S E N S E
Innovating retail A proposal by Roisin Tierney
Images from Patternity
Preface
This proposal has been created to inform leaders of the retail industry of relevant trends in the future of a consumer led, technology driven retail environment. The key for a successful store is the integration of digital with a physical presence. Advice will be given on how to adapt to new technologies and how mobile will be a key solution in the problem facing bricks and mortar stores. This proposal picks up on the developing characteristics of the next generation of consumers and how this trends will shape the way they shop. These trends will be compatible within many types of retail stores but with emphasize on the department store. Our aim is to inspire you to create a brand that is knowledgeable and adaptable to a new generation of consumers, whom growing up with seamless technology, have increasingly fast paced lifestyles where convenience is key.
Contents
Conte n ts Chapters Importance of the high street 6/20 Generation Z & the millennials 21/32
The mobile consumer
35/46
Technology 45/66 Sensory experience 67/ 84 Store futures 85/ 98 Executive Summary 99
06 The importance of the high street
Images from Patternity
The importance of the high street 7
This chapter takes a look at how the high street has developed and where it stands today; whether people are still attracted to bricks and mortar stores and how important the department stores have been in creating an exciting experience for the consumer.
The importance of the high street
Chapter one
The ‘High street’ is a quintessentially British term used to describe the shops and streets that have been at the heart of English towns and cities for centuries. People are passionate about the high street as a place to shop but also as a place for social and economic development1. This proposal is not looking into saving the British high street but it has been vital throughout this research to look at how the British high street stands today in terms of how people respond to Bricks and Mortar stores, big brands and department stores. This chapter reflects on why bricks and mortar stores are important, how people are shopping today and what brands are doing to create an experience for the consumer.
1The portas review pg2
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The department store This proposal has been created to provide retail professionals with Market analysis, trends in pioneering technology and evolving consumer habits that are changing the retail landscape. These trends are put in place to inspire the next generation of department stores; an innovative way to enhance the shoppers experience. The points put forward aim to give an insightful analysis of global trends and developements that have an impact on the way people interact and experience their environment; these trends can be applied to a number of industries but these trends specialise in the development of the retail sector . The reason this proposal focuses on the department store of the future is because the research undertaken into the future of shopping showed the shopper wants an immersive, exciting ‘experience’ and the department store has the space, convenience and the energy to adapt to this.
Above image: Selfridges window, Image on opposite page, top to bottom: LNCC store and Agender at Selfridges.
Chapter 1
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The silent room In 2013, Selfridges explored the ‘No noise’ concept. This idea celebrated minimalism and calm in retail. Selfridges introduced the silent room, a room where customers could get away from the noisiness of shopping.; an idea Harry Gorden Selfridge had in 1909. Along side this ran the ‘Quiet shop’ some of the world’s most recognisable brands including Beats by Dre and Levi’s removed their logos in the collection of de-branded products to create exclusive items.
Innovative windows Nike’s kinect and Selfridges collaborated to create a series of interactive windows to show Nike’s latest collection. Some windows changed shape as people passed by whilst other windows encouraged games for them to participate in. The sculptures incorporated kinetic technology. Innovative windows allow the retailer to reach consumers who would not usually walk into the store
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The fragrance garden Harrods are collaborating with the Chelsea flower show to create a concept garden. The space will incorporate digital screens and augmented reality to reflect on the scientific nature of flowers and smell; bringing an innovative and informing experience to the customer. Designer Sheena Seeks stated “This is a fantastic opportunity, working with Harrods, to create a truly innovative garden. Designing this garden has given me the freedom to explore the idea of the garden as a space where nature meets technology.�
Images clockwise from top left: Selfridges silent room Harrods concept garden Selfridges window Creatures of comfort store new york.
Creatures of comfort Creatures of comfort store in New York has features a collaborative concept space showcasing a number of lifestyle brands including Acne and Margaret Howell. It engages up and coming designers , artists, publishers and media by doing monthly events. The store is designed around the idea of lifestyle with rooms reflecting the look of the home even shoes are places in pairs in a wardrobe.
“Despite the hubbub over digital commerce, 94 % of total retail sales are still generated at brick-and-mortar stores, according to data from market research firm eMarketer. That doesn’t mean, of course, that online shopping has not reshaped consumer-buying habits. It’s just that physical stores still dominate shoppers’ purchasing decisions and patterns more than media reports suggest.” Forbes
Forbes 2014 Image from Finery London
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The rise of online shopping
Online shopping is one of the biggest factors effecting the high street today however a study from eMarketer and many market researchers prove that most shopping is still happening on the high street. However, this does not mean that the high street should not worry about online shopping as there has been a significant rise in mobile shopping. Bricks and mortar stores need to find away to incorporate the mobile experience into the store rather than work against it. With the rise of the smart phone, incorporating this into the shopping experience could be beneficial to the consumer and the retailer.
From clicks to bricks A ‘Pop up’ store is a term used to describe a temporary store opening by a brand or product to take advantage of promotion and product launches. In recent years these spaces have become more conceptual and used a strong reflection of the brands image, which some argue cannot be truly reflected online. Mega brands such as Ebay and Amazon have also seen the advantages of having a Bricks and mortar stores. Ebay opened their first pop up event in 2011, incorporating the use or QR codes to promote mobile shopping, The success of this store meant that Ebay opened another store in 2012 , this store held no products but instead got the consumer to interact with the items on sale through social media and promote augmented reality and 3d technology.
