough times, brands are encouraging customers to have fun in-store, with a resurgence of gamification strategies and immersive displays that promote interaction. Brands are experimenting with games and prize giveaways, interactive displays which respond to brain signals and movement, as well as playful experiences inspired by childhood nostalgia to appeal to stressed-out consumers who want to be entertained or those who crave more emotional in-store experiences. as well as providing great visuals for social media. Some examples • The Aland flagship store in Seoul features a ball pit display which shoppers have to walk through to reach the products.

• Printemps in Shanghai and the Big Fashion mall in Belgrade both feature a giant slide that takes shoppers from the top floor to the ground level.

• Sephora’s new flagship in Barcelona brings new meaning to its “Play, Share and Shop” philosophy – customers can choose to go down a slide instead of the escalator (Saunter, 2017: Online),(refer annexure 6).

Fly Pony

Clockwise - Fig 10: Aland flagship store in Seoul, Beauty brand Shiseido - interactive light show - Ginza, Tokyo, Big Fashion mall, kids store Fly Pony - Shanghai, children can draw on whiteboard surfaces and move magnets around the fixtures to create their own patterns.

Shiseido

Big Fashion mall

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The significance of this report is the online research done to meet the following research objectives – 1. Understanding customer needs • What they want • How their needs can be satisfied 2. Changing shopping experience • Major transformations • Key drivers • Present & Future The primary data was collected in order to find out, the shopping habits of people globally. The data was collected within the months of April-May 2018 through quantitative and qualitative methods. The strength of the research was the vast information available on the topic however the weakness was that an experience is different for each person as every individual has different tastes and wants thus it is difficult to come to a conclusion.

Quantitative Method - A questionnaire was circulated to analyze the above-mentioned research objectives. The survey was voluntary and anonymous.

Sample Size: 80 Male: 33 Female: 47 Other: 0 Sample Unit: Under 18 - above 53 years

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RESEARCH METHODOLOGY

Qualitative Method - A focus group discussion was held amongst students from various fields. The discussion was on the prevailing shopping experiences and how they as a generation perceive them.

Group Size: 5, Female Sample Unit: 20 - 22 years Both types of research indicated that customers are still not comfortable with a 100% digital shopping experience and want a bridge between both online and offline. The rise of m-commerce is prominently visible while applications are on the decline. Customers are continuously looking for an exclusive more innovative and personalized experience with customization continuing to be in high demand. Value for time and money is a key driver for influencing their shopping decisions.The importance of web-rooming is growing as now customers tend to search for products online through Instagram or e-commerce websites to find inspiration for their purchase offline. Sustainability is an important factor but customers still believe they lack the knowledge and exposure towards it as only a handful of brands have applied the concept and emphasize on how the big brands should incorporate it by reusing past collections or fabric innovations. By doing so consumers will get more and more aware and comfortable with the idea as they are still not 100% comfortable in using second-hand clothing but have slowly warmed up to the idea of bags, shoes, and accessories. The hype created by drop shopping - limited additions is a key factor to influence purchase. With people becoming more and more busier costumers look for a quick experience and overcrowded stores or long lines for the cashier or trial rooms are not ideal situations.

All in all, customers want to feel special they want an experience that is tailored especially for them. Game inducing or other hyped experiences that create excitement influence customers to shop more,(refer annexure 1&2).

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CONCLUSION - THE FUTURE-

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The next frontier is “Commerce Everywhere,” which blends online and offline experiences to let you make purchases wherever and whenever you want (ClarkJul, 2015: Online). As highlighted in a Ted Talk by speaker Kilian Wagner only four members of an audience of around a hundred bought their eyewear online. Suggesting that people still tend to prefer buying more complicated products at brick and mortar stores. People do not just trust one channel and thus the combination of different channels is the key to the future. For instance, apart from being an online giant Amazon creates pop-ups mainly for its gadgets such as the Echo allowing customers to feel and experience the product (Omnichannel: Retail (R)evolution | Kilian Wagner | TEDxHSG, 2017).

