AUTUMN/WINTER 2016 EDITION 06 - Squarespace

Page created by Curtis Edwards
 
CONTINUE READING
AUTUMN/WINTER 2016 EDITION 06 - Squarespace
AUTUMN/WINTER 2016 EDITION 06
AUTUMN/WINTER 2016 EDITION 06 - Squarespace
INSPIRING GREAT RETAIL
     AUTUMN/ WINTER 2016 ISSUE 06

     CONTENTS
     03      The Home, The Store, The Person

     07      Amazon Echo and Alexa

     11      Connected Customers Need a Connected
             Journey By Neil Caddick

     15      Ralph Lauren - Polotech

     18      Vinaya

     21      Tesco F&F Auto Replenishment

     23      Body Labs

     27      49ers Stadium App

     29      Wrapping Up

                                   Rob Smith
                                   Managing Director
                                   Blueleaf

01        INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
AUTUMN/WINTER 2016 EDITION 06 - Squarespace
WELCOME TO OUR LATEST
INSPIRING GREAT RETAIL
REPORT, ALL ABOUT
CONNECTED COMMERCE.
Connected Commerce. What does it mean? What are the
possibilities? This IGR focuses on this rapidly growing area of
commerce. What makes a good connected experience? Who is
using technology such as voice recognition, beacons and RFID
effectively? Are we still at the gimmick stage or is it useful for
the majority of consumers? There’s a lot to explore in this area
and only one thing is certain - it’s very exciting times for retail,
especially if you have a physical presence as well as online.

One of the key elements to recognise is that      I hope you enjoy our latest report. I’m always
the technology to power these experiences is      open to feedback so please drop me a note with
not only possible, but the price of the sensors   your thoughts to rob.smith@blue-leaf.co.uk, I’d
and connections has fallen so significantly       love to hear from you. I’ve been flattered by
that it can be cost effective to deploy           the feedback received so far so please be kind
connected initiatives. The combination of this    but also be honest; we want our reports to
and consumer adoption of things that are          keep helping and inspiring you.
very useful to their journey is key for a great
connected experience.                             Thanks and enjoy.

blueleaf                                           AUTUMN/ WINTER 2016     INSPIRING GREAT RETAIL
                                                                                                    02
AUTUMN/WINTER 2016 EDITION 06 - Squarespace
CONNECTED COMMERCE / THE HOME, THE STORE, THE PERSON

     HOME
     THE

     STORE
     THE

     PERSON
     THE

     Before we dive into the examples in this report I want
     to explore the fact that there are three main ways
     where you or your devices will ‘connect’. These are the
     home, the store and the person. There’s a lot of spaces
     in between, like the office, your car and general public
     spaces but there’s no doubt that the three primary ones
     are home, store and yourself in terms of retail commerce.

03       INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
AUTUMN/WINTER 2016 EDITION 06 - Squarespace
CONNECTED COMMERCE / THE HOME, THE STORE, THE PERSON

THE HOME                                                     25% of consumers in
Let’s have a quick tour of the home and                      the UK currently own
what’s possible.
                                                             at least one smart home
Connected appliances: monitoring of                          device. 36% of consumers
appliance performance, filters, emptying water
and so on, all useful utility-based services. Same           say the main barrier
for energy consumption, heating etc, not quite as
                                                             to adoption is cost to
commerce-focused though.
                                                             purchase, followed
Connected storage: things like pantries,
cupboards, fridges, these have a lot of potential for
                                                             by 25% who say it is
restocking / auto reordering. They also have a content       knowledge of products.
play, eg recipes based on their contents.
                                                             Source: Data Select,
Ambient sensors / listening: things like                     survey of 7,000 consumers.
Amazon Echo, featured in this edition, also form part
of the furniture and the lifestyle.

While there’s a lot of opportunity for retail in the
home, we need to be aware that for many people,
the home is a very private space. So bombardment
of advertising messages within the home (unless
through a device like a TV) is unlikely to work. The
commercial opportunity is more around utility and
lifestyle than direct purchase.

blueleaf                                                 AUTUMN/ WINTER 2016   INSPIRING GREAT RETAIL
                                                                                                        04
AUTUMN/WINTER 2016 EDITION 06 - Squarespace
CONNECTED COMMERCE / THE HOME, THE STORE, THE PERSON

                                                           THE PERSON
                                                           The person is a really interesting part of the
                                                           equation. We’re all individuals and so we do
                                                           things in a great variety of different ways.

