NEW YORK, Oct. 16, 2017 /PRNewswire/ - To determine the shopping preferences of today's consumers and how they view the in-store versus the online buying experience, Imprint Plus, makers of re.
Taken together, these shifts have led to a plethora of store closings, thus, giving rise to the notion of an impending retail apocalypse. Thankfully for sleepless retail executives, the impending doom has been overstated. Euromonitor International projects 83% of goods purchased globally in 2022 will still be bought in store.
In recent years, talk of Amazon has dominated industry gatherings, but at this week’s National Retail Federation’s annual show, NRF 2018: Retail’s Big Show, the internet retailer behemoth was largely mentioned only in hush tones. It seems the industry is starting to push back on the notion that the end is near for brick-and-mortar outlets. Instead of shifting into a defensive mode, retailers are going on the offense, and using technology to entice consumers to shop both online and in store.
The floor of NRF 2018 gave a glimpse of three ways technology will change how consumers shop in store by 2020.
- Prices that change by the hour
Taking a page from online retailers, brick-and-mortar retailers will be able to change prices on products and services hourly. The technology will enable retailers to adjust prices on-the-go or mark down weekly specials more efficiently. Retailers can even make adjustments based on supply and demand.
Couple this technology with more affordable item-level sensors and grocers could more quickly locate and drop prices on food that may spoil in the coming days. In recent years, RFID tags have fallen in price to roughly six cents, making it more affordable to digitize the supply chain. Item-level sensors could also be leveraged to power a more seamless checkout as well as a tool to drive future customer engagement.
New uses of technologies could enable retailers to change prices on store shelves by the hour. (AP Photo/LM Otero, File)
Kroger, the largest grocer in the US after Walmart, is an example of one retailer that has committed to digital price tags in nearly 200 stores by the end of 2018. Kroger Edge will also be able to share nutritional information and highlight items that match a consumer’s dietary restrictions. One day it could eventually be able to communicate with customers’ smartphones to highlight products on their shopping list as they walk down aisles – helping hurried shoppers quickly locate the desired product.
- Shopping in an enhanced reality
Technology is enabling retailers to mix digital with reality to enhance consumer engagement and boost brand loyalty. While many of the first use cases in commerce have been deployed more so to enrich online shopping, retailers are starting to use the technology to create more fun, experiential settings in store.
ModiFace, which is behind many of the augmented reality mobile apps used by several beauty brands today to visualize looks, recently released an augmented reality mirror for in-store use. The mirror, which leverages facial tracking and 3D video, enables consumers to try on different makeup shades in store. SenseMi’s interactive smart mirror does the same for beauty as well as fashion, enabling consumers to virtually try on an outfit even before entering a fitting room.
Using only light, Spacee out of Texas has developed a technology that transforms virtually any 2D or 3D surface into an interactive touch screen. At NRF 2018, Spacee was showcasing how it worked with Walmart to create an end-cap for Nest products using only its technology and plastic pieces that mimicked the shape of the actual Nest products. In high-theft categories like consumer electronics, the faux end-caps can eliminate security concerns for retailers altogether while providing end-consumers with a more enhanced experience that better showcases what a product can do.
- Unmanned checkouts that eliminate the need for cashiers
Since Amazon Go made headlines a year ago, retailers have been knocking on the doors of technology firms wanting to understand how to create unmanned store fronts themselves. The rise of more affordable item-level tagging brought forth by the Internet of Things era and new computer learning technologies and smarter algorithms ushered in by artificial intelligence have made it possible. In some cases, retailers have been blinded by the bright shiny new nature of these technologies rather than considering if it fits for their format. For example, such technology makes more sense in convenience stores where retailers do not expect store personnel to upsell consumers.
