REDEFINING RETAIL BEYOND 2020 - POWERED BY - New West End Company

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REDEFINING RETAIL BEYOND 2020 - POWERED BY - New West End Company
REDEFINING
  RETAIL
BEYOND 2020

 P OW ER E D BY
REDEFINING RETAIL BEYOND 2020 - POWERED BY - New West End Company
REDEFINING RETAIL BEYOND 2020 | REPORT OVERVIEW

Report Overview
Purpose                                                        Content
This report was compiled by Springwise in partnership with     This report explores the future of bricks-and-mortar retail
New West End Company to inspire its members and partners       through the consumers lens, identifying trends, challenges
to adapt and engage with future trends and the ever-           and tangible opportunities linking with the wider global
changing retail landscape. It offers valuable insight on the   innovation trends and also focusing on London's West
latest technologies and innovations from across the globe to   End. It also covers five themes of consumer disruption and
attract, retain and engage consumers in a disrupted market.    relevant innovations with key takeaways.

  3     Redefining retail                                      29 SEAMLESS SHOPPING
  4     Innovation with purpose
  5     The new consumer lens                                  30    Just Tress It
  8     Themes of consumer disruption                          31    DeepMagic
  11    What disruption means for stakeholders                 32    NearSt
  14    Vision and Values                                      33    SelfieMark

  INNOVATIONS
  16 THE NEXT BIG THING                                        34 DATA-DRIVEN RETAIL
  17    Made By We                                             35    Wirecard
  18    N26                                                    36    TwentyBN
  19    ChargedUp                                              37    ZigZag Global
  20    ShopShops
  21    Ministry of Supply
  22    VTT 3D printing

  23 IN-STORE TECHNOLOGY                                       38 THE GLASS BOX STORE
  24    Expedia VR                                             39    Mitscoots Outfitters
  25    Browns - Store of the Future                           40    Lush Lens
  26    Costa Clever Cup                                       41    Nudge For Change
  27    Moby Mart                                              42    Wasteless
  28    Oriient

2 | REDEFINING RETAIL BEYOND 2020
REDEFINING RETAIL BEYOND 2020 - POWERED BY - New West End Company
REDEFINING RETAIL BEYOND 2020 | REDEFINING RETAIL

Redefining retail
O
         ne of the prime aims of New West End         becoming increasingly blurred. But what might
         Company is to be a convener and a            that look like in reality, and how will it impact the
         catalyst for positive change. As part of     myriad of businesses in London’s West End and
that mandate, we’re committed to making our           Mayfair?
members and partners aware of the innovation
which can enhance their businesses, and by            One thing which is certain is that innovation
doing so, improve the experience of the 200           needs to be at the heart of the process, as we
million people who visit London’s West End and        work to invent a new retail landscape which
Mayfair each year.                                    is able to respond and adapt to constantly
                                                      evolving consumer dynamics.
Shopping is changing, and so are the
expectations and behaviour of our                     To investigate what the future may hold for retail,
customers. The UK currently has the world’s           Springwise – with its unique perspective on
third most developed e-commerce market,               global innovation – has been an ideal partner
with 20 percent of all sales now taking               for this research. As you’ll see, they’ve created
place online (Source: ONS). However, you              a report which challenges the conventional
only have to visit shopping hubs like Bond            thinking around retail.
Street, Oxford Street and Regent Street
to see that physical retail is not dead, but          We hope you find its content thought-
that its relationship with the consumer is            provoking. Shaping a West End which meets
fundamentally evolving.                               future demand will be a collaborative process,
                                                      and in that context, we would be pleased to
Consumers increasingly want a retail experience       hear your feedback on this report.
that delivers less friction, more interaction and
more variety than before. In future, retailers will   Yours in partnership,
need to be entertainers as well as merchants
with the lines between shopping and leisure           Team New West End Company

                                                                                                              REDEFINING RETAIL BEYOND 2020 | 3
REDEFINING RETAIL BEYOND 2020 - POWERED BY - New West End Company
REDEFINING RETAIL BEYOND 2020 | INNOVATION WITH PURPOSE

Peshkova | Megapixl.com

Innovation with purpose
T
       he West End has always been a vibrant,        and often challenging way. We want to
       progressive and exciting shopping             create an awareness of what is out there - to
       destination at the heart of London - the      catalyse change and inspire innovation in
greatest city in the world. As we navigate           your own work. Perhaps the most important
turbulent times, it is more critical than ever       opportunity within this change is the theme
that the West End continues to evolve and            of purpose - ethical, environmental and
innovate to maintain this global leadership          social purpose. The green economy is
position. At Springwise our crowdsourced             coming of age and as we all know, climate
community scours the globe every day to              change is our greatest challenge. So, it
discover the most inventive and innovative           is heartening to observe the increasing
ideas from all sectors, particularly retail. It is   number of London retailers and landlords
through this lens that we are proud to bring         who are putting purpose and positive
you this innovation report.                          environmental change at the heart of their
                                                     brands and operations.
Disruption is everywhere - from Amazon to
WeWork. Traditional business models are              This sense of purpose is truly visionary and
being turned upside down. We need to act             will be a powerful foundation for the West End
fast, but also with a pragmatic and agile            as we capitalise on the age of disruption and
mindset to ensure that we safeguard and              play our part in reinforcing London’s position
emphasise the West End’s values and history          as not only the best place to shop but also the
while demonstrating our understanding of this        best place to live, work and visit.               P OW E RED BY
rapid change and our openness to embrace
it to create our future. This report has a           James Bidwell
diversity of themes, from in-store technology        Chairman Springwise
to data-driven retail, all brought to life by the    Co-founder Re_Set
Springwise editors in an engaging, inspiring

4 | REDEFINING RETAIL BEYOND 2020
REDEFINING RETAIL BEYOND 2020 - POWERED BY - New West End Company
REDEFINING RETAIL BEYOND 2020 | THE NEW CONSUMER LENS

The new
consumer lens
Increasing consumer demands are pushing retailers to
focus more on delivering experiences and building a
relationship with shoppers.