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Image from Finery London
Case example: Finery pop up In 2015 we are seeing an increasing number of conceptual pop up stores, one new brand that has embraced the benefits of a bricks and mortar store is Finery London. In February 2015 Finery brought their Online store to the streets of London. The store highlights the benefits to having a Bricks and Mortar store; everything from beautiful displays to exceptional customer service. The unique thing about this Finery Pop up is that only one of each product on display with its own number and the customer was given a card to fill in the product number of their choice. The customer then gives the card to the sales assistant who takes them down stairs to a seating area and gets the products requested. This encourages face to face interaction between the retailer and customer as well as giving a feeling of exclusivity for the clothes. The minimalism of products on display reflects the exclusivity of designer products when in fact the clothes are affordable with dresses starting from ÂŁ65.
Image from wallpaper
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Imagery from Finery London
Case study research An overview To create a well-informed and responsive proposal, research and case studies were undertaken to find out more about the Bricks and mortar shopper and the online shopper. Questions were asked as to what their reasons were behind their preferred methods of shopping and what improvements could be made to change their decision. This proposal has an over view of their responses and the key issues that arose.
The online shopper – key reason for shopping online When talking to the online shoppers it was clear that many of them do not have the time to shop due to busy working lives and social lives. Key words used by the online shoppers were ‘convenience and time’. Online shopping is more convenient and seamlessly quick rather than visiting the store. Another key issue that was raised was the choice. Online, there is a better variety of products. Stores are never big enough to stock everything; the consumer found that they could find things online that they could never find in store and in turn, compare prices and find the cheapest item available.
The online shopper – do they engage with the brand better online or in store? Most of the people questioned stated that whilst they preferred shopping online, they definitely gain a more personal experience and engagement with the brand through being in the store. The selection is edited so the most popular and stylish items are evident; also styled mannequins and customer service enable them to see how items could be styled. The obvious bonus for shopping in the store was the fitting room as refunds seemed to be the biggest problem when it came to shopping online.
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Bricks and mortar shoppers What is the main reason for shopping in store? When talking to people who mainly shop in a physical store, their main reason for doing so was assurance and enjoyment. Shopping at a store brings assurance to the consumer on lots of levels, firstly they are sure of the quality of the product, the colour, the fabric and the small detailing are much more obvious in person. Many found they have bought something online and when they received it, it was not as expected in quality or even colour. Instant gratification was also a big benefit of shopping in the store, the satisfaction of purchasing and receiving an item bring enjoyment to the experience.
How important is the in store experience and engagement with the brand? The majority of physical store shoppers studied said that a store with a physical presence gives them more assurance and awareness of the products they produce, with many of them stating they do not buy from online retailers who do not have a bricks and mortar presence. The online store enables the customer to engage with the store brand identity which they get through the styled mannequins, store set up and customer assistance. Bricks and mortar advantages: Instant gratification, enjoyment, customer service, quality assurance, fitting rooms. Online shopping advantage: More product choice, convenience, price comparison, less time required.
Overview of chapter one: •The store needs to become more than just a place to shop for the consumer, it needs to become an experience whether that is combining the arts, theatre or redefining new concepts, the store needs to show something innovative and informing. •94 % of total retail sales are still generated at brick-and-mortar stores. • Mobile retailing is increasing so it is inevitable this will become a vital part of the shoppers experience. Retailers need to use this as a tool to enhance the consumers experience but also as a way for the retailer to gain more knowledge of the consumer. •The rise in pop up retail or ‘bricks to clicks’ shows that brands are seeing the advantages of having a bricks and mortar presence; reaching a broader range of consumer, face to face communication and being able to engage the consumer in a brand experience. •Product display: Finery played with the idea of having one sample of each product on display and the consumer requests their size; this enables a more spacious shop floor and adding exclusivity to the product.
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Chapter two
Generation
z
& the millenials
This chapter explores generation Z; the youngest generation born after the millenials, Also known as the post generation. There is not a definitive start date for the generation but sources suggest generation Z would be born around the millennium. This chapter studies the characteristic of generation Z ; how they have developed from previous generation and how the increasing use of technology in our everyday life is effecting not only their consuming habits but character traits that are effecting the way they interact and view their surroundings. This chapter also defines the millennials who will continue to be a major shopping generation of the future.
Image from Huffington post
The effects of technology on the developing child
There are growing concerns with in the health industry of the effects that technology is having on the new generation of children. Generation Z do not remember a time without the internet or technology advanced companies like Apple and Samsung, whilst previous generations such as millennials and Gen Xers remember a time without a computer in their home and maybe didn’t even get their own email address until secondary school. Research shows that in response to a digital and technology filled life, Generation Z are showing changes in social interactions. Paediatric occupational therapist and journalist Cris Rowans explains how children are spending less time socialising physically and are more likely to stay indoors on a tablet than outside gaining natural stimulation. This lack of sensory stimulation is causing problems with basic learning and development as their attention spans are getting shorter and their motor development is limited.