Technology has transformed entire industries over the past decade, not leaving commerce off its wagon. It has been the reason we no longer have to just go into stores to buy products and it is the future (Halliday, 2018: Online). However, customers interest in better technology isn’t just about the headline-grabbing elements such as augmented reality. They want to see improvements in things like one-click online shopping and also in terms of security and want technology that would improve this while making them feel safer when buying online. Artificial intelligence-based chatbots allowing customers to get instant answers to the questions as well as facial recognition are on a rise and will further impact future customer engagement (Halliday, 2018 :Online).

In the Future, the industry will continue to evolve and retailers will face challenges as they address a highly competitive marketplace and adapt to changing consumer preferences and expectations (Bell, 2018: Online). Online will be smarter engaging interactive more emotional shopping while offline will be a place for more than just sales (Omnichannel: Retail (R)evolution | Kilian Wagner | TEDxHSG, 2017). As the experience economy becomes more saturated, people want deeper connections with brands. From Watch Now, Buy Now to the rise of flash-markets, companies will need to create meaningful moments to drive awareness and create sales. It’s less about marketing to consumers and more about mattering to people. How companies embed their values into the value chain will be the difference between growth and stagnation in 2020 (Bell, 2018:Online).

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REFERENCES

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• Murray, b. (2017). adidas pop-up store knits bespoke garments based on a scan of your body. [online] designboom | architecture & design magazine. Available at: https://www. designboom.com/technology/adidas-knit-for-you-03-22-2017/ [Accessed 9 May 2018].

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On the Cover Source: https://www.businessoffashion.com/articles/china-edit

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LIST OF ILLUSTRATIONS

Page no. 1 Fig 1: From interactive mirrors at Rebecca Minkoff’s flagship SoHo location to Domino’s emoji ordering, the changing dynamic of retail Source: https://in.pinterest.com/pin/183521753542961242/ Source: http://stealmag.tumblr.com/post/103881879800/ebay-and-rebecca-minkoffconnected-store-shows Source: http://databraineo.de/coding/coding-the-last-mile/ Source: https://medium.com/anxy-magazine/anxy-the-magazine-for-your-inner-worldsdf3abf086e7e Page no. 3 Fig 2 : https://www.theodysseyonline.com/3-scarves-that-will-keep-warm-this-winter Page no. 5&7 Fig 3 : Customer - Gen Z Made by author Based on Source: http://beyondrealitynews.com/2017/09/14/kids-these-days-its-time-to-stereotypegeneration-z/ Source: https://hommes.my/style/fashion/louis-vuitton-x-supreme-pop-up-stores-aresending-fans-into-a-frenzy/ Fig 4 : Customer - Millenial Made by author Based on Source: https://in.pinterest.com/pin/537687643002305110/ Fig 5 : Customer - Boomer Made by author Based on Source: https://in.pinterest.com/muruyan/mme-hi-fashion/?lp=true Source: https://www.thetimes.co.uk/article/maye-musk-older-and-bolder-lp75xvgd7

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Page no. 9 Fig 6: Supreme X Photographer Nan Goldin , Human VS Tech, Opening Ceremony X Disney & Instagrammable stores Made by author Based on Source: https://www.refinery29.com/2018/03/194729/supreme-nan-goldin-collaboration Source: https://www.hrmagazine.be/nl/artikels/detail/werk-op-mensenmaat Source: https://www.harpersbazaar.com/fashion/fashion-week/a19178586/openingceremony-disneyland-fashion-show-2018 Source: https://www.wgsn.com/content/board_viewer/#/77934/page/1 Page no. 11 Fig 7: Unsure customer, Value for time Made by author Based on Source: https://in.pinterest.com/pin/570620215266813072/ Source: https://raisedgardenbed.club/read/retail-merchandising-jobs.html Source: https://in.pinterest.com/pin/371969250467288301/ Page no. 13 Fig 8: Northface personal shopper, Mon Purse, working with local artists, customising its mongrammed products with painted motifs chosen by customers, Zara Boutique.

