The Future of Retail by Deborah W. at NRF Jan. 17, 2016
1. Page 1Deborah
Weinswig
–
The
Fung
Group
THE
FUTURE
OF
DIGITAL
RETAIL
Deborah
Weinswig
Execu?ve
Director,
FBIC
Global
Retail
&
Technology
deborahweinswig@fung1937.com
US:
917-‐655-‐6790
HK:
852.6119.1779
CHN:
86.186.1420.3016
@debweinswig
2. Page 2Deborah
Weinswig
–
The
Fung
Group
Agenda
• About
the
Fung
Group
• About
Fung
Business
Intelligence
Centre
(FBIC)
• Top
16
Emerging
Global
Technology
Trends
for
2016
4. Page 4Deborah
Weinswig
–
The
Fung
Group
Fung
Business
Intelligence
Centre
• Established
in
2000
and
headquartered
in
Hong
Kong
• FBIC
serves
as
the
knowledge
bank
and
think
tank
for
the
Fung
Group
– Collects
and
analyzes
market
data
on
sourcing,
supply
chains,
distribu?on
and
retail
– Provides
thought
leadership
on
technology
and
other
key
issues
• New
York–based
Global
Retail
&
Technology
team
– Follows
broader
retail
and
technology
trends
– Provides
advice
and
consultancy
services
to
colleagues
and
business
partners
of
the
Fung
Group
– Builds
collabora?ve
knowledge
communi?es
• Crea?ng
a
database
of
technology-‐based
startups
• Disruptors
Breakfasts:
introduce
startups
focusing
on
disrup?ve
technologies
that
are
changing
the
ways
we
think
and
act
today
5. Page 5Deborah
Weinswig
–
The
Fung
Group
Futureproofing
• An?cipate
future
trends
and
developments
• Plan
for
future
value
and
avoid
obsolescence
– What
problem
are
you
trying
to
solve?
– How
will
solu?on
be
used?
– How
robust
does
it
need
to
be?
• Ensure
flexibility
to
manage
changing
formats
and
deployment
paferns
6. Page 6Deborah
Weinswig
–
The
Fung
Group
Our
Partnerships
With
Interna?onal
Accelerators
Alchemist Accelerator is an accelerator exclusively for startups whose revenue comes from
enterprises, not consumers.
Entrepreneurs Roundtable Accelerator (ERA) provides participant companies with an intensive
four-month program, with the goal of helping early-stage companies progress rapidly into
exciting, viable businesses.
New York Fashion Tech Lab is an accelerator that is a result of a collaboration between the
Partnership Fund for New York City, Springboard Enterprises and major fashion retailers. It focuses
on early- and growth-stage companies.
Plug and Play is a global innovation platform. It connects startups to corporations, and invests in
over 100 companies every year. Its 360° ecosystem allows for remarkable innovation to take
shape on an international scale.
Techstars is a global ecosystem that empowers entrepreneurs to bring new technologies to
market wherever they choose to build their business.
7. Page 7Deborah
Weinswig
–
The
Fung
Group
Collabora?ons
With
the
HK
Startup
Ecosystem
Disruptors Event Series : we host networking events that showcase startups focusing on disruptive technologies that are
changing the ways we think and act today
Research Coverage: we publish research covering the Hong Kong startup ecosystem, Hong Kong-based startups and
major startup events
Speaking engagements: we take part in startup forums as speakers and panelists
Mentorship & Angel Investing: we mentor startups and provide funding to startups as angel investors
Knowledge sharing: we partner with stakeholders in the ecosystem in sharing knowledge and information to grow and
improve Hong Kong’s startup ecosystem
9. Page 9Deborah
Weinswig
–
The
Fung
Group
TOP
16
RETAIL
TECH
TRENDS
FOR
2016
1. Additive Technology: Intelligent Clothing
2. 3D Printing
3. Robotics/Artificial Intelligence
4. Drone Delivery
5. Smart Malls
6. IoT-Driven Partnerships
7. Wearables
8. Gamification
9. Voice and Facial Recognition
10. Virtual Reality
11. Augmented Reality
12. IoT
13. Mobile Health
14. Mobile Payments
15. Caring Economy
16. Sharing Economy
10. Page 10Deborah
Weinswig
–
The
Fung
Group
1.