                                                           Who we are: body shapes, preferences,
                                                           location, wealth, there’s a great many things that
                                                           can connect and drive with sensors and data.

                                                           Activity: where we go, how we get there, how
     THE STORE                                             active we are and what we consume is all a gold
                                                           mine of information to use for retail and beyond.
     The store is a whole other matter. There’s a lot of
     opportunity to personalise a shopper’s journey.       There’s a lot to explore in the store and many
                                                           powerful ways to continue our quest for a
     Payment: seamless payment via mobile                  frictionless journey towards getting what
     device could even get to the point that as you        we want. In a world that is angled towards
     walk out of the store with the goods you are          experiences rather than things (at least at time
     checked out.                                          of writing) retailers will need to work hard to
                                                           make the purchase an experience in itself and/or
                                                           align experiences to purchases as enablers
     According to a recent Connect                         of experiences.
     Commerce report conducted
     by DigitasLBi, 35.1% of fashion                       Right, let’s dive in.
     purchases are spontaneous. So
     imagine the potential here.

     Finding: apps/augmented reality could easily
     move you from the front of the store to exactly
     where your items are located, or could have
     them ready for you to try on based on your
     proximity to the store.

     Choosing: the potential here includes
     virtual mirrors allowing for assistants to bring
     different sizes or for you to talk with friends or
     ask opinions and get recommendations on the
     fly or make suggestions based on your diary for
     upcoming events.

     The DigitasLBi report also discovered that
     37.1% of online purchases are not made alone.

05        INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
AUTUMN/WINTER 2016 EDITION 06 - Squarespace
AUTUMN/WINTER 2016 EDITION 06 - Squarespace
AMAZON ECHO
     AND ALEXA
     It’s taken a couple of years,
     but Amazon’s Echo smart
     speaker and its accompanying
     Alexa personal assistant
     have finally jumped across
     the pond and landed on UK
     shores, ready to revolutionise
     the way consumers act in
     their own homes.

07     INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
AUTUMN/WINTER 2016 EDITION 06 - Squarespace
CONNECTED COMMERCE / AMAZON ECHO AND ALEXA

Amazon’s Echo device is a smart speaker system,
able to connect via Bluetooth to your music
devices. But more significantly, Echo is voice-
controlled and wi-fi enabled, meaning you
can vocally ask it to play your Amazon Music
playlist without connecting it to a device or even
pressing one single button.

The physical technology is a 9-inch Echo smart
speaker, weighing just over a kilogram (smaller
Echo Dot speakers are also available). The
speaker packs in a 2.5-inch woofer and
1.0-inch tweeter and comes with Amazon’s
very own lovely assistant – Alexa – who is most
certainly the brains behind the operation. She
lives in the cloud, powered by Amazon Web
Services, and has the ability to do a lot more
than just play your music.

Her name is her ‘wake
word’, say it at the
beginning of a request
and, always listening,
Alexa will come to life.

She can order your favourite pizza from Just Eat,
tell you the height of the Gherkin, set a timer,
create a to-do list and even request an Uber.

Officially launched in the US in 2015, those
who own one rave about Alexa’s abilities, with
over 40,000 Amazon reviews, 85% of which rate
the gadget four or five stars. The e-tail giant
also threw some serious marketing dollars at
the technology during the Super Bowl earlier
this year, with a series of adverts starring Alec
Baldwin. Echo is expected to be very popular
in the UK too, despite it being quite creepy that
Amazon is listening in to the conversations its
customers have in their own homes - something
which has raised privacy concerns.

blueleaf                                             AUTUMN/ WINTER 2016   INSPIRING GREAT RETAIL
                                                                                                    08
AUTUMN/WINTER 2016 EDITION 06 - Squarespace
CONNECTED COMMERCE / AMAZON ECHO AND ALEXA