Source: https://www.thenorthface.com/xps Source: https://www.wgsn.com/content/board_viewer/#/73709/page/6 Source: https://www.wgsn.com/content/board_viewer/#/73709/page/5 Source: www.zara.com/it Page no. 15 Fig 9: VR, Fricktionless payment & Smart mirror Made by author Based on Source: https://mobile.twitter.com/sammz23/status/933973341928648704 Source: https://in.pinterest.com/pin/289426713548434146/ Source: http://www.markethings.net/de-toekomst-van-het-shoppen/ Source: https://medium.com/@ryanmitchellgreene/can-you-feel-it-augmented-realitygeofencing-and-marketing-tech-in-2017-50fea9d9bd0c Source: https://www.wgsn.com/content/board_viewer/#/65189/page/1

Page no. 17 Fig 10: Aland flagship store, Beauty brand Shiseido - Ginza, Tokyo, Big Fashion mall, kids store Fly Pony - Shanghai.

Source: https://www.wgsn.com/content/board_viewer/#/76388/page/2 Source: https://www.wgsn.com/content/board_viewer/#/76388/page/4 Source: https://www.wgsn.com/content/board_viewer/#/76388/page/6 Source: https://www.wgsn.com/content/board_viewer/#/76388/page/7 Page no. 19 Fig 11: Trapped by technology Made by author Based on Source: https://in.pinterest.com/pin/501729214718600976/ http://www.artmargins.com/index.php/3-exhibitions/105-foto-modernity-in-centraleurope-1918-1945Page no. 21 Fig 12: Shopping behaviour Source: https://www.in.pinterest.compin/31806741089642569/ Page no. 23&25 Fig 13: Work Source: https://in.pinterest.com/msimcox4440/claire-rollet/?lp=true Fig 14: Consumarism Source: https://www.pinterest.co.uk/pin/66568900715991058/ Page no. 27 Fig 15: Illustration Source: https://www.piuarch.it/index.php/it/les-hommes-boutique Page no. 33 Fig 16: Write Source: https://in.pinterest.com/pin/308918855663872386/?lp=true

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ANNEXURE 1 Page no. 37 Fig 17: E-commerce Source: https://thetech.site/read/goal-setting-categories.html Page no. 38-44 Fig 18-29 : Researchers own ANNEXURE 2 Page no. 49 Fig 30: Pink Sweatshirt Source: AliExpress.com Fig 31: Store 1, Traditional retail Source: Retaildesignblog.com Fig 32: Store 2, Interactive Source: in.pinterest.com Page no. 51 Fig 33: Sephora Source: https://www.pinterest.com.au/pin/415949715577586672/ Fig 34: C&A Sustainability Source: https://fashionunited.de/nachrichten/mode/c-a-bringt-erstes-kompostierbares-tshirt-heraus/2017051222241 Fig 35: Tiffany’s Cafe Source: https://www.timeout.com/newyork/blog/you-can-literally-have-breakfast-at-tiffanysat-this-new-cafe-111317 Fig 36: Ikea App Source: https://www.engadget.com/2017/09/12/ikea-place-augmented-reality-app/ ANNEXURE 3 Page no. 55 Fig 37: Adidas Knit For You Source: pinterest.com.au Source: adidasknitforyou.com Fig 38: Store: Alpstories Source: https://www.wgsn.com/content/board_viewer/#/65940/page/4

ANNEXURE 4 Page no. 56 Made by author Based on Fig 39: Augmented Reality China Police smart glasses Source: https://firre.net/chinska-policja-i-specjalne-okulary/ Converse Virtually try Source: https://www.freshnessmag.com/2010/12/07/the-sampler-by-converse-augmentedreality-iphone-app/ Ikea App Source: https://www.networkworld.com/article/3184071/consumer-electronics/newopportunities-for-augmented-reality.html ANNEXURE 5 Page no. 57 Fig 40: Mango X Vodafone - Trial rooms Source: https://internetofbusiness.com/retail-iot-vodafone-digital-fitting-rooms-great-fitmango/ ANNEXURE 6 Page no. 58 Made by author Based on Fig 41: Experience is product Apple’s ‘Town Square’ Store of the Future Source: https://www.businessoffashion.com/articles/bits-bytes/bits-bytes-apples-townsquare-store-of-the-future-amazons-big-fashion-plans House of Vans,London Source: https://www.wgsn.com/content/board_viewer/#/76388/page/4 Amazon Treasure Trucks Source: https://www.wgsn.com/content/board_viewer/#/76388/page/3

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Fig 16

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A questionnaire was framed for this purpose and distributed amongst 80 people.

