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Innovation in retail | CoreTeka
The document discusses various technologies transforming the retail sector, including blockchain, big data, 3D printing, chatbots, IoT, autonomous vehicles, drones, and more. It highlights case studies demonstrating practical applications and benefits of these technologies, such as improved customer engagement, operational efficiency, and personalized experiences. The shift towards omni-channel marketing and the sharing economy is also emphasized as retailers adapt to consumer demands.
Innovation in retail | CoreTeka
- 1. Cases: how technologieshelp to solve business problems in retail Alex Isachenko, CEO, Managing Partner, CoreTeka +380 93 570-56-28, isachenko@coreteka.com
- 2. FOCUS CoreTeka focuses onthree main categories: Retail, Transportation, Automotive. Retail Transportation Automotive
- 3. CONTENT • Blockchain • BigData • 3D printing • Chat-bots • Internet of things • Sharing economy • Autonomous vehicles • Drones • Computer vision • AR VR • Machine learning • Omni channel
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- 5. BLOCKCHAIN IN RETAIL •Micropayment and pay-per-use • Consumer participation in product development • Direct purchases • Decentralized marketplaces • Product warranties and insurance • Sharing economy • Customer loyalty programs • Product quality and food safety • Automated in-store payments • B2C certificates The retail sector has already discovered practical applications of Blockchain system: ensuring the authenticity of high-value products (diamonds and art) to locating stolen goods and protecting both customers and sellers from fraudulent transactions.
- 6. CASE: EVERLEDGER Everledger usesthe blockchain to track diamonds, from the mine to the end customer. This permanent ledger ensures that diamonds are certified and reduces the risk of forgery of documents. It can also prove who bought a specific diamond and be securely updated if that diamond is then sold on to someone else.
- 7. CASE: MARTINE JARLGAARD Provenancehas, in collaboration with Martine Jarlgaard, proved blockchain‘s potential for forging greater trust in businesses along a fashion supply chain, enabling brands to provide verified information about the materials, processes and people behind products.
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- 9. BIG DATA INRETAIL Order management Predicting trends Forecasting demand Optimizing pricing Identifying customers Customer behavior analytic Targeted promotions Personalizing the in- store experience Customer journey analytic eCommerce Optimization By pulling together data streams from sales, operations, inventory, revenue, and other sources, big data analytics are helping retailers fine-tune their operations to reduce costs, increase customer satisfaction, and generate more profits.
- 10. CASE: TARGET Target targetspregnant mothers before they share the baby news. Using data about women‘s shopping habits, Target was able to identify that women buying specific products may mean that she‘s anywhere from a few weeks pregnant, to very close to her due date.
- 11. CASE: COSTCO Costco helpssolidify customer loyalty with fast warnings. A California fruit packing company warned Costco about the possibility of listeria contamination in its stone fruits. Costco notified the specific customers that purchased those particular items.
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- 13. 3D PRINTING INRETAIL By means of 3D printing technology additive manufacturing can change every single step of the supply chain and offers fully customised retail products. • Individualized production • Easy printing of spare parts to fix existing products • Decentralized and on-demand manufacturing • Dematerialization of the supply chain (less transport, stock cost, manufacturing cost and retailing cost) 1,32 2,08 2,99 4,32 5,46 5,72 2015 2016 2017 2018 2019 2020 Predicted worldwide retail profits from 3-D printed customized goods ($ bln)
- 14. CASE: STAPLES Staples wereone of the first to actually sell 3D printers in 2013. Then, they proposed in-store 3D printing services in their New York and Los Angeles stores to allow people to directly print their design in store. Now everyone can upload 3D design to site and receive the necessary detail. Upload your 3D design file or choose one of designs Staples will 3D print the design Ship your 3D prints to your home or office
- 15. CASE: MATTEL Mattel presented3D Printer, the ―ThingMaker,‖ which will allow children to print their own toys at home. The device works in conjunction with a 3D printing app that offers a simple interface for designing items that can then come to life via Mattel‘s ThingMaker as well as with other standard 3D printers already on the market.
- 16. CASE: FEETZ Feetz‘s businessmodel is straightforward: a customer performs a rudimentary 3D scan of their feet, and submits the data to Feetz. Feetz uses their custom algorithms to generate a specific shoe 3D model in the selected design and at the correct sizing. They then produce the shoes and ship to the customer for payment. Download app Take 3 pics of each foot to get your 3D foot model Choose your shoe Select a design and additional features Printing 3D printer produces details and humans assemble them 1 2 3
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- 18. CHATBOTS IN RETAIL •Real-time notifications • Feedback • In-store assistance • Process orders • Order tracking/shipping information • Notify customers about the latest collections • Find the nearest store • Gift guides • Product recommendations • Personal stylists • Giveaways, promotions, and trivia Chatbots in retail are the key to high-value, personalized client engagement. Besides, chatbots in retail are an opportunity for retailers to stay competitive with players like Google and Amazon who are dominating the online retail landscape.