     What Amazon managed                                     Forrester’s ‘Data Smart Home Devices Forecast
                                                             2016-2021’ predicts 7.1 million households in the
     to prove with its Echo                                  US alone will have a smart home device this year
                                                             and that number is set to increase to 8.7 million
     product is there is                                     in 2017 (5.9% of total homes) and a whopping
                                                             20.2 million in 2021 (16.3% of total homes).
     definitely an appetite
     for voice-controlled                                    Hive and Phillips have seen the onset of this
                                                             trend for some time and have already signed
     devices in the home.                                    with Amazon, meaning consumers with the
                                                             smart home technology can ask Alexa to turn up
     But what is special about this AI-powered personal      the heating or turn off the lights, negating the
     assistant is that she continues to learn and gets       need to visit the necessary smartphone apps to
     better as third-party developers create more            do it yourself.
     services to integrate with her. Amazon encourages
     this through its Alexa Skills Kit, which can be
     accessed by developers wanting to build new
     ‘skills’ – Amazon’s name for a voice-app. Just Eat,
     Uber, National Rail, The Guardian, Sky Sports,
     Jamie Oliver, Skyscanner and Fitbit are just a few of
     the companies who have announced partnerships
     with Amazon Echo on launch in the UK.

     Where Echo and Alexa get really interesting is
     with the Internet of Things. Users can set up Echo
     to become the powerhouse for a smart home.

09        INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
CONNECTED COMMERCE / AMAZON ECHO AND ALEXA

And of course, Alexa will happily place an          In fact, Google is due to launch its competitor
Amazon order on your behalf, using the default      speaker/home automation device, Google Home,
1-click payment settings in your account.           very soon. The concept of asking your smart fridge
                                                    to order milk, or having a casual chat with your
Amazon clearly wants these devices in people’s      oven over temperature settings is finally here.
homes. It’s probably the most intelligent real-
use case of a smart assistant on the market,        And with an intelligent central device, like Echo,
yet Amazon is only charging £149.99 for the         you can begin to connect your smart home into
device, and it even knocked off 50 quid for Prime   one frictionless ecosystem, so you only have to
members during the first two days of pre-orders.    have that meaningful conversation with
Alexa removes the need to use your smartphone       one device.
to place your usual sushi order or check the time
in Hong Kong, and speaking out loud is much
more natural than using devices like laptops,
                                                      SUMMING UP
smartphones or even smart watches.
                                                      This truly is a game-changer. The real appeal here

                                                      is the price. Given the money UK consumers are
While Apple’s voice assistant, Siri, has been
                                                      willing to fork out on Apple goodies, an affordable
around for four years, there isn’t a real need
                                                      £149.99 is sure to encourage widespread adoption
to talk to your iPhone – Siri became more of
                                                      of this product in the UK, as it has over the pond.
a novelty value and the technology wasn’t up
                                                      This presents countless opportunities for retailers
to scratch to be able to shout “Hey Siri, play
                                                      and it also changes consumer perceptions on the
my music” from across the room. Meanwhile,
                                                      affordability of smart tech in general. This opens
modern TVs with voice commands from the
                                                      the floodgates for sure.
likes of Samsung, LG and even Amazon with its
Fire TV, make it much easier to search through a
complex smart TV than using a remote, and this      For relevant Amazon Echo and Alexa links visit
is actually normalising the behaviour.			           InspiringGreatRetail.com

blueleaf                                            AUTUMN/ WINTER 2016     INSPIRING GREAT RETAIL
                                                                                                            10
CONNECTED CUSTOMERS
     NEED A CONNECTED
     JOURNEY. NEXT
     GENERATION RETAIL.
     Technology is changing consumer behaviour. It’s no surprise
     smartphones are paving the way for the connected consumer with
     smarter retail apps, smoother e-commerce sites and interactive
     digital campaigns all delivering better experiences. It’s not smooth
     sailing though - siloed thinking still remains and retailers have a long
     way to go to deliver a connected journey for today’s consumer.