The target audience were male and female that fall in the age group of under 18 to above 53.

The result of the questionnaire in relation with research objectives were as follows.

1. Research Objective - Lifestyle Evaluation Q1. What is your gender?

Q.2 What is your age?

Q.3 What is your profession?

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ANNEXURE 1. Quantitative Research Fig 17

38

2. Research Objective - Shopping Habits Q.4 How often do you shop for clothing?

Q.6 Do you prefer shopping for clothing online or offline?

• Weekly • Monthly • Yearly

• • •

ANALYSIS: Majority of the respondents i.e. 64 out of 80 shop on a monthly basis for clothing.

ANALYSIS: 61% of the respondents prefer shopping both online and offline for clothing.

Q.5 What is your monthly expenditure on clothing?

Q.7 While shopping or browsing online which of the following do you prefer?

• • • •

• • •

Less than € 100 € 100 - € 200 € 200 - € 300 € 300 and above

ANALYSIS: Majority of the respondents i.e. 60 out of 80 spend between less than €100 to around €200 on a monthly basis for clothing.

Online Offline Both

Website - desktop Website - mobile Application

ANALYSIS: 40% of the respondents, making it the majority prefer shopping through the mobile version of the websites. Indicating it as a potential channel for the future. On the other hand applications are the least preferred with only 18 out of 80 respondents favoring it.

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Q.8 Do you often find yourself seeing something (clothing or apparel) at a physical store and then buying it online?

• •

Yes No

Q.10 Would your online purchase be influenced if you could virtually try products before committing to buying them?

• • •

Yes, would definitely buy No, still would like to go to a physical store Maybe, doesn't matter to me

ANALYSIS: Majority of respondents i.e. 58.8% do not consciously participate in the practice of show rooming.

3. Research Objective - Changing experiences Q.9 Are you more likely to visit a store and purchase something physically if value added services such as a personalized experience are provided without any additional fee?

• • •

ANALYSIS: If respondents are allowed to virtually try on something 58.8% of them would defiantly purchase something online.

Yes No Maybe

ANALYSIS: A personalized experience at a physical store is something that would make majority of the respondents i.e. 48 out of 80 visit a physical store and purchase offline.

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Q.11 A bad experience in a physical store for you would be ?

Q.12 What do you expect from a retail experience, online or offline?

• • • • • •

• • • • • •

Overcrowded stores Improper product presentation Bad service Store ambience Bad packaging Long queues for trial and cashier

ANALYSIS: Long queues for trial and cashier as well as overcrowded stores are most likely to sabotage the experience of majority of respondents at a physical store.

Value for time &money Personalized service Creative Packaging Less interaction with sales staff Surprise element Innovative layout

ANALYSIS: Majority of respondents i.e. 83.8% expect a retail experience that is focused on value for time as well as money. While a personalized service is the second most expected 33.8%.

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2. Qualitative Research A focus group discussion was held with 5 female students from different fields between the age of 20-22.

The main aim was to analyze the thought process of the target audience and their take on the prevailing shopping experiences. The questions were asked keeping this in mind and they were shown images as well as a clipping.

Q. Are you more active online or offline when it comes to shopping? Why? If you could virtually try the product would you shift online?

Naomi: For accessories, bags prefer online but for clothing, have to try in the shop and normally buy there as want at the moment. Even if easy returns prefer buying at the store. Like to see myself in the clothes. Sometimes seen on the web and very beautiful but when you try very different.

Like the concept of virtually trying especially for cosmetics as do not like to try the things on the face (cleanliness)so digital try yes. As sales assistants sometimes give advice so digitally can see for myself and buy without trying.

