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Editor's pick mobile Retail Uncategorized

Nike’s new flagship empowers customers with seamless, unmanned shopping experience

Nike's new NYC flagship
Nike’s new NYC flagship

Nike’s new NYC flagship unlocks a new level of convenience by allowing customers to navigate the shopping experience in-store entirely on their phones, using the brand’s existing app.

Shoppers at the 5th Avenue store, called House of Innovation 000, can use the app throughout their entire visit and have a completely unmanned experience if they wish to do so. This includes using the “Scan to Try” feature that lets customers scan QR codes on products to get them sent to the fitting room for try on; “Shop the Look”, where a QR code will bring up a mannequin’s entire outfit, which the customer can order through their phone for home delivery; and most importantly, a self-checkout feature where the shopper can pay seamlessly through their phones on services like Apple Pay and PayPal.

Future retail locations around the globe will follow the same concept, blurring the lines between physical and digital.

Customers at home can even reserve shoes online to try on in real life. In this case, the items are placed in a locker with the person’s name on, which they can then unlock with their phones once in-store. The area has its own entrance, so shop-goers can be in and out in a matter of minutes.

The six-storey building also offers multiple environments built around specific needs, such as The Speed Shop, which has all the brand’s most popular items ready to buy; The Arena, a customization area where shoppers can order shoes in whatever color they want; and the Nike Expert Studio, offering one-on-one appointments with stylists.

Nike's new NYC flagship
Nike’s new NYC flagship

In addition to the digital and personalization features, the design of the store is modular, with walls that can be moved using a grid system. In as little as a day, it is possible to adapt the store into a completely different setup for a special event.

Nike’s first hybrid concept store opened earlier this year in Los Angeles as a lab for testing new retail ideas. After tracking members who had visited the store, they gathered that customers spent 30% more online later than those who didn’t have the in-person experience. Meanwhile in October, the brand also opened a similar concept in Shanghai where it has reported it is signing up a new member to the official app every two minutes.

In creating an entirely unmanned experience but still offering customers opportunities for personalization and interaction, Nike is striking a balance between two very different consumer speeds: convenience and experience.

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Editor's pick Retail technology

Alibaba pilots AI-enabled store with Guess

Alibaba's FashionAI for GUESS
Alibaba’s FashionAI for GUESS

Chinese e-commerce giant Alibaba has partnered with Guess to pilot an artificial intelligence-enabled store of the future concept, where the technology will improve and further personalize the shopping experience.

Located on the campus grounds of the Hong Kong Polytechnic University for one weekend in July, the concept store is showcasing Alibaba’s FashionAI technology that is built around the e-commerce platform Taobao.

“By partnering with Alibaba, a dominant technology leader, we are changing the retail experience as our customers also evolve,” said José Blanco, CEO of Greater China for Guess. “It is important that we continuously invest in new technology and platforms. This entire project came together in just five months thanks to a strong partnership between our two companies.”

Upon entering the store, users can check in with their Taobao QR codes or via facial recognition. All items are RFID-enabled, and when picked up, show up in a smart mirror. The mirror also suggests outfits to complete the look either based on the user’s previous purchases or entirely new items, while directing shoppers to where such suggested items can be found in the store.

Shoppers can also use the smart mirrors to add items they would like to try on to a virtual shopping cart, while staff populate the fitting room with their choices. When entering the fitting room, shoppers have their Taobao code scanned, which triggers a dedicated smart mirror. Interestingly if shoppers cannot find what they are looking for at the Guess-branded store, they can add clothing from other Taobao virtual stores via tablets, thus shopping cross-brand. To complete purchase, they must use the Taobao virtual shopping cart.

The store also works as an opportunity for Alibaba to refine the FashionAI concept, while better understanding how the resulting data can help brands be smarter about ordering and maintaining inventory.

“Guess and Alibaba share the same vision to understand customer behaviors through technologies, ” said Zhuoran Zhuang, vice president of the Alibaba Group. “With Guess’ retail expertise, we are able to train and refine our FashionAI system, and marry technology with fashion in a way that’s never been done before. We are looking forward to deepening our partnership to innovate personalized services offered in retail shops.”

E-commerce brands are increasingly investigating how the technology that they have refined online can be leveraged in the brick and mortar experience to give demanding consumers the same level of personalized service. In April 2017, Farfetch revealed its store of the future concept, which we delved into in further detail with the project’s managing director Sandrine Deveaux for TheCurrent Innovators podcast in June. The retailer has since announced pilot programmes at Browns in London and Thom Browne in NYC, as well as a long-term partnership with Chanel.