Customer purchasing behavior is fundamentally changing due to new technologies like mobile payment systems and smart displays. This retail revolution will attract new players and change the retail value chain. However, retailers are skeptical of new technologies and unclear on their return on investment. An independent industry platform focused on demonstrating tangible benefits to retailers through case studies, publications, and pilot programs can help introduce innovative technology solutions and ease retailers' uncertainty about the changing landscape. The proposed Endless Shelf Platform would be led by a semiconductor manufacturer and include other industry partners to provide a coherent solution approach for retailers.

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A
Proposal.

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WHAT IS BEHIND THE CHANGE IN CUSTOMER PURCHASING
BEHAVIOUR AND HOW WILL THIS AFFECT THE RETAILVALUE CHAIN?
• In the next ten years, there will be a fundamental change in purchasing
behaviour, beyond that of a simple change in purchasing methods.
This opportunity in how, when and where we shop, will bring real value
added benefits to retailers and attract new players to the value chain.
• The shopping experience that customers will expect from retailers depends
on technology: interactive displays, mobile payment systems and smart
mobile inventory solutions that are the next step in a development that has
rapidly changed the customer‘s buying behaviour in the near future.
• Latest developments in technology – from smart display technology and
mobile payment solutions, to face recognition and virtual stores – are the
engine behind this retail revolution.They enable new technology suppliers to
enter the value chain and make the most out of servicing this customer
behaviour change.

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WHAT IS BEHIND THE CHANGE IN CUSTOMER PURCHASING
BEHAVIOUR AND HOW WILL THIS AFFECT THE RETAILVALUE CHAIN?
• This retail revolution will also have many inflection points, the most
important being that new implementers can enter the POS space with their
repurposed product offerings. For example, those companies today engaged
in Out of Home (OOH) solutions may become tomorrow’s virtual shop
front providers.
• For retailers to remain in the game, they have to maximize the value of
bricks and mortar assets in the face of increasing online spend with a “multi-
channel experience“ – a highly integrated in-store, online and offline
approach.Virtual stores will co-exist with physical stores, helping customers
to manage their shopping lives while extending shopping hours and opening
revenue streams for retailers.

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WHY DOES AN INDUSTRY PLATFORM MAKE SENSE IN ADDRESSING
RETAILERS?
• Retailers are getting more sceptical of new and innovative technology and
are failing to see the added value for their business models.
– Retailers, by nature, find it difficult to separate change from capital outlay.
Fundamentally, they prefer the status quo. New processes or technological innovations
need to prove their ROI. Specifically, recent industry hype over mobile payments/
wallets have left many retailers feeling confused and unsure as to the technologies’
value-added element to their business.
• Traditional roles in the industry are changing, e.g. MNOs are now behaving
like banks in front of the retailer.
– Far too much has been made by interested third parties on the role that technology
innovation can play in enhancing a retailer’s POS and backend payment process.
Unfortunately, extra costs are also incurred by the retailer once these innovations are
implemented.
• Technological innovations that can enhance purchasing behaviour when
demonstrated as a complete solution with tangible benefits, based on
increased product sales, will be more acceptable to retailers.

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WHY DOES AN INDUSTRY PLATFORM MAKE SENSE IN ADDRESSING
RETAILERS?
• An industry platform, focussed on demonstrating these kind of benefits, can
be more convincing and credible for the retailer. It can put arguments
into context and control message delivery and can also give the retailer a
platform to voice feedback.
• Political, business or strategic circumstances can make a single corporate
approach to a segment such as retail not advantageous. In this case, a
“neutral” platform approach is a strategic business development asset.
• This industry platform can also target and engage those players new to the
value chain, such as certain companies with repurposed products in terms of
virtual shop fronts etc.

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WHAT FORM SHOULD AN INDUSTRY PLATFORM, AIMED AT
INTRODUCING RETAILERS TO TECHNOLOGY INNOVATIONS,TAKE?
• Krowne recommends that the platform be a partner-type program
under the directive of one key sponsor with a keen interest in the success of
implementing their innovative and sustainable technology solutions across
various retail areas.
• We see a semiconductor manufacturer as an ideal lead, as chip solutions are an
integral and indispensible part of most systems – and form the foundation for
technology development.
• Additional members of the platform can be invited on a fee-paying basis,
according to their role in the value chain.The primary aim of bringing
additional companies to support the platform is to present a more coherent
solution approach to companies active in the retail space.
• The platform will have a primarily European focus with potential opportunities
to extend its reach to the US and APAC in 2014

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WHAT ARE THE TACTICAL RECOMMENDATIONS FOR SUCH AN
INDUSTRY PLATFORM?
• The platform will initially be presented as a one-stop online portal with
structured current content to assist companies in understanding total value
chain technology solutions in a modular approach and consequently
understanding synergies that can arise from such actions.
• Endless Shelf Platform content will be both, published partner content and
exclusive content.
– Exclusive productions will cover country and regional highlights, technology updates
and application reviews.
– Consequently, the platform plans to produce, publish and disseminate business case
whitepapers, custom publications, project documentary videos pertaining to solution
offerings and run exclusive partner meetings with the aim to start some actual
pilot projects.
• Targeted PR cooperation with leading industry trade shows will give the
platform high visibility and attract both retailers and partners.
– The full resources of Contactless Intelligence’s platform and network would be
available to the program.

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Customer behaviour is changing; how they buy, where they buy and when they buy.
New players are about to enter the market and old players will move on.
Technology will play a pivotal role in this retail revolution.
Retailers look upon the future with uncertainty.
In times of such uncertainty the Endless Shelf Platform will work to separate the
‘Evolution’ from ‘Revolution’.