Physical retail traditionally exists in a vortex of information, which doesn’t make sense for brands these days, says Matt Alexander, co-founder and CEO of new department store Neighborhood Goods, on the latest episode of the Innovators podcast.
The company’s inaugural space, which launched in Plano, Texas, in late 2018, carries a selection of new and established brands in an environment that is hyper relevant to both its location, and its customer, through the use of data.
Alexander’s view? Success lies in information. “If you’re a direct-to-consumer, digital-native brand, you’re going to look at this world, and you’re going to say: ‘We should be able to capture a certain amount of informative data to dictate how we should run that store, and how we should merchandise [it]’.” he explains. “That’s what they do on the web all day long. The moment you land on any of their websites, they know a huge amount about you, and exactly how you’re interacting with that site. And they optimize around it.”
His brilliant phrase: it’s all about operating in an economy of relevance.
It’s for this reason many legacy retailers are otherwise struggling, he explains. In a basic sense it comes down to them not creating the goods, services and experiences that they know for fact the consumer wants. There is therefore a lot for them to learn from D2C incumbents – from Everlane to Casper – who have placed this front and centre in their strategies.
Join us for this episode as we also explore why experiential retail needs to go beyond just putting a ball pit in the store, how modern brands are using the physical space for entirely new reasons, and why Alexander believes legacy retailers may still have the ability to play catch up after years of ignoring consumer needs after all.
Amazon Alexas and Google Homes have been popping up in households around the world, and it is expected that there will be 8 billion voice assistants by 2023. While so far, the technology has mainly been used for running other smart devices in the home, asking novelty questions or setting timers, there is strong potential for fashion and beauty brands to focus on the retail aspect of the experience.
Voice commerce sales totaled a whopping $2.1 billion last year, and it is predicted that consumers will use the technology for almost a fifth of their total spending by 2021. For brands, this is not only a new a new opportunity to connect with its customers, but an important new sales channel.
Last year we spoke to Amazon Alexa’s founder, William Tunstall-Pedoe, on the Innovators podcast, on how voice tech will impact retail. Although the technology is still in its early stages of development, Tunstall-Pedoe envisioned a future that is all connected: “I think you’ll be surprised in a couple of years if you speak to a device and it doesn’t reply.” He believes that the technology will be transformative, with the artificial intelligence behind voice assistants eventually interconnecting everything around us.
As far into the future as it sounds, this concept may be happening a lot sooner than we think.
From creating moments of discovery to enabling better store interactions, we explore 3 ways that brands retailers can be leveraging voice tech in order to enhance customer experience.
One of the biggest challenges retailers and brands face when engaging in voice interactions is how to get their product discovered. The lack of a screen and the current intelligence of algorithms means that shopping on these platforms is generally a linear journey, and unless the customer is looking for a specific brand, surfacing as a suggestion is virtually impossible.
One way retailers can adapt to the technology is by utilizing it in their marketing strategy. Reebok, for example teamed up with Amazon and Google for the launch of its Swarovski sneakers collaboration. Consumers could win a pair of the limited edition trainers by asking their voice assistant to “open Reebok Sneaker Drop”, which would automatically enter them into the competition. On the day of the launch, 50 lucky winners were announced through the voice channels.
This specific campaign showed that as the popularity of the drop model starts to lose steam, voice tech could help reignite its spark. This approach is also particularly effective with the younger generation who is not only tech-savvy, but constantly looking to be challenged in order to land exclusive products.
Setting the tone
Marketers often talk about fighting to get through the noise, but now brands are literally fighting to get their voices heard. In the near future, owning a clear brand voice, which aligns to its overall identity and DNA, is going to be an important tool to have under the belt.
As voice tech gets more sophisticated, we’re seeing that brands will start to move away from the generic ‘Alexa’ or ‘Cortana’ voices, into recognizable accents that differentiate the brand from competitors. Developing the correct tone of voice will be key to building brand loyalty, as 72% of consumers believe brands should have a unique voice and personality.
Mastercard has been experimenting with sound architecture by creating its own sonic brand identity which is simple, memorable and adaptable. The distinct melody is played at every touchpoint of the consumer journey, with the intention of helping reinforce the brand’s values and build deeper connections with its customers. This indicates that although brands have long relied on having a purely visual identity, in the future, they are going to have to adapt to an environment that is increasingly audio-friendly (and often screenless).
Enhancing the in-store experience
68% of consumers say voice assistants free them to multitask and accomplish tasks hands-free in the home, but how could that translate in-store? For example in a fitting room, a voice assistant could make product recommendations, check for other sizes, or even offer styling tips.