S
      hopping is evolving, and so are the
      expectations and behaviours of
      consumers. The tension between
online and high street spending continues,
but new technologies in real world and
virtual shopping spaces bring opportunities                        Omni-channel retail
for savvy brands to maximise ROI in both
locations.                                                         Omni-channel retail, with the ability to
                                                                   switch seamlessly between online and
The UK holds the world’s third most-                               in-store shopping, has affected both
developed e-commerce market, with                                  consumer expectations and behaviour.
                                                                   Brick and mortar stores are growing at a
20 percent of all sales now taking place                           slower rate (2% over Q1 and Q2 2018*),
online (Source: ONS). Simultaneously,                              so it will require finding the right balance
bricks-and-mortar retail is continuing to                          and taking advantage of an omni-channel
grow, albeit slowly, at a rate of around two                       approach to retain and grow customers.
percent. In-store shopping is not dead,                            *Source: ONS
but its relationship with the consumer is
changing. Consumers increasingly want

       “Rather than visiting a                                    Increasing demands
         shop exclusively to make
         a purchase, consumers                                     Consumers increasingly want a retail
                                                                   experience that delivers less friction,

         are coming to stores in                                   more interaction, and more variety than
                                                                   before. The stores of the future will need
         order to interact with their                              to focus less on transactions and more
                                                                   on building a relationship with shoppers,
         favourite brands in new and                               they will need to deliver more features
                                                                   than just products on shelves.
         unexpected ways.”

a retail experience that delivers less                             In-store experiences
friction, more interaction, stronger on-line
/ off-line connectivity and greater product                        Be it customisation, personalised
variety and personalisation than before.                           recommendations, omni-channel
Stores of the future will need to focus less                       experiences or even more ethical
                                                                   products, consumers want to feel
on transactions and more on building a                             connected to the brand and see retailers
relationship with shoppers; they will need                         experimenting with their delivery
to deliver more features than just products                        channels - creating vast opportunities for
on shelves.                                                        the store of the future.

The way customers engage with stores
and their products is evolving. Consumers
want to feel more connected to the brands
they use. Product quality alone is no longer

                                                                                  REDEFINING RETAIL BEYOND 2020 | 5
REDEFINING RETAIL BEYOND 2020 - POWERED BY - New West End Company
enough to attract a sale. Shoppers expect
retailers to share their values, including a           International vs domestic visitor split for the West End
solid commitment to sustainability and the                                                                            65%

circular economy. Consumers of all ages                60%                                        60%
                                                                                                                                       59%
- especially Millennials and Gen Z - are                                55%

redefining the concept of convenience-                 50%

with-a-conscience; demanding a greater                          45%
                                                                                                                                               41%
range of ethical shopping options, such as             40%                            40%

packaging-free stores, giving back to the                                                                    35%

community and locally-sourced products.                30%

The provenance and ethics of products are
also important to Chinese consumers, who               20%

are paying greater attention to the entire
supply chain.                                          10%

Brand loyalty is also changing, and savvy
                                                                 West End             Oxford Street          Regent Street             Bond Street
marketeers are incorporating new styles
of marketing, new methods of collecting                *Source: New West End Company estimates, 2017                   International         Domestic
customer data and Artificial Intelligence
(AI) to offer customers a more tailored and
personalised in-store experience. This is
particularly important for Gen Z, who suffer        Retailers are offering the opportunity to try
from an attention split between phones,             on virtual clothes, or to view products in a
friends and environment; necessitating the          virtual environment. They are experimenting
curation of more inspiring and desirable            with allowing shoppers to customise items
product presentations, interactive elements         in-store, or sample products in a real-world
and personalisation to influence their              situation. Retailers are adding value with
purchase decisions.                                 pop-up shops in non-traditional locations
                                                    like transport hubs or education settings,
Rather than visiting a shop exclusively to          or offering highly curated collections or
make a purchase, consumers are coming to            direct-to-consumer brands. Digitally-native
stores in order to interact with their favourite    consumers, such as Gen Z, also expect
brands in new and unexpected ways.                  easier in-store navigation, including the use

       BEST FOR SENSORY EXPERIENCES                BEST FOR FAST-PAYMENTS                               BEST FOR IN-STORE CURATION

       Paris                                       Shanghai                                             Amsterdam
       London’s great rival, Paris is seeing a     China’s rise has grown a young and                   Curation is key in Amsterdam – a world
       renewed focus on joyful browsing as         dynamic market willing to experiment with            design capital – as more spacious
       sensory experiences – particularly in       technologies – making it the world leader in         stores featuring highlighted items have
       cosmetics and food – continue to be         mobile wallets through AliPay and WeChat,            come into fashion as the latest boutique
       reimagined for consumer delight.            as well as being the furthest ahead in               trend.
                                                   checkout-free convenience stores.

       BEST FOR NOVEL STORE FORMATS                BEST FOR EXPERIENTIAL SHOPPING                       BEST FOR DIGITAL CONNECTIVITY

       New York                                    Singapore                                            Seoul
       Strapped for space, New York retail         Bricks-and-mortar stores are doing                   Possibly the world’s smartest city,
       continues to innovate with fresh            exceptionally well here as shoppers                  Seoul’s shopping scene is aided by
       experiments in spatial capacity, such       look to them for accessibility and                   ubiquitous phone charging, free public
       as Ikea’s 2019 Planning Studio, and         familiarity, coupled with the preservation           WiFi, virtual stores at bus-stops – run by
       a burgeoning pop-up scene taking            of experiential shopping for items like              Tesco – and safety devices for children
       advantage of local micro-trends.            toys and fashion which are growing by                and the elderly which tap into the
                                                   10% and 6% as markets*.                              surveillance network.
 *Source: Statista

6 | REDEFINING RETAIL BEYOND 2020
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REDEFINING RETAIL BEYOND 2020 | THE NEW CONSUMER LENS

      Age                                            Consumer                                    Region
      GEN X (Born: 1966-1976)                        EVERYDAY USERS                              EU & US 71%
      Time-poor and high value, these customers      Impulse buying at lunch, chore shopping     In London for the transatlantic brand
      value retail experiences which combine         after work and just passing through         experience, offering new high-end
      high quality customer service, seamless        means new payment methods and store         experiences will be essential to
      cross-channel selling and convenience.         formats will bring more trade.              remaining competitive with other global
                                                                                                 cities like Paris and New York.
      MILLENNIALS (Born: 1977-1994)                  SHOPPERS
      By 2020, this generation will also be          Attracted by a new store format,            M EAST & E ASIA 3%
      shopping for their children and demanding      event or sale, shoppers will benefit        Often in the West End for high value
      authenticity, transparency, customisation,     from new technologies supporting            goods, familiar payment methods such as
      interactivity and omni-channel accessibility   AR, showrooming and personalised            AliPay – the highest penetration mobile
      at the heart of their shopping experience.     recommendations.                            wallet in the world – could grow this
                                                                                                 segment.
      GEN Z (Born: 1995-2012)                        TOURISTS
      This growing segment suffers Attention         Coming as much for the experience as        NEWER MARKETS 2%
      Partiality – the attention divide between      the stores, novel retail concepts that      With a growing middle class, visitors
      phones, friends and environment – meaning      encourage London visitors to spend          from countries like India will command a
      inspirational curation and personalisation     longer in-store will increase revenue.      higher percentage of sales – especially
      above all else will convert into sales.                                                    beyond 2020.