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“Critical factors necessary to achieve healthy child development are touch, human connection and exposure to nature� Cris Rowans
Above image from joeforamerica.com
Tactility Perceptible to the touch
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“The more screens we have the more our fingers are afraid we’re going to disappear, I feel it already in my fingers that they want me to touch lots of things so I don’t loose contact with touch.” Lidewij Edelkoort
Speaking at a conference with Dezeen, Lidewig Edelkoort, one of the worlds most influential fashion forecasters talks about the importance of tactility today. She predicts that super technology will ask for super tactility, they will work separately but also in coexistence. The more screens we have and the more we rely on touch screening the more afraid we get of loosing our contact with touch and crave substance and depth, as a result she explains how this desire for tactility will drive an increase in more tactile fabrics and textiles. Although technology can be looked at in a negative way when it comes to cognitive learning and development, if used properly it has the power to enhance creativity and development. Within retail, architecture, gaming and a range of industries today we can already see the beginnings of a digital physical world; incorporating both to enhance experience and learning.
“Bringing together physical and digital is the next paradigm” Left image: from patternity
The physical digital mix
Lego x by London studio Gravity
London based design group ‘gravity’ have created a prototype system that would allow users to create their designs with toy building blocks and see the creation as a real 3d model. The bricks are sensored and renders a digital model of what is being created, once the design is on screen the designer is then allowed to change surfaces and add architectural features for their on screen creation. The team currently use Duplo bricks and hope to make it work with lego bricks.
ILearn ‘n’ play by Appsmart Learning
iLearn ‘n’ Play is a new game by Appsmart learning. A new brand that has developed toy s for children. The toys combine a digital IOS device with a physical toy to promote learning. The app encourages physical play whilst the IOS device engages the user to play and aid numeracy and literacy skills. Above: Images from dezeen, below images from Amazon
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Bringing the Physi-digi mix to mobile There is no shying away from technology or the increasing use of mobile phones so developers are innovators looking at new ways to use both in a physical and pro active way. Developers and health organisations are also creating apps that use fantasy worlds to encourage physical activity and movement.
Zamzee Zamzee ‘makes moving fun’ . A USB drive clips into the shoe of the player who can then follow the App and collect points for movement. Motion maze An interactive treasure hunt that encourages walking an jogging alongside an interactive maze Nfl play 60 Football themed, Nfl play encourages users to jump over obstacles and run with the character on screen. Image from Zamzee.com
Characteristics of the consumer Young people today are more socially connected and culturally aware than any other generation.
Image from Tumblr
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Young people today are communicating and connecting in a very different way to millennials and previous generation. Social media is not going away but it is not necessarily the only way the post generation want to communicate. Youtube, Instagram and twitter are giving them a global view and diverse relationships, they are always interacting and researches suggest this will be better communicators than previous generations. A report from BI intelligence in 2014 stated that 43% of 12-24 years olds used Snapchat, whilst twitter was less popular with 36% using the App. When this survey was then used to monitor all ages 12 and over twitter became more popular than Snapchat. From this we can see that visual apps such as Snapchat are becoming increasingly popular with the younger generations.
Developing characteristics of the young consumer
Social media gives us an insight into how the new generation of consumers are connecting with each other and with brands. They may not be purchasing right now but their behavioural changes and consuming patterns will lead to big changes in the marketing of the future. Asking people to ‘like’ a page on Facebook isn’t enough anymore. Retailers need to engage online, create immersive marketing strategies. I.e connecting Facebook page to an app
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8 Seconds Generation Z have an attention span of 8 Seconds. This means advertisements and marketing need to be short and too the point. They have to be immersive and make the consumer feel involved.
Face to Face interaction They prefer face to face interaction rather than text or email. Some researchers believe they will prefer this method than the millennial generation. The increase in Skype and Google chat has increased virtual interaction, its more visual and interactive.
Mobile consumer Mobile and micro technology is transforming the way retailers engage the consumer and in turn, the way the customer shops. The store needs to incorporate mobile technology whether that be the use of I beacons or mobile payment.
Global friendships Generation Z have a global friendship base. They can communicate easily with people on the other side of the world without relying on phone calls. They follow international blogs and instagrammers
Use Imagery The fastest growing apps in 2014 were SnapChat, Facebook Messenger, Pinterest, and Instagram. Gen z want to be visually pleased.
Entrepreneurial The next generations like to create their own worlds and are more likely to enter apprenticeships than higher education. Children are learning to code their own games and create their own experiences.
Personalisation Personalisation is key for the next consumer. They have been born into a digital age of unlimited choice.
How are brands responding to these trends? This will effect retail as advertisers are having to compete with content on these sites, advertising needs to become an experience that immerses the consumer, the post millennial generation want to be part of the experience and be visually pleased. The 2015 Honda advertisement is a contemporary example of awareness of these trends. Honda put together an advertisement to advertise one car in two colours and did it in a simple but interactive way. The advertisement starts with a father picking his children up in a white Honda but throughout the advertisement the viewer can press the R button and view his double life as an armed robber driving the red sports Honda. Each side show a different story but when the viewer presses the R button the films interact seamlessly with each other. This advertisement is a perfect example of a brand that is catering to a consumer who is led by immersive experiences and imagery, with the intriguing storyline capturing their attention.
Case study: Honda ‘The other side’
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Shots from the Honda campaign
Overview of chapter two: • The rise of technology will have significant impact on the younger generations, whom are the consumers of the future. •These impacts consist of a need for tactility in a technology driven word, retail need to create a mix between the physical and the digital •This generation have been born into an age of seamless technology so their expectations are higher and they are not impressed by technology as easily. • Young Millenials and post Millenials are the most connected generation ever, they have global friendships and communicate visually •They are constantly bombarded with advertisements through social media so to get their attention you need immersive and seamless marketing.