Last year, H&M tested the use of voice-activated mirror at its NYC flagship, which allowed users to access style advice, discounts and even take selfies. The mirror gained a lot of traction, with 150 interactions per day, while 85% of people who did so, scanned an additional QR code to receive a discount. The mirror was implemented as a standalone feature, but in the future, this technology could potentially move into changing rooms, allowing people to experience it privately (and therefore lowering the barrier to entry.)
In 2016, Gartner predicted that by next year 30% of web browsing would be screenless. Brands and retailers must therefore keep up with the pace of change, or risk being excluded from this emerging behavior that is increasingly leaning towards audio.
How are you thinking about new technology? 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. Each of the rules referenced above is matched by one of our products and services. Interested in how? Get in touch to learn more.
The availability of data and an increased purchasing power has pushed retailers to create products and services beyond the standard selection. Whilst traditionally customization was seen as a luxury feature, the democratization of fashion has led to many high street retailers offering the service as another way to engage consumers.
In today’s digital era, the abundance of data has made it easier for retailers to personalize marketing content, but this is now going one step further to individual design and styling. Consumers want products tailored to their own specific needs and style, and by offering customization, retailers can increase their value and differentiate from the competition.
From a business perspective, offering customization can be financially rewarding too, as 1 in 5 consumers will pay a 20% premium for personalized products or services. Customization can also be a sustainable method of production, as products are created to meet the exact demand, thus minimizing the risk of excess stock.
Meanwhile, as manufacturing processes become more sophisticated and streamlined through features like 3D printing and automation, customization is something we will see more of in the future. As we continue to watch this trend develop, here are 6 brands driving engagement through customization.
The sneaker industry is expected to be worth $95.14billion by 2025, and Louis Vuitton is another luxury brand hoping to tap into that booming market by offering consumers customized sneakers. Consumers will have the option to customize the Run Away sneaker by changing its colour, material and stripes and for an extra personal touch, get their initials printed or hot stamped on the shoe.
Fame & Partners
Fame and Partners is a contemporary womenswear brand based in LA trying to combat overproduction in the fashion industry by offering made-to-order garments. Through their Custom Clothing studio, consumers can customize any item by choosing the silhouette, sleeve length or neckline. The brand’s strategy eliminates the need for excess stock, helping to reduce waste that would otherwise be sent to landfill.
Function of Beauty
This DTC beauty brand has taken over social media with its Instagrammable hair care line that target Gen Z consumers who are seeking products unique to their needs. Consumers can go online and take a quiz to determine their hair profiles, selecting up to five hair goals, ranging from color protection to curl definition. They can also choose both the scent and color of their products, creating a customized product from design to function. Each bottle is then formulated using clean ingredients, which are cruelty-free and 100% vegan.
Cult British brand Rapha is disrupting the cycling market by partnering with Unmade to create a customizable team collection. Customers are given the opportunity to create their own unique jersey designs, including team logos, which are then manufactured into a bespoke product. Poor user experience and long lead times are usually a set back when it comes to customization, but Unmade’s print solution allows for quick bespoke manufacturing on a smaller scale.
To enhance customer experience in store, Puma has created an exclusive customization studio at its new flagship store in New York. Customers can customize a range of footwear and apparel using paints, patchwork, embroidery, 3D knitting, laser printing and material upcycling. The studio also collaborates with new artists on a bi-weekly basis, with Sue Tsai, BWOOD and Maria Jahnkoy being the most recent.
Levi’s brand strategy has revolved around making products your own since the original blue jean was patented in 1873. These days, many Levi’s shops have a dedicated tailor shop that can customize and repair products, such as adding patches, studs, embroidery, stencilling and distressing, so consumers can have a one-of-a-kind product. To align with its sustainability initiatives, the brand also offers a full repair service which does anything from fixing rips and holes to color fading, helping well-worn jeans gain a new lease of life.
How are you thinking about innovation? We’re all about finding you the perfect partners to do so. The Current Global is a consultancy transforming how fashion, beauty and consumer retail brands intersect with technology. We deliver innovative integrations and experiences, powered by a network of top technologies and startups. Get in touch to learn more.
With sustainability an increasing priority on the agenda for fashion and retail businesses around the globe today, attention is also turning to their brick-and-mortar stores – how they’re resourced, designed and constructed.
According to Schneider Electric, retail buildings are the largest consumers of energy among non-residential buildings in Europe, contributing $20 billion each year. Factors such as electricity, air conditioning and lighting all contribute to a brand’s carbon footprint and emissions.
