New Retail 2018 In cooperation with - How technology paired with creativity is reshaping retail - diconium
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
New Retail 2018
In cooperation with
How technology paired with
creativity is reshaping retail
#mbnr18
New Retail 2018
In cooperation with
Introduction
Retail today faces a massive number of problems, but discourages risk. The commitment to per square foot
none is more deadly than the sheer consumer boredom volume of sales as a primary metric of success becomes a
that shoppers are being subjected to. Most retail is just barrier that blocks any creativity or adventure on the retail
painfully boring. In fact, the majority of store chains, malls side.
and shopping centers have become havens of boredom
and monuments to mediocrity. To enable sustainable growth in retail, we are forced to
radically redefine the core of retail, which extends goes far
We believe that at the heart of all this brick and mortar beyond “Digital Retail”.
boredom lies an outdated model for how retailers make
money. The wholesale to retail model by definition
#mbnr18
Why
New Retail 2018?
02 | New Retail 2018
Because the purpose of retail
is redefined
Physical retail will no longer be a channel for buying. The enters the store. The way these spaces are planned, built, to identify and define solutions for automotive retail.
role and purpose of retail space will no longer be solely staffed, managed and measured will look and act nothing Massive knowledge and insights from research, trend
to sell products or services. These spaces rather, will act like the retail operations of today. studies, discussions and interviews at congresses and
as living and breathing physical portals into brand and conferences have been aggregated into this New Retail
product experiences. Retail will become places we go to We believe that this retail transformation will hit 2018 report.
learn, be inspired, see and try new things, experiment and automotive retail the same way as it has changed other
co-create. industries. It is time for manufacturers and brands to go In this report we have identified five key drivers of change
beyond their previous attempts in omnichannel retailing for New Retail and share them to make companies follow
Beyond mere consumption, we’ll go to these spaces for and to recognize, define and use the new drivers of the redefined purpose of retail practices and to use best
entertainment, education, connection and community. This digitization in retail for themselves consistently. case examples to develop their digital retail strategy.
is not to say that there will be no products for sale in these
physical spaces, but rather that the emphasis will not be That is why years ago we began to setup interdisciplinary
sales but rather a relationship with the consumer that teams of strategists, analysts, digital experts and futurists
#mbnr18
Contributors
Fares Kamal
Retail Digitialization
Daimler ITS
04 | New Retail 2018
Martin Cserba Andreas Grund Marcus Worbs
Digital Strategist & Evangelist Manager Managing Director
diconium diconium strategy diconium strategy
#mbnr18
Key Drivers Identified drivers of change that enable a shift to a New Retail era for brands and retailers
Perceptive Redefined Role
Technologies and Purpose
establish frictionless frontline make customer experiences the
performance and back-office most profitable product retail
responsiveness can sell
Retail OS
build a standardized platform
to radically redefine the core of
retail
Broader New Economic
Ecosystem Model
see brick and mortar as a
lifestyle marketplace, not as a treat retail as a service and sell
point of sale data and consumer engagement
analytics
#mbnr18
Perceptive Why to do it?
Technologies
• Reduce friction in the purchase process
• Improve conversion rates and average shopping
value by increased customer experience
• Make AI act as key differentiator for your business
establish frictionless frontline • Own the customer behavior
performance and back-office
responsiveness
08 | New Retail 2018How to get there?
Frictionless Ambient In-store
convenience assistance robotics
to make retail the most productive, along all phases of the for inventory management and
personalized and stress-free customer journey customer interaction assistance
shopping experience in stores
#mbnr18Perceptive Technologies Technologies that make retail more human There are things that online shopping cannot really do for shoppers - and that is the human experience. In the future, physical retail will be mainly about the human interactions enhanced by perceptive technologies. Retail will be revolutionized with computer visioning and natural linguistics. Facial recognition keeps track of shoppers and their orders. Facial recognition brings up the shoppers order or registered users are remembered quickly at the check-out. Everything within pleasant, seamless and interactive environments. 10 | New Retail 2018
What others do?