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Chapter two explored the characteristics of millennials and the post generation but how is this effecting retail? The trends and changes in the consumer will ultimately effect how products are viewed, trialled and purchased. This chapter will explore the ways in which retail can bring the benefits of online shopping into the store.
The mobile consumer
Chapter three
Image: Burberry catwalk, Style.com
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The consumer Convenience is key
Personalisation in product and service The consumer is more informed than ever before due to the accessibility of information from the internet. This has made them more demanding and individualistic. This individualism can be shown through product differentiation but also in the way the consumer engages with consumer.
Omnichannel points of purchase With the rise in technology and smart phones consumers are able to shop at any time. They will not necessarily shop, trial, buy and return at the same place so the store needs to have multiple points of purchase to conform to the way the customer wants to shop.
Instant gratification Whilst the internet offers multiple shopping channels and faster delivery methods, social media exposes the consumer to constant trend updates from social media rather than weekly magazines the customer wants instant gratification.
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“Mobile devices enable us to bridge the gap between online and offline world and that’s the key, There are so many different ways to do it and we’re just at the very beginning of this change.” Frank Zimmerman, CEO for IT provider
Convenience is more important then ever and retailers need to become more accustomed to the fast paced lifestyle today. The rise of the smart phone and digital media over the past few years has enabled retailers to connect with consumers over multiple shopping channels. To ensure a seamless shopping experience for the consumer it is vital that mobile is integrated to bring personalisation, good customer service and customer engagement.
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Product
Personalisation With mass amount of products available online consumers looking for personalisation. Personalisation and individuality has become a trend with big brands. Over the Christmas period Selfridges collaborated with Nutella to create names on their products. We also this trend with coca cola last year with their ‘share a coke’ campaign which celebrated personalisation and interaction. The campaign was a success with more than 150 million personalised cokes sold. On the fashion front, Burberry sent their models down
the catwalk each with their own initials embossed on their cape. This was quickly picked up by social media and celebrities were constantly instagrammed wearing their personalised cape. Personalisation will need to go further in future retail, this may mean bespoke tailoring in store or alteration and styling to create a more loyal consumer who comes into store for assurance and convenience.
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Image from Selfridges.com
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Personalisation in service and omnichannel retailing
‘Retailers now need to create and maximise personalisation and inform the consumer in bricks and mortar stores’
‘The mobile is the most convenient way for the consumer to shop products, receive information and mix between channels conveniently and naturally.
Retailers have been sending emails to customers for years, but to engage the new consumer who is less brand loyal and presented with unlimited choice, brands need to do more than send an email to grab their attention. We are seeing a rise in product recommendation online, sites like Topshop and Amazon whereby recommendations are made by the retailers based on previous items bought. Retailers now need to create and maximise personalisation and inform the customer in bricks and mortar stores. Acknowledging the use of mobile and incorporating this into the consumer experience is vital for optimising customer engagement They will not necessarily shop, trial, buy and return at the same place. Omni-channel retailing needs to follow the consumer journey whether its online, through apps or in store; the mobile is the most convenient way for the consumer to shop products, receive information and mix between channels conveniently and naturally.
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A survey by Econsultancy and Adobe, targeting and personalisation remain marketers top priority. Personalisation will follow the whole customer journey.
How to integrate mobile into the store experience
There is pioneering technology which integrates personalisation and mobile and it is already in use today. Over the coming years retailers will need to adapt this technology to their brand to keep up with the consumer. Ibeacon technology Ibeacon connects apps with micro location awareness. This allows retailers to personally identify the consumer when they walk through the door and where in the shop they are looking. They can then send them information or discounts relevant to previous purchases and store location. It also allows them to search through in store inventory to find products they are looking for. Ibeacon is already in use by its founder Apple but after trialing the Ibeacon, Macy’s department store is also looking to expand its use of the technology. The customer can walk through the store, getting notification as they pass items they have previously ‘liked’ whilst browsing editor picks and offers suitable to them.
Image f
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NFC payment technology Near field communication is being used to head contactless payment technology, NFC uses radio communication between devices by bringing them into proximity with each other. . The convenience and popularity of contactless payment is evident in the success of contactless bankcard already in use today. This reduces time at the cash point or any problems forgetting your pin. However this payment method has its limitations with a max spend of £20 which results in clothing stores not acquiring the contactless payment method. This is why the adoption of NFC will be more relevant to clothing retailers. Google wallet has embraced this technology with its Google pay and debut it in the US. You can use contactless payment and withdraw cash from an ATM which gives you a automated receipt. Apple have created their own Apple pay which also enables consumers to pay contactless, with the Iphone 6 the user does not even need to open an app but just press their touch ID to pay. Apple states; “You don’t even have to look at the screen to know your payment information was successfully sent. A subtle vibration and beep let you know.” So we can certainly see a more widespread use of mobile payment being adopted by retailers in the near future.
from wired.com
“You don’t even have to look at the screen to know your payment information was successfully sent. A subtle vibration and beep let you know.” Apple pay
“We inhabit a digital era of instant gratification, where we can browse and buy at speed, and where online at least the shops never close. Consumers are clamouring for the same levels of convenience in the high street� Mintel on consumer trends
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How can we bring the convenience and choice to the high street?