Naomi Figueroa Spain, 21 years Engerering student

Mai Suzuki Japan, 22 years Communications & fashion styling student

Chloé Colleoni France, 20 years Economics student

Maria Mundaca Zagal Peru, 22 years Communications & fashion styling student

Aakriti Khurana India, 22 years Fashion styling & product design student

Q. Discuss the video titled “The Store of the Future”. https://www.youtube.com/watch?v=IKouQFI1aM4 Points of discussion The concept Have you heard or seen something like this before Naomi: A friend had worked on something similar for a project but never seen.

Maria: Can relate to supermarkets, self-service but never experienced or seen before in fashion.

Aakriti: Heard allot about such interactive methods but haven’t seen.

Chloe: Never heard or seen. A completely new concept.

Maria: Prefer going to stores buy stuff in person.

Loves the concept of Zara boutique, as does not like buying online too much but there can see, try and touch, the experience is a little bit different. Go for seeing offline and then buying online.

Likes the mix between the offline and online like the experience created by Zara boutique. Does not mind waiting longer to receive the product through online even if visited the store.

Aakriti: Agrees with all the points.

Prefer to see something for real than buy online.But sometimes do buy online when feel that the website is popular and can trust it. But mostly prefer buying physically.

Chloe: Online, because always change my mind and when buy online can easily return the products and be refunded. Finds it easier as does not really like shopping so easier.

For makeup not digitally, if know the product already then maybe online.

Mai: Like to go to a store as like to try it on. Also, for example, the color is different in the picture than reality. So prefer seeing real by going to the store.Sometimes, when was in Japan liked a brand from California but could not buy instore so order online.In such cases buy online.

Buy basically like going to the shop.

Mai: Very new.

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Q. What do you expect from a shopping experience both online and offline?

Q. A shopping experience that is most memorable to you?

Naomi: Online - Size of models, photos, depends on the store. Reviews very important. Help on the page. Packaging very important, should be good, sometimes clothing comes wrinkled.

Naomi: When you don’t have to wait because sometimes stores are full and people are too busy to help don’t like, or the clothes are in piles untidy do not like.

When people come to you when you enter like in Kiko great and tell you about offers, kind staff.

Very organized, helpful people.

Offline - alone, take my time if doubt – kind helpful, size get check asap, size does not there tell you similar.

Person, explain the why. A robot cannot know you as a person more attraction with a person Maria: Online – Total look sometimes just for shoes but like the clothes too so should be easy to find. Reviews diff for fast fashion, too quick change. Live chat with a style advisor very important.

Offline- no one to bother sometimes just go to see, help then nearby, do not like to be pressured.

Digital help - easy no conversation quickly.

Aakriti: Online – size issue, model size imp, measurements of garment clear and precise. Quality assurance – most afraid of that because expect something and get something. Some websites have a style adviser but never works. If that worked would be amazing. Shein(website) bad returns very difficult, will never order again, maybe recommend but warn them to be careful.. returns are very important.

Maria: Something new very different the new Zara boutique, like a normal store but does not have like thousands and thousands of garments with limited options to pick from and buy online. More exclusive, easy. Continuous changing innovating keeps your attention Aakriti: Always like the extra service provided for example Kiko started customization for lipstick cases or brushes.Loved the idea, great marketing strategy by the brand.People were going crazy over it. Even if lipstick not that great wanted the survey. Changing shopping bags during festivities. See the bag and would want to go to the store.

Chloe: Never go shopping. When in Italy go to stores because not my country, not my house so afraid to order online also shops near here. In France, not near shops so easier to order online.

Mai: Some stores have special packaging, a special bag like how they pack the clothes really like eg victoria secret.

Offline – like assistant especially makeup. Generally, assistants are too busy even if have size say no.

Robots artificial, person to assist. Artificial mirror like that but person with you, a mix of digital + personal.

Chloe: Online- good photos with just clothes, size of the model – imagine what it looks on me.

Easy and free returns.

Offline – shop online Makeup in person, maybe in clothing prefer digital Mai: Online – Delivery issues say 5 days but comes later not good, damaged or totally different goods. Would want easy returns.