Vendors are responding to the increased demand for unmanned checkouts. Mastercard showcased its partnership with Ava Retail to create unmanned checkouts in convenience store environments. The sensor technology tracks the consumer in store and adds their items to a virtual shopping cart. When the consumer leaves the store, the cart is transferred to a mobile app and the payment is processed through Mastercard’s Masterpass. Others like Intel and IBM now also offer a suite of technologies to create staff-free stores. Meanwhile, it is already happening in China as Alibaba and JD.com are actively testing and announcing plans to open more unmanned posts.
Now it is up to retailers
In an era in which everyone sells everything, retailers must work harder to differentiate themselves from others. Retailers can no longer win on price or proximity. Instead, retailers need to hearken back to their brand promise and uncover what differentiates them from others selling the same goods. Technology will be key to assisting retailers with creating new, meaningful ways for consumers to interact with the brand. The biggest issue holding back retailers is not the availability of technologies, but instead the inability to understand and adopt the ones that will further their brand ethos.
Retail moves at the speed of culture, which means players sometimes quickly come and go. This speed is hastened by new technology and the group of shoppers using it the most – millennials.
The millennial generation is the largest in U.S. history and as they reach their prime working and spending years, their impact on the economy will be significant. Millennials have come of age during a time of technological change, globalization and economic disruption. These factors have given them a distinctly different set of behaviors and experiences.
This new generation is savvier and more educated. They turn to their handheld devices to meet all their needs. Whether it be hailing a ride through the Uber app or ordering a breakfast burrito through the Seamless app, technology is how they get things done. They are plugged into their devices and are disrupting traditional purchasing patterns.
Convenience And Flexibility
Millennials have grown up and matured with mobile technology and expect to be able to use it in every aspect of their life. They want to be able to make purchases, use social media, chat with friends, do online research and pay for products. The convenience of the mobile device is paramount to this group.
Improving the payment experience through self-checkout kiosks and advanced digital payment technologies is essential to keeping the millennial shopper. They use multiple devices to make purchases and have started turning their mobile device into a handheld wallet. The relentless focus on perfecting technology has set a new standard across the industry that millennials now accept as the norm. Retailers must be able to provide streamlined, user-friendly systems and processes in order to retain the millennial.
For example, retailers such as Starbucks are winning over millennial consumers with their mobile wallets – apps developed by stores which make it easier for customers to pay while delivering additional perks such as discounts or free drinks.
Personalized Experiences
In order to appeal to this generation, retailers need to provide a seamless customer-facing retail experience. Whether this is online or in-store, millennials seek customer service professionals who understand their preferences and make recommendations tailored to their specific needs.
Millennials want a customer-centric experience in which they feel wanted and valued. Whether it is in-store or through social media channels, showing interest in these shoppers creates loyalty. In order to do this, retailers need to closely examine what they’re currently doing with customer data, and ensure this information is being utilized to deliver a more personalized in-store experience. This can include where customers shopped last, what was purchased, and their motivation to convert.
For the past few years, Nordstrom has been investing heavily in data-driven, personalized customer experiences. For example, the retailer tracks popular items pinned on social network Pinterest, which is then displayed in-stores and labeled as “top-pinned items” with a logo. By incorporating social feedback into the shopping experience, Nordstrom can take the lead from the customer, to ensure that merchandise in-stores is personalized and in better alignment with what shoppers actually want.
Experiences Over Items
Mobile devices and technology may be an integral piece of their life, but this young generation values traditional experiences. They shop, but they also want activities such as movies and dining. They demonstrated this over the holidays when they spent an average of $220 on these activities – more than Generation X or Baby Boomers.
Social interaction with brands is also important, especially for millennials. They utilize social media in real time, posting photos of their whereabouts and purchases, affording retailers instant social traction while sharing their experience with others.
To encourage consumers to spend, brands have gotten creative. For example, a number of fitness brands realize the importance of experience, including popular athleisure brand Lululemon, which offers complimentary in-store fitness classes. Stores are evolving into entertainment spots for millennials who share similar interests allowing them to spend time together, while also enabling consumers to engage with the brand.