Addi?ve
Technology:
Intelligent
Clothing
• Applica?on
of
nanotechnology
in
smart
fabrics
offers
poten?al
for
development
of
new
tex?le
materials
– Kuraray
has
developed
a
way
to
harness
afributes
of
liquid-‐crystalline
polymers,
resul?ng
in
extraordinarily
strong
fibers
that
can
hold
the
weight
of
four
SUVs
– Threadsmiths
introduced
the
Cavalier
T-‐shirt,
which
uses
“hydrophobic”
nanotech
woven
into
the
fabric
to
make
it
water
and
stain
resistant
• Visijax
embeds
LEDs
in
both
the
front
and
rear
of
jackets
– Machine
washable
and
powered
by
a
USB-‐rechargeable
bafery
that
lasts
up
to
20
hours
between
charges
– Commuter
and
City
Ace
models
have
mo?on-‐sensing,
self-‐canceling
turn
signals
embedded
into
the
sleeves
of
the
garment
11. Page 11Deborah
Weinswig
–
The
Fung
Group
2.
3D
Prin?ng
Examples
in
consumer
goods:
• Orbitrec:
world’s
first
3D-‐printed
bike
unveiled
at
CES
• Normal
– Custom-‐fit
3D-‐printed
earphones
– Partnered
with
Rebecca
Minkoff
on
limited-‐edi?on
products
– More
sustainable
• Shoes
of
Prey
– Design
your
own
perfect
shoes
– Design
studios
in
6
Nordstrom
stores
• Mink
Makeup
Printer
– Sub-‐$200
desktop
printer
can
print
makeup
12. Page 12Deborah
Weinswig
–
The
Fung
Group
3.
Robo?cs/Ar?ficial
Intelligence
• SopBank
is
partnering
with
IBM’s
Watson
to
provide
new
func?onality
to
Pepper,
its
voice
recogni?on
robot
• In
Japan,
hundreds
of
Pepper
robots
have
been
deployed
at
Nestlé
retail
stores
• Target
is
planning
to
deploy
robots
in
a
concept
store
in
2016
• Lowe’s
OSHbot
already
being
tested
13. Page 13Deborah
Weinswig
–
The
Fung
Group
3.
Robo?cs/Ar?ficial
Intelligence
• About
1.2
million
addi?onal
robots
are
expected
to
be
deployed
in
the
US
by
2025
(BCG)
• Amazon
had
30,000
Kiva
robots
working
at
13
fulfillment
centers
by
September
2015,
double
the
number
from
a
year
earlier
• Robots
created
for
corporate
boardrooms
– Allow
users
to
interact
remotely
from
home
(or
wherever
they
are)
– In
the
Suitable
Technologies
showroom,
salespeople
appear
through
telepresence
robots
• Advise
on
how
to
repair
parts
and
do
training
sessions
14. Page 14Deborah
Weinswig
–
The
Fung
Group
3.
Robo?cs/Ar?ficial
Intelligence
• S?tch
Fix
– Subscrip?on
service
that
uses
AI
and
human
judgment
to
recommend
apparel
to
shoppers
– Subscribers
receive
a
curated
box
with
items
personally
chosen
by
a
combina?on
of
machine
and
human
stylists
• Used
for
genera?ng
recommenda?ons;
key
driver
across
industries
– 35%
of
Amazon
sales,
50%
of
LinkedIn
connec?ons
and
75%
of
Neulix
views
are
driven
by
recommenda?ons
15. Page 15Deborah
Weinswig
–
The
Fung
Group
4.
Drone
Delivery
• Amazon
is
the
leader
in
drone
delivery
technology
• Drone
company
Flytrex
forecasts
that
delivery
drones
could
be
in
use
in
London
within
five
years
• Es?mated
1
million
drones
sold
during
holiday
season
(FAA)
• New
drones
introduced
at
CES
that
can
follow
a
moving
object
and
carry
a
person
• QuiQui
is
a
drone
delivery
service
based
in
San
Francisco
• The
FAA
lost
a
recent
lawsuit,
paving
the
way
for
commercial
drone
use
16. Page 16Deborah
Weinswig
–
The
Fung
Group
5.
Smart
Malls
• Beacons
enable
loca?on-‐based
adver?sements
– Shoppers
who
are
nearby
receive
mobile
no?fica?on,
such
as
coupons
and
direc?ons
– ShopAdvisor
&
Levi
Strauss
study:
recipients
visited
stores
at
a
rate
that
was
2.6
?mes
greater
than
those
who
did
not
receive
no?fica?ons
• Malls
can
track
movements,
behaviors
and
preferences
– Data
collected
from
connected
kiosks,
apps,
mo?on-‐sensing
technology,
beacons,
wi-‐fi
networks
– Primarily
collected
from
wi-‐fi
networks
• Data
enables
personalized
and
?mely
promo?ons
– Build
shopper
profiles,
including
visita?on
frequency
and
movement
inside
malls
– If
data
shows
that
shoppers
frequent
healthy
food
outlets,
it
can
drive
the
opening
of
health-‐food
restaurants
in
a
mall’s
food
court
17. Page 17Deborah
Weinswig
–
The
Fung
Group
6.
