A great study on the future of modern retail...
Key findings: Retailers can no longer rely on more traditional formats. Smarter retail environments will need to be created using technologies that are engaging and responsive to the individual customer. Artificially intelligent stores using data will
eventually be the next step that retailers must deploy in order to
evolve with the ever changing customer consumption habits.
This document outlines various technologies for fleet management, asset tracking, location services, network access, digital signage, QR codes, waste management, mobile ordering, inventory management, Wi-Fi networks, and wireless point-of-sale systems for retail applications. It highlights new and emerging technologies across different categories to improve operations.
Want to grow your Market Value? Map your Ecosystem and its Business Models!Bruce Starcher
What is an ecosystem? Drawing the precise boundaries of an ecosystem is an impossible and, in any case, academic exercise. A business ecosystem includes Companies to which you outsource business functions, Institutions that provide you with financing, Firms that provide the technology needed to carry out your business, Makers of complementary products that are used in conjunction with our own, Makers of substitute products and services, Competitors and customers, when their actions and feedback affect the development of your own products or processes, Entities like regulatory agencies and media outlets that can have a less immediate, but just as powerful, effect on your business
Retail Technology as a field is heating up very much today. Here is a short note on the landscape and the pros and cons of the segments within the landscape.
Finding Opportunity in Supply Chain ComplexityRedPrairie
Today's global supply chains and hyper-connected consumers create unprecedented challenges for businesses in every industry, from food service to high tech to CPG to retail. RedPrairie CEO recently delivered this presentation to the 1,200 attendees of the Georgia Logistics Summit, where he described the challenges inherent in the ecosystem and highlighted opportunities within these challenges to earn competitive advantage.
This document outlines various technologies for fleet management, asset tracking, location services, network access, digital signage, QR codes, waste management, mobile ordering, inventory management, Wi-Fi networks, and wireless point-of-sale systems for retail applications. It highlights new and emerging technologies across different categories to improve operations.
Want to grow your Market Value? Map your Ecosystem and its Business Models!Bruce Starcher
What is an ecosystem? Drawing the precise boundaries of an ecosystem is an impossible and, in any case, academic exercise. A business ecosystem includes Companies to which you outsource business functions, Institutions that provide you with financing, Firms that provide the technology needed to carry out your business, Makers of complementary products that are used in conjunction with our own, Makers of substitute products and services, Competitors and customers, when their actions and feedback affect the development of your own products or processes, Entities like regulatory agencies and media outlets that can have a less immediate, but just as powerful, effect on your business
Retail Technology as a field is heating up very much today. Here is a short note on the landscape and the pros and cons of the segments within the landscape.
Finding Opportunity in Supply Chain ComplexityRedPrairie
Today's global supply chains and hyper-connected consumers create unprecedented challenges for businesses in every industry, from food service to high tech to CPG to retail. RedPrairie CEO recently delivered this presentation to the 1,200 attendees of the Georgia Logistics Summit, where he described the challenges inherent in the ecosystem and highlighted opportunities within these challenges to earn competitive advantage.
CLICKNL DRIVE 2018 | 24 OCT | Where does Retail (research) go?CLICKNL
The document summarizes the key points from a presentation on retail innovation research in the Netherlands. It discusses 6 main research themes including changing consumer behavior, future-proof shopping areas, circular concepts and sustainability, data-driven retail, skills for existing and new talent, and customer experience and in-store technology. For each theme, it provides examples of related research projects. It also discusses the goals and types of research conducted through the Retail Innovation Platform network, which aims to contribute to innovation, competitiveness and sustainability in the Dutch retail sector.
The document discusses how the in-store environment is an important part of conveying a retailer's brand and customerexperience. It notes that stores must work harder to attract customers and differentiate themselves from competitors in the face of multichannel retailing. Facilities management plays a key role in shaping customers' perceptions through cleanliness, maintenance, and other services, though many retailers do not consider these aspects in their brand strategies. Top retailers are enhancing stores with new technologies, designs, and experiences to integrate physical and online shopping. Understanding customer mindsets is also important to crafting compelling in-store experiences.