11      INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
CONNECTED COMMERCE / NEXT GENERATION RETAIL

SHOPPING IS CHANGING
Over the last decade, we’ve transitioned from          As the online and in-store experience becomes
‘showrooming’ to ‘webrooming’ and back again -         evermore ubiquitous, there’s a need, and a
and now smartphones enable customers to shop           demand for richer personalised experiences -
or engage with a retailer, whenever, wherever          but to deliver this the right infrastructure needs
they are. So much so that customers rely on a          to be in place and for most retailers, there’s
unified mobile and in-store experience, using          some catching up to do. The CRM, e-commerce
their smartphone to access inspirational content,      platform, in-store beacons and retail technology
recommendations and personalised experiences.          need to work seamlessly together to deliver
                                                       the kind of experience that today’s tech-savvy,
                                                       connected consumer demands.
71% of in-store shoppers who use
smartphones for online research                        Those retailers that embrace the concept of a
say their device has become                            connected consumer do so across all customer
more important to their in-store                       touchpoints. It’s not just in-store, it’s across
                                                       all marketing and purchase channels to create
shopping experience.                                   a rounded, integrated, connected customer
Source: Google Insights, Digital Impact                journey. The fuel behind this is content and
On In-Store Shopping, October 2014                     how it’s used across all platforms - from the
                                                       catwalk to social conversations and in-store to
                                                       e-commerce. Content delivers consistency and
So, if the bricks and mortar shoppers are using
                                                       messages that drive engagement and action.
their smartphones to find inspiration, research
                                                       The challenge is bringing it all together.
products and seek out promotions whilst in-
store, doesn’t the retailer need to revisit how this
                                                       CONTENT DRIVES INSPIRATION -
real-time, personalised shopping experience can
                                                       AND ACTION
be created seamlessly?
                                                       In recent years there have been a number of
                                                       retailers embracing the concept of the connected
Shoppers would be more likely                          consumer. They engage with their customers and
                                                       peers, reinforcing the behaviours today’s savvy
to shop in stores that offer
                                                       consumer is already showing.
personalisation (85%), product
recommendations (64%) and
recommendations based
on peer-group purchases (54%).
Source: Google Insights, Digital Impact
On In-Store Shopping, October 2014

Neil Caddick,
Chief Commercial
Officer, The Filter

blueleaf
CONNECTED COMMERCE / NEXT GENERATION RETAIL

     For example, Burberry is held up as a digital             this are Mr Porter and sister company Net-a-Porter
     leader within retail and back in 2011, they began         with the Yoox Net-a-Porter group favouring ex-
     to connect digital engagement to sales more               fashion editors to lead the way in this strategy.
     inherently. The ‘Tweetwalk’ campaign took
     their London Fashion Week show and tweeted                The emphasis then becomes engagement and
     exclusive backstage photos, streamed live                 keeping consumers interacting with the brand,
     footage to its Facebook page and handed over its          the content and the products. In an e-commerce
     Instagram account to its most followed user to            environment this becomes an even greater
     deliver more exclusive photos. What’s more, they          challenge - delivering the connected journey that
     enabled their fan base to buy products in-store           the customer expects - right there, right then.
     before general release. Whilst this was primarily         For example, Mr Porter delivers editorial content,
     a social campaign, it was the start of a significant      inviting readers to ‘get the look’ alongside in-
     shift in their digital strategy. By 2014, Burberry        depth interviews with high profile celebrities.
     reported that channels that linked the store and          The result is instant purchase intrinsically
     online grew faster than any other channel.                linked with richer, inspirational, magazine-style
                                                               content. It closes the gap to purchase and
                                                               drives up revenue for the retailer, and on the flip
     Customers increasingly moved
                                                               side, the customer gets a completely seamless,
     between offline and online                                connected journey.
     throughout their purchase
                                                               DELIVERING A BETTER
     journey, reflected in the                                 CUSTOMER EXPERIENCE
     contribution to digital sales of                          If connected commerce is about delivering a
     orders via iPads in store (over                           better through-channel experience, how do you
                                                               achieve this? The right mix of infrastructure and
     25%) and ‘order online, collect                           technology are a must to deliver a digital-first
     in store’ (over 20%).                                     strategy. Consumer behaviour is changing fast
                                                               and expectations are high - retailers need to
     Internet Retailing, November 2014                         deliver a unified, intelligent customer journey.
                                                               The challenge is bringing it together across all
     Other retailers have embraced forward thinking            systems and channels. This isn’t just a trend,
     digital strategies, taking editorial style content ever   it’s a reality right now. What’s your digital retail
     closer to the e-commerce channel. Champions of            strategy for the connected consumer?

13        INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
RALPH
     LAUREN -
     POLOTECH
     This example is really the other way around. Instead of
     them using connected commerce to drive sales of goods,
     Ralph Lauren are trialling selling goods that are connected.
     And they’re not the only ones, Under Armour are doing the
     same thing and no doubt Nike and a number of others are
     cottoning on to the possibilities with connected footwear etc.

15      INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
XXXXX/XXXXX

The trend here is clear. Selling goods that add
utility to your life and enable you to have less
friction. It’s a pain and it’s time consuming
to enter your activities into MyFitnessPal
or other apps, so the easier the better.
Even better if it’s enhanced with additional
information like heart rate and breathing.