We can already see the impact and success click and collect has had on retail but bricks and mortar stores need to compete with the level of choice online. This means integrating the online experience into the store, if an item is not available in a customers size they should be able to order it in store and receive it quickly and conveniently.
Who should the retailer invest in? Click and collect service Doddle is currently growing at a fast rate due to its convenience and location to shoppers. Gone are the days people would sit in and wait for a parcel. The parcel should go to them. Like an item of clothing you saw in store on your break and it was not in your size? Pick it up from Doddle click and collect service at the train station on the way home from work. Doddle are set to open over 300 branched across the UK in the next few years so they are definitely one company retailers should look to invest in.
Doddle set up in train stations across the UK creates convenience for the consumer.
Image from www.jcdecaux.co.uk
Overview of chapter Three: •The consumer is more demanding than ever. •Personalisation and convenience is key and mobile is the way you achieve it •The mobile should be used throughout the consumers journey giving them multiple points of viewing, trialling and purchasing •In store beacons will create a journey through the store that is different for each consumer •Problems such as lack of stock in the store should be answered with quick delivery, eliminating the benefits of online shopping. •The consumer should get a different experience every time they visit the store.
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Retail futures
Chapter four
Integrating technology
The previous chapters have explored the importance of the high street in a consumer led, technology driven retail environment. Ultimately we cannot presume that the integration of technology is the only objective when it comes to the future of our department stores. Trends in the consumer habits and the retail environment is showing a developing need for tactility with an emphasize on nature or ‘lifestyle’ whilst technology is presented in a seamless and almost hidden way. Gone are the days where putting a Ipad on a stand will meet the consumer needs in the store.
Image from Burberry marketing report 2014
The future of technology e Virtual reality
Oculus rift, Sony headset
Wearable technology Apple watch, Google glass
Interactive windows 24 hour shopping
QR Codes Convenience for the customer
Interactive fitting rooms An informative experience
Smart fitting rooms Using mobile technology
Every point is a point of purchase Qr codes and RFID technology
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ffecting retail There are always new technologies that are being tried and tested but this document takes a realistic look into technology trends that have the capability to effect the retail landscape in the next 5 years. Physical, wearable technologies are becoming more adaptable to their surroundings and can be used to create a fun and informative experience for the consumer but can also be combined with Ibeacons and RFID technology to gage important data for the retailer.
Image from Apple.com
Virtual reality Virtual reality it is the experience of a computer generated immersive world and can recreate sensory emotions. Oculus Rift, Samsung heard gear and Sony have been leaders in the world of Virtual reality. In the past year these technological development have been noticed and bought by mega brands such as Facebook and Sony
Oculus VR is an American virtual reality company, seeing its potential the device was bought by Facebook in 2014 with the consumer version of the product expected to be available sometime in 2016, the buy from Facebook will encourage the headset to become more diverse and not just targeted at gamers. The idea of virtual reality is that you can be taken to any place without going anywhere. Users are taken into a different world and can view this world under their own terms using their hands to navigate around.
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2014 and 2015 have seen companies go past the initial stages of Virtual reality and augmented reality. We have seen products such as Oculus Rift used in the retail and gaming environments, the adoption of these devices will only be modified and more frequently used in the coming years.
Images left to right: Forbes.com, Wired.com, The Verge.
How will Virtual reality be used in retail? The Oculus Rift has been used in the retail environment, Westfield created the Future fashion event which incorporated Virtual reality. This allowed consumers to go into different worlds incorporating three main fashion trends. Westfield stated they were using Oculus Rift to create unique shopping experience that entices consumers to visit a store and increase brand engagement. They are also encouraging virtual reality among younger consumer to bring them into the stores. Topshop used Oculus Rift in their flagship store to promote their A/W 14 catwalk show. 5 winners sat in the windows of the store and could view the runway show that was happening in the turbine hall of the Tate modern.
Image from Westfield, White city
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The Virtual reality headset gave them a 360 view of the show and the latest collections. Visitors coming into the store for the next few days could also try on the headsets a view the runway show as if they were actually there on the front row. If the user looked to the right they could view what was happening back stage and by staring at certain element of the room different animated elements would appear reflecting the collection. This use of the Oculus rift is only the beginning of retail and virtual reality, incorporating this into the department store could allow the customer,for example to try Mexican food whilst being transported to a restaurant in Mexico or look around other parts of a department store straight from the lounge area.
Image, Inition.co.uk
Wearable technology With Google Glass already being worn and the Apple watch coming out in 2015, wearable technology in retail is a very approachable concept. A study by Mintel showed that whilst 40% of adults are interested in smart, wearable devices, this figure rose to over 50% when the question was asked to 16-24 year olds. This shows that whilst the older generation are becoming adaptable to smart technologies in their life, younger millennials are more acceptable to integrating smart devices into their experiences. At the moment the Apple watch works in a similar way to the Iphone but as the both Apple and Google have both created contactless payment methods we could see them incorporating this into their wearable device and therefore creating an easy pay on the go form of purchase .
Study undertaken by Mintel in 2015.
Both Google glass and the Apple watch could be used to give more information to the consumer, Google Glass gives information to the user in hands free mode and this could be used in an effective way in future retail. By the wearer staring at an item they can be fed information about the product along with images of recommended items it can be worn with.