The interesting thing is that going green is proven to not only help retailers reduce their impact on the planet, but significantly save them money. A 20% cut in energy costs can represent the same bottom line benefit as a 5% increase in sales, according to Carbon Trust.
Investing in sustainable store design, therefore, has a positive effect on profit, people and the planet. From locally-sourced materials, to energy saving light bulbs, and even the removal of any plastic packaging, there is an incredibly wide range of ways retailers can make their stores more environmentally friendly.
Here we highlight some of the best examples of brands going above and beyond with their stores in order to do so:
Last year Stella McCartney opened a new flagship store in London that expands four floors and embodies sustainability throughout. The outposts of the store are lined with recycled foam and card that were made from waste paper from the London offices. The space is also the first to use biodegradable mannequins, made from 72% sugarcane bioplastic, which significantly reduces CO2 emissions. To help combat air pollution, the store has a hidden ventilation systems that removes 95% of air pollutants and harmful gases, such as nitrogen dioxide. At launch, Stella herself said: “The store really tells the story of the world of Stella McCartney, seamlessly incorporating sustainability, fashion and luxury.”
Ikea opened a sustainable store in London’s Greenwich, built from a range of renewable materials in 2019. The roof is covered with 75% solar panels, which power the store, and rainwater is harvested to help reduce the store’s water consumption by 50%. The store not only helps the environment, but is also working towards improving the community around it. Ikea holds an array of classes such as bunting making, which utilizes off-cuts of IKEA fabric, helping spread the message of full utilization. The design of the store has been awarded an ‘Outstanding’ BREEAM certification, which is the highest award for sustainable construction, covering areas such as energy, land use and materials. Efforts to incorporate geothermal heating, 100% LED lighting and textile recycling, have also elevated it to become the most sustainable retail store in the UK.
Patagonia is not only leading the way with sustainability in manufacturing, but is going above and beyond with its store design strategy. Each outpost is uniquely designed to reflect the history and culture of its location, while simultaneously keeping the planet in mind. The Victoria store in Canada, which opened several years ago now, for instance, had three main goals when it was being designed: to use sustainable construction methods, utilize reclaimed materials and become the best retail space for outdoor activities in the area. It features a range of wooden details throughout, from wall decorations to shelving units, giving it a grounded earthy feel. The wood was wastage retrieved from the Pacific Ocean and leftover material from the local yacht club.
Australian fashion retailer Country Road opened its flagship store in Melbourne this summer also with sustainability in mind. The space is made from recycled materials such as yoghurt containers, fishing nets and recycled paper. It is the first to receive a 5-star Green Design review from the Green Building Council of Australia. It also includes details like fitting room hooks that have been made using ocean plastic and tables from recycled plastic. The brand hopes this store design will be the first of many, as it continues to expand in the country.
Starbucks is leading the way in the coffee sphere by building LEED-certified stores, which stands for ‘leadership in energy and environmental design’. These green stores use LED lighting, recycled flooring tiles and wood products that are certified by the Forest Stewardship council. They are 25% more energy efficient and 30% more water efficient. In countries with solar and wind projects, the stores are run on 100% renewable energy. Starbucks already has 1,612 LEED-certified stores, but is intending to extend the framework to 10,000 by 2025, which could save $50m in utility costs over the next 10 years alongside reducing impact on the planet.
Sustainable accessories brand, Bottletop, opened the world’s first 3D printed store, created by robots using upcycled plastic, in London. Based on Regent Street, it is zero waste and home to the brand’s sustainable handcrafted collection of leather goods. The space embodies the company’s core mission to empower people through sustainable design and creative culture. The flooring of the store is made from reworked rubber tyres and the interior is made from 60,000 upcycled plastic bottles. Overall, the store aims to re-imagine the future of ecologically responsible construction through zero waste design.
Danish fashion brand Ganni recently opened its new London store following a number of doors in Copenhagen and Stockholm. While it features bubblegum pink walls fit for every Instagrammer’s dream, it is also underpinned with a green strategy in mind. The store incorporates sustainable features such as recycled plastic displays made from old plastic bottles, plant pots, food packaging and coffee grounds. Decorations throughout are either vintage pieces or upcycled products, including rugs that have been remade from old Ganni collections. The company also uses renewable energy across all of its stores, with the aim to have 100% green sources by the end of 2019.
