Ps095 - London College of Fashion

"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.

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

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+

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

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...

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

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.

How will this impact retail and eCommerce?

Basic level - it already does.
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!

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

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

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?

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?

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”

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

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!

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

Ps095 - London College of Fashion

by Ian Jindal on Oct 23, 2009

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