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Blocks business e-commerce technology

Accelerating change at retail – a chat on innovation with WGSN, John Lewis and Zappos Labs

By day, I’m a global senior editor at WGSN, where we’ve been running an ongoing series of Google+ Hangouts (#wgsnhangout), chatting to experts from across the industry each month on subjects as varied as wearable technologycatwalk trends to know aboutthe future of fashion and more.

This month, the subject was retail innovation. I interviewed Will Young, director of Zappos Labs; John Vary, innovation manager at John Lewis; and Lorna Hall, WGSN’s head of market intelligence. Check out the video above for more on what’s currently shifting the landscape through the eyes of a heritage retail brand and a large US e-commerce player.

We chat about improving the consumer experience, introducing new technologies, partnering with start-ups, gaining internal buy-in, the ever-important role of omnichannel and more. There’s also a quick-fire round flagging up how soon (18 months, three-five years, or not at all) retailers need to care about innovations such as beacons, 3D printing, wearable tech, drones and virtual reality.

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e-commerce social media

Zappos piloting personal shopping service on Instagram with #nextootd

Most of you will have already heard of the hashtag #ootd. For those who haven’t, this is the epitome of the #selfie phenomenon. “Outfit of the day” as it stands for, has over 23 million posts attached to it on Instagram.

That’s 23 million images associated with what people are wearing, said Will Young, director of Zappos Labs – the San Francisco-based experimentation and innovation arm of e-commerce site Zappos – during SXSW last week. “We looked at [those figures] and asked as a retailer how do we be a part of that?”

The answer? His team recently launched a pilot project on the platform called Next OOTD. Very simply, followers are invited to post a selfie along with the hashtag #nextootd. Those who do will receive a personalised shopping recommendation based on their Instagram from Zappos in return.

Zappos is of course a company that prides itself, and has become known, for customer service (its longest ever phone call was nine and a half hours – and celebrated for that fact, Young revealed). He said they are constantly trying to think of lots of different ways to take that service to the next level.

At the moment this project is entirely manual – there’s one person doing it who doesn’t even work weekends – so the potential to scale isn’t really there, he admitted, but that’s not to say it won’t be down the line.

“Personal shopping via Instagram… that could be the future of our business,” he argued – and perhaps rightly so given the buzz around social shopping once again at present. “It could have a 50 person team manning it and making personalised shopping recommendations.”

To his own strategy, he added: “I heard Sarah Friar, CFO of Square speak recently, and she said: ‘Think big but start small.’ That’s kind of how we approach things at Zappos Labs.”

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data technology

Looking back at SXSW: wearables, privacy and avoiding bandwagons

This article first appeared on The Business of Fashion 

Rachel Arthur recaps the highlights of this year’s SXSW Interactive conference and identifies key takeaways for the fashion industry.

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AUSTIN, United States — The marketing and tech crowd hit Austin, Texas, once again this week for the annual SXSW Interactive conference, bringing with them more members of the fashion industry than ever before. There were representatives from long-time attendees like Burberry and Bergdorf Goodman, alongside a flurry of first timers from Parisian fashion houses and UK department stores alike, a sure sign of technology’s increasingly pervasive impact on fashion retail.Thought of as an incubator for tech-enabled creativity which aims to provide a “view on the future,” the annual event is overloaded with keynotes, panel discussions and pop-up events, not to mention a trade show floor. But, as usual, much of the action also happened off-piste, in spontaneous conversations at hundreds of events and parties.

Here, we’ve compiled some key takeaways, on themes ranging from wearable technology to consumer privacy.

The State of Wearables

It was clear wearables — an emerging category of personal accessories with embedded sensors, displays and other digital technology (such as Nike’s FuelBand, Google Glass and Apple’s rumoured iWatch) — were going to be a key topic even before SXSW began. They’d dominated the scene at the International Consumer Electronics Show (CES) held in Las Vegas each January and over 60 sessions addressed the topic, up from a mere handful last year.

Speakers unanimously agreed that the category is advancing rapidly. American basketball star Shaquille O’Neal even made an appearance to discuss his new interest in wearable technology with Rick Valencia of Qualcomm. Yet despite predictions that the market for wearables could reach $30-$50 billion over the next 3 to 5 years, the growing consensus was that mass adoption was still a ways off. On Google Glass, Robert Scoble (author and startup liason officer of Rackspace) said: “This is one of those products you know is the future, but it’s so unfinished at this point that it’s frustrating. It’s three to five years away before it’s really useful.”