As one of the sustainability leaders in beauty, Lush recently stepped up its game by stripping back several of its stores in Berlin, Milan and Manchester, in a bid to go entirely plastic free. The ‘Naked’ stores, as they’re called, are part of the brand’s initiative to tackle the plastic waste problem in the cosmetic industry. They all feature products like the brand’s solid shampoos, which don’t necessitate any packaging. Each of them further serve as an open space for NGOs and activist groups to educate and increase consumer awareness on the topics of zero waste and ocean plastics.
Cult fashion brand Reformation puts sustainability at the core of everything it does, from local manufacturing and sustainable dyeing to green buildings and fabrics. Its Los Angeles stores and headquarters are all Green Business certified, meaning they implement strategies to save energy, improve water efficiency and reduce CO2 emissions. Reformation offsets its store build by 100%, by calculating the construction footprint. The materials in store are also sustainable with LED fixtures, recycled fabric insulations and natural rammed earth materials.
How are you thinking about sustainable innovations? 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. Each of the rules referenced above is matched by one of our products and services. Interested in how? 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…
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.
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.
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.”
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.
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.
Hollister is taking to live streaming video gaming platform Twitch to celebrate the launch of a new videogame in its Los Cerritos store in California tomorrow.
The teen fashion brand is inviting two Twitch streamers called Fuslie and J.D. Witherspoon, to play the new Crash™ Team Racing Nitro-Fueled (or CTR for short) video game live in-store at 5pm. The game comes from Activision, which also created popular titles such as Call of Duty.
Shoppers will be able to watch them online via Twitch or in real-life at the Los Ceritos store. A series of activations are also taking place across three Hollister locations including Los Angeles, Chicago and New York, all of which will host gaming lounges and PS4 systems connected to video screens to create a more immersive experience for customers.
The last part of the activation has Hollister influencers, including Adelaine Morin, supporting the launch of the video game by appearing at one of the three stores to host a friendly game competition and interact with shoppers.
“We’re constantly seeking opportunities to provide authentic engagement with our customers that align with their interests. We’re looking forward to bringing this unique experience to our customers,” said Michael Scheiner, SVP of marketing at Hollister. “These events will create a collaborative, inclusive group activity for all customers to connect with our brand, and each other.”
For those that can’t make it to any of the locations, Hollister will make the the CTR game available to download in an additional 100 US-based stores, as well as online.
As the boundaries between physical and digital spaces are blurring, the world of gaming is becoming increasingly important to the fashion industry. The video game Fortnite, for example, made headlines in February when 10 million people tuned in for a live stream from DJ Marshmello. Meanwhile, in April, fashion label Moschino partnered with The Sims for a digitally-inspired capsule collection.
Are you thinking innovatively enough in your brand messaging? We’re all about finding you the perfect partners to do so. Current Global is a consultancy transforming how fashion, beauty and consumer retail brands intersect with technology. We deliver innovative integrations and experiences, powered by a network of top technologies and startups. Get in touch to learn more.
Nike has launched a virtual pop-up store where shoppers can only access limited edition items once they have earned credits from a previous purchase.
The store, which accompanies the launch of the Air Max 720 style, can be visited by anyone whereas items are only available to buy once the user has entered their order number for purchasing the new sneaker beforehand. From then the microsite generates “Air Credits”, which are put into a virtual wallet, and allows users to purchase the items that they can see on their screens.
All merchandise in the store has been digitized, hovering in the space while allowing for 360° views either via desktop or phones. This includes AM720-themed water bottles, socks and stickers, for example, all developed in collaboration with the brand’s network of creatives.
To assist customers in the shopping journey, it is also deploying virtual avatars of its many collaborators as sales assistants, including London-based designer Mini Swoosh, England footballer Raheem Sterling and DJ Peggy Gou, which rotate on a weekly basis.
The virtual store expands into the physical realm, however, with visitors to the brand’s Oxford Circus flagship in London being able to explore the activation through an installation on the ground floor.
The campaign is part of Nike’s yearly celebration of its iconic Air Max style, which culminates in the Air Max Day taking place on March 26, the day when the very first shoe of the family was released. The yearly celebration is also a chance for the brand to dial up collaborations and promotions around the shoe. This year, it will reveal a style designed by a Nike fan under its On-Air initiative, a competition that grants people the opportunity to create their own shoe and have it produced and released to the public.
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.
MAC Cosmetics is targeting Gen Z consumers in Shanghai, China with the Experience Center, an interactive store that aims to bridge the gap between physical and digital with a host of interactive experiences.