Aipoly
Aipoly could replace retail employees in the
future. Upon entering the store, customers
are identified and registered by face scanning
of cameras, image recognition systems and
artificial intelligence and all their actions up
to check-out are classified accordingly. If
customers have problems finding a product,
they are navigated from the app to the product.
If a product is not available in store, it can be
requested via the app.
aipoly.com
#mbnr18Perceptive Technologies What others do? Slyce Shop the world you see. Discover products in a snap. Use Slyce visual search to find products inspired by the objects you see out in the real world, in print catalogs or in photos. The Slyce Visual Search is a plug & play mobile solution that wraps many advanced image recognition processes into one simple universal scanner. Allows snapping or scanning of any object around them to receive immediate exact match or similar results online. slyce.it 12 | New Retail 2018
June20
The platform brings products to life with content-
rich media, curated specifically for in-store
shopping experiences. Customers can explore,
compare and configure products in-aisle using
videos, reviews, expanded content and product
offerings beyond what’s available in-store. They
can then transfer information to their mobile
device to make an immediate purchase in-aisle
or take home for further consideration.
june20.com
#mbnr18Redefined Role Why to do it?
and Purpose
• Enable sales assistants to become problem
solvers for customers
• Utilize the power of digital for speed and
efficiency at the frontline
make customer experiences • Free-up time with technology for higher level in
customer service
the most profitable
product retail can sell
14 | New Retail 2018How to get there?
Curated Virtual try-on Store
experiences experiences as a plant
by involving products rather than powered by facial recognition, by utilizing the power of 3D printing
solely selling products at the store AR and AI for unique and instant experiences
#mbnr18Redefined Role and Purpose Physical retail will no longer be a channel for buying With customers now having unlimited shopping options, retailers are making their shops offering the whole journey with ‘sampling’ of products combined with extraordinary brand experiences often infused with technology that enables interactivity & immersion. The future is show- rooming. Shoppers often make their choices in physical stores, but buy online. Retailers should stop to expect customers to walk out with a bag full of products from the store, but rather design the customer journeys so that customers naturally visit and order online afterwards - hassle free. 16 | New Retail 2018
What others do?
Spacee
Spacee applies a virtual touch screen
technology, using light only and transforming
virtually any 2D or 3D surface, into an interactive
touch screen. No phones, helmets, eyeglasses,
or tablets required, and nothing is installed on
the actual surface. The results are increased
sales, reduced shrinkage and minimized labor
costs. All content is managed in a centralized
environment, enabling remote content
management and deployment.
spacee.com
#mbnr18Redefined Role and Purpose What others do? Dyson Demo Stores In Dysons Demo Stores interactive demonstrations are dispersed throughout the store. Experts are walking around available to explain products and provide recommendations that will best suit the different needs of customers’ lifestyles. Hair styling stations featuring the newest Dyson products and a purification room are just two of the experiences that guests can participate in. dyson.co.uk/inside-dyson/dyson-demo.html 18 | New Retail 2018
Modiface
Sephora’s Virtual Artist app lets app users
virtually sample make-up products through a
technology by ModiFace that digitally overlays
the products on a selfie. The expansion also
includes a color match tool powered by artificial
intelligence that deciphers an image and
estimates the shade of any product in a photo.
From there, it links users to a similar lip, cheek
or eye product at Sephora that they can then
virtually try on and purchase in the app.
modiface.com
#mbnr18New Economic Why to do it?
Model
• Shift from product sales to recurring revenue
streams
• Monetize the power of physical stores as media
and customer engagement channel
treat retail as a service and sell • Use physical stores not to sell products but to sell
experiences that involve products
data and consumer engagement
analytics
20 | New Retail 2018How to get there?
Store Retail Retail as a
as a service as data source media channel
for recurring revenue streams instead to sell consumer engagement to sell as the most powerful and
of product sales analytics back to brands measurable channel to brands
#mbnr18New Economic Model The economic model for retail will implode This is because the wholesale-to-retail model is coming to its end. Brands are breaking the traditional boundaries of wholesale distribution on a large scale, simply because they can and because it just makes sense from a business perspective. This will put retailers in a position where the brands they call “vendors” are also competitors for the same shopper. This sets up an unstoppable situation that private labelling can only partially substitute. The economic model for retail requires a complete reimagining beyond product sales towards new and recurring revenue streams. 22 | New Retail 2018
What others do?
