Retail technology trends for 2016

Jan. 15, 2016 - PRLog -- More than ever, the customer calls the shots. They have wider choice at (usually) less cost. Thank technology. It has transformed the way we shop and is ramping up the service levels we expect of retailers. In fact, customer demand is changing faster than traditional retailers can keep up. Stores that want to stand out will need to provide a “unique experience proposition”.

Next year will be no different: the consumerization of tech will be the biggest influence on how retailers operate, especially among so-called digital natives, the under 35s.

People expect, and will receive, a more personalised service, something more suited to the way they live, whether that’s Amazon’s ‘Dash’ button for reordering mundane goods, Waitrose-style pick-your-own offers, or Stitch Fix’s personal stylist service. Technology is the means for much of this, but it’s only in the service of the customer.

Several forecasters talk about physical stores mirroring more closely the online store experience. But for physical stores, it’s a balancing act — they have both the challenge and the opportunity to add that ‘special sauce’ to delight people, while integrating agile tech for better service and more efficient operations. The digital-physical divide is blurring, according to innovative service provider Hointer, yet there’s a counter-trend towards more ‘handmade’ approaches in visual merchandising.

Millennials are seen as a major influence on retail futures. With spend predicted by Accenture to reach 1.4trn by 2020, those aged between 18 and 35 are a major focus for m-commerce marketing efforts. It’s unrealistic to lump them all into one category (PR firm Hotwire argues we’ll stop using the term in 2016), so this a broad-brush look at how their behaviour is shaping how we shop:
* Fifty-eight per cent of mobile shoppers are Millennials.
* As ‘digital natives’, they are highly connected and are more apt to check their phones in-store for promotions or offers.
* They research, share and compare online, using social media and sites such as Wanelo, as well as review sites. This has prompted the rise of ‘social shopping’, though ‘buy’ buttons on the likes of Facebook and Google are still in their infancy.
* In simple terms, that means all retailers need to be ‘mobile friendly’ if they are to reach Millennials. (And let’s not even start on Gen Z, the under 18s.)
* They want shopping in-store to be fun, dynamic and interactive. According to one prediction, they have a “penchant to spend more on experiences rather than things” and will be attracted by unique formats, pop-ups, and creative displays.Stores should see themselves “experience bazaars”, as Deloitte’s report puts it. Thomas Keenan, adjunct professor at the University of Calgary, foresees a future where stores become “like museums—we will go to see something, to learn and be entertained.”
* They like disruptive technology — Top Shop’s virtual changing rooms, for example — and they expect ‘frictionless’ service across all channels. This means omnichannel — or, according to Demandware, unified commerce — will gain momentum as retailers realign strategies around omni/unified channels, increasing integration of shopfloor online and ‘backroom’ ops to achieve that seamless, more finely targeted service GenY has come to expect.
* Their connectivity also means they are open to co-creation, crowdsourcing ideas, and forming communities around brands they value. PSFK’s “The Future of Retail” identifies a range of interactive innovations that are allowing this trend to blossom.
* They are also the engine of the “Maker” movement — think Etsy, Scoutmob — and put a premium on originality, craftsmanship and ethical sourcing. Even better if a retailer can tick all three boxes (as at Warby Parker and Patagonia, for example.)


How tech will help customisation flourish
Expect more refined use of Apps to encourage loyalty and beacons (or similar location-based tech) to communicate with shoppers while tracking their behaviour.

Data from across these devices and tools will dominate decision-making and, as long as it’s analysed, will help stores crystallize their strategies and target individuals better.

Further into Minority Report territory, stores are “leveraging the senses”, experimenting with emotion-tracking and facial recognition tech such a Emotient and EyeQ’s service, which also links to IBM’s Watson supercomputer for added AI smarts. But, as retail marketing boss Manolo Almagro asks, “How much personalisation is too much?’ I want to give enough to make the experience more convenient for you, but not so much that it becomes creepy. That’s a kind of fine line we have to walk.”

The Internet of Things, whereby everyday devices connect to the internet and can communicate with each other, offers massive potential to get personal — smart shelves, or smart mirrors such as Memomi that put together outfits for you, via wearables, AI and AR, in the form of ‘intelligent assistants’ and in-store kiosks. Demandware predicts the rise of voice commands to replace swiping and typing.

In store design, technology will be integrated into displays. Janet Wardley of Harvey Nichols suggests that adjustable lighting and even walls that change colour without the need of paint may be on the horizon, and will make display windows like “giant computer screens”. Automated stocktaking; dynamic price adjustment; adjusting the heating and lights — IoT-based sensors are becoming increasingly accessible to any budget.

But the human touch is still what sells. And at the opposite end of the scale, there’s a trend in store designs towards natural, artisanal and recycled/repurposed interiors. One VM expert even hopes that by 2020, ‘old-school’ creativity will have trumped all the high-tech whizzbangery. Possibly...

For more thoughts visit www.shopfittingwarehouse.co.uk