Exploring the future for wearable technology in retail
eTail France 201504/11/2015
Yvon MOYSANCEO, Saint Germain ConsultingLecturer Digital Marketing, IESEG School of Management
Insight into the innovative developments within the wearable tech community
Wearables in retail: shoppers’ point of view
63% mentioned security fears as a major concern
52% will be discouraged if only a few shops allow them to use it.
40% say concerns about privacy might dissuade them.
Only 11% said wearables might be too complicated to use.(Vista Retail Support, 2015)
72% of shoppers believe wearables will be the future of retail
51% believe wearables will be common in stores within two-to-five years
82% view speed at the checkout as the main advantage
49% say it will improve their experience by receiving personalized offers
Discover how wearable tech is bridging the gap between your customers imagination and their reality
Challenge : create a virtual reality window display for London Fashion Week AW14
Solution: Topshop customers can have a front row seat at the Fashionshow with the virtual reality Oculus Rift head-sets
Key benefits to customers: • Access to a 360-degree virtual world combined a live feed from the
runway, backstage action, VIP arrivals, set design and other animatedfeatures
• Customers were able to pick and buy favorite runway looks and playlistsonline in real time
Topshop: Visual in-store experience
Situation: It can take 2 days to visit 10 houses because of traffic or even more if you live abroad.
Solution: oculus rift provides customers a real life view
Key benefits to customers: • Save time as It allows buyers even from abroad to check out homes
before to take a flight to finalize the deal. • Allow owners of expensive homes to focus only on buyers with
legitimate interest in purchasing
Sotheby’s real estate: Visual in-store experience
Challenge : Creating excitement before customers even think or plan their vacation.
Solution: Samsung Gear VR headset provides real view of desired vacationdestination.
Key benefits to customers: • Consumers can experience vacation before departure.• A real view will help them to decide the tourist destination or hotel• Virtual tours include a helicopter ride over Manhattan, a poolside visit in
Rhodes and a restaurant trip in Cyprus.
Thomas Cook: Visual in-store experience
Situation: In several cities, space areas are limited to display cars and high traffic density limits the capacity to test them.
Solution: thanks to an Oculus Rift virtual reality headset, Audi offers an immersive virtual experience to try the car. The helmet is equipped with Bang & Olufsen speakers (e.g. to hear sound made by closing the door).
Key benefits to customers: • Can virtually drive his future Audi• Can observe all options (color, equipment, leather interior ...)
Audi TT: Visual in-store experience
Audi: Goodwood Festival of Speed
https://www.youtube.com/watch?v=3Mp4-BjGHQw
How can the early wins of wearable tech be implemented within the retail sector?
Challenge : “All in one creating Disney moment - just like Magic”
Solution: MagicBands are to enter Disney theme parks, unlock Disney Resort hotel room, use the FastPass+ entrance for attractions and entertainment experiences, charge purchases.
Key benefits to customers: • A more immersive, more seamless, and more personal experience
Disney World: payment
https://www.youtube.com/watch?v=2buVLVO-6F8
Disney World: payment
Challenge : Creating the ultimate retail experience
Solution: beacons in its mannequins. Customers entering the store will be able to receive push notifications about the products on display, purchase the items directly from Ted Baker's website, or find out where they can be located in the store.
Key benefits to customers: • Customers receive details about the clothes on display via their mobile.• Shoppers can use the information to create look-books, share fashion
inspiration with friends or access additional offers and rewards.
Ted Baker: Customer location within store
https://www.youtube.com/watch?v=5gouBpwwcvM
Ted Baker: Customer location within store
Challenge : Streamline the customer experience
Solution: Starwood Hotels has installed iBeacon technology in over 30 of itshotels and resorts.
Key benefits to customers:• Starwood guests with the brand’s mobile application can now check in,
receive their room number and even unlock their hotel room doorswithout having to trek to the front desk
Starwood: Customer location within hotel
https://www.youtube.com/watch?v=Fcy0NXNML9U
Starwood: Customer location within hotel
Is there a valid business case for wearable tech? What should you fight for and what should you avoid?
Wearable technology is projected to drive potential operational savings of
$1B per year by 2017 (Rivera, 2013)
Challenge : replace the thousands of walkie talkies it uses for in-store communication.
Solution: Theatro Wearable Computer is roughly the size of a matchbox, but a bit thicker, and clips to a pocket, lapel or lanyard.
Key benefits to customers:• enables hands-free voice communication, the "disturb everybody button"
lets you speak to everyone in the store, not unlike a walkie talkie.• let the company track employees when they're at work
The container store: Hands-free
communication, employees location in store
Challenge : Inventory for retail
Solution: a drone which provides shelf space analysis. Equipped with acamera, the UAV travels rays, scans the shelves, identifies missing goodsand real-time warning of shortages. The business is trialing the technologywith a consumer goods firm in Dubai.
Key benefits to customers:• The drone is used to take pictures of shelves across a store and feed
information back to staff on what needs restocking.
Wipro: effective use of space
In 2015, Half of the top 100 retailers in the U.S. are testing beacons, that
are expected to directly influence over $4 billion worth of sales
(Business Insider, 2015).
Challenge : Special offers to promote Magnum ice cream’s Pink and Black
Solution: Customers who download the MPulse app received exclusivecoupons for discounted Pink and Black Magnums when they pass byiBeacons located in 270 Tesco Express stores across London via pushnotifications
Key benefits to customers: • Exclusive coupons for discounted Pink and Black Magnums
Tesco: promotions
Challenge: send current promotions or discounts to the shopper’s mobile phones once they enter the store
Solution: more than 4,000 beacons in over 800 of its stores to provide shoppers with customized offers and promotions straight to their mobile devices when in-store.
Key benefits to customers: • Customers receive beacon messages that will let them know about
products they might be interested in when going into a store
Macy’s: promotions
https://www.youtube.com/watch?v=c3h0eKGfUfI
Macy’s: promotions
Challenge : “reorders your favorite item with the press of a button”
Solution: Sign in with Amazon Prime Account in Amazon App. Connect Dash Button to Wi-Fi and select the product you want to reorder. Once connected, a single press on Dash Button will place your order automatically. Confirmation will be sent to your phone.
Key benefits to customers: • Never run out of your favorites products with Amazon Dash Button.• There is 29 popular brands for 6 categories: Household Supplies (9)
Beverages (4) Grocery (5) Health & Personal Care (6) Baby (3) Pet (2)
Press Dash Button and Amazon quickly delivers
https://youtu.be/EHMXXOB6qPA
Press Dash Button and Amazon quickly delivers
Wearables: retailers’ point of view
Transforming Retail Operations • Streamlining Communication and In-store Collaboration
• Hands-free communication, employees location in store.
• Store Layout and Backend Efficiency• Effective use of space, access to interactive step-by step instructions for task completion.
(Deloitte, 2015)
Improving the Customer Experience• In-Store Shopping Experience
• Visual in-store experience, payment.
• Personalization and Real-time Marketing• Customer location within store, Promotions.
Questions ?
Saint Germain Consulting
Yvon MOYSAN
Tél: + 33 (0)6 62 84 71 00
www.saintgermainconsulting.com