That’s what PoloTech from Ralph Lauren
does. It has a sensor box built into the shirt (so
no attaching or slipping or positioning) and it
connects to your iPhone (obviously). It’s not just
the stats though, they’re also used to guide the
wearer through a workout and then suggest the
next workout based on how you did on this one.

As consumers value ‘wearability’
and prioritise personal style
over more technological features,
strengthening consumers’
perception of wearable technology
as customisable personal accessories
rather than ‘techy’ gadgets will be
key to boosting adoption.
Sara Ballaben, Technology
Analyst, Mintel

blueleaf
CONNECTED COMMERCE / RALPH LAUREN - POLOTECH

     This is a great value add as it’s not just a shirt but   There’s a lot of potential within this area for
     a guide at the same time. It’s got about 10,000          retailers. How can all retailers take advantage
     different possible workout combinations as a             of sensors and data to figure things out?
     result. Now serious runners and cyclists will have       Sensors will appear to monitor wear-time or
     been doing this for a while with Garmins or Polar        usage and suggest replacements or better
     kit monitoring their heart rate and recovery.            suited gear based on behaviour. It’s not just
     But as technology prices drop, items like this will      the utility though, there’s a level of status
     become more commoditised, opening up more                associated with wearing this kind of gear for
     advanced methods in a simple way.                        a certain demographic and retailers can take
                                                              advantage of this.
     Conductive threads woven into the
     black nylon compression shirt and a
     lightweight module that snaps into
     the shirt around the left rib cage relay
     information to a Bluetooth-connected
                                                                SUMMING UP
     smartphone.                                                Gone are the days of tech for the geek,
                                                                we now have tech for the jock. Technical
     The readings track a range of stats,
                                                                clothing has come a long way in terms
     including heart rate and variability,
                                                                of both design and cost in recent years.
     breathing depth and recovery, intensity
                                                                Now it has the high-end of the high-
     of movement, energy output and stress
                                                                street’s stamp of approval, we can
     levels, steps taken and calories burned.                   expect to see it a lot more.
     The free app, available through iTunes,
     offers live fitness monitoring, reporting
     and a “push rate,” which measures                        For relevant Ralph Lauren - Polotech links visit
     exertion, power and effort.                              InspiringGreatRetail.com
     Source: Forbes Magazine

17        INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
I’ve been tracking Vinaya for
                           a long time and I’m pleased
                           this edition gives me the
                           chance to write about it.
                           I think they’re occupying a
                           space that’s very underrated
                           as they’re bringing
                           three things together:
                           fashion, technology and
                           individualism. What the
                           heck am I talking about?

           Vinaya’s CEO
           and Founder,
           Kate Unsworth

blueleaf                                               18
CONNECTED COMMERCE / VINAYA

     STAY CONNECTED, NOT DISTRACTED
     That’s one of Vinaya’s marketing lines and it really
     sums them up. They make designer wearables like
                                                             People will become resistant to all
     rings and bracelets. These items include sensors
     and vibration that connect to your phone. What’s
                                                             the data streams and metrics – they
     special is that they only alert you that something is   want more valuable, actionable
     going on (email, text etc) based on a highly curate     insights. So fitness generation two
     list of people and things, which you control.           is about data, about recombining
                                                             data to make sense of it and
                                                             creating something actually useful
     We want to break unnecessary digital                    for users.
     habits to reduce stress and increase
     productivity. I was inspired to launch                  Riaan Conradie, Computational Biologist
                                                             and Founder of LifeQ
     Vinaya after leaving my job as a
     technology consultant. I’d send work
     emails in the middle of the night and                   One of the biggest problems I’ve always had with
     was addicted to social media. Most of                   notifications is the lack of control. Every email
     us feel overwhelmed by our digital lives,               or no email. Every Facebook alert or very few.
                                                             The ability to curate and control what diverts my
     and the journey for me was to
                                                             attention is important to me and a problem that’s
     re-establish boundaries.                                been poorly solved so far.

     Kate Unsworth, CEO and Founder,
     Vinaya in Drapers

19        INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
XXXXX/XXXXX

Combine this with the trend of people wanting
to experience life and not be continually
distracted, and you’ve got something really
interesting. Add in the fact that the products
they’ve designed are, as far as I can tell,
pretty fashionable to the point whereby most
people wouldn’t know they’re ‘tech’ and the
proposition continues to intrigue. They don’t
look like an Apple Watch or a Fitbit, which you
can spot a mile off.