- 19. CASE: E-BAY SHOPBOT InOctober 2016, eBay released its Messenger chatbot ShopBot for ecommerce. ShopBot can brag of its excellent contextual understanding and machine learning abilities as well as its friendly language. ShopBot understands what users are looking for by processing their text messages and images to find the best match.
- 20. CASE: 1-800-FLOWERS American floralretailer 1-800-Flowers has launched a chatbot for Messenger that allows users to order flowers and gifts. Customers of the 1-800-Flowers bot are asked to enter the recipient‘s address, full name, and phone number. After the chatbot gathers this information, it displays a confirmation note and asks the customer to confirm that everything is right.
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- 22. IoT IN RETAIL •Maximize in-store flow management • Improve traceability of inventory before and after the point of sale • Reduce fraud and shrinkage • Connect the store shelf and the back room • Personalized interaction with consumers • Deliver just-in-time promotions and coupons Internet of Things is a network of connected physical objects embedded with sensors that communicate, analyze and share data. In retail, the ―things‖ can include RFID inventory tracking chips, traditional in-store infrared foot-traffic counters, cellular and Wi-Fi tracking systems, digital signage, a kiosk, or even a customer‘s mobile device.
- 23. CASE: AMAZON DASHBUTTON Amazon has already implemented ‗click and go‘ buttons technology with their Dash buttons. It can be placed near anything in the household that needs frequent replenishing, such as paper towels or garbage bags. When a user notices they‘re running low, they simply press the button to reorder the product online.
- 24. CASE: COOP Coop Italiashowcased a digital design concept of store built on Microsoft technology. Their supermarket of the future blends old- fashioned open displays and in-person interaction with large interactive screens that offer customers information on the food they‘re buying, from nutrition facts and allergy warnings to carbon footprint data and even recipes and wine pairings.
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- 26. SHARING ECONOMY INRETAIL The retail industry has recognized the growing demand for pay-to-use options and is striving to meet it. Retailers creatie leasing and rental offerings for a variety of products, and new companies forming based on a rental model. • Renting goods, services and space is becoming more popular than owning • Renting saves consumer money and the hassle of maintenance • Suitable for urban living an limited space • More environmentally friendly
- 27. CASE: DSW DSW retailerannounced the adding of a rental service, as well as shoe repair and storage facilities, to some of its 511 shoe-and- accessories stores.
- 28. CASE: WE AREPOP UP We Are Pop Up is the simplest way to book unique pop-up spaces and ShopShares in Europe. Meet innovative brands and collaborate on creative retail.
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- 30. AUTONOMOUS VEHICLES INRETAIL Fully autonomous or self-driving vehicles will probably change the entire mobility ecosystem. Self-driving vehicles can have a great impact on location decisions for retailers. Increasing catchment areas Extraordinary levels of customer service Decreasing delivery time Neighborhood centers
- 31. CASE: ROBOMART Robomart aimis to bring the groceries, baked goods and prepared foods of the supermarket aisle to your doorstep. A benefit for retailers is that retailers who license the technology will retain all of the customer information rather than giving it away to Uber, Postmates, Instacart or others.
- 32. CASE: LOWE‘S LOWEBOT Homeimprovement retailer Lowe‘s introduced the LoweBot in 2016 at its stores in San Francisco. Customers can ask LoweBot—by speaking or using a touch screen—where to find items they need inside the store. The robot also performs real-time inventory tracking as it cruises down the aisles. Voice recognition Inventory scanning Autonomous navigation Obstacle avoidance
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- 34. DRONES IN RETAIL 74%73% 54% 45% 44% 44% 32% 15% For which of the following products would you be open to trusting drone delivery? Two-thirds of consumers expect to receive their first drone-delivered package in the next five years and 36% expect it in the next two. Consumers willing to pay for shipping within the hour and are open to getting drone-delivery across categories.
- 35. CASE: DOMINO'S Drone deliveriesof pizza are now a reality, with the first commercial delivery of food by drone to a customer, anywhere in the world, successfully completed in New Zealand in November 2016.
- 36. CASE: WALMART Walmart hasbeen granted a patent for in-store drones that would transport items from one department to another. A human worker receives a request from a customer, via a ‗display screen or as a text message‘, who then attaches the item to the drone.
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- 38. COMPUTER VISION INRETAIL • More effective retargeting • Real-world product & content discovery • Image-aware social listening • Frictionless store experiences • Retail analytics • Emotional analytics • Image search • Direct mail processing The future of retail could be led by computer vision and mixed reality technologies to transform the way we shop and interact with brands. Emotion plays a huge part in marketing, so retailers are now looking at innovative technologies that push the boundaries of interaction and emotion in the buying experience.
