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Exploring the future for wearable technology in retail eTail France 2015 04/11/2015 Yvon MOYSAN CEO, Saint Germain Consulting Lecturer Digital Marketing, IESEG School of Management

eTail France 2015

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Page 1: eTail France 2015

Exploring the future for wearable technology in retail

eTail France 201504/11/2015

Yvon MOYSANCEO, Saint Germain ConsultingLecturer Digital Marketing, IESEG School of Management

Page 2: eTail France 2015

Insight into the innovative developments within the wearable tech community

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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

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Discover how wearable tech is bridging the gap between your customers imagination and their reality

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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

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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

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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

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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

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Audi: Goodwood Festival of Speed

https://www.youtube.com/watch?v=3Mp4-BjGHQw

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How can the early wins of wearable tech be implemented within the retail sector?

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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

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https://www.youtube.com/watch?v=2buVLVO-6F8

Disney World: payment

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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

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https://www.youtube.com/watch?v=5gouBpwwcvM

Ted Baker: Customer location within store

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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

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https://www.youtube.com/watch?v=Fcy0NXNML9U

Starwood: Customer location within hotel

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Is there a valid business case for wearable tech? What should you fight for and what should you avoid?

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Wearable technology is projected to drive potential operational savings of

$1B per year by 2017 (Rivera, 2013)

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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

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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

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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).

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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

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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

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https://www.youtube.com/watch?v=c3h0eKGfUfI

Macy’s: promotions

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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

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https://youtu.be/EHMXXOB6qPA

Press Dash Button and Amazon quickly delivers

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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.

Page 28: eTail France 2015

Questions ?

Saint Germain Consulting

Yvon MOYSAN

[email protected]

Tél: + 33 (0)6 62 84 71 00

www.saintgermainconsulting.com