Tag: retail
Big Brother Is Watching You Shop
Big brother is watching and everybody knows it – at least they found out after the Snowden leaks were presented earlier this summer. The public concern over privacy has made services like Euclid Analytics and RetailNext hot issues in the retail sphere. Retailers want to know as much as they can about customers, and these tracking services are getting increasingly effective at gathering a detailed set of data about consumers: where they walk, what they look at, how they feel. The magic is in the ability to consistently track consumers’ cell phones via wi-fi networks, and read their movements and body language with specialized cameras. The consumer experience can be enhanced by the advanced targeting these services make available, and offers can be made more effective based on the data. Some users will certainly be uncomfortable with the uncanny accuracy of a computer’s read on them, but others are likely to fully embrace the technology, participating in retail programs to enhance their experience, and maybe even get a personalized “hello” next time they enter the store.
4 Reasons I Only Shop Online
Last week, I took a nine-day road trip covering the west coast from San Diego to Seattle, a journey that shook up my everyday routine.
Beyond the gorgeous views and even more beautiful spring weather, while popping into a boutique on the trip, I was surprised to realize that it was the first physical store I’ve entered in quite some time (other than my local grocer).
I don’t believe I’m alone. Traditional shopping centers are on the midst of a tremendous decline. Andreesen Horowitz partner Jeff Jordan recently pointed out that “10% of the roughly 1,000 large malls in the US will fail within the next 10 years.” For a bit of fun, check out the Dead Malls blog, which beautifully epitomizes this trend.
But this change isn’t happening in a vacuum. I’ve given some thought to what’s driving this shift, and I believe it boils down to four simple elements:
1. PRICE: Things Cost Less
This is a no-brainer. The web enables a state of near-perfect information, so if a better price is to be had, it’s easy to find. Sites like Amazon and ShopStyle have been leading this shift for a while, though new services like Lyst allow shoppers to track the price fluctuations of individual items across retailers.
2. SELECTION: Online Inventory Is (Relatively) Endless
Heading into a store, I frequently find that I’m not able to find a particular item — especially given the way “fast fashion” brands like H&M and Zara stock their shelves, with new products every week. I also happen to be a fairly average-sized female, so even when the merchandise is in-stock, it’s often the case that my size has been sold out. Shopping online gives me the best chance to find what I’m looking for — or to be surprised by something new.
3. PRECISION: There’s Little Opportunity for Miscommunication
Call me crazy, but nothing is more stressful for a Millennial like myself than needing to speak to a fallible human when a straightforward transaction could better be conducted by a machine. Ordering food is a great example of this scenario. Sites like Seamless, GrubHub and Delivery.com ensure the specifics of my order are clearly communicated to the restaurant and, as an added bonus, eliminate the need for cash.
4. CONVENIENCE: The Web Never Closes
In today’s connected world, we never really stop working, which can make it difficult to find the time to shop in “real life.” We rush home from the office to avoid eating dinner at 10 pm and run from errand to errand on the weekends, hardly leaving the time to relax — let alone leisurely browse the racks at a favorite retailer. Shopping online lets us use the short snippets of free time we do have to make a few purchases without the hassle of leaving the office or the sofa.
So how can brick-and-mortar stores compete?
Smart retailers will use new technology to bring the benefits of online shopping into the physical experience.
• PRICE: Make prices more competitive by delivering real-time offers through geolocated Passbook offers, Shopkick rewards or push notifications for loyal customers through detection of their mobile devices in-store.
• SELECTION: Extend inventory by allowing shoppers to use their smartphones to tap or scan a sample product to purchase a variety of other sizes and styles and have it delivered the next day (at no additional cost, of course!)
• PRECISION: Email receipts to customers for an easy-to-access record of their purchase, as well as simplicity in the case of product returns. (As an added bonus, apps like OneReceipt can scrape your email and conveniently gather your receipts in a single location.)
• CONVENIENCE: Create 24/7 shopping experiences outside the traditional store, whether on the windows of a shop, within out-of-home advertising Tesco-style, or in accessible pop-up locations.
Until then, good luck finding me at the mall.
Amscreen Uses Facial Detection In OOH
The future of Out of Home advertising may lie in facial tracking technology that can identify a consumer by age and gender and optimize the creative accordingly. Outdoor Screen company, Amscreen has teamed up with Quividi to do just that across it’s network of 6,000 screens which reach a monthly audience of 50 million. Thus far, the new measurement solution indicates that 94% of shoppers view the in-store signage making it the highest conversion rate in the sector. The tech could revolutionize performance metrics as well as offline targeting.
Five Missteps From JC Penney
JC Penney’s Ron Johnson was expected to save the major retailer as CEO, but 17 months later he’s out of a job. An insightful article from Time describes five major mishaps they made, most notably around their “fair and square” pricing model that eliminated discounts. In truth, it appears Johnson overlooked JCP’s core consumer who actually enjoyed the couponing game. The article is also quick to point out the lack of focus groups that could have prevented the oversight.
Kate Spade’s Aggressive In-store iPad Integration
In a world where shoppers can access limitless inventory and product information, Kate Spade needed to give shoppers a reason to come in-store. In response, the luxury retailers swapped out paper signs for iPads that display pricing and promotional information in select Tokyo locations. Beyond traditional displays, Kate Spade has incorporated product demos, inventory management, sharing functionality and more all geared at increasing dwell time in stores.
IPSOS Releases Showrooming Study
A new study from IPSOS and the IAB indicates showrooming leads to in-store sales. While 42% of consumers using mobile as a shopping tool made their purchase online, 30% made one in the store. For retailers, the key will be enabling product information and customer reviews in a controlled environment via a mobile app like shopkick or through digital signage. Don’t fight the phone guys, embrace it.
Google To Open U.S. Retail Stores
According to a report released today, Google plans to open retail stores across the United States in order to showcase its expanding line of physical products. The goal is to have the first flagship stores open for the holiday season in metropolitan areas. Google accelerated plans to open physical locations in order to appease customers unlikely to purchase expensive physical hardware, such as Google Glass, without first trying the device for free. Already, Google has Chrome mini-stores inside Best Buy in the U.S. and electronic shops in the U.K, but stand-alone flagship stores would bring Google’s image as a physical retailer to the fore, and win over more Android skeptics.
Foursquare Gives Business Owners Their Own App
Interesting take on a consumer-facing social media app creating an enterprise app rather than just an enterprise dashboard
Target’s “Fashion” Ads For Grocery
Target has released another series of grocery ads that parody high fashion spots, advertising products like oatmeal and baby wipes in an over-stylized, humorous way. It looks like there starting to embrace their “Tar-shay” nickname; a pretty smart idea for the big retailer.
