How are you thinking about innovation? The Current Global is a transformation consultancy driving growth within fashion, luxury and retail. Our mission is to solve challenges and facilitate change. We are thinkers and builders delivering innovative solutions and experiences. Get in touch to learn more.
Big box retailers including Walmart’s Sam’s Club, Home Depot, Lowe’s and Target are using a variety of interesting wayfinding technologies to improve customer navigation inside the physical store.
The result is designed to enable efficiency in the customer journey. This is in response to the fact that as online sales growth surpasses brick-and-mortar, customers are expecting more than just easy access to online products in physical stores, they also want to find them faster.
Cue solutions ranging from robots to augmented reality mapping. Read on for some of the strongest examples in the market to date…
Augmented Reality
Legoland Denmark augmented reality app
Home store Lowe’s was one of the first retailers to introduce an app with augmented reality indoor mapping. Instead of a 2-D image, this mobile service projects navigation signs and price specials on top of the user’s field of view – meaning they can see which direction to go in projected through their smartphones straight onto the floor or space in front of them.
Outside of the retail space, Legoland in Denmark has recently experimented with an AR wayfinding app that helps visitors navigate around the park via a mini Lego avatar. They can also then receive real-time information on wait times ahead of them.
Voice Search
Sam’s Club Scan & Go app
Sam’s Club Now in Dallas, Walmart’s test store for technology, is also focusing on a mobile-first shopping experience. Its Scan & Go app helps customers easily access products with an integrated system using voice search for navigation. When a shopper tells the app what they need, a map directs them to the item on the shopfloor.
Home Depot’s version meanwhile, allows users to use voice or visual search to find a specific item and then be shown exactly where it’s located within the store. Macy’s launched something similar back in 2016 with IBM Watson, which enabled users to ask question as to where specific products, departments, and brands were located, as well as what services and facilities could be found in a particular store.
Robotics
The LoweBot
From voice technology then comes robotics. Lowe’s was also one of the first to make it easier for customers to find help on the shop floor by deploying robot attendants. The “LoweBot” responds to voice commands, guiding customers through the aisles with smart laser sensors.
For Kyle Nel, executive director at Lowe’s Innovation Labs, the LoweBot resolves a common problem: “When I walk into a store and I want to know where something is I want to know right then — I don’t want to have to download an app — a robot can really help with that.”
Real-time Beacons
Target
Target is heavily investing in beacon technology for the sake of navigation also. It renewed its stores to use energy-efficient LED lighting with built-in Bluetooth beacons, which enable the store’s app to show customers their real-time location on the shop floor in a similar experience to that of Google Maps. They also help notify customers when they walk by one of Target’s “Cartwheel” deals.
Gatwick Airport has also invested in beacon technology as part of its £2.5bn transformation. Here, 2,000 indoor navigation beacons have been installed to help customers easily navigate around the terminals and reduce the amount of missed flights. Augmented reality plays a part here too, with a blue line mapped through the smartphone for users to show them which direction to go in.
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The Current Global is a transformation consultancy driving growth within fashion, luxury and retail. Our mission is to solve challenges and facilitate change. We are thinkers and builders delivering innovative solutions and experiences. Get in touch to learn more.
The on-demand economy has fueled consumer desire for instant gratification. Products and platforms ranging from Airbnb and Uber, to Seamless or Deliveroo, have resulted in growing appetite in the market for convenience and immediacy on virtually anything and everything we can dream of today.
Needless to say, that has therefore filtered over to retail, with mega corporations like Amazon only feeding the notion that we need access to products within the same or next day – leaving little option but for other businesses to follow suit.
By 2021, over 2.14 billion people worldwide are expected to buy products online, reports eMarketer. A core aspect of the purchasing decisions that come with this is speed of delivery. According to McKinsey & Co for instance, 25% of consumers would pay a premium to receive products same day.
This of course presents logistical challenges. The cost of global delivery amounts to €70billion a year, according to McKinsey, with the last mile portion of that being the biggest challenge to fulfill efficiently. As a result, numerous logistics businesses have been scrabbling to offer the right kind of solutions for their clients. Over the next five years, 78% of them are expected to provide same day delivery, and within 10 years, 39% anticipate two-hour delivery, reports Zebra Technologies.