IoT-‐Driven
Partnerships
• Unprecedented
cross-‐industry
partnerships
being
formed
• Samsung
and
Microsop
developing
IoT
devices
based
on
Windows
10
• Panasonic
is
partnering
with
Denver
to
transform
it
into
the
first
smart
city
– Create
an
energy-‐efficient
hub
– Solar
technology,
tele-‐medicine
tech,
traffic
management
and
security
• Audi
and
Qualcomm
are
partnering
to
integrate
Qualcomm’s
Snapdragon
602A
to
provide
cuxng-‐edge
connec?vity
technology
– Infotainment,
advanced
smartphone
connec?vity,
naviga?on,
voice
quality
and
control
features
18. Page 18Deborah
Weinswig
–
The
Fung
Group
• Ford
is
partnering
with
Amazon
to
integrate
vehicles
with
Echo,
Amazon’s
smart-‐home
device
• Intel
is
working
with
New
Balance
on
an
Android
Wear
fitness
watch
that
is
due
out
next
holiday
season
• IBM
and
Under
Armour
are
integra?ng
the
Watson
supercomputer
with
the
Connected
Fitness
network
to
analyze
data
and
provide
real-‐?me
coaching
on
health
and
fitness
• Volvo
pursued
a
partnership
with
Microsop
to
enhance
connected-‐car
strategies
– The
Microsop
Band
can
be
pressed
and
told
to
start
the
car
heater,
for
example
6.
IoT-‐Driven
Partnerships
18
19. Page 19Deborah
Weinswig
–
The
Fung
Group
7.
Wearables
• Fitbit:
22.2%
share
(#1)
of
the
wearables
market
as
of
3Q
15
(IDC)
• Apple
Watch:
18.6%
(#2)
share
of
the
wearables
market
as
of
3Q
15
(IDC)
• iFit
ecosystem
provides
a
game
plan
for
exercising,
ac?vity,
nutri?on
and
sleep
• Under
Armour’s
$400
HealthBox
uses
a
wristband,
heart
rate
monitor
and
scale
to
track
fitness,
sleep
and
nutri?on
• Withings
has
a
smart
wristband
heart
monitor,
scale,
sleep
monitor
and
blood
pressure
monitor
20. Page 20Deborah
Weinswig
–
The
Fung
Group
7.
Wearables
(Wellness)
• AromaCare
(mindfulness)
– Connected
oil
diffuser
for
personal
aromatherapy
sessions
– Aroma
capsules
have
RFID
tag
to
enable
launching
of
specific
program
• Emfit
QS
(sleep)
– Monitors
heart
rate
levels
and
then
matches
them
to
specific
moments
and
interac?ons
throughout
a
user’s
day
• it
Smart
Bed
(sleep)
– Features
biometric
sensors
that
track
heart
rate,
movement
and
breathing
– Ac?veComfort
technology
collects
a
customer’s
ideal
level
of
firmness,
comfort
and
support
of
mafress
– Support
for
sleep
apnea
21. Page 21Deborah
Weinswig
–
The
Fung
Group
8.
Gamifica?on
• Gamifica?on
is
the
use
of
elements
from
computer
and
video
games
in
real-‐world
or
other
ac?vi?es
• Examples
include
badges,
levels
and
leader
boards
that
can
be
used
to
enhance
consumer
loyalty
• In
a
?ered
rewards
program,
customers
must
perform
certain
ac?ons
in
order
to
pass
milestones;
each
?me
a
milestone
is
passed
there
are
new
rewards
• Starbucks
Rewards
gives
loyal
customers
stars
and
has
?ered
levels
of
rewards,
based
on
purchases
22. Page 22Deborah
Weinswig
–
The
Fung
Group
8.
Gamifica?on
• Under
Armour
and
HTC:
first
connected-‐fitness
product
poruolio,
the
Under
Armour
HealthBox
– Based
on
your
height,
weight,
age
and
workout
tendencies,
the
Under
Armour
Record
App
pairs
you
with
other
users
– You
can
“challenge”
family,
friends
or
co-‐workers
• Zipline:
incen?vizing
through
gamifica?on
– Three
key
stores
have
500
surplus
units
of
a
blue
sweater.