The innovation game: Why and how business are investing in innovation centersRick Bouter
The document discusses why companies are increasingly launching innovation centers. It notes that 52% of Fortune 500 companies have been disrupted since 2000, so companies need to innovate or risk being disrupted themselves. Innovation centers are teams and sometimes physical spaces located in tech hubs that allow companies to leverage local startups, investors, and academics to accelerate innovation. They pursue goals like developing new products/services, designing business models, connecting with startups, and understanding customers. The document outlines different types of innovation centers and how they can speed up innovation processes.
The document discusses why companies are establishing innovation centers. It notes that 52% of Fortune 500 companies have been disrupted since 2000, so companies need to innovate or risk failure. Innovation centers are teams or physical spaces located in tech hubs that leverage local startups and ecosystems to accelerate innovation. Their goals include developing new products/services, designing business models, connecting with startups, and understanding customers. They provide benefits like speeding innovation and attracting talent. Common models include in-house labs, university residences, community anchors, and outposts.
The Innovation Game: Why & How Businesses are Investing in Innovation Centers Capgemini
With tech startups rapidly eating into traditional sectors, large organizations face an increased pressure to innovate. The challenge is that traditional innovation approaches are broken. A recent study revealed that only 5% of R&D staff feel highly motivated to innovate. In certain sectors, more than 85% of new products fail and an overwhelming 90% of companies consider they are too slow in launching new products and services.
The weaknesses of traditional innovation approaches have led some organizations to explore different avenues and seek new inspiration. These organizations have launched innovation centers in major technology hubs with the explicit mandate to accelerate digital innovations. These innovation centers, comprising teams of people and often physical sites, are established in a global tech hub. The goal is to leverage the ecosystem of startups, venture capitalists, accelerators, vendors, and academic institutions that these hubs provide.
We interviewed leaders of innovation centers and conducted an extensive research study of the 200 largest companies in the world to identify best practices and critical success factors.
Global technology hubs are the preferred destinations for setting up innovation centers. 60% of companies that have set up these centers have a presence in the Silicon Valley but many more hubs are emerging – the top 10 cities in our analysis represent only 33% of total innovation centers. The US had the largest share with 31% of total innovation centers closely followed by Europe at 30% & Asia at 22%. Penetration varies significantly between sectors; manufacturing is a clear leader at 58%, but despite facing increasing pressures from digital disruptions, Financial Services lags at only 28%.
Innovation centers offer a range of benefits. They:
• Accelerate the speed of innovation
• Provide a fresh source of ideas
• Enhance risk-taking ability
• Attract talent
• Drive employee engagement
• Build a culture of innovation.
It is extremely challenging to make a success of innovation centers. The long list of critical success factors is a testimony to the size of the challenge. These factors range from clarity on the role of the innovation center to governance for innovation implementation. For example, innovation centers should not peer so far out into the future that it becomes disconnected from current realities. But, it should not confine itself too closely to the parent’s current operations to make breakthrough innovation impossible.
The advent of thriving technology hubs has created an innovation ecosystem that traditional organizations can tap into. By combining the culture and approach of innovation centers with their budget firepower and access to markets and customers, traditional organizations have an excellent opportunity to re-energize their innovation capability.
A unique programme for service designers, creative entrepreneurs and business owners – introducing you to London's most innovative businesses and uncovering the latest approaches to design thinking.
This document summarizes the European Innovation Academy's 4th edition held in 2014 in Nice, France. Over 400 students, speakers, mentors, and professors from 40 countries attended the event. The academy hosted ambitious students and mentors from top universities around the world. The event focused on helping startup teams launch new businesses in 15 days through prototyping, customer validation, and other execution activities. Emerging technologies like 3D printing, big data, and brain-computer interfaces were also discussed in the context of innovation opportunities. The overall goal of the academy was to help participants challenge themselves and learn from both successes and failures in innovating and executing on new ideas.