In a bid to be competitive, luxury has picked up on it as well. Farfetch now offer 90-minute delivery in 10 cities globally for instance, while Net-a-Porter is also striving to improve the shopping experience by offering its top tier a ‘You Try, We Wait’ same day service.
There are many others experimenting with their own methods alongside. Here are four areas of innovation within the delivery space we’re currently tracking…
CROWDSOURCED DELIVERY
The last mile of fulfillment is the most expensive and time consuming part of the delivery process, but numerous startups are looking to disrupt this space by enabling anyone to have anything delivered on-demand by trialling such areas as crowdsourced delivery.
Similar to the structure of Uber, this allows individual couriers to deliver parcels straight to your door, or facilitate them for pick-up or drop-off around individual homes and offices. Crowdsourced delivery is expected to be adopted by 90% of retailers by 2028, according to a report by delivery company Roadie.
One e-commerce company currently trialling such a scheme is Zalando. This allows people to volunteer their homes as pick-up and drop-off points in Scandinavia. Primarily intended to benefit the customer, it also enables self-employed, retired or stay-at-home parents to earn some extra income.
ROBOTIC POSTIES
Ford Delivery Robot
McKinsey & Co predicts that more than 80% of parcels will be delivered autonomously in the next decade. The thought of robots walking around town beside us may seem a little futuristic, but many companies have already successfully tested them.
Postmates is intending to roll out a new autonomous delivery robot in Los Angeles later this year, for instance. The self-driving rover, named Serve, uses a camera, light detector and sensor to safely navigate the sidewalk. This can create a virtual picture of the world in real time and communicate with customers via an interactive touch screen. Serve is part of Postmates’ vision of a world where goods move rapidly and efficiently throughout cities.
Ford meanwhile is experimenting with a package carrying robot that will be able to walk, climb stairs and deliver your parcel to your front door. In partnership with Agility Robotics, the robot – called Digit – can successfully carry a 40lb package.
DRONES
Amazon Prime Air Service
Next up is autonomous urban aircrafts, otherwise known as drones. This could become a $1.5 trillion industry by 2040, according to Morgan Stanley Research.
Amazon has been leading the way in the space for some time with its Prime Air service, which is under constant experimentation. Its latest announcement said consumers will be able to get parcels delivered within 30 minutes or less by drone, thanks to a sophisticated ‘sense and avoid’ technology allowing it to safely maneuver in the sky. Executive Jeff Wilke stated that between 75%-90% of deliveries could technically be handled by drones in the future.
Strictly speaking, however, when that will be is still unclear. While the technology is improving constantly – using a combination of thermal cameras, depth cameras and sophisticated machine learning – there remains the small issue of authorization. Regulation is continuing to evolve, with a recent test moving things forward in the US market, and further developments happening in Europe, but Amazon’s view of commercial drone deliveries ready within just a few months, seems unlikely.
It’s not alone in trying however. Wing, a drone service from Alphabet – Google’s parent company – has completed a successful trial in Australia and is now doing so in Finland. Similarly, UPS is currently testing drones for the use of medical supplies and samples in North Carolina. Its long term plan is to eventually roll out the drones for the industrial, manufacturing and retail markets. UPS is another that has applied for a Federal Aviation Administration certificate that it hopes will allow it to operate the drones on mass.
ALL ACCESS
Waitrose While You’re Away Yale Technology
In a bid to combat the fact so many parcels see unsuccessful delivery attempts due to the absence of the recipient, there are also numerous experiments in the market to get around the need for humans to be present when the action takes place. This is especially being considered in the online grocery market, which is expected to grow 52% over the next give years to £17.3billion, meaning investments in home deliveries will need to be expanded.
One example we’ve seen comes again from Amazon, which has developed a system that allows couriers to deliver parcels to a customer’s car. The Key-In-Car service is available for all Prime members with a Volvo or General Motors vehicle dated after 2015. Through encryption, the courier can unlock the trunk without needing a key. This is available in 37 cities across the US. Similarly, Skoda is developing a technology that allows delivery firms one-time access to the trunk of the car. The biggest challenge to this opportunity is the threat of security. The risks can be mitigated however by couriers wearing body cameras and sending photographic evidence upon delivery, but retailers must gain consumer trust in the process first.
British supermarket Waitrose, part of the John Lewis Partnership, has gone even further by testing a ‘While you’re Away’ service in south London. This initiative gives delivery drivers a unique code that gives them temporary access to the customer’s property, allowing them to put away the shopping on their behalf. The lock technology has been developed by Yale and will be free to install for customers. To give them piece of mind, each driver will indeed wear a video camera to record their steps, which the customer can request access to.