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‘By the wearer staring at an item they can be fed information about the product along with images of recommended items it can be worn with’
Top to bottom: Apple watch from Apple.com, Google Glass from dogtownmedia.com
Interactive windows How can interactive windows enhance the store experience? With online shopping giving the consumer convenient and 24-hour shopping availability; it is vital bricks and mortar stores are continuing to look at new ways to add the same value to the physical store. The idea is to adapt a fixed window display into an immersive experience. Even if the window display does not take literal sales, retailers can expose their brand identity to shoppers walking by before they even enter the store.
Above: Kate Spade pop up, New York
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Kate Spade practised the idea of interactive shoppable windows in their pop up store in New York. The eye catching window displays in a central part of New York enabled them to get the attention of the busy shoppers passing by. Shoppers could use their mobile to buy a product, this item was then delivered to their home in New York City for free within an hour. This enabled the store to challenge the idea of online shoppers and attract the attention of shoppers who would not necessarily have shopped in the store.
Above: Bloomingdales interactive window, www.nydailynews.com
Bloomingdales developed the idea of interactive windows and made a virtual mirror out of their window display. Shoppers passing buy could try on sunglasses being sold in store in a fun and interactive way. The consumer could turn their head and reviews how the sunglasses suited them. The shoppers could then print out a photograph of themselves in the interactive sunglasses which they could collect from inside the store.
QR codes Qr codes are not a new concept and have been used over the past few years in commercial tracking, entertainment, ticketing, and product marketing with many other uses and can be put on virtually any object where a user may want information. We are however yet to see it make a substantial difference in the fashion industry.
Above: Finery London pop up
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How can Qr codes be used to enhance the store experience and make it more convenient? QR codes are compatible with smart phone, something that will become a vital part of the shopper journey. The use of QR codes in the department store will increase product knowledge and convenience for the sales assistant and the consumer. This proposal suggests that applying the QR code to each item on the shop floor can add a more informative and seamless shopping journey.
Like the Finery London pop up - have one sample of each product on the shop floor. Have one of each product on the shop floor with a QR code attached to each sample. The consumer can then scan the sample and find out information on the product and sizes the store have in stock. This also allows the retailer to maximise stock control and see what items in store are the most popular. The use of QR codes can then be maximised into the mobile experience. After the customer scans the product to see if it is in their size they can then order it to her fitting room basket or buy it. If the item is not in stock in the size requested, the QR code will have a link to the website where they can buy it online.
The interactive fitting room One major advantage the bricks and mortar store holds over the online retailers is the changing room. No matter how easy it is to online shop, the hassle to return items that don’t fit is a major turn off for customers according to the case studies undertaken for this proposal. Retailers need to enhance the experiences that people cannot get online and intelligent fitting rooms is a concept that is currently being trialled and tested. Designer Rebecca Minkoff has partnered with Ebay to create the new smart fitting room; along with kinect sensors and RFID technology, the fitting room incorporated the use of the mobile to create a seamless and convenient experience for the consumer.
The interactive screen
Shoppers can browse through the store or on a screen and see what sizes are available in items. The screen also enables them to view product information, price, product recommendations and even order beverages. .
The mobile
Using the mobile throughout the store has been mentioned a lot in this proposal and the fitting rooms are no exception. Customers will be able to scan a QR code or use the interactive screen and create a virtual basket on their phone. They click when they have finished and then receive a text when the fitting room is ready for them. More details of how this will work will be in chapter 6
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RFID technology Another in store technology being used is radio- frequency identification (RFID). RFID comes in the form of electronic tags on clothes, something already used in Burberry’s innovative flagship store. Burberry state they use RFID to “assist with stock and quality control, while also enhancing the customer experience in selected stores. RFID technology enables customers to view bespoke multimedia content specific to different products and ranges on in-store display screens.” How will RFID be used in the fitting room ? Information can be picked up by the fitting room on what the customer has bought in to try on. Information about the product will come up on a screen and show images of how it could be worn. Read more on this in chapter 6 Above: Image from techtimes.com
Bringing robots in to store How is the rise of robotic technology effecting the customer service landscape? A hotel run by robotic staff is to open in Japan in 2015, the first of its kind, is this the beginning of the end for human staffing? Till now, robots have looked more like machines than humans but the new hotel opening in Nagasaki, Japan shows a that the world boundaries between human and robots are becoming increasingly blurred. CNN have reported that the robots will be able to engage in intelligent conversations with human guests and carry out tasks such a cleaning and porter duties in the new Japanese hotel. However, this hotel will still have 10 human staff members which shows that their is still a need for human interaction and robots cannot compete with everything a human assistant is capable of.
Above: image from CNN.com
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Can we see the rise of a robotic sales assistant in the department store? This proposal is not stating that retailers have to begin to think about how they will incorporate robots into their store, instead it is showing trends in pioneering technology that could be adapted to and utilised. With the increase in technology, chapter two talked about the need for face to face communication for the consumer, and one of the advantages of a physical store is its personal interaction it delivers to the consumer; and this should not be taken away. Instead, retailers should look into the idea of intelligent mannequins. ‘One of the advantages of a physical store is its personal interaction it delivers to the consumer; and this should not be taken away’
Intelligent mannequins blend into an the aesthetic of the store, it enables the retailer to watch and document the customers coming into the store whilst the customer makes decisions and goes through departments. Read further to see who is pioneering the intelligent mannequin and what they can do to enhance customer service and the store experience
Eyesee mannequins Eyesee mannequins, created by Italian firm Almax are intelligent mannequins that can monitor the consumers buying habits. The mannequins can be put into stores or in the window of the store and monitor the age, gender and race of the customer viewing products and coming into store. The mannequin does take personnel information from the consumer but instead offers the retailer information on what products are causing the customers to linger and who their typical profile consumer is.