This group of young people doesn’t turn to social media just to share their experience but to be engaged with as well. Retailers are capitalizing on this emerging trend, leveraging the consumer-generated content of photo shares and hashtags to create word of mouth marketing and appealing to a broader audience.
Millennials’ buying power will soon surpass that of the generations before them. Retailers will have to work harder to meet their demands as they influence trends and redefine buying habits. They will continue to utilize technology, and continue to expect that the world around them to adapt them quickly.
'>Retail moves at the speed of culture, which means players sometimes quickly come and go. This speed is hastened by new technology and the group of shoppers using it the most – millennials.
The millennial generation is the largest in U.S. history and as they reach their prime working and spending years, their impact on the economy will be significant. Millennials have come of age during a time of technological change, globalization and economic disruption. These factors have given them a distinctly different set of behaviors and experiences.
This new generation is savvier and more educated. They turn to their handheld devices to meet all their needs. Whether it be hailing a ride through the Uber app or ordering a breakfast burrito through the Seamless app, technology is how they get things done. They are plugged into their devices and are disrupting traditional purchasing patterns.
Convenience And Flexibility
Millennials have grown up and matured with mobile technology and expect to be able to use it in every aspect of their life. They want to be able to make purchases, use social media, chat with friends, do online research and pay for products. The convenience of the mobile device is paramount to this group.
Improving the payment experience through self-checkout kiosks and advanced digital payment technologies is essential to keeping the millennial shopper. They use multiple devices to make purchases and have started turning their mobile device into a handheld wallet. The relentless focus on perfecting technology has set a new standard across the industry that millennials now accept as the norm. Retailers must be able to provide streamlined, user-friendly systems and processes in order to retain the millennial.
For example, retailers such as Starbucks are winning over millennial consumers with their mobile wallets – apps developed by stores which make it easier for customers to pay while delivering additional perks such as discounts or free drinks.
Personalized Experiences
In order to appeal to this generation, retailers need to provide a seamless customer-facing retail experience. Whether this is online or in-store, millennials seek customer service professionals who understand their preferences and make recommendations tailored to their specific needs.
Millennials want a customer-centric experience in which they feel wanted and valued. Whether it is in-store or through social media channels, showing interest in these shoppers creates loyalty. In order to do this, retailers need to closely examine what they’re currently doing with customer data, and ensure this information is being utilized to deliver a more personalized in-store experience. This can include where customers shopped last, what was purchased, and their motivation to convert.
For the past few years, Nordstrom has been investing heavily in data-driven, personalized customer experiences. For example, the retailer tracks popular items pinned on social network Pinterest, which is then displayed in-stores and labeled as “top-pinned items” with a logo. By incorporating social feedback into the shopping experience, Nordstrom can take the lead from the customer, to ensure that merchandise in-stores is personalized and in better alignment with what shoppers actually want.
Experiences Over Items
Mobile devices and technology may be an integral piece of their life, but this young generation values traditional experiences. They shop, but they also want activities such as movies and dining. They demonstrated this over the holidays when they spent an average of $220 on these activities – more than Generation X or Baby Boomers.
Social interaction with brands is also important, especially for millennials. They utilize social media in real time, posting photos of their whereabouts and purchases, affording retailers instant social traction while sharing their experience with others.
To encourage consumers to spend, brands have gotten creative. For example, a number of fitness brands realize the importance of experience, including popular athleisure brand Lululemon, which offers complimentary in-store fitness classes. Stores are evolving into entertainment spots for millennials who share similar interests allowing them to spend time together, while also enabling consumers to engage with the brand.
This group of young people doesn’t turn to social media just to share their experience but to be engaged with as well. Retailers are capitalizing on this emerging trend, leveraging the consumer-generated content of photo shares and hashtags to create word of mouth marketing and appealing to a broader audience.
Millennials’ buying power will soon surpass that of the generations before them. Retailers will have to work harder to meet their demands as they influence trends and redefine buying habits. They will continue to utilize technology, and continue to expect that the world around them to adapt them quickly.