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Augmented Retaility: How mobile internet, social media and geolocation will change shopping behaviour.

Augmented Retaility: How mobile internet, social media and geolocation will change shopping behaviour.

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    Trendbuero augmented retaility_abstract_english Trendbuero augmented retaility_abstract_english Document Transcript

    • Augmented Retaility:How mobile internet, social media and geolocationwill change shopping behaviour Digital and mobile are the „Drivers of Change“ that are dynamicising the boundaries between offline and online. With dramatic consequen- ces for retail: the entire world is turning into a department store, consumers can buy anything anywhere with a single click. WHAT WILL HAPPEN TO THE CLASSIC POINT OF SALE WHEN CUSTO- MERS CAN SHOP INDEPENDENTLY OF TIME OR PLACE?FACTS OFFLINE + ONLINE = MULTICHANNEL Online sales cannibalise offline sales. But declaring war is pointless: the web isn‘t about to go away. Digitisation has evolved into the do-250 mn minant interaction strategy for social and economic exchange. It‘s in-of Facebook’s users tegration and cross-promotion that count, not trench warfare bet-worldwide login to the ween the individual channels. For the consumer intuitively uses theplatform daily. systems as required: as far as he‘s concerned there is JUST ONE(Mashable, 11/2010) CHANNEL: MULTICHANNEL . COMPLExITY REDUCTION56 % Multioptions entail the danger of information overload. The challengeof online shoppers increasingly lies in mastering the endless and often overtaxing multi-“follow” or “friend” tude of offers, channels and information. IN THE FACE OF THISretailers, yet only one COMMUNICATIONS CHAOS, HOW DO I GET THE CUSTOMER TOquarter of the Top 100 BUY FROM ME? Retailers can simplify the path through the dataE-Tailers have a Face- jungle by means of situation-specific and convenient real-timebook presence so far. offerings.(ForeSee, 04/2010) TRUST IS THE REWARD FOR SERvICE53 % In future, rather than the customer looking for offers, the offers willof all retail sales will find the customer. Gaining the target group‘s trust is the prerequisitebe directly or indirectly for personal service. The major challenge providers have to overcomeinfluenced by the web if they don‘t want to end up in the spam filter is to gain entry into theirby 2014. customers‘ relevant set. Instead of data protection, it‘s data manage-(Forrester, 03/2010) ment that‘s needed. If RETAILERS make it onto their customers‘ „whi- telist“ as TRUSTED SALES AGENTS, they can cater to individual needs and enhance shopping experiences.22 mn AUGMENTED RETAILGermans will buy their With the intelligent linking of information, locations, offers and indivi-Christmas gifts online duals, retail is entering a new level. AUGMENTED EvERYTHING:this year - that’s 57% each and every brand contact stands a chance of turning into amore than the year purchase occasion. The challenge of digital linkage lies in „augmenta-before. tion“, in extending the relationship with the customer beyond the act(Bitcom, 10/2010). of purchase. ALL CHANNELS HAvE TO OPERATE AS A SINGLE ENTITY whilst factoring in the specific characteristics of the respec- tive communication media. For the individual user, Augmented Retail means added values in the dimensions of geo, time and ego location.
    • Development Dimensions for Retail:Geo, Time and Ego-Location GEO-LOCATION: Loca- tion-based services fac- tor in the user‘s location and augment the local reality with a virtual le- vel. Via interaction bet- ween customers, pro- ducts and places, online and offline promotion merge into a single ex- perience. BEST PRACTI- FACTS CE Facebook Deals: companies are making $732 mnspecial offers and issuing virtual discount coupons for logging into worth of sales are pre-the store via Facebook Places. Everyscape eats (iPhone App): Boston dicted to be generatedEdition‘s „Google Street View“ equivalent for restaurants. by augmented services by 2014.TIME-LOCATION: Always-in-touch means offers and services are (Juniper, 11/2009)only ever a click away. The challenge for providers lies in gaining ent-ry to customers‘ relevant set despite information overload. Conveni-ent solutions convince consumers by saving them time and lightening Q3 2012their load. BEST PRACTICE Coca Cola village Israel 2010: Thanks to an m-commerce will ac-RFID chip, roller coasters can be „liked“ on Facebook in real time. count for 2% of retailBurberry Runway Theatre: Invited guests at the firm‘s stores could see sales in the US and thusthe London fashion show live on an iPad and order what they saw grow faster than traditi-immediately. onal e-commerce, which will then amount to 6%EGO-LOCATION: Individual and bespoke solutions are a tempting of sales.reward for whitelisting. Surprise and gaming effects provide enter- (Morgan Stanley,tainment and involve the consumer at personal level. BEST PRACTICE 11/2010)Levi’s Friends Store: Via Facebook, customers receive an assortmentof products that have been pre-selected and rated by their socialcontacts. Airwalk Invisible Pop-Up Store: In a scavenger hunt, aug-mented reality turns the pedestrian zone into a showroom. 23 % of smartphone usersAUGMENTED BENEFITS have broken off aAnybody that‘s not present on the traditional, mobile and, increasin- purchase as a result ofgly, augmented web does not exist. Rather than weighing individual mobile internet infor-channels up against one another in terms of sales and coverage, mation. (GO-SMARTcompanies should see them in terms of their joint effect. For in cus- study for Otto Grouptomers‘ eyes, it is the offline and online stores together that build the and Google conductedcompany‘s image. OFFLINE IS GOING ONLINE AND ONLINE IS by Trendbuero and tnsGOING OFFLINE — AND EvERYTHING IS ALWAYS-IN-TOUCH. infratest, 06/2010)Individual services and personal relationships to social consumerscreate trust. AUGMENTED RETAIL IS THE FUTURE: The linking ofgeo, time and ego-located data to create an individual benefit andcement the relationship with the customer beyond the act of trendbuero.compurchase. . p.schenck@trendbuero.com j.sporer@trendbuero.com