–Co-written by Jackie Chambers
Less than 100 years ago, savvy shoppers were tying their horses up alongside family-owned establishments to buy a sack of potatoes and some fabric. As horses transformed to BMWs, the retail space turned into a high tech, interactive, and quick moving outfit. E-commerce is hitting 2billion this year and online sales are growing faster then retail. Keeping up with the times is key to survival, and the primary focus of NRF–National Retail Federation’s Annual Convention– showed how technology can help brick-and-mortar stores stay relevant with the e-commerce boom. This January, the 101st convention drew over 25,000 attendees to the Jacob K. Javits Convention Center where companies like Microsoft, Intel, Target and Saks gathered to discuss the future of the industry, as well as remember the past.
Indeed, retail has come a long way since the general store. Summing up a scholarly history of the trade, Herb Kleinberger –a professor at NYU’s School of Business– indicated that the retail roller coaster is about to take a big turn from what was once a sea of mass-market dollars. “Technology innovation is a key driver of change, restructures industries to force weaker players out and helps stronger players succeed,” says Kleinberger. Baby Boomer shoppers are saving for retirement and replacing them is a tech-savvy and ultra-segmented ‘Millennial’ (people born between 1980-2000) consumer base. How to reach this ill-focused market and keep them engaged is the current challenge at hand, and the next 5 years will see some retailers changing their ways to accommodate the next generation and others failing and closing up shop.
The key is to get personal. So personal that you don’t even have to undress to try things on. Companies like FaceCake have created systems like Swivel that scan your body and reproduce items on your unique shape, plus make recommendations of other items you might like, such as accessories, purses, even socks. In order to better envision yourself in your chosen garb, users can even select a background ranging from the red carpet to a ski slope. If you’ve ever waited in line to try on clothes in Soho on a snowy day, not having to take off your parka in addition to countless layers of scarves, sweaters, and leggings, sounds appealing.
“Location based services delivering personalized information and customized deals are at the forefront of the market for online sales and brick-and-mortar stores will have to compete with this to have a chance,” says Chris Hendren of IBM Global Retail Solutions, “The ‘big boxes’ will have to restructure with fewer stores and smaller overhead.” The next generation of Microsoft Surface, The Samsung SUR 40, for example provides users with collaborative and engaging experiences via touch screen surface through a pixel sense technology. Consumers connect to the touch screen through their smartphone and pull content on past items they’ve purchased to show items that are similar in style. The items pull up in separate windows on the screen with reviews of the product, and your phone becomes your cart… By setting your phone down on the screen, you can drag the item to your phone to add it to your cart. Plus, the system will recommend other items you might like, and will even remember your size and payment info for future purchases.
With all of the cool technology coming out, we are exciting to see what happens to retail in the future.