MENTAL WELLBEING
Their new product, Zenta, which is
currently in the works, is one that will track
even more. It will track stress levels related
to your calendar, breathing, sleep and
so on, to get a complete picture of your
health and mental wellbeing. Note, it is
not trying to track fitness and activity so
it’s avoiding being a me too, I hope.

You can see how this connected world
can go into retail too. There’s a lot of
products that can match certain lifestyle
patterns and help relieve some of
whatever is bothering you - and the
data is gold dust for personalised
recommendations and preferences.

  SUMMING UP
  For me, Vinaya is inspiring great
  retail because they’ve come up with
  something that hits a new market,
  that is growing very quickly around
  mindfulness and wellbeing. They’ve
  executed it well and have not forgot
  the all-important appearance and
  fashion characteristics of the product,
  which is often overlooked. You can
  also see how they could help a retail
  ecosystem develop.

For relevant Vinaya links visit
InspiringGreatRetail.com

blueleaf
TESCO F&F AUTO
     REPLENISHMENT
     This is a really nice, simple application of connected
     commerce that makes a huge difference to both
     consumers and the retailer. Tesco has started using RFID
     tags to drive auto replenishment in its F&F fashion range.

     It’s clever stuff. As the stock comes into the       Having accurate stock information is a
     store it’s all automatically counted through the
                                                          driver for our whole business. The RFID
     warehouse shutters, so they know what’s in
     store and in the stock room. It then also knows      partnership with Nedap allows us to
     what’s on the shop floor. As it gets sold, it gets   replenish stock from the Distribution
     replenished from the stockroom. As that gets         Centre more efficiently and accurately,
     low, automatic orders are placed to replenish
                                                          making more garment sizes available to
     the right items in the right sizes.
                                                          customers and improving their overall
                                                          in-store experience.

                                                          Richard Collins,
                                                          F&F Chief Operations Officer

21        INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
CONNECTED COMMERCE / TESCO F&F AUTO REPLENISHMENT

This has resulted in out of stock issues falling        SUMMING UP
75% - 99% in some places meaning product is             We’re dealing with two extremely large
more available to customers and of course, they         numbers here - the number of Tesco stores
sell more because it’s there. What I particularly       stocking F&F and the cost of lost sales due
like about this example is that it’s taken              to out-of-stock items. So it’s fair to say this
advantage of falling technology costs to solve a        is going to have a pretty huge impact on
real world, straightforward problem. No fancy           their bottom line. This is before we factor in
mirrors or fitting rooms, apps or ads, just making      customer joy at being able to get their mitts
sure the right product is in the right place at the     on the desired product. Well done F&F, we
right time with efficiency to boot. Good stuff.         expect many UK retailers to follow.

                                                      For relevant Tesco F&F Auto Replenishment
                                                      links visit InspiringGreatRetail.com

Overstocks are responsible for 3.2 percent in lost revenue
for the average retailer, and out-of-stocks, 4.1 percent.
Source: Retail Wire, September 2016

 Tesco F&F Kensington Superstore

blueleaf                                               AUTUMN/ WINTER 2016    INSPIRING GREAT RETAIL
                                                                                                          22
BODY LABS

     This example is more about
     new technology than a
     retailer directly implementing
     something for connected
     commerce, but I believe its
     application is not far off.
     Body Labs are pioneering the
     world of 3D body scans to
     create a true representation of
     someone’s figure, to then use
     in many environments, retail
     being one of them.