Entrupy
Entrupy is the World’s First and Only
On-Demand Authentication Solution. Complex
detection algorithms allow consumer and
retailers to analyze various materials ranging
from canvas and leather to metal and wood.
Physical and online retailers all have a need to
create trust within their industries.
entrupy.com
#mbnr18New Economic Model What others do? B8ta Store California based electronics retailer b8ta treats retail as data and sells consumer engagement analytics back to the brands they represent - an offering of insights to brands they wouldn’t otherwise get and giving b8ta a unique and recurring revenue stream. b8ta.com 24 | New Retail 2018
Focal
Systems
Focal Systems designs an indoor positioning
system for shopping carts that helps shoppers
navigate the store. Between a customer with
a Focal device passing by an out-of-stock and
a store associate receiving a notification is a
matter of seconds with the Focal out-of-stock
detection capabilities.
focal.systems
#mbnr18Broader Why to do it?
Ecosystem
• Connect to smart homes to own the consumers
that live within it
• Leverage on Mobility to create new and emerging
business models
see brick and mortar as a • Build on the visibility of user’s lifestyles given by
virtual assistants
lifestyle marketplace,
not as a point of sale
26 | New Retail 2018How to get there?
Connected Mobility Virtual
homes assistants
will become a major digital could become virtually free and new will become really good at knowing
channel for retail business models will emerge what kinds of products people need
and when they need it
#mbnr18Broader Ecosystem put your retail channel into a broader ecosystem The role and purpose of retail space will no longer exclusively be to sell products or services. Rather, these spaces will act as living and breathing physical portals into brand and product experiences. Retail will become places we go to learn, be inspired, see and tray new things, experiment and co-create. The way these spaces are planned, built, staffed, managed and measured, will look and act nothing like the retail operations of today. By continuing to keep a pulse on the latest innovations in technology, we can better prepare retail for the future of life in the digital age by breaking traditional thinking patterns towards a retail ecosystem thinking. 28 | New Retail 2018
What others do?
TaoCafe
Using technology in social context. Alibaba
opened a concept café where customers can pay
by facial recognition, meaning no queuing for the
cashier. When a customer requests their order
at Alibaba’s new café, instead of then queuing to
pay, their face is simply scanned by the screen at
the counter or as they walk through a one-meter
long scanner, and the price of their purchase is
instantly deducted from their Alipay account.
Clerks still prepare the food and drinks, but
payment is done completed digitally.
youtu.be/ctMf3Yl0yZo
#mbnr18Broader Ecosystem What others do? Samsung Bixby Bixby is an artificial intelligence system that’s designed to make device interaction easier, specifically designed to avoid the complexity of increasingly fully-featured devices. It made its debut on the Samsung Galaxy S8 and Note 8 devices, but is designed to work across a range of Samsung products including smart fridges, TVs and more. youtu.be/17Fk8W9ZSak 30 | New Retail 2018
Appear
Here
Appear Here is a marketplace for retail space
and a fast way to find and book retail space
online. This platform is to be seen in a broader
context than retail space rental. It is about
building a retail community between brands and
landlords globally. We probably can call it an
Airbnb for Retail.
appearhere.co.uk
#mbnr18Retail OS Why to do it?
build a standardized • Turn knowledge about customers into personal
and relevant experiences
platform to radically • Predictive analytics to make better decisions
• Optimize inventory turn and better scale stock
redefine the and supply chain
core of retail
32 | New Retail 2018How to get there?
Synched Intelligent Networked
profiles infrastructure logistics
online and offline, wherever without massive hardware for a responsive back-office
a customer enters the journey investments
#mbnr18Retail OS The Retail Operating System (OS) – the end of the digital-offline divide Integrating with digital for data-sharing and logistics helps to make the in-store experience of physical stores as seamless as the digital experience in an effort to blend tradition with technology. This may include everything from payment via App to product data and personal profiles, preferences or configurations from the website in-store. The Retail OS is a standard platform to serve purposes in the redefined world of retail, globally and locally. 34 | New Retail 2018
What others do?