RECON Asia 2016—In-Store Technology: Bright Shiny Object or The New Normal?Deborah Weinswig
This document discusses 15 emerging in-store technology trends, including experiential retail, smart malls, augmented/virtual reality, facial recognition, interactive displays, smart mirrors, robotics, 3D printing, evolving pure play retailers, click-and-collect, reverse logistics, self-checkout, mobile payments, mall-based loyalty programs, and gamification. It provides examples of how retailers are implementing these technologies in their physical stores to enhance the shopping experience and drive traffic. The document is presented by Jing Wang from Fung Global Retail & Technology, which publishes research on retail and technology topics.
The FITCH Key Trends presentation outlines fundamental shifts in consumer behaviour that we observe in sectors and markets across the world. It also highlights specific ways that brands and retailers can tap into these dynamic trends and provides best-practice examples as a springboard for future innovation.
COURSE TEXT Chapter 12 Cited Keegan, W. J., & Green, M. C. (2020CruzIbarra161
COURSE TEXT: Chapter 12 Cited: Keegan, W. J., & Green, M. C. (2020). Global marketing (10th ed.). Retrieved from https://www.vitalsource.com
2 Global Marketing Channels and Physical Distribution
Learning Objectives
12-1 Identify and compare the basic structure options for consumer channels and industrial channels.
12-2 List the guidelines companies should follow when establishing channels and working with intermediaries in global markets.
12-3 Describe the different categories of retail operations that are found in various parts of the world.
12-4 Compare and contrast the six major international transportation modes and explain how they vary in terms of reliability, accessibility, and other performance metrics.
Case 12-1 Welcome to the World of Fast Fashion
The world of global fast-fashion is like a three-way horse race. Spain’s Inditex SA is the parent company of specialty retailer Zara; Sweden is home to Hennes & Mauritz AB, better known to shoppers as H&M; and Uniqlo is the flagship brand of Japan’s Fast Retailing.
Part of the appeal of fast fashion is the low prices. Also attractive is the speed at which inventories are replenished and updated with affordable versions of the latest runway trends from the world’s fashion capitals. The need for speed is fueled in part by social media. A key element for some fast-fashion brands is sourcing clothing from countries with low-cost labor in Asia and elsewhere. In Cambodia, for example, more than 400 garment factories are registered exporters.
However, some industry observers note that low prices actually carry high social and environmental costs. Chasing the latest trends means that shoppers often discard inexpensive garments after wearing them just a few times. This leads to a consumer mindset that clothing purchases are disposable, rather than long-term investments. Critics assert that unwanted clothing often ends up in landfills, and that the fast-fashion trend is not sustainable (see Exhibit 12-1).
Exhibit 12-1
Some critics assert that the fast fashion trend contributes to overproduction and a “throw-away” mentality. The result is vast quantities of discarded clothing as well as "deadstock" (out-of-season garments and unused textiles). This Saks Fifth Avenue window display by Vetements was designed to call attention to the problem.
For years, Tadashi Yanai, the founder of the Uniqlo (“Unique Clothing”) chain, pursued a business model that differentiated his company from its European rivals. Uniqlo’s focus was on everyday basics and a new-product development process that relied heavily on innovative materials.
Inditex is the world’s largest fashion retailer, with more than 7,000 stores in 92 countries. In addition to Zara, its brands include Bershka, Pull & Bear, and Massimo Dutti. The company does not advertise, and its motto is “The company doesn’t speak; the customer speaks for the company.” Unlike some of its competitors, Inditex keeps nearly two-thirds of ...
Digital technologies are being integrated into the retail space in several ways:
1. Technologies like digital signage, interactive windows, and mobile apps help attract and engage customers in stores.
2. In-store, technologies like RFID, digital displays, and augmented reality provide richer product experiences and enable customization.
3. Social features allow customers to get second opinions from friends, share products online, and influence others’ perceptions.
4. Overall, digital is enhancing the shopping experience at every step from browsing to checkout while also providing business insights from customer data.
Pioneering companies in mature economies are learning from emerging market companies a new way to expand their businesses. For more insights from s+b, visit strategy-business.com.