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How are you thinking about innovative delivery solutions? The Current Global is a transformation consultancy driving growth within fashion, luxury and retail. Our mission is to solve challenges and facilitate change. We are thinkers and builders delivering innovative solutions and experiences. Get in touch to learn more.
ASOS has introduced a virtual catwalk using augmented
reality that allows shoppers to place looks in their physical space in front of
them.
Using the ASOS app on iOS devices, users can point at a flat
surface to pull up a 3D video of models wearing various products as though they
are there themselves in person.
The experience currently exists for 100 of the ASOS Design
line of products. Once placed, you can pinch to shrink or stretch the model to
work within the room you’re in.
The online retailer has worked with UK AR company HoloMe on
the initiative.
HoloMe CEO, Janosch Amstutz, said: “By allowing the consumer
to bring mobile shopping into their own physical space, we can create a more intimate
buying experience. We are excited to see how our technology can be used as a
new way to communicate to the customer.”
Being able to visualize products through augmented reality
in the physical space has been something homeware stores have played with for
some time, but the move is a newer one in fashion.
ASOS was one of the early players to use video on its site –
aiming to increase trust in its products and thus up conversions by enabling
shoppers to see what things looked like in motion. This project is a build on
that, making looks seem more accessible to consumers by viewing them in their
own home.
The company has not shared details on the cost of the
project or its potential for scalability. But, filming each model in 3D is
going to be significant lift from a time and cost perspective at this point,
which would make it a significant investment to push across its entire catalog
of circa 87,000 products, or 5,000 new ones a week.
How are you thinking about innovation? We’re all about helping you build innovative integrations and experiences. The Current Global is a consultancy transforming how fashion, beauty and consumer retail brands intersect with technology, powered by a network of top startups. Get in touch to learn more.
Fast Retailing’s GU, is connecting online and offline retail with a new store in Tokyo’s Harajuku district, that allows shoppers to see sample products in real-life and then try them on using virtual tools.
The GU Style Studio, as it’s called, is designed to showcase garments and provide a sense of convenience by enabling customer to then order them through their mobile phones for delivery at home later.
Visitors are encouraged to create their own digital avatar through a photo taken at the GU Style Creator Stand, then scan QR codes on individual items via the GU Style Creator App to see how they would look wearing each piece. They can then continue to play with a combination of different looks digitally while they move through the store.
According to Osamu Yunoki, GU’s chief executive officer, a benefit from this technology is the data collected from shoppers at the store. Yunoki told Bloomberg that information on app usage and styling combinations can help GU learn more about how people shop and what’s in style.
After purchasing items, customers can choose to have them shipped to their home, or they can pick them up at a nearby GU store or designated 7-11 location. GU has almost 400 stores across Asia, primarily in Japan, Taiwan and China.
GU Style Studio
“We’re fusing the in-store experience and e-commerce to offer a fun and convenient experience. Harajuku isn’t just for shopping. It’s also a place where fashion is created. We’d like to use our customer’s creations as a stimulus for developing new types of fashion,” he said.
It’s not the first time Fast Retailing, Asia’s biggest clothing retailer, and also the parent company of Uniqlo, has chosen GU as a testbed for new technology: it was the first brand in the portfolio to introduce RFID tags and self-checkout back in 2015. Two years later, Fast Retailing announced they would be using the technology in 3,000 Uniqlo stores worldwide.
The industry is increasingly seeing examples of more seamless shopping opportunities – from unmanned stores, to overtly interactive ones. This idea of walking out empty-handed, meanwhile, combines the idea of a convenient shopping experience, while encouraging customers to share more data.
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Almost half of shoppers (45%) say they would spend larger amounts online if they had access to technology to help them better visualize what they’re buying, according to new research from e-commerce agency, PushON.
The survey of 1,000 shoppers, also showed 40% of them more specifically would like to use augmented reality (AR) technology to test a product out virtually before they buy it to get a feel for how it would look in real life.
Over half of shoppers (52%) believe retailers should be investing in technology to create a seamless link between in-store and online shopping, which we’re increasingly seeing AR enable.