- 39. CASE: WALMART Walmart isdeveloping facial recognition technology to detect unhappy shoppers. The technology uses video cameras at store checkout lines that monitor customers' facial expressions and movements to try and identify varying levels of dissatisfaction, according to a patent filing.
- 40. CASE: AMAZON GO Customersare expected to use the Amazon Go App in their smart device and scan the 2D barcode to enter the store and then they can enjoy shopping. The "just walk out" technology, used by Amazon Go, combines machine learning, computer vision, AI and sensor fusion technologies. The customer needs to open Amazon go app to enter the store Sensors on the shelf note when items have been picked up Camera capture when customers stop in front of shelves Upon leaving, the user is billed for the items and a receipt is sent to phone
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- 42. VOICE RECOGNITIO INRETAIL «…Even if they‘re not shopping, some people are waking up in the morning and asking a device the weather or their schedule for the day. In the coming years, more people will get used to asking for things as opposed to getting on their browser and typing in something or going to an app to make an order.» – Arielle Einhorn, Senior Research Analyst at JLL. • Fulfilling orders consumers have already made in the past • Easier and secured payment • More effective communication between staff (through earpieces) • Additional information on products • Better in-store experience • Engage in commerce in situation when hands or vision are occupied
- 43. CASE: STARBUCKS Starbucks providesvoice recognition experience for customers who download the Starbucks mobile app. Customers speak with My Starbucks barista on their phone or device just as if they were speaking with an in-store barista.
- 44. CASE: DOMINO‘S PIZZA Domino‘sPizza‘s virtual ordering assistant Dom, which lets consumers dictate orders via mobile devices while on-the-go, has reached a half-million orders since its 2014 launch, suggesting that more food brands should consider investing in voice ordering technology.
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- 46. AR VR INRETAIL AR for customer VR for retailer AR and VR are both of the same spectrum and aim to add similar value in retail, providing personalized and engaging experiences. While AR consists in overlaying digital content upon the real world, enriching it with interactivity, VR immerses users into an alternate reality. • Store design • Shelf / assortment layout • Contextual store walks / real-time views of store performance • What does it look like in my home? • What does it look like on me? • Tell me more about this product / how to use this product.
- 47. CASE: IKEA IKEA wasone of the earliest retailers to integrate AR into its product catalogue. IKEA has been using AR technology to bridge the gap between the customer‘s perceptions and the reality of the products.
- 48. CASE: HYUNDAI VIRTUALGUIDE Hyundai wants to make the usage of owner's manual easier with its Virtual Guide: an augmented reality app for smartphones and tablets that puts answer to the most common points of confusion at your fingertips.
- 49. CASE: MASTERCARD &SWAROVSKI Luxury diamond retailer Swarovksi announced it would be partnering with Mastercard and tech company YouVisit to provide an all-new virtual reality shopping experience.
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- 51. MACHINE LEARNING INRETAIL Stocking and inventory Behavioral tracking - marketing Behavioral tracking – theft The shift towards efficiency Initial implications of artificial intelligence and machine learning in retail will involve much less physical automation and direct replacement of human workers and much more augmentation of the current retail experience with data and decision-making.
- 52. CASE: YOUBOX Taking inspirationfrom companies like Netflix and Spotify, French e-book subscription service Youboox saw its recommendation engine as its long-term-growth engine. Youboox can recommend the perfect book for you—and the perfect recommendation engine.
- 53. CASE: GLAXOSMITHKLINE (GSK) GSK,a global healthcare company developing pharmaceuticals and healthcare products, has used Luminoso‘s natural language and text analytics technology as a non-invasive solution for gaining insight into parents‘ growing concerns about vaccinations.
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- 55. OMNI-CHANNEL IN RETAIL Omni-channelas a philosophy is about providing consistent, yet unique and contextual brand experiences across multiple customer- aware touchpoints, including brick and mortar, marketplaces, web, mobile and social. Omni-channel marketing New mobile payment solutions Omni-channel supply chain
- 56. CASE: AUCHAN The Auchan‘slatest innovations includes the click and collect service, which is currently in test mode inside the hypermarkets. Orders are prepared for collection at a designated area inside the store, and can be purchased at the checkout together with other items being purchased inside the store.
- 57. CASE: TIMBERLAND Timberland hasimplemented ―TouchWalls‖ with large interfaces that display online-only inventory, allowing users to touch product photos to view expanded information and build their personalized shopping list for both in-store and online-only products. Customers can also use a tablet to tap NFC-tagged inventory, and rich product information will instantly load on screen.
- 58. THANK YOU FORATTENTION! Alex Isachenko, CEO, Managing Partner, CoreTeka +380 93 570-56-28, isachenko@coreteka.com