                                                                                                            *UK customers - Source: Statista

of smartphone apps and GPS to direct them            information. New apps could allow customers
to specific products.                                to scan items in-store and pay at the counter
                                                     or in-app, or to pay using crypto-currency
Experiential offerings might range from              or a retailers’ own-brand currency. Asian
allowing shoppers to wear ski gear in a cold-        consumers now expect to pay using mobile
room before purchasing, allowing customers           wallets such as AliPay and WeChat Pay, which
to design and configure their own products,          automatically process currency conversions.
or taking a lunch-time nap on a mattress to          Other platforms are developing ways to allow
test it out. Providing unique experiences            in-store customers to buy now and pay later,
helps consumers to contextualise ways                to link a payment card to a business to earn
they might utilise a product. It also builds         rewards, or seamlessly allow tourists to fill
relationships, encourages shoppers to                in VAT refund forms by uploading photos of
spend longer in-store, and inspires loyalty.
This type of experiential shopping is
particularly important for holiday-makers
and Millennials who demand authenticity,
                                                             “With the emergence of mobile
transparency, customisation and interactivity                   as an important channel for
at the heart of their shopping experience.
                                                                commerce, the line between online
In addition to experience, customers are                        and in-store shopping is also
                                                                blurring in the area of payment.”
also demanding friction-free shopping that
moves seamlessly between the online and
offline worlds. For example, around 65
percent of US bricks-and-mortar retailers            their receipts. This range of payment options
will offer a delivery component by the end           is particularly important to members of Gen
of 2019, signalling a new interpretation and         X, who are time-poor and so place value on
function of the ‘store’. Delivery innovations        retail experiences which combine high-quality
may include low-carbon delivery, drone               customer service, seamless cross-channel
delivery, or free 24/7 delivery.                     retail and convenience.

With the consolidation of mobile as a                To reach the new consumer, retailers will need
significant channel for commerce, the line           to innovate methods of delivering an omni-
between online and in-store shopping is              channel approach. In the end, the future of
also blurring with regards to payment. Many          retail is not that different from the past. It is
consumers already use their phones in-store          focused on putting the customer front and
to compare prices and search for product             centre of their experience.

                                                                                                         REDEFINING RETAIL BEYOND 2020 | 7
REDEFINING RETAIL BEYOND 2020 - POWERED BY - New West End Company
REDEFINING RETAIL BEYOND 2020

Rawpixelimages | Megapixl.com

Themes of consumer
disruption
Consumer behaviour is changing, and this represents an unparalleled
opportunity for retail.

T
      he themes emerging in consumer             'experiential retail') involves creating a
      disruption point to a clear direction      community destination. As ‘chore’ shopping
      for retailers seeking to adapt their       moves online, consumers are looking for
business strategies. The future of retail lies   added value from the physical retail space.
in delivering cross-channel selling in an        This could mean hosting events or art
engaging environment. Here we look at            installations, or creating a hang-out space
some of the key themes that are emerging         with comfy furnishings, free phone chargers
in consumer disruption, and how to tackle        and food trucks. Pop-ups and innovative
the resulting challenges.                        store formats add interest. In fact, pop-ups
                                                 have become an industry in their own right,
          THE NEXT BIG THING                     worth over $10 billion annually.
          Many retailers are talking about
          the ‘retailtainment’ trend. But        Curation culture is another key trend,
what does this mean in practice? Originally      especially with younger shoppers. This
described almost 20 years ago as a way to        includes hyper-local stores, and smaller,
use ambiance to put customers in the mood        less-cluttered shops featuring a reduced
to buy, today retailtainment (also called        range of goods focused around a specific

8 | REDEFINING RETAIL BEYOND 2020
REDEFINING RETAIL BEYOND 2020 - POWERED BY - New West End Company
REDEFINING RETAIL BEYOND 2020 | THEMES OF CONSUMER DISRUPTION

theme. Combining curation with digital            look like without needing to try it on, or
innovation can allow stores to reach a            a digital mirror that allows customers to
wider range of customers, as ShopShops            instantly request wish-list items in different
(p. 20) has demonstrated, by livestreaming        sizes and colours. Virtual Reality (VR) could
US store events to shoppers in China.             be used to visualise a hotel room before
Consumers are expecting a much higher             booking (p. 24), or to see how a sofa
degree of personalisation, including              would work in a users’ own home. Used
instantly customisable goods and                  together, this technology will help deliver a
recommendations tailored to individual            more streamlined and appealing physical
tastes.                                           environment, by allowing retailers to
                                                  remove checkouts and stock from the shop
One example of the destination trend              floor. For those who do visit the store, this
in action is Nike by Melrose, where the           is made easier with GPS-powered in-store
available items are determined by data            navigation tech, like that from Oriient (p. 28).
collected via the NikePlus app and change
frequently to reflect local micro-trends.                    SEAMLESS SHOPPING
Shoppers can use the app to buy online                       Studies show that 78 percent of
and collect from an in-store vending                         women base their purchasing
machine. The physical shop includes               choices on advice and recommendations
artwork and a Sneaker Bar where shoppers          from friends and trusted influencers. New
can receive in-depth one-on-one advice.           apps are already allowing customers to
Nordstrom Local is another example. Stores        poll their social media contacts about
are designed as experiential showrooms            individual purchasing decisions. Using
where consumers can meet with a personal          peer-to-peer marketing (p. 33) to create
stylist, sip a latte, get a manicure and          a real conversation and relationship with
be pampered as they consider clothing
purchases.

           IN-STORE TECHNOLOGY
                                                         “Consumers are expecting
           The retail store of the future                  a much higher degree of
           will be an intelligent store using
digital to inform the physical store format.
                                                           personalisation, including
This trend will see digital used to deliver a              instantly customisable goods
hyper-personalised and adaptive in-store
experience. Retailers will need to adopt a                 and recommendations tailored
range of payment options, such as mobile
wallets and contactless payment, which
                                                           to individual tastes.”
are already standard in China. Following
the introduction of Amazon Go, which              consumers could help retailers to maximise
demonstrated that facial recognition can          brand loyalty and help customers feel more
be harnessed to allow instant payments,           valued. Retailers could use technology to
it is now possible to eliminate checkouts         bring social influencer marketing ‘in-store’.
altogether, and even create staff-less stores
for a completely frictionless shopping            Concurrently, new customer-relationship
experience. In China, the unstaffed Moby          management (CRM) technology is allowing
Mart (p. 27) is open 24/7 and uses AI to          the in-store personal shopping experience
allow shoppers to stock up using automatic        to extend beyond the door (p. 30). With 48
payment. Automatic payment can even be            percent of customers already saying they
applied to single items, as with the Costa        want a higher level of customisation, these
Clever Cup (p. 26), which is embedded with        ‘Conversational Commerce’ tools could
a payment chip.                                   help deliver a greater connection between
                                                  online and in-store shopping.
Technology can deliver more flexible retail       Increasingly, competing with online
spaces, including bringing more of the            shopping comes down to delivery speed,
online world in-store. With Apple’s release       with around 76 percent of retail shoppers
of the augmented reality (AR)-supporting          saying they would spend more if they could
iOS11, digital displays can be placed             get same-day delivery (Source: Deloitte).
directly into the hands of the consumer.          Creating a seamless retail experience also
This could allow stores to augment their          means wider cross-channel selling and
physical displays, for example by using AR        more innovative delivery options, such as
to show customers what an outfit would            grab-and-go, click-and-collect, immediate

