"The Future of Internet Retailing: considerations for fashion (r)etailing" London College of Fashion October 2009 www.ianjindal.com www.internetretailing.net

"The Future of Internet Retailing: considerations for fashion (r)etailing"

London College of Fashion October 2009

www.ianjindal.com

www.internetretailing.net

Future of Internet Retailing The context in which you’ll be selling and addressing customers of fashion apparel… Talking about the internet and customers’ usage, rather than fashion itself. Future founded in data and the network Technology makes magic normal - taken for granted Experience is immersive - challenges brands. Augmented Reality - the new reality Challenge to shops, place, pricing.

Future of Internet Retailing

The context in which you’ll be selling and addressing customers of fashion apparel…

Talking about the internet and customers’ usage, rather than fashion itself.

Future founded in data and the network

Technology makes magic normal - taken for granted

Experience is immersive - challenges brands.

Augmented Reality - the new reality

Challenge to shops, place, pricing.

Framework for data, networks and ‘epiphenomenology’

Data: Not where you’d expect to start in fashion! Number of freely connected nodes where exchange cost is near zero Hyperdata Metadata Data Endodata Hypodata 0 1 3 10 100 1000s+

Data Business analysis Services Mashups Number of freely connected nodes where exchange cost is near zero Responsive and self-configuring Responsive; ‘agents’ APML Microformats Hyperdata Web2.0 Social Metadata Data Endodata Hypodata 0 1 3 10 100 1000s+

Data Attention Profiling Markup Language - www.apml.org Beyond ‘personal’: interchange and exchange value of behaviour

Attention Profiling Markup Language - www.apml.org

Beyond ‘personal’: interchange and exchange value of behaviour

Data

Data Business analysis Services Mashups Number of freely connected nodes where exchange cost is near zero Responsive and self-configuring Responsive; ‘agents’ APML Microformats Hyperdata Web2.0 Social Metadata Data Endodata Hypodata 0 1 3 10 100 1000s+

When the network knows more than anyone

Business analysis Services Mashups Number of freely connected nodes where exchange cost is near zero Responsive and self-configuring Responsive; ‘agents’ When the network knows more than anyone Hyperdata Web2.0 Social Network Metadata Data Endodata Hypodata 0 1 3 10 100 1000s+

Business analysis Services Mashups Number of freely connected nodes where exchange cost is near zero Responsive and self-configuring Responsive; ‘agents’ When the network knows more than anyone Hyperdata Web2.0 Social Network Metadata Data Endodata Hypodata 0 1 3 10 100 1000s+

Over 100 million customers profiled 40% active across multiple retailers 70 billion user-generated reviews 4.2 billion reviews served each month 575 retailers (October 2009) http://www.texastechpulse.com/bazaarvoice_releases_traffic_stats/s-0021683.html When the network knows more than anyone

Over 100 million customers profiled

40% active across multiple retailers

70 billion user-generated reviews

4.2 billion reviews served each month

575 retailers (October 2009)

http://www.texastechpulse.com/bazaarvoice_releases_traffic_stats/s-0021683.html

Number of freely connected nodes where exchange cost is near zero When the network knows more than anyone Hyperdata Web2.0 Social Network Phenomena Metadata Data Endodata Hypodata 0 1 3 10 100 1000s+ Business analysis Services Mashups Responsive and self-configuring Responsive; ‘agents’ Predictive

Predictive? You must need hypodata!

Business analysis Services Mashups Number of freely connected nodes where exchange cost is near zero Responsive and self-configuring Responsive; ‘agents’ Predictive Hypodata “ Brain Scanners can predict a decision up to 10 seconds before a person is aware of making that decision” Nature Neuroscience, April 2008 Hyperdata Web2.0 Social Network Phenomena Metadata Data Endodata Hypodata 0 1 3 10 100 1000s+

Business analysis Services Mashups Number of freely connected nodes where exchange cost is near zero Responsive and self-configuring Responsive; ‘agents’ Predictive Hypodata - MIT’s “Sixth Sense” http://www.flickr.com/photos/whiteafrican/3253881037/ Pattie Maes’s TED talk on MIT’s “Sixth Sense”: http://www.youtube.com/watch?v=blBohrmyo-I Hyperdata Web2.0 Social Network Phenomena Metadata Data Endodata Hypodata 0 1 3 10 100 1000s+

“ ABSTRACTA headphone-type gaze detector for a full-time wearable interface is proposed. It uses a Kalman filter to analyze multiple channels of EOG signals measured at the locations of headphone cushions to estimate gaze direction. Evaluations show that the average estimation error is 4.4® (horizontal) and 8.3® (vertical), and that the drift is suppressed to the same level as in ordinary EOG. The method is especially robust against signal anomalies. Selecting a real object from among many surrounding ones is one possible application of this headphone gaze detector.” http://portal.acm.org/citation.cfm?doid=1125451.1125655 via http://liftlab.com/think/nova/2006/06/09/wearable-gaze- detector-in-the-form-of-headphones/ Hypodata - mashed up

But what about hyperdata?

Hyperdata: Location-specific Plus gestures, image processing, bio-input... (heartbeat? Match.com?...).

Any sufficiently advanced technology is indistinguishable from magic

The Gamut of data Number of freely connected nodes where exchange cost is near zero Hyperdata Web2.0 Social Network Phenomena Metadata Data Endodata Hypodata 0 1 3 10 100 1000s+

Any sufficiently advanced technology is indistinguishable from magic Nodes Open Structured Data Business Web 2.0 Social Network Phenomena ESP? Epiphenomena

Enabling epiphenomenology: device integration With us everywhere Accesses data Interlinking Connected Visualisation Touch interface... Location (GPS) Direction (compass) Image processing...