23      INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
CONNECTED COMMERCE / BODY LABS

Body Labs technology is able to                      sizes. It could be a great help in deciding just
garner a fully realistic 3D body                     what sizes to get delivered for a proper trying on
scan, complete with wrinkles and                     session at home, as opposed to just guessing or
                                                     even discounting certain items outright. I know
back fat, that goes well beyond
                                                     from personal experience, or rather I’ve found
matching up points on a body and
                                                     out, how different ‘tailored’ and ‘slim fit’ can be.
actually includes data about the                     It’ll be no surprise to most, that ‘slim fit’ isn’t
different properties of the human                    really my thing but tailored has a large variety of
body. And beyond that, Body Labs                     fits so this nature of scanning could add to this
technology allows you to add motion                  area immensely.
to the 3D body model to see how
certain fabrics or materials might                   The potential benefits of adding fit
move or wear in the real world.                      technology onto their e-commerce
Source: Tech Crunch                                  platform are clear. It could help
                                                     consumers buy with more confidence
                                                     and it could curb monetary losses from
BETTER FITTED ITEMS AND                              returns. Free returns have in many
LOWER RETURNS                                        ways come to be expected and are
You can already imagine the applications.            increasingly necessary for retailers to
Couple knowing the customer’s body size to
                                                     stay competitive. So getting customers
within millimetres, with knowing the clothing
dimensions and you can easily see the
                                                     to buy fewer sizes and nail it on the
development of ‘proper’ virtual trying on of         first try is a big motivator.
clothes. They could even highlight where it might    Source: Online Retail Blog Fashionista
be tight or loose, invaluable for those in between   for Retailers

blueleaf                                             AUTUMN/ WINTER 2016     INSPIRING GREAT RETAIL
                                                                                                            24
CONNECTED COMMERCE / BODY LABS

     Shop Direct processes up to 50,000 returns per
     day, seeing a 30% return for clothing. Couple this
     with the fact that the Financial Times reported
     that average returned purchase in the UK passes
     through seven pairs of hands before it is listed
     for resale and you can see the importance of
     limiting returns.

     AGGREGATE KNOWLEDGE OF
     YOUR CUSTOMERS
     There’s further innovation here, through
     aggregate data. What is your average customer’s
     true dimensions? Do people spend more with
     you if the items generally fit? Can you tailor
     certain clothes with certain manufacturers of        to our needs. We only need to look at
     yours to just tweak the fit so it’s best for the     Indochino or ASTF (previously, A Suit That
     majority of your customer base? There’s a lot of     Fits) for examples of that. But if we think
     mass customisation that could be very useful         about applying the same principle to faster
     for buying and merchandising teams to take           fashion like dresses, trousers and even items
     advantage of.                                        like coats, we could have a winner. The same
                                                          fashion items you want but could never quite
     MASS CUSTOMISED CLOTHING                             fit into. Or it was just a tiny bit tight.
     Let’s take it even further. Manufacturing
     possibilities are changing all the time with
     the ability to customise and change product

25       INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
CONNECTED COMMERCE / BODY LABS

                                                                 SIZE 8

                                        Chest difference
                                           2 inches

                           ZARA          Waist difference
                                            3 inches
                                                                                  Hip difference
                                                                                     2 inches

                                                BRAND           BUST      WAIST         HIP

                                                 Zara           33.85       26           37

                     BANANA REPUBLIC       Banana Republic       36         29           39

                                                             Don’t be surprised if tech companies start
55% of Brits are willing to                                  springing up everywhere to profile body sizes and
spend more on clothes that                                   shapes and then sell/use that data across many
                                                             companies and retailers to help with all the things
suit or flatter them.                                        I’ve spoken about here. The key for retailers will
Source: Mintel                                               be ensuring they own all their own customer data.

HOW CLOSE IS IT?
Well, Body Labs setup costs $30k a pop so                      SUMMING UP
it’s going to be a while before loads of fitting               I can see a time, in the not-too-distant future,
rooms are filled with the technology. But with                 where these are in every fitting room. OK, I like
technology costs coming down all the time, I                   the idea of my shirts fitting properly, but I’m a
wouldn’t be surprised if this gets affordable for              rather typical bloke, if I was a true fashionista I’d
the bigger retailers, or at least their flagship               imagine this is the stuff dreams are made of. Not
stores, soon enough.                                           only fit, we’ll have a better understanding of which
                                                               styles and fabrics suit our shape. This is something
There’s some other technology floating around                  retailers and consumers have been trying to crack
using xBox Kinect as the scanning technology.                  since the dawn of time. It’s sure to lead to us
It’s already used for motion capture in games so               buying more and returning less. This is a big deal.
it stands to reason that it could be used for body
scans. The accuracy might not be quite as good as
Body Labs, and that’s the key, but it shows that a           For relevant Body Labs links visit
cheap piece of hardware can do a lot these days.             InspiringGreatRetail.com

blueleaf                                                     AUTUMN/ WINTER 2016          INSPIRING GREAT RETAIL
                                                                                                                       26
49ERS
     STADIUM APP
     When beacons are used well, they can add tremendous utility and
     helpfulness to an experience. This is often what retailers can miss.
     They think of just offers, messages and notifications and that misses
     the point, it also teeters into significant spam territory. Just another
     thing to ignore on our long list of things to ignore.