                                                                                                  REDEFINING RETAIL BEYOND 2020 | 9
REDEFINING RETAIL BEYOND 2020 - POWERED BY - New West End Company
REDEFINING RETAIL BEYOND 2020 | THEMES OF CONSUMER DISRUPTION

Ipopba | Megapixl.com

delivery (p. 32) or the option of leaving        Stores that incorporate social inclusivity
items in-store for home delivery later.          into their business model (p. 39), AR that
                                                 instantly informs customers of a products’
          DATA-DRIVEN RETAIL                     sustainability (p. 40) and apps that alert
          None of the trends discussed           customers to a brand’s ethics (p. 41) will
          in this report would be possible       drive this trend.
without accurate data on shoppers, their
habits and their behaviours. In-store            Brands will need to ensure their entire
analytics, such as customer tracking             supply chain is sustainable and that means
through facial recognition, or even footstep     greater use of data to enable technology
recognition, is making it possible to gather     such as dynamic pricing to reduce food
new types of customer data and enable            waste (p. 42) and reverse logistics to
more intelligence-led executive decisions.       optimise the product lifecycle and reduce

The next frontier is gathering data on
customer emotions, and how this affects
their shopping habits. AI-powered software
                                                        “The next frontier is
is allowing retailers to use all of their data            gathering data on
more effectively, by analysing historic
buying patterns (p. 35) and helping to
                                                          customer emotions, and
gather data on everything, from the effects               how this affects their
of weather on shopping patterns, to
creating more efficient supply chains (p. 37).            shopping habits.”
This data can be fed back into marketing
technology, for example by allowing              the environmental impact of returns.
chatbots (p. 36) or digital billboards to        Brands should do more to promote
respond to how shoppers are feeling at any       sustainable models of consumption and
given moment.                                    convenience with a conscience. This will
                                                 pay off for retailers, when shoppers feel part
           THE GLASS BOX STORE                   of a wider movement that places positive
           Millennial and Gen Z customers        change for both our planet and its people at
           are not just requesting, but          its heart.
are demanding, transparency from their
favourite brands. Globally, around 86            The innovations discussed in this report
percent of consumers expect retailers            are enabling retailers to become nimbler at
to take a stand on social issues, and            establishing a comprehensive omni-channel
66 percent say they would be willing             strategy. They are helping brands to know
to pay more for sustainable goods                precisely who their customers are, what
(Source: Nielsen). The retail store of the       their specific needs and buying preferences
future will be expected to demonstrate           are, and how to reach them in the most
its ethical and sustainable credentials.         convenient, customised and authentic way.

10 | REDEFINING RETAIL BEYOND 2020
REDEFINING RETAIL BEYOND 2020 | WHAT DISRUPTION MEANS FOR STAKEHOLDERS

                                                                                                     Elenabsl | Megapixl.com

What disruption means
for stakeholders
Driving growth in an era of disruptive technologies will require building
strategic partnerships between retailers, brands, landlords, the public,
and policy makers.
BUILDING PARTNERSHIPS IN THE                    new and unusual store formats; to provide
FUTURE OF RETAIL                                short-term leases, or leases that allow
It’s not only stores that are changing; the     multiple outlets to share one space. Shorter
model of retail will need to adapt to shifts    leases could provide greater flexibility for
in consumer needs and behaviour. Building       both sides; they allow brands to try new
strategic partnerships between retailers,       concepts with less risk, while shopping
brands, landlords, the public, and policy       centres and malls benefit by keeping their
makers is crucial to driving growth in an       tenant mix fresh, which drives traffic and
era of disruptive technologies and rapidly      attracts new visitors. As more retailers and
changing consumer expectations.                 landlords experiment, lease standards are
                                                likely to evolve.
ADAPTING RETAIL LEASING FOR NEW
MODELS OF PROFITS                               A 2016 PwC survey found 58 percent of
Strategic partnerships with landlords will      respondents preferred to shop online
be crucial to developing flexibility. To        because it is more convenient. Landlords
accommodate new store formats, like pop-        and tenants can work together to offer new
ups, large concept stores, and unstaffed        versions of in-store conveniences. Landlord
stores, landlords will need to be prepared      / retailer partnerships could improve foot
to incorporate greater adaptability in rents,   traffic and reduce barriers for shoppers,
length of leases, and store configurations.     for example, by developing concierge and
Rental contracts may need to be tailored to     return services.

                                                                                               REDEFINING RETAIL BEYOND 2020 | 11
REDEFINING RETAIL BEYOND 2020 | WHAT DISRUPTION MEANS FOR STAKEHOLDERS

    CONNECTING WITH CONSUMERS TO                     be how to deliver greater personalisation
    MEET CHANGING EXPECTATIONS                       whilst safeguarding any collected data.
    Retailers are experimenting with ways to
    partner more effectively with consumers.         Partnerships with government can help
    This often involves the use of technology to     attract new customers. China is now
    create new opportunities for cross-channel       arguably the world leader in developing
    shopping. Specialised retail apps can            and rolling out retail innovations. Retailers
    drive traffic by offering in-store customers     who wish to attract more Chinese and
    personalised deals, grab-and-go and              Asian consumers will need to adopt the
    mobile payment options, while collecting         technology these customers now expect as
    data which helps them provide hyper-             standard. For example, in China, more than
    localised offers. For example, sports brand      half of all transactions are made with mobile
    Adidas now offers running shoes tailored         wallets like AliPay, and Chinese customers
    to the needs of runners in particular cities     therefore expect this facility to be available
    – their AM4NYC (‘Adidas Made for NYC)            to them as they travel.
    trainer is designed to help specifically with
    the sharp turns found on New York City’s         Creating ethical and sustainable supply
    street grid. Each shoe is equipped with a        chains will involve cooperation with
    near field communication chip that allows        international policymakers. For example,
    runners to sync their shoes with the Adidas      requiring less plastic use, greater
    mobile app to receive original content and       transparency in the production process and
    information about the product.                   forging connected networks of suppliers
                                                     could enable returned goods to be resold
    Facial recognition systems are being used        locally, rather than shipped back to the
    to create partnerships with consumers, and       country of origin.
    to build a bridge between the online and
    offline worlds. Technology that recognises
    customers when they walk in the door can
    help stores to develop more personalised                “Facial recognition systems are
    shopping, for example, by reminding in-
    store shoppers that there’s an item in their
                                                              being used to create partnerships
    online basket and offering them the chance                with consumers, and to build a
    to try it on there and then. Partnerships like
    these create opportunities to learn exactly
                                                              bridge between the online and
    what customers want - and when - and then                 offline worlds.”
    meet those expectations.