“Let’s say I pass in front of the mannequin. Nobody will know that Max Catanese passed in front of it, The retailer will have the information that a male adult Caucasian passed in front of the mannequin at 6.25pm and spent three minutes in front of it. No private data or image is collected.” Explains Almax chief executive Max Catanese Image from: ibtimes and cloudtweaks
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How can retailers use Eyesee to enhance customer service? Almax have stated they are updating their Eyesee mannequins, these mannequins will incorporate advanced facial recognition software that will be able to assess how the consumer feels about the product they are viewing. Does the consumer like it? are they fascinated by it or do they hate? They Mannequins will also be able to pick up on the conversation between shoppers as they pass the windows or particular products. In turn, feedback is promptly given to sales assistance who can then give a personalised service to the consumer.
Overview of chapter four: •Technology needs be used in a seamless but innovative way to engage the consumer, it needs to be more than an Ipad in store to view merchandise. • Virtual reality is being made a reality thanks to Facebook and Oculus rift. This technology has already been bought into the retail industry with Topshop and Westfield using them and could make much bigger waves in the industry in the next 5 years. •Wearable technology is more frequent than ever and with Apple bringing out the Apple watch this year retailers should begin to find ways to incorporate it into the shopping experience. • Interactive windows and smart mannequins are ways to attract passers by as they are walking past. This enables the brand to establish their brand identity to people that would not usually come into the store. •Robots are not something recommended in this proposal but all technologies such as Ibeacons and RFID can make the customer assistant more intelligent about the products therefore give great customer service.
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The sensory experience
Chapter five
How can the retailer create a physical experience that is immersed in technology as sensory stimulating and engaging as possible?
Image from Dezeen.com
How will retailers combine nature into the technology driven retail environment to create a sensory filled experience for the consumer?
The living wall, Anthropologie, Regent street.
Finery pop up store, London.
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One evident trend is the use of nature in stores. This brings texture and more life to the store, we can see these an increasing amount of retailers bringing nature into the store, being more than just a plant pot on a table. These brands have used nature to create their interior which leaves a lasting impression on the consumer.
Plant life throughout the store. Replay also invested in nature into their store with a wall of trees in their store in Florence.
Westfield future fashion event incorporated technology and the natural aesthetic in to their latest campaign. This trend is becoming increasingly apparent as more brands look to pioneer their technology without loosing site of human nature.
Westfield ‘Future Fashion’ event Westfield White City
Images: inition.co.uk
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The design of the Virtual reality event echoed similar aesthetic to that of the Nature Factory. The Nature factory was created by Makoto Tanijiri, the instillation incorporated fashion into a concept space made of pipes in a tree like form. The concept how denim as dress has formed over time. It was formally known as work clothes but know expresses different fashion attitudes. Makoto Tanijiri wanted to express the same idea with the pipes, plumbing usually goes unnoticed but this installation The complex plumbing, trails the wall in all directions and covers the whole space representing a tree grown over a long time.
Images from Dezeen.com
Rotterdam shopping centre Rotterdam Market place is the most contemporary centre than has opened to date and gives us a peak into what the future of retail may look like. The centre adorns a transparent naturally lit frame with an aesthetic decor of nature covering the whole of the interior. The market place is primarily a food retailer but will also contain 228 apartments, creating a new type of retail that comprises the idea of living with retail. The market is 11 stories and dominated the city centre. It also incorporated exhibition space and learning into the retail environment.
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All images from Dezeen.com
Sensory architecture Incorporating a sensory, natural experience into the retail experience can also come in a technology driven way. Sensory architecture pioneered at Milan 2015 design week shows technology driven architecture amplifying a beautiful sensory experience. Studio drift explore the relationship between nature, technology and mankind, creating technology driven architecture that is still aesthetically beautiful and representative of nature. Their work includes installations that react directly to human behaviour, creating a personalised and changeable experience. The suspending flowers unfold and retreat and the movement can be controlled by a smart phone. Below is an image of Studio Drives Shylight,the concept of the interior design is mirroring the life of a natural flower. The suspending flowers unfold and retreat and the movement can be controlled by a smart-phone.
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Studio drift have also pioneered their Flylight, a light interaction that directly interacts with its surrounding. The installation consists of delicate glass tubes which light up which light up unpredictably. The instillation is meant to reflect the flock movements of birds, patterns in which the installation lights up are not pre-programmed but have an interactive compound and react to the movement of groups around them.
“Our goal is to create a dialogue between nature and technology, creating a new synergy.� Ralph Nauta - Studio drift
Images from studiodrift.com
Scent marketing
Scent marketing is not a new concept but is not a widely used one either. However with the issue of brand identity being more important than ever, it is crucial that retailers look at every aspect of the getting the consumer attention. Our senses play a vital role in evoking memories and association with experiences and the store is the only opportunity that customers have to engage with all five senses. Scent marketing is a an in-expensive and an effective way to leave an impression on your customers experience of the store.