According to the Estée Lauder-owned brand, the store is a result of six months of consumer behavior research into the MAC consumer, including cognitive walkthroughs, focus groups and exit interviews with customers. Results then helped shape the design and experience of the store, including all tech elements that give visitors a more personalized experience.
For example at the store’s entrance, stationary digital screens invite customers to scan their phones to check into MAC’s WeChat mini-program. The program then triggers a variety of functions during the experience, such as instant checkout and product pick up.
Meanwhile in the lipstick section, a smart mirror enables customers to virtually try on 18 different shades in under 30 seconds through augmented reality. Customers can also choose from six eye shadow palettes and customize it to their tastes through the WeChat platform, which is then 3D printed for them. Lastly, an infrared touchscreen interface can scan a shopper’s face and recommend a foundation shade.
Beauty companies are leading the conversation in creating retail concepts where tech plays a major role in allowing consumers an increasingly personalized experience. Last year, brands from Bourjois to CoverGirl unveiled concepts where the try-on experience was further enhanced by tech fixtures, while Sephora often experiments with such features in its many store concepts across the globe.
How are you thinking about retail innovation? We’re all about finding you the perfect partners to do so. Current Global is a consultancy transforming how fashion, beauty and consumer retail brands intersect with technology. We deliver innovative integrations and experiences, powered by a network of top technologies and startups. Get in touch to learn more.
In a bid to make money beyond ad revenue while raising brand awareness, editorial companies including Buzzfeed, New York Magazine and Good Housekeeping all recently launched physical retail stores in the US.
Merging content and commerce has long been a topic of discussion within the industry, both from how brands are thinking about their editorial voice, and – in this instance – how media businesses are monetizing their content prowess.
That’s meant all manner of e-commerce entities especially, but numerous experiments in the space have been met with mixed results. NET-A-PORTER may have nailed how to do content both online and offline, for instance, but Style.com in return flopped at the first hurdle when it shifted to a commerce model.
Others however have steamed ahead and found legs in this space balancing both angles. Marie Claire’s beauty store, Fabled, launched in 2016 and continues with a successful online and brick-and-mortar store in London.
Read on to find out how Buzzfeed, New York Magazine and Good Housekeeping are similarly thinking about physical retail experiences in order to capture consumer attention.
Online news and media outlet Buzzfeed opened a toy shop called Camp in December. Located in the Flatiron District of New York, the space also has an experiential area that’s ready for Instagram-worthy photos. With rotating decor that changes every few months, ‘Summer camp’ is the first theme chosen for the store. Think of a “campitheater”: a sports field, a dance hall, some real bunks, a radio lab, and even s’mores ice cream sundaes by Milk Bar.
Good Housekeeping ‘s GH Lab pop-up
Good Housekeeping magazine opened a three-month pop-up at the Mall of America in Minneapolis that capitalized on the busy holiday shopping period by running until December 30. Called “GH Lab”, the store offered only one item per product category. Unlike regular retailers that sell several brands of the same item, each pick was tested and recommended by experts from the GH Institute. The shoppable showroom had more than 40 curated products, and most of them had earned the Good Housekeeping Seal, which provides buyers with a two-year limited warranty guaranteed by the magazine.
The store was cashless, with all merchandise shoppable through Amazon’s app and its SmileCode scanner. Shoppers used their smartphone’s camera to scan a code that went straight to Good Housekeeping’s Amazon seller page where they could place an order for home delivery.
New York Magazine’s The Strategist
The Strategist, New York Magazine’s product recommendation site, also opened its first pop-up for the month of December, this time in Soho, New York. The store curated beauty brands and products, including haircare, bed sheets, and self-care products. The space also hosted events, including a beauty panel with The Cut’s beauty director Kathleen Hou, and offered workshops and free blowouts.
With so many other publishers playing in the product review and recommendation field, Camila Cho, General Manager of e-commerce for New York Media, said the pop-up was an opportunity to raise brand awareness. “Offline allows more flexibility to showcase our brand personality and how we are different,” said Cho in an interview for Fipp.
How are you thinking about interactive retail experiences? We’re all about finding you the perfect partners to do so. TheCurrent is a consultancy transforming how fashion, beauty and consumer retail brands intersect with technology. We deliver innovative integrations and experiences, powered by a network of top technologies and startups. Get in touch to learn more.
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.
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.
How are you thinking about retail innovation? We’re all about finding you the perfect partners to do so. TheCurrent is a consultancy transforming how fashion, beauty and consumer retail brands intersect with technology. We deliver innovative integrations and experiences, powered by a network of top technologies and startups. Get in touch to learn more.