Offline – product diversification, new etc see everything, see by myself.

Person converstaion digital no converversion. No information

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Q. Which of the following stores are you more likely to visit, spend more time in?

Q. Would you buy this product if everything is what you want i.e price, quality..?

Have you been to such a store (2)?

Naomi: Do not like, not my type Maria: Like it, my style.

Aakriti: Would buy it Chloe: Would not buy Mai: No would not buy Q. What if I tell you its a limited edition?

Naomi: Still no

Fig 30

Maria: Will always buy because love it. But would be more persuaded to buy.

Fig 31: Store 1 Traditional retail

Fig 32: Store 2 Interactive Mirror

Aakriti: Would get a bit more attracted Chloe: Would not buy Mai: Would buy

Naomi: More curious for the Interactive one and would prefer it.

Maria: Would prefer to visit the traditional store. , too complex

Q. And if I tell you can have it customized?

Naomi: Still no Maria: Will not be affected Aakriti: Would definitely Chloe: Would buy Mai: Would buy

Aakriti: Would prefer the digital one as this is what our future is about.Recently visited design week and products, in general, are getting so digital. Would prefer the mirror, but a mix of the two someone to assist in person as well.

Interactive, balance between the two.

Heard so much about the mirrors but haven’t seen, really want to see.

Should be balanced, if completely digital then lie a zombie Chloe: Once just to see the digital, but otherwise traditional.

Too digital, complex Mai: Prefer going to the traditional one because the digital one often has problems, not a digital person, one-time thing.

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Q. How do you search for a product to buy?

What influences your purchase? If a brand does not have an online website would it affect your perception of the brand?

Naomi: Would check online and then go to the store.

Some stores do not have online.

An online site is very important, sometimes home & want to see the new things that have arrived easier to see rather than going to the store just to see not necessary to buy.

Fig 34 Fig 33

Maria: Would just go to a store, walk around and find something.

Not imp, not trust them less Aakriti: Just go to the store, try and quickly buy unless fast delivery.

Chloe: Go to store directly.

Order online take time –not sure what comes Not important will not trust them less if don’t sell online.

Fig 35

Fig 36

Started by discussing the following images in order to bring them up to date with what is currently shaping the shopping experiences of the customers globally.

Q. What are the key shifts in retail you have noticed in the last couple of years? Both in terms of customer behavior as well as the shops around you.

What have been the key drivers for this change?

Naomi: More sustainability and digitalisation.

More focus than before on marketing – social media more efforts. Instagram more connect with consumers.

More competition for brands work on the experience for the people. Try to make everything perfect for eg. in a cafe put chairs that are more comfortable, give offers, more detailing.

Maria: See more sustainability, more reuse for example reuse of clothes you don’t want anymore, fell that it is preparing the world for the next generation and we need to think about it as well.

Years ago e-commerce was not as advanced, more advanced now.

More collaborations for brands to link and attract more people.

Aakriti: Sustainability and digitalization are going hand in hand.Recently Puma is getting shoes that are made of algae, which is only possible with technology, technology with nature.Going hand in hand.Both things going to make our future.

Window displays have become more large-scale Chloe: Sustainability and digital.

The rise of social media. PR – famous people advertise for a brand on Snapchat etc – touch more people a new concept Mai: Sometimes use fragrance when you enter the store.

Cafe + store – concept stores on the rise in Japan.

Mai: Would first check Instagram to check inspiration, know what I want to buy go to the store to look for something similar.

If do not have an online website doesn’t matter personally. But for them to get new/more customer they should have.

As know more look online or on Instagram. More easy to get more customers.

Q. Have you ever been a part of the resale economy in any aspect? Are you comfortable with the procedure?

Naomi: Not clothes because do not like it, but for example, in markets where I come from there are so many markets for books, scarfs etc have bought a scarf.

Chiara Ferragni has her closet full of clothes and all people can take stuff.

A bag in good condition would take it because price less than normal shops but do not like clothes.

Maria: No haven’t bought anything secondhand, or maybe have but haven’t noticed. Vintage? Never.