    SAFEGUARDING PRIVACY IN HIGHLY                   BUILDING SUCCESSFUL PARTNERSHIP
    CONNECTED STORES                                 FOR CROSS-CHANNEL RETAILING
    In the future, connectivity will be king.        New retail experiences offer fresh
    Retailers and policymakers will need             opportunities for brands and stores to
    to work hand-in-hand to develop the              collaborate. One example is Macys' Story in
    technology infrastructure - such as 5G           New York, which changes its offerings every
    connectivity - necessary to provide a            four to six weeks to focus on themes of
    seamless connection between the physical         significance to sponsors and advertisers. A
    and the digital. Payment infrastructure,         sponsorship deal by health provider CIGNA
    including legal frameworks, will need to         led to the addition of a relaxation lounge
    be developed to enable mobile wallets            and Pilates classes. Additionally, the store
    and other forms of contactless shopping.         runs promotions like ‘Thirsty Thursdays’
    Hard infrastructure changes may also be          or ‘Snack Saturdays’, partnering with local
    necessary, for example, to create car-free       food trucks. The sponsorships and themes
    destination shopping areas, or to allow          add interest for consumers and create
    robots or drones to deliver goods.               additional sources of revenue for the store.

    As the use of data grows, along with calls       As we have seen, the retail space of the
    for greater transparency, policymakers           future will include opportunities for dining,
    and retailers will need to work together on      learning, and entertainment. Retailers
    new initiatives around data collection and       will need to develop partnerships with
    privacy. One key question to address will        independent experts, including online

12 | REDEFINING RETAIL BEYOND 2020
Elenabsl | Megapixl.com

influencers and mobile vendors like food         stores. Services, such as N26’s in-store
trucks and massage therapists, to deliver        cash deposit and withdrawal (p. 18) can also
this added value. New shopping events can        turn shops into convenience destinations
also build brand partnerships. For example,      and make shopping easier.
events such as China’s Singles Day
(Guanggun Jie) could become fixtures in the      While the retail ecosystem is experiencing
British shopping calendar and provide an         rapid change, it is anything but dead. In
opportunity to partner with Chinese brands       fact, new ways of partnering with brands,
or to attract more Chinese customers.
Alibaba has started its own shopping
festival - the 11.11 Global Shopping Festival
- in order to grow sales outside of China. It
                                                        “Retailers who wish to attract
now attracts more than 60,000 international               more Chinese and Asian
brands across more than 225 countries.
                                                          consumers will need to
In order to develop greater omni-channel                  adopt the technology these
opportunities, many legacy brands have
begun partnering with digitally native                    customers now expect as
brands. In the US, large retailers like Target            standard.”
and Walgreen’s have gained a new lease
of life by offering online brands such as
Casper’s and Birchbox in-store. This type        consumers, policy makers and landlords are
of partnership brings the cachet of private      fuelling a retail renaissance. At the same
brands and a curated in-store experience.        time, there is a growing realisation that
For the digitally native brands, partnering      going it alone is not necessarily the best
with a bricks-and-mortar retailer offers a       course of action for retailers. In order to
way for potential customers to try before        effectively navigate the continuing changes
they buy; allows the brand to test out           in consumer expectations, technology,
markets before opening their own stores;         e-commerce and omni-channel shopping,
and helps drive incremental business in          retailers will need to be innovative in
markets which won’t support stand-alone          developing options for creative partnerships.

                                                                                                 REDEFINING RETAIL BEYOND 2020 | 13
REDEFINING RETAIL BEYOND 2020 | VISION AND VALUES

Vision and values
T
       his report will give everyone involved       Our belief is that London’s West End is
       in the retail sector tremendous food for     ideally positioned to both embrace the kind
       thought. It’s clear that technology in all   of technological innovation detailed in this
its forms is reshaping retail and real estate,      report, and also to respond to the ethical and
but ultimately it may be environmental and          environmental issues of sustainability. The
ethical issues which have the most sustained        diversity of London’s retail landscape from
long-term effect on what we buy and how it          street food to super-luxury is enormous, and
is sold.                                            we see part of our role as helping to sustain
                                                    that range.
Today’s consumer expects retailers to mirror
and share their values. They’re looking for         Our work with our partners to enhance the
demonstrable commitment to sustainability           environment of the West End, improve air
and the environment. As this report notes,          quality and make it a pleasant and secure
consumers want retailers to take a stand            place to be is of central importance to us. It is
on social issues, and a growing number of           also underpinned by good business sense;
shoppers say they would be willing to pay           the West End’s ability to attract the best
more for sustainable goods. This represents         brands, restaurants, hotels, bars, cafes and
a massive opportunity for the retail sector –       cultural hubs ultimately draws in visitors and
and good news for the planet.                       also supports the appeal of the location as a
                                                    workplace.
Millennials and Generation Z want
convenience with a conscience, and an               New West End Company is committed
increased range of ethical solutions such           to helping our partners and stakeholders
as packaging-free stores, community                 deploy the innovation that can support their
engagement initiatives and locally and              businesses and enhance London’s reputation.
ethically sourced products. In the face of          We hope this research will further encourage
these preferences, intelligent brands that          debate and information exchange around the
can blend tech with ‘in real life experience’       fascinating challenges and opportunities that
will maximise their appeal to consumers.            this unique location offers.
Social inclusivity will have a growing impact
on the identity of retail environments, while       Jace Tyrrell
supply chains will be increasingly under            Chief Executive
scrutiny.                                           New West End Company

14 | REDEFINING RETAIL BEYOND 2020
REDEFINING RETAIL BEYOND 2020 | THEMES OF CONSUMER DISRUPTION SUMMARY

           REDEFINING RETAIL
             BEYOND 2020
   THE NEXT BIG                                 IN-STORE TECHNOLOGY                                       SEAMLESS
      THING                                                                                               SHOPPING
                                  Concepts like AR, showrooming and the removal of the checkout
The hyper-competitive retail      will mature enough to become new themes in the store of the       Chatbots, better CRM and
space is continuing to see        future.                                                           cross-channel selling means
new experiences emerge –          • Augmented Reality & Virtual Reality                             the in-store experience does
community, personalisation        • Clutter-free stores                                             not have to end – or start – at
and curation will be more                                                                           the door.
important by 2020 and             • New payment options
                                                                                                    • Personalisation & CRM
beyond.                           • Removal of checkout
                                                                                                    • Chatbots & AI
• Novel store format              • Wayfinding
                                                                                                    • Cross-channel commerce
• Community destinations
                                                                                                    • Peer-to-peer marketing
• Curation culture
• Rapid personalisation

    DATA-DRIVEN RETAIL                                                                 THE GLASS BOX STORE
Accurate data on shoppers, their habits and                                          Younger consumers are demanding ethical,
their behaviours - both in and out of store                                          transparent and sustainable businesses
- will be crucial to retaining and attracting                                        more than ever, meaning this new trend will
customers.                                                                           go mainstream by 2020.
• In-store analytics                                                                 • Diversity & inclusivity
• Emotions & data science                                                            • Sustainability
• Smarter commercial decisions                                                       • Business ethics
                                                                                     • Positive consumption