     The 49ers have done it differently. Very              built in as opposed to just ads, notifications and
     differently and I love it. The first things,          spam. You can also do more things like book
     although obvious, are still done well. You can        your parking, find your spot and so on.
     get your tickets on your phone and about 30%
     of all tickets are done this way, making it a         One of the lesser-used features is instant replays
     pretty popular app for this kind of deployment.       so you can easily catch up on the action you
     You just scan your phone at the gate and you’re       missed when you went to the toilet. Only 1% of
     in, with a note of area, row and seat as normal.      people actually use this feature though which
     Here’s where it gets even better - the app then       I found quite surprising, maybe they’re too
     directs you to your seat with an estimated            focused on the game.
     arrival time.
                                                           Here’s a great thing for the 49ers though, that
     The beacons get better - I can order food right       really finishes off this example of inspiring retail
     to my seat and see how long it’s going to take        - the data! The sheer volume of data they gather
     to get to me. This is the epitome of Americana        from the app is enormous. Real time data too.
     right here - a ball game, a hot dog and no need       How much food is needed right now, what’s most
     to move from my seat to get it delivered! It’s also   popular today? If we show an ad for one thing
     a great lesson in how an app is much better if        does it sell a lot more? So much can be learned.
     it has some genuine service design and utility        Well done the 49ers.

27        INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
CONNECTED COMMERCE / 49ERS STADIUM APP

I know you’ve heard it before, in
                                                 SUMMING UP
observations by everyone from                    A perfect example of a beautiful marriage
Forrester to Gartner, but I believe              between customer delight and retailer
it can’t be emphasised enough. The               upselling. This is tech, data and sales euphoria.
ability to collect data about customers
in real time and respond to it in real         For relevant 49ers Stadium App links
time is increasingly what separates            visit InspiringGreatRetail.com
successful brands from also-rans.

H.O Maycotte, CEO, Umbel, in Forbes Magazine

blueleaf                                       AUTUMN/ WINTER 2016   INSPIRING GREAT RETAIL
                                                                                                     28
WRAPPING UP / ROB SMITH

     WRAPPING UP
     Examples of Connected Commerce that are really
     inspiring great retail are actually still few and far
     between at the moment, which isn’t entirely surprising.
     Even large brands like Waitrose are struggling to figure
     out how to use technology like beacons to really engage,
     not advertise, to their customers.

     The easy way out is advertising, but it doesn’t
     add to the experience or add utility or happiness.
     The brands that start figuring that out are going
                                                          Rob Smith
     to make some very serious headway. And quite a
                                                          Managing Director
     few are getting there, albeit slowly.
                                                          Blueleaf
     In this report I’ve chosen to showcase retailers
     that are inspiring me with their connected
     commerce, not only because they’re doing a great
     job but also because they’re setting an example.
     No more out of stock items, no more badly fitting
     shirts, no running out of milk, no overdoing it on
     the squash court (OK, that one I can live without)
     but you get the picture. So, to name just a few,
     I want to thank these brave brands for their
     pioneering spirit. The more of this we see, the
     sooner this will really take off. And personally?
     I can’t wait.

29       INSPIRING GREAT RETAIL AUTUMN/ WINTER 2016
THANK YOU FOR
READING OUR
SIXTH INSPIRING
GREAT RETAIL
REPORT.
Our next edition, Spring 2017, will be
launched in February. From the giants
of our industry, to your local boutique,
many retailers are doing inspiring
things that deserve to be applauded.
So if you have a favourite retailer who
never fails to inspire, or maybe you
work for an inspiring retailer, share
your story - hello@blue-leaf.co.uk or
#InspiringGreatRetail on Twitter -
we await your inspirations.

Can’t wait until February? Drop us a note and we’ll sign you up
for Checkout; our bite-size, Friday email with three inspiring
nuggets of ecommerce news.

Wait! There’s more. While you’re at it, why not let us know
you’d like to receive Demandware Distilled? Plain, succinct and
easy-to-implement tips on how you can get the most from
your Demandware platform.

                            @bltweets               www.blue-leaf.co.uk
                            #InspiringGreatRetail   www.InspiringGreatRetail.com
You can also read