Will not have a problem to buy but have never bought because in my country do not have that and even if do will not buy there.In Europe yes.

Need to have some value, special garment Aakriti: Would never buy second-hand clothes, that is something would resist but would go for a vintage bag like a Louis Vuitton bag or Hermes that have a lot of value, would not mind using that would definitely go for it or shoes or accessories.

Chloe: Never tried but I won’t have a problem.

Mai: In Japan, no never used never liked. But when came here began to like it.The vintage stuff, realized they have value so now like it.

Don’t like second-hand clothing but slowly began to buy cause realized they have value.

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Q. What is the importance of sustainability in your life?

When you go shopping do you check the label (where its made, fabrics used etc) Are you a conscientious shopper?

Brands you can associate sustainability with?

How can high-end brands incorporate? Like LV burns all left over stock....

Naomi: For creams or anything for the body should be quality. But for clothes should be fashion but also comfortable and good quality.

For sustainability fo Not so much knowledge for that.

The beauty of the product matters more Not as beautiful as others.

Not many shops that are sustainable and if they are then not as beautiful as others.

High-end brands - Reuse, keep what doesn’t sell and sell it 2/3 years later. Sometimes like a bag but not available so if brands start doing that have a chance to get the item.

Maria: Now, do not check that but think that we need it. We all need to become conscious of the next, future and all that. But now do not have the education the conscious for sustainability.

Not important to me, important but care more about if its pretty or I like it.

Go for things that are more commercial.

High brands worse...as just producing and producing to make money and do not care it’s just that. If they charge so much money it’s for the brand and maybe the quality but they kill.

All this is consumerism Big brands have created an image and all but nothing on sustainability. Just Victor & Rolf did a campaign with some garments reusing past garments from high-end brands only thing that knows of.

Do not check that, but strongly believe that we need. Do not have the education, information for it. Fashion over that. Something more commercial always. The high brands produce more and more do not care, bad worse. Just make money consumerism. Victor and Rolf reuse only high brand heard about that they do.

Aakriti: Consciously doing what Maria said, we know we should take care but do not. For example, Kiko has taken out their own organic makeup line something that is attractive but at the same time if you something else at say Sephora like Fenty beauty you would go for that.

Still, fancy about the big brands created an image...

Mian thing is that if we go to a mall or elsewhere and see ten shops with sustainable items would still strike us but right now the world is still starting to do it. Right now just see one thing and another thing attracts us more.

Should take care but don’t do. Too new a concept see allot of them then will become more comfortable.

Lush, MAC recycling plastic. Some Indian designers – organic, khadi.

High end brands - Leather bands start own organic leather bags people would definatly buy them, nothing people will not buy if yo convince them to.

Chloe: Do not check but should.

H&M & Lush - have given old clothes in H&M and got a voucher for 5 euro.

High end brands - Create more better materials , reuse the past collections.

Mai: Recently saw a movie (The true cost) on how fast fashion makes clothes so know how in Bangadesh they have big companies , saw the movie so know the situation so will refuse to buy fast fashiojn but cannot comepley stop because designs arre really good. If have allot of money then maybe can buy high brands but cannot stop.

True cost of living – effceteed in buying fast fashion but cannot stop as more affordable.

The body shop – donate money to protect animals.

High end brands - Mange how many clothes they make, less production.

H&M - huge campaign High-end brands - Reuse leftover stock or sell as a limited edition later on. Something like Victor and rolf did.

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Literature Review: Encouraging Emotional Investment

3. Customisation 4. Augmented Reality

Fig 37

Literature Review: Increasing customer confidence Adidas Knit For You - Berlin,Germany In March 2017 Adidas launched a pop-up store in Berlin which allowed visitors to design their own merino wool sweaters for €200. This was done based on the results of a body scan and augmented reality pattern creation undertaken within the shop. The knit for you pop-up experience put the wearer in control by allowing customers to co-create garments tailored exactly to their needs (Murray, 2017: Online).

At first customers were made to enter a dark room where swirling camouflage and web patterns were projected onto their chests. Sensors allowed them to alter the pattern with hand gestures.