Image from scentcommunication.com
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“Discover the rich and diverse possibilities of scenting. Smell is considered our most powerful sense when it comes to the long-term memorizing of experiences, places or products.� - John van Roemburg, CEO Air Aroma Group
Air Aroma are a pioneering scent solutions company whom produce scent marketing strategies and implement them into a brands overall brand strategy. The brand has worked with retailers such as Max Mara, Zara and hotels such as the Hilton. They consider scent to be a powerful sense in and vital in working towards brand recognition, browsing longer and a creating a memorable experience.
Images top to bottom: thegaurdian.com, retail-focus.co.uk
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“In the world of product promotion, advertising and branding, everything is about sight and sound. Our senses are basically saturated. No one has really been tapping into smell, and the sense of smell is directly hard wired into your brain.� says Steven Semoff, the acting co-president of the Scent Marketing Institute.
Success in scent marketing As much as some companies are famous for their brand logo, companies such as Abercrombie & Fitch are equally as distinguishable for their smell. The well known smell going through the Abercrombie & Fitch stores is known as Fierce and as a result, neuroscience marketing. com states it is the number one selling fragrance for men in the US and Europe. Many young people today can recognise a Abercrombie and Fitch product purely by its smell.
Another company that have used scent marketing is Nike, Steven Semoff, co - president of the scent marketing institute has stated that when Nike did a study into their scent marketing they discovered that using scents in their store it increased intent to purchase by 80 per cent.
Retailers really need to start engaging with scent marketing as the store is the only opportunity that customers have to engage with all five senses.
What colours and textures will we begin to see in our stores?
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There will be a rise in transparent architecture, Mimicking that of a glass house to create a feeling of outdoors. Colours will incorporate a lot of nudes and skin like colours, salmon, white, beige. There will bursts of colours as a representative of nature; oranges, blues and greens will brighten up the aesthetic of the stores.
All images from Patternity
Texture and tactility are major movements within the retail environment. Static walls and surfaces should be used as a canvas of touch. Cushioned walls to tactile clothing will be visible through out the store.
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Natural surfaces such as wood and stone will be used a lot with in the store to create an escape like interior. Stone flooring will compliment the transparent roof and create an rooms that replicate outdoors.
All images from Patternity
Overview of Chapter five: •The store needs is the only place that can maximise all 5 senses •Nature needs to be bought into the store to create a lifestyle feel for the brand. •Sensory architecture is available and should be used to interact with the consumer •Scent marketing should not be under estimated, It has been proved extremely successful with stores such as Abercrombie & Fitch and Nike. •Natural light, glass and nude tones will become more prevalent in stores. •Wooden walls and stone flooring will create an escape like interior.
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Overview, what do we expect from our future department store? This chapter includes examples of how the technology and textures that have been defined in this proposal will work simultaneously into the department store of the future.
Saks store, 5th avenue
The department store will explore a natural aesthetic, a park life front with a transparent exterior. Interactive windows will be embedded into this .
The little black dress Designed by Vivienne westwood click here for more details or click here to buy
24-hour shoppable interactive windows. Still a physical window as these are eye catching and creative but there is a touch screen pad where the consumer can search the looks on the mannequins, what is new in that range and see if they have it in their size. They are able to place orders to buy or send to fitting room, all through use of mobile.
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Man walks past store, API beacon technology sends message to phone giving him intelligent recommendations of new products in store that he would like in reference to previous items bought. Offers promotions, special discounts for that day only.
EyeSee mannequins are able to give the retailer information about the customer walking past the window. They can judge whether they like the item and assistants can therefore personalise their service. All image my own
Wooden interior creates an interior that looks life a garden, gives a nature aspect to store.
Interactive wall enables customer to look through latest trends, view items on display and order things to the fitting room.
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Transparency gives a glasshouse feel and lets in natural light.
A living wall incorporates nature into the aesthetics of the buildings interior. Also gives a 3D effect.
All image my own
One of each product on display
Customer scans QR tag on Jacket to add to her fitting room basket.
If the customer wants to purchase the item because she has not got time to try it on she can use Apple wallet on her phone. The item will be ready on her departure as long as she shows her email receipt
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Each shoe has a screen beside it giving the producer product information and tips to what to wear with them.
Without picking up the item, the customer can see information about the product through her Google glasses.
All image my own
Product personalisation, Anything bought by the consumer in the department store can be personalised and custom fitted to the costumer.
Grass embedded into the floor
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The natural aesthetic of the store changed as the customer goes into a different department. Water moves on the wall as people walk past mirroring a waterfall. All image my own
Weather themed fitting rooms
Rain themed fitting room to test weather proof clothing
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Weather themed fitting rooms allow the customer to try on clothes and test them in different weather conditions.
The customer can see what her bikini would look like on the beach in the Caribbean A fitting room exposes the customer to the blizzard and temperature he may be exposed to whilst mountain climbing to test the weather resistance of his jacket. All image my own
How does an interactive fitting room work?
Customer can add her item size to fitting room basket
The fitting room lighting can be adjusted to night time, afternoon or morning depending on the mood of the customer.
A text is sent when fitting room is ready.
RFID technology will tell the interactive screen what items are in the fitting room and give the customer helpful information and tips on the items.
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The clothes are waiting in the fitting room for the customer.
The interactive mirror allows the customer to choose different lightings
When the session is finished When the customer is finished they can the customer can choose to re- choose to call the stylist who will assist on member her visit or close her checkout. session. All image my own
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The executive summary
This