        How to read the innovation pages                                                                  EASE OF
                                                                                                      IMPLEMENTATION
        In this report Springwise has gathered a selection of innovations from across the
        world focusing on the key themes that are emerging in consumer disruption. Each
        innovation (from p. 17) provides a description, key takeaways and an illustration
        of the ease of implementation - in a scale from 'easy' to 'difficult' depending on
        whether the solution is as quick as 'plug and play' or requires more advanced
        software development and extensive adaptation.                                                  Easy            Difficult

                                                                                                  REDEFINING RETAIL BEYOND 2020 | 15
INNOVATIONS

            THE NEXT BIG THING
                                     INNOVATIONS

                                        “The hyper-competitive retail
                                          space is continuing to see
                                          new experiences emerge –
                                          community, personalisation
                Novel store format        and curation will be more
            Community destinations        important by 2020 and
                   Curation culture       beyond”
              Rapid personalisation

16 | REDEFINING RETAIL BEYOND 2020                          Image credit: Shutterstock
INNOVATIONS | NOVEL STORE FORMAT

                                                                                                   WHAT
                                                                                                  WeWork expands on
                                                                                                  the idea of co-working
                                                                                                  space by welcoming
                                                                                                  the public.

                                                                                                  WHO
                                                                                                  www.wework.com

                                                                                                  WHERE
                                                                                                  United States

                                                                                                  CONTACT
Made By We                                                                                        joinus@wework.com

Co-working space opens to the public                                                              TAKEAWAY
with desks, shopping and food
                                                                                                  Opening up on-
                                                                                                  demand co-working
WeWork expands on the idea of co-working space by welcoming the                                   spaces provides
public.                                                                                           more opportunities
                                                                                                  for networking and
WeWork has launched a new combination           combination shared office and sales space         socialising. It can
co-working space with retail and food called    concept. WeWork currently has 603 open            also help stores
Made By We. It is located in New York           or coming soon locations in 100 cities            and businesses to
City's Flatiron neighbourhood. It is open to    around the world. That is an attractive           monetise underused
the public and anyone can book a desk or        captive audience. In the summer of 2018,          space.
meeting space. There are nearly 100 seats       the company announced WeMRKT, a
available that can be booked on-demand          retail space to sell products from 10             Stores can sell their
or by pre-booking via the website. Made By      WeWork member companies -- all of                 products alongside
We also offers meeting spaces for groups        whom competed to sell company-branded             the meeting and
of four to 10 people. Made By We doubles        apparel, office supplies and food.                working spaces,
as a shop, which sells clothes, snacks, and                                                       generating new
other products made by members of the                                                             revenue streams
"We community." Members include direct-
to-consumer online companies that will now
                                                    “... direct-to-                              as they cultivate a
                                                                                                  captive audience.
have the opportunity to sell in a bricks-and-         consumer online
mortar environment with small overhead
cost.
                                                      companies will
There's also a cafe. The idea, according to           now have the
the company, is to be not just a workplace            opportunity to
but also a community.
                                                      sell in a bricks-                               EASE OF
WHAT'S NEXT?                                          and-mortar                                  IMPLEMENTATION
Co-working spaces are growing in
popularity as people look for cost effective
                                                      environment”
ways to handle office spaces. Shared
work spaces also offer opportunities
for socialising and networking. WeWork
is clearly capitalising on these trends.                                                            Easy           Difficult
Retailers surely will welcome this

                                                                                            REDEFINING RETAIL BEYOND 2020 | 17
INNOVATIONS | COMMUNITY DESTINATIONS

                                                                                                WHAT
                                                                                               German startup N26
                                                                                               is transforming retail
                                                                                               stores into bank
                                                                                               branches, where
                                                                                               customers can
                                                                                               withdraw and deposit
                                                                                               money.

                                                                                               WHO
                                                                                               n26.com

                                                                                               WHERE
                                                                                               Germany

                                                                                               CONTACT
Peggy and Marco Lachmann-Anke from Pixabay                                                     info@n26.com

In Germany, deposit and withdraw cash                                                          TAKEAWAY
at thousands of local stores
                                                                                               Transforming stores
German startup N26 is transforming retail stores into bank branches,                           into bank branches
where customers can withdraw and deposit money.                                                helps retailers to draw
                                                                                               in new customers by
                                                                                               offering a service.

A
        s financial services come up with      Germany and Austria and now reaches
        ways to provide online customers       over 1.5 million customers in 17 European       Allowing consumers
        with offline convenience, digital      countries. Backed by Chinese giant              to access banking
banks are exploring new collaborations         Tencent, the German fintech opened              services while they
with retailers to add value for in-store       its online bank to British customers in         shop helps turn
shoppers. German startup N26 is doing so       October 2018. Consumers increasingly            retail spaces into a
by transforming over 11,500 stores into bank   want convenience with greater levels of         destination. Stores
branches, where customers can withdraw                                                         could add other
and deposit money.                                                                             complementary
   Since its launch in 2015, N26 has
taken the hassle out of physical banking
                                                   “... digital                               services to transform
                                                                                               into destinations,
by moving inconvenient tasks — such as               banks are                                 such as incorporating
creating an account or cancelling a lost
card — online. Now, through a partnership
                                                     exploring new                             community meeting
                                                                                               spaces.
with Barzahlen, it has launched Cash26,              collaborations
effectively turning shops into banking               with retailers to
branches or ATMs. To use, N26 customers
visit one of the participating stores and            add value to in-
launch the app. Next, they specify whether           store shoppers. ”
they want to withdraw or deposit cash and
how much. The app will then automatically                                                          EASE OF
generate a barcode, which the customer         self-service and single point access to a       IMPLEMENTATION
presents at the checkout register. The         broad range of services. N26 taps into this
cashier scans the code, the customer enters    demand by offering clients instant access
their pin and the transaction is processed     to financial services through a retail store.
immediately.
                                               What other services can be integrated into
WHAT'S NEXT?                                   bricks-and-mortar retail?                        Easy          Difficult
N26 started with 50,000 customers in

18 | REDEFINING RETAIL BEYOND 2020
INNOVATIONS | COMMUNITY DESTINATIONS

                                                                                                      WHAT
                                                                                                     A new service lets you
                                                                                                     charge your phone
                                                                                                     battery on the go.

                                                                                                     WHO
                                                                                                     www.chargedup.green

                                                                                                     WHERE
                                                                                                     United Kingdom

                                                                                                      CONTACT
                                                                                                     hello@chargedup.
ChargedUp                                                                                            green

Tech startup uses green energy for                                                                   TAKEAWAY
rentable chargers                                                                                    Bringing more
                                                                                                     services in-store
A new service lets you charge your phone battery on the go.                                          encourages
                                                                                                     customers to stay
                                                                                                     longer.