Consumers could choose from dozens of options then pick their favourites and experiment with different colours on a screen. They could choose either standard sizing, or strip down and have a laser take their exact measurements. The final design was then sent to the knitting machine (Marian, 2017: Online).

Alpstories - Zagreb, Croatia This Slovenian skincare brand aims to balance the natural with the futuristic for its newest outpost in Zagreb, Croatia. AlpStories doesn’t just let you mix your own custom formulas, it has them blended in-store by a robot named Balthazar. While staff wait nearby to assist customers in creating the perfect product for their individual needs. The robot, whose original design is based on medical transplant technology, then mixes the product before your eyes to avoid human error (Chiquoine, Fig 38 2016:Online).

Fig 39

Furniture: Ikea Ikea made a name for itself as one of the early adopters of AR app technology. The company worked with Apple's ARKit to create the Ikea Place app, which allows shoppers to virtually place Ikea furniture within their home, checking for fit in color, look, size and more. The app scales furniture size to an impressive 98% accuracy, giving consumers confidence that they're ordering something that will work, and saving them from the nightmare of actually visiting an Ikea store and breaking up with their significant other(Quoc, 2018: Online).

Shoes: Converse Online shoe sellers are increasing customer confidence with videos and product photos taken from multiple angles. Converse takes it a step further with their Converse Sampler app, which lets users virtually try on shoes to see how they look on their feet. They can snap a photo to share on Facebook or text to friends, too — getting validation before they buy while promoting the app at the same time (Quoc, 2018: Online).

Utility: China Policy In China, police officers are using smart eyewear to identify suspected criminals. The sunglasses use facial recognition tech that allows police to quickly scan crowds and pick out suspects.

Having been deployed in a bustling railway station during Chinese New Year – one of the busiest travel times of the year – the glasses picked up over 30 suspects alleged to be involved in crimes ranging from human trafficking to using fake IDs and hit-and-run car crime, People’s Daily reported (Marian, 2018: Online).

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Literature Review: Quicker shopping experience

5. Smart Mirrors Mango Looks to Digital Fitting Rooms to Enhance the Shopping Experience – In its latest effort to ramp up interest in shopping at its stores, Spanish fashion retail chain Mango has partnered with Vodafone—one of the world’s leading telecommunications companies—to install digital fitting rooms in all top Mango stores worldwide. Once inside the fitting rooms, shoppers needn’t leave until they’re ready to make a purchase. Clothing tags are scanned right through the mirror, and shoppers can contact customer service staff directly to request different colors or sizes using a digital watch. The mirror also suggests additional clothing that complements items the customer is already trying on. The company sees this as the perfect way to begin blending real-world and online shopping practices in order to improve the experience for the Mango customer (Bovell, 2018).

Literature Review: Interactive Play: Experiential Retail Strategies

6. Experience becomes product • Amazon is bringing popular products to consumers with its Treasure Trucks initiative, which has been rolled out in the US and is set to launch in the UK in December 2017. Customers purchase items in the Amazon app then select a convenient time and place to meet the truck and pick them up. They are then greeted by a "delight squad", with occasional celebrity appearances, interactive games and surprise giveaways.

• In November 2017, Rag & Bone launched its new store in Miami, with custom money for the vending machines and in-store casinos.

• In December 2017, London’s House of Vans worked with Studio PSK to transform its London gallery space into an immersive light and play exhibition, inviting visitors to explore colour and perception hands-on through interactive displays. The entire exhibition event includes large scale illustrations that spring to life, a psychedelic light show and a giant ball pit that appears to self-animate (Saunter, 2017: Online).

• Apple’s New ‘Town Square’ Store is a way for them to win back Millennials to retail, named after the long-standing public gathering places in cities all over the world. The first store showcased this new approach in Chicago on October 20 2017. These new store layouts are designed to enhance the shopping experience. Some features include a conference room area for local businesses, a redesigned Genius Bar space that’s more inviting, and even more green space. By treating the store as a product, Apple is setting the standard for making retail stores thrive in the digital age (Gay, 2017 :Online).

Fig 41

Fig 40

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