At idealabs we believe that there's a new innovation era coming, where big corporations and startups blend. We dive into the corporate innovation boom, showing you some examples of big corporations working together with startups.
The Hague University of Applied Sciences is conducting research on the future of retail through their Designerly Innovation research group. They are exploring topics such as future scenarios for retail in 2040, changing customer journeys, the use of big data, and new competencies required of retail entrepreneurs. The research aims to provide insights and solutions to help retail SMEs innovate and remain viable in the future.
The document discusses various topics related to retail marketing. It defines a retailer and retail marketing. It discusses the marketing mix and extended marketing mix models. It outlines some key retail industry bodies in the UK. It then shifts to discussing major developments in the Indian retail industry in 2018, including acquisitions and new store openings. Emerging trends in retail technology and personalization are also summarized.
THE DESIGN INDUSTRY’S PREMIER GLOBAL SOURCING PLATFORM.
Le Souk connects the world’s finest material suppliers directly to leading fashion & interior design buyers around the world.
Trade shows and agents don’t reach the entire market of buyers looking for quality materials.
When designers are looking for design inspiration, their #2 source of information is an internet search.*
See more in the presentation.
The document provides a feasibility study for a proposed Connected Products Studio (CPS) in London. It analyzes the current landscape of connected products startups and resources available. Through stakeholder interviews, the top pain points for startups were identified as connecting hardware and software, developing proof of concepts due to lack of expertise, and conducting user research. The report recommends the CPS provide resources like a connected technologies library, expertise through workshops and a pilot program, and opportunities for startups to connect with potential customers and vendors through showcases and networking. If successful, the CPS could help accelerate the development of startups in the connected products field in the UK.
CLICKNL DRIVE 2018 | 24 OCT | Where does Retail (research) go?CLICKNL
The document summarizes the key points from a presentation on retail innovation research in the Netherlands. It discusses 6 main research themes including changing consumer behavior, future-proof shopping areas, circular concepts and sustainability, data-driven retail, skills for existing and new talent, and customer experience and in-store technology. For each theme, it provides examples of related research projects. It also discusses the goals and types of research conducted through the Retail Innovation Platform network, which aims to contribute to innovation, competitiveness and sustainability in the Dutch retail sector.
The document discusses how the in-store environment is an important part of conveying a retailer's brand and customerexperience. It notes that stores must work harder to attract customers and differentiate themselves from competitors in the face of multichannel retailing. Facilities management plays a key role in shaping customers' perceptions through cleanliness, maintenance, and other services, though many retailers do not consider these aspects in their brand strategies. Top retailers are enhancing stores with new technologies, designs, and experiences to integrate physical and online shopping. Understanding customer mindsets is also important to crafting compelling in-store experiences.
The innovation game: Why and how business are investing in innovation centersRick Bouter
The document discusses why companies are increasingly launching innovation centers. It notes that 52% of Fortune 500 companies have been disrupted since 2000, so companies need to innovate or risk being disrupted themselves. Innovation centers are teams and sometimes physical spaces located in tech hubs that allow companies to leverage local startups, investors, and academics to accelerate innovation. They pursue goals like developing new products/services, designing business models, connecting with startups, and understanding customers. The document outlines different types of innovation centers and how they can speed up innovation processes.
The document discusses why companies are establishing innovation centers. It notes that 52% of Fortune 500 companies have been disrupted since 2000, so companies need to innovate or risk failure. Innovation centers are teams or physical spaces located in tech hubs that leverage local startups and ecosystems to accelerate innovation. Their goals include developing new products/services, designing business models, connecting with startups, and understanding customers. They provide benefits like speeding innovation and attracting talent. Common models include in-house labs, university residences, community anchors, and outposts.
The Innovation Game: Why & How Businesses are Investing in Innovation Centers Capgemini
With tech startups rapidly eating into traditional sectors, large organizations face an increased pressure to innovate. The challenge is that traditional innovation approaches are broken. A recent study revealed that only 5% of R&D staff feel highly motivated to innovate. In certain sectors, more than 85% of new products fail and an overwhelming 90% of companies consider they are too slow in launching new products and services.