According to Sam Rutley, managing director of PushON, utilizing AR in this way will help to provide shoppers with the same level of service and information that they’d receive in store. “This will go a long way towards increasing consumer buying confidence through the higher levels of assurance this technology can offer, meaning they’ll feel comfortable spending more online. Technology is the future and retailers can’t afford to ignore the changes that are happening within the sector – particularly when consumers themselves have clocked on to the benefits of investing in it.”
Earlier this year, Ikea launched its Place app, using Apple’s ARkit to allow customers to virtually try out furniture in their own homes. The app places 3D, true-to-scale models of Ikea’s range of furniture to help give an accurate indication of the item’s size, design and functionality in your own home. Other homeware stores including Wayfair and Lowe’s are doing similar things.
Meanwhile, AR is also becoming important for fashion. Zara has recently begun trialling the technology in its physical stores to encourage shoppers to see models come to life on their mobile phones, while luxury brands such as Gucci are using it for immersive storytelling.
Chanel and Farfetch have signed a multiyear innovation partnership that will see the companies collaborate to develop a series of digital initiatives in-store and online.
The companies have been working together for several months on merging Farfetch’s expertise in digital innovation with Chanel’s expertise in luxury retailing to create enhanced customer experiences in this Store of the Future bid.
José Neves, founder and CEO of Farfetch, calls the company’s future vision “Augmented Retail”, in which the physical boutique experience and the advantages of online and digital competitor come together. Speaking of the Chanel partnership, he says: “It is truly an honour to be partnering with Chanel to accelerate the development of technology-driven initiatives which will ensure they remain at the forefront of retail excellence and elevate the already unparalleled level of luxury experience for its clients that Chanel is renowned for.”
The vision provides in-store experiences that are personalized to the customer with the use of data and other digital initiatives. Farfetch’s launch of its Store of the Future division in early 2017 promised to enable the “offline cookie” for retailers, by connecting customers in the physical space with data relevant to their own behaviors thanks to a universal login system. It has been working in beta with Browns East since, and is soon to launch in Thom Browne in New York also.
With this partnership, Chanel will customise their own version of the Farfetch Store of the Future operating system, the specific terms and details of which are undisclosed. The first example of it will launch in a France-based boutique later in 2018.
Bruno Pavlovsky, Chanel’s fashion president, says: “We are very enthusiastic about this Innovation Partnership and look forward to implementing the first steps of our projects together. We want to offer our clients the opportunity to further experience the brand values and to feel something which is authentic and unique to Chanel. We strongly believe that digital will never replace the feeling of being in a fitting room and trying on a Chanel piece. We are confident that Farfetch’s innovative technology will help us develop an even more outstanding customer journey by combining a great e-service offering with a genuine Chanel boutique experience.”
As part of the partnership Chanel has invested in Farfetch, joining its existing list of shareholders.
With any given item stocked by Rent the Runway, the team can tell everything from who has worn it and how often they have worn it, through to whether it has stood the test of time after three dry cleans or 30 dry cleans.
That kind of data about how clothes are actually utilized is like gold dust in an industry that only otherwise has information on their sell-through rates, explained Rent the Runway’s CEO and co-founder Jennifer Hyman at NRF’s Big Show this week.
“Data is such a fundamental piece of what we do. We’re exchanging a massive amount of it [with designers] on how their products are being worn, what events they’re being worn to, and how their products or dresses last over time. The data we have in renting clothing over time is so important to the manufacturing of clothes,” she said.
The company is able to tell a designer why their sell-through rate might be high, but their loyalty is low, for instance, based on insights around quality or particular elements of their garments that should be adjusted at the manufacturing level. “We can identify problems and challenges for brands and fix them through the data that we give them,” Hyman added.
It’s for this reason her business, which sits at the center of the sharing economy, has always insisted that rental is a new business channel rather than one that cannibalizes the existing retail market.
“[In the early days of Rent the Runway], if I said I will rent your clothing at the exact same time as those pieces are on your shop floor, designers thought it would destroy their businesses. We had to overcome that huge hurdle by showing them we were getting a huge new market of customers to think about designer clothes in a new way… A lot of that was about showing them data over time so they could see we were a partner who would help them grow their businesses. They wouldn’t work with us unless we could show we could help them get bigger.”
The other thing the company is doing is starting to use data to allow designers to experiment with things outside their core business. “A designer might do dresses, but want to do sportswear. We can give them data about what their customer wants to show if it has the potential to be successful,” Hyman explained.