A
       t Springwise, we often come across       with renewable energy company Ecotricity.
       innovations based on providing a         To prevent people from taking a ChargedUp            Consumers are
       unique service. These have included      battery and not returning it, each battery           looking for added
a concierge service that specialises in hard-   has its own ID chip, and can be linked to            value from the retail
to-find items and personalised nutrition        individual users. Users can also purchase            space, and this can
labels. A new innovation seeks to answer        a ChargedUp battery outright for £30. This           be met by providing
the question of what to do when a phone         fee includes access to the chargers for one          ancillary services
battery dies while you are out and about.       year.                                                such as charging
London-based startup ChargedUp have                                                                  stations.
developed a network of vending stations         WHAT'S NEXT?
where, for a small fee, users can borrow        ChargedUp was inspired by London's public            Focusing on the
portable power banks.                           bike-sharing scheme to solve the dead                use of green energy
   Users can locate a station using the         mobile phone battery problem. ChargedUp              allows retailers
ChargedUp app. Once located, they scan          isn’t the only company to turn charging              to highlight their
the QR code on the station to release a         into a service. Services like ChargeBox              green credentials
battery. Batteries come with connector          can be found in some shopping centres.               and appeals to
cables for both iPhone and Android.             They allow users to lock their phone away            Millennials and Gen Z
Prices for the rental batteries start from 50   and charge it for 30 minutes. However,               consumers.
pence for 30 minutes, up to £3 for a full       ChargedUp is the only service where users
24-hours usage. After charging, users can       can take the charger on the go with them.
drop the charger off at any ChargedUp           The startup recently closed £1.2 million
station. There are currently 30 stations        in seed investment which will be used to                EASE OF
around London, but the company aims to          extend the mobile charging network in bars,         IMPLEMENTATION
have chargers in more than 1500 locations       cafes and restaurants across the UK and in
by the end of 2019. The company is also         other cities around the world.
exploring partnerships that will let them put
charging stations in thousands of stores and    What other ways are there to turn mobile
restaurants.                                    charging into a service?
   The entire ChargedUp network runs on                                                               Easy           Difficult
green energy, provided by a partnership

                                                                                              REDEFINING RETAIL BEYOND 2020 | 19
INNOVATIONS | CURATION CULTURE

                                                                                                    WHAT
                                                                                                   A new company
                                                                                                   is riding the wave
                                                                                                   of the growth in
                                                                                                   livestreamed home
                                                                                                   shopping in China.

                                                                                                    WHO
                                                                                                   www.shopshops.com.
                                                                                                   cn

                                                                                                   WHERE
                                                                                                   China / United States

                                                                                                   CONTACT
Pixabay                                                                                            www.shopshops.com.
                                                                                                   cn/contentUs

Shopping platform livestreams events
online                                                                                             TAKEAWAY
                                                                                                   Livestreaming in-
A new company is riding the wave of the growth in livestreamed home                                store events creates
shopping in China.                                                                                 a link between the
                                                                                                   online world and
                                                                                                   the physical space

M
         illions of people tune in to home         After the show, orders are shipped to           and offers new
         shopping TV networks every year to        ShopShops, who repackage and distribute         opportunities for
         do their shopping. These networks         the purchases to customers in China.            cross-channel selling.
use hosts and time-limited offers to create        ShopShops takes a commission of between
a dynamic atmosphere that generates big            15 and 20 percent on each sale.                 Stores can use online
sales. A new service is now offering to do                                                         events to deliver
the same for in-store shopping.                    WHAT'S NEXT?                                    more curated content,
   ShopShops creates videos that take              ShopShops is part of a broader trend in         highlighting particular
place in retail stores. Rather than TV,            Chinese shopping. A new generation              themes, brands and
ShopShops livestreams its events online.           of wealthier shoppers are driving both          items.
Customers can replay the videos later and          livestreamed shopping events and
order the items if they are still available. The   international e-commerce sales. According       Using influencers to
platform creates events when stores are            to a report by Deloitte, livestreaming          present online events
closed, and is popular with Chinese viewers        events were forecasted to reach 456             can help stores create
who get the experience of shopping ‘in’            million viewers in China in 2018, and           a more personal
American stores.                                   drive 4.4 billion in direct revenue. This       relationship with
   Since its launch, ShopShops has                 is an increase of 37 percent over 2017.         customers.
generated, on average, around $8,000               ShopShops connects retailers, influencers,
worth of revenue per streamed show.                and consumers through a live and authentic
Although it sells luxury goods, it specialises     interaction in the store.
in brands and retailers that otherwise might                                                           EASE OF
not have access to its Chinese customer            Could bricks-and-mortar retailers join forces   IMPLEMENTATION
base. This includes vintage markets and            to connect with consumers across borders
boutiques with no e-commerce presence              and seize this huge market opportunity?
of their own. So far, the platform has
worked with around 150 partners, and
has streamed around 2,000 live events
from US stores to customers in China.                                                               Easy          Difficult
Chinese micro-influencers host the streams.

20 | REDEFINING RETAIL BEYOND 2020
INNOVATIONS | RAPID PERSONALISATION

                                                                                                      WHAT
                                                                                                     Researchers and a
                                                                                                     retailer have teamed
                                                                                                     up to deliver a
                                                                                                     jumper that can be
                                                                                                     customised in-store to
                                                                                                     fit anyone.

                                                                                                      WHO
                                                                                                     www.ministryofsupply.
                                                                                                     com

                                                                                                     WHERE
                                                                                                     United States

Ministry of Supply                                                                                   CONTACT
                                                                                                     www.ministryofsupply.
                                                                                                     com/contact-us
Customisable jumper can adapt to fit
anyone
Researchers and a retailer have teamed up to deliver a jumper that can                               TAKEAWAY
be customised in-store to fit anyone.                                                                In-store experiences
                                                                                                     need to be authentic
                                                                                                     and add meaning

A
       t Springwise, we have seen a number      batteries are needed and the jumper is not           and value for the
       of fashion innovations, including        made of metal thread or shape-memory                 customer.
       a soft ski-helmet that hardens on        materials. Although the researchers will not
impact and a scarf that protects against air    give details of the exact materials used,            The customisation
pollution. Now, MIT’s Self-Assembly Lab         they have said that the shape-shifting               process allows
and direct-to-consumer fashion company          technology depends on the way that two               shoppers to interact
Ministry of Supply have teamed up to            different materials interact together when           with a brand in a
develop a jumper that can be resized on         they’re exposed to heat. The jumper will be          more personal way,
the spot to fit almost anyone. Shoppers can     mass-produced in standard sizes and then             and allows brands
choose a jumper off the shelf, and an in-       customised in-store.                                 to collect data about
store robotic re-sizer will use a heat gun to                                                        that customer.
adjust the jumper to a custom size while the    WHAT'S NEXT?
shopper waits.                                  The collaboration with Ministry of Supply is         By resizing a single
   MIT Researcher Skyler Tibbets and his        a big step for the Self-Assembly Lab, which          item to fit anyone,
team stumbled on the technique while            has worked on commercial products, but               stores can reduce
working to create a fabric that could be        has never launched a textile that customers          stock and free up
altered to become more breathable or            could actually buy. For Ministry of Supply,          floor space.
more porous, depending on the weather.          the self-altering jumpers are an opportunity
Ministry of Supply, meanwhile, has been         to mass-produce customised garments at a
experimenting with robotic knitting and         relatively low cost.
customisation. The company’s goal was to                                                                 EASE OF
create technology for customising different     Will customers see the jumpers as a                  IMPLEMENTATION
aspects of design, including aesthetics,        gimmick or an experience worth paying for?
functionality and fit.
   According to Gihan Amarasiriwardena,
co-founder and president of Ministry of
Supply, the company’s vision is to bring the
one-hour photo concept to clothing. Unlike                                                            Easy           Difficult
other types of transforming materials, no