Top
management
can
send
real-‐?me
data
directly
to
managers
and
associates,
incen?vizing
them
with
a
contest:
whichever
associate
sells
the
largest
number
of
units
within
a
two-‐hour
sale
window
will
receive
a
financial
or
bonus
reward
23. Page 23Deborah
Weinswig
–
The
Fung
Group
9.
Facial
Recogni?on
• The
global
advanced
Facial
Recogni?on
market
expected
growth:
$2.77
Bil.
in
2015
to
$6.19
Bil.
in
2020
(CAGR
17.4%)
• 30%
of
retailers
are
using
facial
recogni?on
technology
to
track
customers
in
stores
(CSC)
• Applica?ons
are
increasing:
health,
wellness,
beauty
and
adver?sing
– Determine
the
thickness
and
applica?on
of
makeup
– Analyze
in-‐store
shopper
data
• In
2015,
Walmart
tested
with
FaceFirst:
– Cameras
check
you
in
at
loca?on
– Smartphone
receives
customized
deals
based
on
demographic
• Intel
released
RealSense
facial
recogni?on
technology
in
2015
– Consumer
grade
3D
cameras
– Home
usage:
camera
recognizes
face
to
unlock
front
door
• Challenges:
Consumers
are
not
especially
comfortable
with
technology
use
in
retail
24. Page 24Deborah
Weinswig
–
The
Fung
Group
10.
Virtual
Reality
• Google
Cardboard
viewer
was
provided
free
to
New
York
Times
subscribers
• The
CTA
expects
VR
unit
sales
to
increase
to
1.2
million,
a
500%
increase
from
last
year
• VR—Oculus
Rip
headset
($599)
available
in
April
2016
• Samsung
Gear
VR
headset
($99)
• Vitrio
VR
system
provides
a
360-‐degree
VR
view
of
proper?es
25. Page 25Deborah
Weinswig
–
The
Fung
Group
10.
Virtual
Reality
(Retail
Applica?ons)
• Widespread
adop?on
of
VR
in
the
retail
space
is
expected
in
as
lifle
as
three
years
• Video
of
VR
applica?on
at
Tommy
Hilfiger
store
26. Page 26Deborah
Weinswig
–
The
Fung
Group
11.
Augmented
Reality
• Augmented
reality
enables
consumers
to
visualize
products
in
their
homes
in
3D
while
they
are
in
the
store
• Cimagine
– Markerless
augmented-‐reality
system
that
can
be
integrated
across
mul?ple
channels
28. Page 28Deborah
Weinswig
–
The
Fung
Group
12.
IoT
(Connected
Home)
• A
mul?tude
of
connected-‐home
“smart”
products
are
on
the
market:
cameras,
doors,
locks,
thermostats
and
light
bulbs
• Samsung
Smart
Home
– Samsung
Family
Hub
Refrigerator
– Highlights:
maintains
grocery
lists
and
schedules,
and
even
sends
photos
of
the
refrigerator’s
contents
to
smartphones
• Lowe’s
and
Staples
have
launched
their
own
lines
of
home
automa?on
and
connected-‐home
products
• LG’s
value
has
drama?cally
increased
via
its
openness
and
inclusion
of
partners
in
other
industries,
such
as
sopware,
automobiles,
materials
and
even
real
estate
• Nest
Learning
Thermostat
learns
what
temperatures
the
user
likes
most
and
turns
down
the
temperature
when
the
user
is
away
to
save
money
29. Page 29Deborah
Weinswig
–
The
Fung
Group
12.
IoT
(Connected
Pets)
• Consumers
will
spend
$60.6
billion
on
their
pets
in
2015,
the
American
Pet
Products
Associa?on
says
• Tracking
pets’
loca?on
and
ac?vi?es
• Video
and
treats
• Video
games
30. Page 30Deborah
Weinswig
–
The
Fung
Group
13.
Mobile
Health
• The
global
mobile
health
market
is
expected
to
top
$49
billion
by
2020.
A
large
aging
popula?on
and
rising
rates
of
chronic
condi?ons,
including
cancer,
heart
disease
and
diabetes,
will
drive
the
market
• The
US
senior
care
service
market
is
forecast
to
reach
$400
billion
by
2018,
advancing
by
6.3%
annually
• Smartphone
ownership
among
those
ages
65
and
older
increased
from
5%
in
2012
to
27%
in
2015
0.44
0.70
1.12
1.78
2.83
4.50
0.00
1.00
2.00
3.00
4.00
5.00
2013
2014
2015
2016F
2017F
2018F
$
Bil.