With us everywhere

Accesses data

Interlinking

Connected

Visualisation

Touch interface...

Location (GPS)

Direction (compass)

Image processing...

Bringing data alive PlazeMarks 2D codes Neat, but very “now”

Augmented Reality... Layar.eu - overlay ‘realtor’ data on street scenes

Augmented Reality

Augmented Reality - brands and interaction http://www.metroparisiphone.com/index_en.html

The “Outernet” – Marking and spraying… http://www.junaio.com / Mobile device Screen GPS Gameplay overlays Personal scores Network scores Network-invoked events ‘ hearts’ and ‘kisses’ left for others... Oh, and SMS

Mobile device

Screen

GPS

Gameplay overlays

Personal scores

Network scores

Network-invoked events

‘ hearts’ and ‘kisses’ left for others...

Oh, and SMS

Augmented Reality University of Washington, 2008: http://uwnews.org/article.asp?Search=contact+lens&articleid=39094 Easy to dismiss as hacked-up geekery... But - contact lenses with LEDs being developed Even without 3D AR, even coloured ‘confirmation lights’ could have impact.

Easy to dismiss as hacked-up geekery...

But - contact lenses with LEDs being developed

Even without 3D AR, even coloured ‘confirmation lights’ could have impact.

How will this impact retail and eCommerce?

Basic level - it already does. AR barcode - by SMS Price comparison? Colour options? Buy online?

AR barcode - by SMS

Price comparison?

Colour options?

Buy online?

Shopping: present, yet elsewhere

Elswhere, yet present Oasis iPhone App (by NN4M) Good integration with product Newsletter and storefinder Basket... but web checkout for now Just very, very ordinary and do-able!

Oasis

iPhone App (by NN4M)

Good integration with product

Newsletter and storefinder

Basket... but web checkout for now

Just very, very ordinary and do-able!

Nearly 2 years old All components now exist and are free Copyright Icon Nicholson - http://www.iconnicholson.com/nrf07/ Yesterday’s future looks more prescient

Nearly 2 years old

All components now exist and are free

Copyright Icon Nicholson - http://www.iconnicholson.com/nrf07/

Augmented Reality + merchandising + gesture-based navigation See also Cisco’s in-store screens - very “Mission Impossible”. Now! http://www.youtube.com/watch?v=NxQZuo6pFUw Yesterday’s future looks more prescient

Augmented Reality + merchandising + gesture-based navigation

See also Cisco’s in-store screens - very “Mission Impossible”.

Now!

http://www.youtube.com/watch?v=NxQZuo6pFUw

Challenges

“ Concept Store” – taking control of the brand image, ambiance and merchandising Training the customer Vendor Relationship Management and live prototyping opportunities What’s the point of a store?

“ Concept Store” – taking control of the brand image, ambiance and merchandising

Training the customer

Vendor Relationship Management and live prototyping opportunities

Nappies - should be a subscription product. Draw for supermarkets, but can’t be great for Pampers... Razors - POS an “experience shave” or “info point” Configuring a sofa: the resulting bar code is an augmented reality image of the sofa, with embedded voucher and tracking code Service point - think “Collect+”: delivered, tested, accepted or returned... from 0700-2300 7 days a week What’s the point of a store?

Nappies - should be a subscription product. Draw for supermarkets, but can’t be great for Pampers...

Razors - POS an “experience shave” or “info point”

Configuring a sofa: the resulting bar code is an augmented reality image of the sofa, with embedded voucher and tracking code

Service point - think “Collect+”: delivered, tested, accepted or returned... from 0700-2300 7 days a week

Obama-Preedy Pricing Principle “ It’s been a long time coming, but tonight, because of what we did1. on this day,2. in this election,3. at this defining moment Change has come to America” President-Elect Obama, Victory Speech, November 2008 http://news.bbc.co.uk/1/hi/world/americas/7434843.stm

Obama-Preedy Pricing Principle “ It’s been a long time coming, but today, thanks to profit-algorithms and data, on this day, in this location, for this defining product for this individual customer Fixed pricing has ended in retail”

“ It’s been a long time coming, but today, thanks to profit-algorithms and data,

on this day,

in this location,

for this defining product

for this individual customer

Fixed pricing has ended in retail”

Obama-Preedy Pricing Principle Vouchers - expire when stock reaches 10 or fewer (eg buy it now) Stacked discounts: sale, cashback, card-holder, end of sale, channel... Why? According to availability Proximity of alternatives (time and space) Time limited: premium for first (eg 3GS), nephew’s birthday Extent to which has shopped around

Vouchers - expire when stock reaches 10 or fewer (eg buy it now)

Stacked discounts: sale, cashback, card-holder, end of sale, channel... Why?

According to availability

Proximity of alternatives (time and space)

Time limited: premium for first (eg 3GS), nephew’s birthday

Extent to which has shopped around

Taking aim

Taking aim - retail’s new realities Unprecedented data, integration and access: challenges our notions of ‘shop’ and of activity: “time” is the new “place” Data leads to insights about attitudes and behaviours - unlocking connection and selling Channibalisation: don’t watch the channel, watch the customer Use of the basics is free: now need retail ‘sparkle’ and credible personality and products to win: for this customer, at this time, for this product!

Unprecedented data, integration and access: challenges our notions of ‘shop’ and of activity: “time” is the new “place”

Data leads to insights about attitudes and behaviours - unlocking connection and selling

Channibalisation: don’t watch the channel, watch the customer

Use of the basics is free: now need retail ‘sparkle’ and credible personality and products to win: for this customer, at this time, for this product!

Thank you "The Future of Internet Retailing: considerations for fashion (r)etailing" London College of Fashion London, October 2009 www.ianjindal.com www.internetretailing.net