And indeed, it was the word ‘useful,’ more than design or aesthetics — which the current crop of wearables are widely thought to lack — that came up the most. Jennifer Darmour, user experience design director at Artefact, said she has a drawer full of wearables that she had worn for just a week or two each before abandoning them. There was too much focus on novelty, she said, rather than on creating real functional value. “We’ve been taking a technology and trying to find a problem for that technology, instead of the other way round,” she added. “We need a more human-centric approach.”

Q Manning, chief executive of app design company Rocksauce Studios, agreed: “We need to solve problems. Just because we can build it, doesn’t mean we should. We need to pinpoint will this actually be useful? Is it beneficial? Will it help me live my life better?”

Jay Morgan, digital creative director of Havas Worldwide, added: “When wearable tech becomes [part of our] normal clothes and we don’t have to [actively] interact with it, it’s not then going to be about whether people care about it, it’s just going to be a part of your life. That’s what brands need to think about it now.”

Managing Privacy

Privacy was another key topic at SXSW this year, perhaps unsurprisingly as whistleblower Edward Snowden gave one of the headline talks. Appearing via Google Hangout from an undisclosed location in Russia, Snowden called on the technology community to help protect privacy rights by building them into technical standards. “There is a policy response that needs to occur, but there is also a technical response that needs to occur,” he said. “It is the development community that can really craft the solutions and make sure we are safe.”

Christopher Soghoian, principle technologist at the American Civil Liberties Union, added: “I really think that consumers need to rethink their relationship with many of the companies to whom they entrust their private data. I really think what this comes down to is if you are getting the service for free, the company isn’t going to be optimising your experience with your best interests in mind.”

While Soghoian was referring to Internet services like Facebook, the issue of consumer privacy should be of concern to retailers as well, as they increasingly collect and leverage personal data.

“The bottom line is data should not be collected without people’s knowledge and consent,” said Snowden. “If data is being clandestinely acquired and the public doesn’t have any way to review it and it is not legislatively authorised, it is not reviewed by courts, it is not consonant with our constitution — that is a problem.”

For others, the issue of privacy and personal data was seen in the context of a value exchange, with consumers increasingly willing to reveal information in return for benefit. “The more utility you get, the more you’re going to have to give away your privacy,” said Scoble, adding he’d happily do so himself in return for more useful and personalised experiences. Sir Tim Berners-Lee, inventor of the World Wide Web, agreed: “I’m excited about data being about me. The marketer gets a certain amount of value in the stats on my demographic, but the real value is for me.”

Daniela Rus, director of the Computer Science and Artificial Intelligence Lab at MIT, said the way forward was giving consumers control of their data. “We are now developing technologies to give people control over who manages their data and how. We are ensuring privacy, so it will be very easy and very comfortable for them to give their data over and get something out of it.”

Avoiding Bandwagons

Elsewhere at SXSW, conversation swirled around everything from “embeddables” (technology emebedded in the world around us, such that “virtually any human activity we can think of is going to be modified and amplified with an invisible mesh of data and processing that we will drift through obliviously,” according to one panel) to bioengineering. But ultimately, “good technology is no excuse for a bad idea,” said Paul Kemp-Robertson, co-founder and editorial director of marketing consultancy and magazine, Contagious. “It’s easy to jump onto bandwagons just because a new technology looks cool. Everyone enjoys feeling like that little kid chasing after the bright, shiny tool in the distance. But in this age of service design and living data, if a marketing idea is not useful, relevant or entertaining, then really there’s very little point in letting it loose on the world.”

Kristina Simmons, a partner at leading Silicon Valley venture capital firm Andreessen Horowitz, agreed. Wearable technology, for example, should not be a priority just because everyone is talking about it. “It needs to be something that makes sense for your business. It’s about thinking about your top five priorities, versus saying I want to do something with wearables.”

“Innovation isn’t just giant leaps and bounds and the sexy stuff — it’s also about the basics and thinking about how we do things better. Incremental changes can make a big difference too,” said Will Young, director of Zappos Labs.

“Being first has always been a big thing,” said Ben Malbon, Google’s head of creative partnerships. “But the future is here already. We should use the existing tools we have on the table. Innovation doesn’t need invention.”