Global Revenue – Tele-health Devices and Services
Source: Convenient Care Association/Merchant Medicine
31. Page 31Deborah
Weinswig
–
The
Fung
Group
13.
Mobile
Health
• Tele-‐health
technology
delivers
virtual
medical
and
health
services
to
the
growing
aging
popula?on.
CVS
has
over
1,000
walk-‐
in
clinics,
many
of
which
use
tele-‐health
technology
• The
average
tele-‐health
service
cost
is
$45
compared
to
$136–$176
for
in-‐person
visits
32. Page 32Deborah
Weinswig
–
The
Fung
Group
14.
Mobile
Payments
• Apple
and
Android
pay
require
near-‐filed
communica?ons
(NFC)
chips
for
payment
– Nega?ve:
Require
retailers
to
install
new
equipment
• Samsung
uses
magne?c
stripe
capability
(MST)
chips
for
payment
– MST
compa?ble
with
new
and
older
credit
card
terminals
–
no
addi?onal
invest
required
– Most-‐widely
accepted
mobile
wallet
in
the
US
– Consumers
can
enlist
loyalty
cards
into
Samsung
Pay
– Receive
coupons
and
discounts
directly
to
Samsung
account
– In
2016:
Expanding
to
China,
lower-‐priced
handsets
and
online
transac?ons
• Customer
adop?on
remains
hurdle,
shoppers
need
incen?ve
33. Page 33Deborah
Weinswig
–
The
Fung
Group
14.
Mobile
Payments
#
of
Accepted
LocaOons
700,000
>
30
million
>
700,000
+
• Apple Watch is compatible
• Secure – Unique security code
for each transaction
• Compatibility with existing
terminals
• No additional investment for
retailers
• Works any Android device
• Support from major retailers:
Staples, Walgreens, Wholegoods
–
• Only works with NFC-enabled
registers
• NFC terminal cost retailer $500
or more
• Not accepted by major retailers:
Walmart, Target, Best Buy
• Limited device options -
Samsung Galaxy S6
• Magnetic strip reader requires
tricky position for phone
• Uses NFC technology
34. Page 34Deborah
Weinswig
–
The
Fung
Group
15.
Caring
Economy
• Disruptors:
TOMS,
Reforma?on,
Warby
Parker,
NOURI,
SoapBox
Soaps,
Zady,
GoodXChange
• Social
ac?vism
over
self-‐indulgence
– Consumers,
especially
Gen
Z,
are
increasingly
demanding
integrity
from
brands
and
retailers
• Startups
for
social
good
apply
market-‐based
strategies
to
achieve
a
social
goal
– TOMS
– Reforma?on
• Social
innova?on
hubs—The
Good
Lab
in
Hong
Kong
35. Page 35Deborah
Weinswig
–
The
Fung
Group
16.
Sharing
Economy
• Next
big
industry
to
be
disrupted
is
healthcare,
via
startups
such
as
Doctor
on
Demand,
Pager,
Studio
Dental
and
MedZed
• Sector
is
maturing
and
becoming
more
sophis?cated;
Airbnb
and
Uber
have
launched
separate
apps
for
business
• Challenges:
customer
safety
and
regula?on
bafles
• 2016
may
see
the
first
big
sharing
economy
IPO
Source:
Company
Reports
As
of
January
10,
2016
ValuaOons:
Selected
Sharing
Economy
Startups
Startup
Industry
ValuaOon
Uber
Car
Sharing
$62.5
B
Airbnb
Peer-‐to-‐Peer
Accommoda?on
$25.5
B
Didi
Kuaidi
Car
Sharing
$16.5
B
WeWor
k
Office
Sharing
$10.0
B
OLA
Car
Sharing
$5.0
B
HomeAway
Peer-‐to-‐Peer
Accommoda?on
$3.0
B
Lyp
Car
Sharing
$4.0
B
Instacart
Logis?cs/Delivery
$2.0
B
Prosper
Peer-‐to-‐Peer
Lending
$1.9
B
TransferWise
Finance
$1.0
B
Funding
Circle
Finance
$1.0
B
36. Page 36Deborah
Weinswig
–
The
Fung
Group
THANK
YOU!
Deborah
Weinswig
Execu?ve
Director,
FBIC
Global
Retail
&
Technology
deborahweinswig@fung1937.com
US:
917-‐655-‐6790
HK:
852.6119.1779
CHN:
86.186.1420.3016
@debweinswig