                                                                                               REDEFINING RETAIL BEYOND 2020 | 21
INNOVATIONS | RAPID PERSONALISATION

                                                                                                WHAT
                                                                                                Finnish company VTT
                                                                                                is developing smart
                                                                                                vending machines
                                                                                                that could produce
                                                                                                personalised snacks
                                                                                                based on preferred
                                                                                                textures and flavours.

                                                                                                WHO
                                                                                                www.vttresearch.com/

                                                                                                 WHERE
Shutterstock                                                                                    Finland

                                                                                                CONTACT
Custom snacks on-demand with 3D                                                                 info@vtt.fi

printing
Finnish company VTT is developing smart vending machines that could                             TAKEAWAY
produce personalised snacks based on preferred textures and flavours.                           3D printing allows
                                                                                                retailers to combine
                                                                                                a unique experience

W
           e've already seen an exercise         production is still a few years away because   with a high level of
           machine that 3D prints chocolate      equipment as well as materials must be         personalisation.
           according to how much users have      developed.
worked out, and pancakes 3D-printed with                                                        3D printer vending
the diner's face on it. Following the trend      WHAT'S NEXT?                                   machines can be used
of rapid personalisation, Finland-based          As consumers demand more in-store, tech        to develop mini-stores
VTT Technical Research Centre is using 3D        is helping retailers enhance the customer      that could be placed
printing to develop smart vending machines       experience by achieving a greater level        in new locations, such
that will be able to produce completely                                                         as bus shelters, office
customisable snacks. VTT scientists                                                             lobbies or inside
believe 3D printing could be the answer to           “... 3D printing                          larger stores.
rising customer expectations for healthy,
nutritious food with added elements such               could be the                             By linking the printer
as design and playfulness.                             answer to                                to an app, retailers
    Consumers will be able to choose from
a variety of flavours and textures, such as
                                                       rising customer                          could develop more
                                                                                                opportunities for
crispy, crunchy or soft, to build their own            expectations”                            cross-channel selling.
multi-layered food on-demand. Having
started with starch and cellulose-based
products, researchers are now looking into       of personalisation. While 3D printing
the viability of printing protein concentrates   is not quite quick enough yet to be a              EASE OF
from plants such as oats and fava beans,         viable option for in-store, the technology     IMPLEMENTATION
and whey from dairy. Healthfulness is an         is fast developing and opening plenty of
important part of the final product.             opportunities for on-demand manufacturing.
    Technically, the ingredient mix must
be able to flow enough to be used in the         With 3D printing now available for
printing process, and as an emerging             everything from cars to action figure toys,
technology, additional research is ongoing.      what could best draw foot traffic and grow      Easy          Difficult
VTT’s scientists believe that industrial-scale   retail sales?

22 | REDEFINING RETAIL BEYOND 2020
INNOVATIONS

    IN-STORE TECHNOLOGY
                                  INNOVATIONS

                                        “Concepts like AR,
                                          showrooming and the
                                          removal of the checkout
               Augmented Reality &        will mature enough to
                      Virtual Reality     become new themes in
                 Clutter-free stores      the store of the future”
              New payment options
               Removal of checkout
                         Wayfinding
Image credit: Shutterstock                              REDEFINING RETAIL BEYOND 2020 | 23
INNOVATIONS | AUGMENTED REALITY & VIRTUAL REALITY

                                                                                             WHAT
                                                                                            The global travel
                                                                                            giant has showcased
                                                                                            its new VR service,
                                                                                            which lets customers
                                                                                            take a virtual tour of
                                                                                            hotel rooms before
                                                                                            booking.

                                                                                            WHO
                                                                                            www.expedia.com

                                                                                            WHERE
                                                                                            United States

Shutterstock                                                                                CONTACT
                                                                                            twitter.com/Expedia

Expedia takes a trip into Virtual Reality
The global travel giant has showcased its new VR service, which lets                        TAKEAWAY
customers take a virtual tour of hotel rooms before booking.                                Retailers can use
                                                                                            VR and AR to
                                                                                            enhance the in-store

I
   n what could revolutionise the way we       WHAT'S NEXT?                                 experience and create
   book our holidays, Expedia - the world’s    The idea of being able to browse a room      a highly personalised
   biggest travel platform - has embraced      before booking does sound exciting,          shopping service.
Virtual Reality (VR) tech and is making it     and the use of VR is spreading into other
possible for customers to take a virtual       sectors with projects such as the Holoroom   Moving displays
tour of hotel rooms so they can get a          How To DIY clinic and the Japanese Konica    into the VR space
much better feel for shape and size before                                                  will help stores to
making a booking. That’s a far cry from a                                                   decrease the number
handful of (often misleading) jpegs.               “... virtual and                        of items on the floor
    Additionally, the user will also be able
to slide open the balcony door and step              augmented                              and use space more
                                                                                            efficiently.
outside to see what the view is like. Arthur         reality
Chapin, Expedia’s Senior Vice President
of Product and Design said at a recent
                                                     technologies will                      Customers can use
                                                                                            their own phones
conference: “If you're going to make the             transform the                          to view VR and AR
decision of [booking] a cruise, wouldn't
it be cool if you could check out the ship
                                                     booking process,                       enhancements in-
                                                                                            store, connecting the
[virtually] before you spend that much               inspiring people                       physical and digital
money?”                                              to visit new                           space.
    Expedia spent over a $1 billion on new
technology in 2016, with the VR experience           places”
being one of several new innovations the
company has spoken of. Another area            Minolta Planetarium project.                     EASE OF
it’s looking into is using devices such as                                                  IMPLEMENTATION
Amazon’s Echo and AI-powered chatbots          With growing demand for technology
so users can browse, interact and book trips   in store, how could retailers harness
using just voice commands. The company         the power of VR to increase footfall
predicts virtual and augmented reality         and promote additional browsing and sales
technologies will transform the booking        for key items?
process, inspiring people to visit new                                                       Easy           Difficult
places.

24 | REDEFINING RETAIL BEYOND 2020
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