Dor
Dor helps retailers understand customer traffic
to their physical stores, measure marketing
effectiveness, optimize staffing to meet customer
demand, and quantify their conversion rate.
For this Dor uses proprietary thermal-based
hardware backed by a powerful analytics
platform to deliver accurate data and actionable
insights into business and store performance.
getdor.com
#mbnr18Retail OS What others do? Mystore-e Mystore-e is a content recommendation platform for brick and mortar stores. It enables retailers to tell a more relevant and personalized story to their customer, using tools and techniques to create an impulsive behavior by predicting and displaying - via digital screens - the right items that would be the best match for each potential customer already in the store and ready to buy. mystore-e.com 36 | New Retail 2018
Starship
Starship’s semi-autonomous delivery robot are
designed to manage local delivery of packages,
groceries and food. The robot drives to the
restaurant to gets loaded up, delivers to the
address and then goes to the next restaurant
to do it again. Goods can go up to 10kgs/20lbs
to be delivered within 15-45 minutes, to homes
within a 2-mile radius on demand.
starship.xyz
#mbnr18Overview
Five Drivers of New Retail
Perceptive Redefined Role New Economic
Technologies and Purpose Model
• Frictionless convenience • Curated experiences • Store as a service
to make retail the most productive, personalized by involving products rather than solely selling for recurring revenue streams instead
and stress-free shopping experience products at the store of product sales
• Ambient assistance • Virtual try-on experiences • Retail as data source
along all phases of the customer journey powered by facial recognition, AR and AI to sell consumer engagement analytics
• In-store robotics • Store as a plant back to brands
for inventory management and customer by utilizing the power of 3D printing for unique • Retail as a media channel
interaction assistance in stores and instant experiences to sell as the most powerful and measurable
channel to brands
Broader Ecosystem Retail OS
• Connected homes • Synched profiles
will become a major digital channel for retail online and offline, wherever a customer enters
• Mobility the journey
could become virtually free and new business • Intelligent infrastructure
models will emerge without massive hardware investments
• Virtual assistants • Networked logistics
will become really good at knowing what kinds of for a responsive back-office
products people need and when they need it
38 | New Retail 2018Perceptive Redefined Role
Technologies and Purpose
Establish frictionless frontline make customer experiences the
performance and back-office most profitable product retail
responsiveness can sell
Retail OS
build a standardized platform
to radically redefine the core of
retail
Broader New Economic
Ecosystem Model
see brick and mortar as a
lifestyle marketplace, not as a treat retail as a service and sell
point of sale data and consumer engagement
analytics
#mbnr18Retail Store Tech An entire ecosystem comprised of hundreds of tech startups has emerged to help brick-and- mortar retailers to adapt to the fast-changing and demanding consumer market. 40 | New Retail 2018
Source: CBINSIGHTS #mbnr18
How to get started?
New Retail 2018
42 | New Retail 2018Many companies are not entirely aware of the As a result, fields of action and concrete Customer expectations, also for retail, are being
influence of digitization on their retail business optimization potentials are uncovered. These set by the best online players in the world. The
model. The omnichannel measures already serve as a basis for roadmap development technologies needed are existing and adopted
introduced are often insufficient. This means, the in which the gap between the capabilities by consumers much faster than by companies.
jump is “too short”. installed and customer expectations can be There is no reason not to START NOW.
identified and closed.
Benchmarks can be used to assess the digital
maturity of areas of a company relevant for
retail. A Digital Gap analysis serves as a
reference model for a sustainable evolution of
companies’ retail business in the age of retail
transformation.
#mbnr18New Retail 2018 In cooperation with published by diconium strategy GmbH Rommelstr. 1 70376 Stuttgart/Germany +49-711-2992-0 strategy@diconium.com www.diconium.com/MBNR18
You can also read