The weaknesses of traditional innovation approaches have led some organizations to explore different avenues and seek new inspiration. These organizations have launched innovation centers in major technology hubs with the explicit mandate to accelerate digital innovations. These innovation centers, comprising teams of people and often physical sites, are established in a global tech hub. The goal is to leverage the ecosystem of startups, venture capitalists, accelerators, vendors, and academic institutions that these hubs provide.
We interviewed leaders of innovation centers and conducted an extensive research study of the 200 largest companies in the world to identify best practices and critical success factors.
Global technology hubs are the preferred destinations for setting up innovation centers. 60% of companies that have set up these centers have a presence in the Silicon Valley but many more hubs are emerging – the top 10 cities in our analysis represent only 33% of total innovation centers. The US had the largest share with 31% of total innovation centers closely followed by Europe at 30% & Asia at 22%. Penetration varies significantly between sectors; manufacturing is a clear leader at 58%, but despite facing increasing pressures from digital disruptions, Financial Services lags at only 28%.
Innovation centers offer a range of benefits. They:
• Accelerate the speed of innovation
• Provide a fresh source of ideas
• Enhance risk-taking ability
• Attract talent
• Drive employee engagement
• Build a culture of innovation.
It is extremely challenging to make a success of innovation centers. The long list of critical success factors is a testimony to the size of the challenge. These factors range from clarity on the role of the innovation center to governance for innovation implementation. For example, innovation centers should not peer so far out into the future that it becomes disconnected from current realities. But, it should not confine itself too closely to the parent’s current operations to make breakthrough innovation impossible.
The advent of thriving technology hubs has created an innovation ecosystem that traditional organizations can tap into. By combining the culture and approach of innovation centers with their budget firepower and access to markets and customers, traditional organizations have an excellent opportunity to re-energize their innovation capability.
A unique programme for service designers, creative entrepreneurs and business owners – introducing you to London's most innovative businesses and uncovering the latest approaches to design thinking.
This document summarizes the European Innovation Academy's 4th edition held in 2014 in Nice, France. Over 400 students, speakers, mentors, and professors from 40 countries attended the event. The academy hosted ambitious students and mentors from top universities around the world. The event focused on helping startup teams launch new businesses in 15 days through prototyping, customer validation, and other execution activities. Emerging technologies like 3D printing, big data, and brain-computer interfaces were also discussed in the context of innovation opportunities. The overall goal of the academy was to help participants challenge themselves and learn from both successes and failures in innovating and executing on new ideas.
RECON Asia 2016—In-Store Technology: Bright Shiny Object or The New Normal?Deborah Weinswig
This document discusses 15 emerging in-store technology trends, including experiential retail, smart malls, augmented/virtual reality, facial recognition, interactive displays, smart mirrors, robotics, 3D printing, evolving pure play retailers, click-and-collect, reverse logistics, self-checkout, mobile payments, mall-based loyalty programs, and gamification. It provides examples of how retailers are implementing these technologies in their physical stores to enhance the shopping experience and drive traffic. The document is presented by Jing Wang from Fung Global Retail & Technology, which publishes research on retail and technology topics.
The FITCH Key Trends presentation outlines fundamental shifts in consumer behaviour that we observe in sectors and markets across the world. It also highlights specific ways that brands and retailers can tap into these dynamic trends and provides best-practice examples as a springboard for future innovation.
COURSE TEXT Chapter 12 Cited Keegan, W. J., & Green, M. C. (2020CruzIbarra161
COURSE TEXT: Chapter 12 Cited: Keegan, W. J., & Green, M. C. (2020). Global marketing (10th ed.). Retrieved from https://www.vitalsource.com
2 Global Marketing Channels and Physical Distribution
Learning Objectives
12-1 Identify and compare the basic structure options for consumer channels and industrial channels.
12-2 List the guidelines companies should follow when establishing channels and working with intermediaries in global markets.
12-3 Describe the different categories of retail operations that are found in various parts of the world.
12-4 Compare and contrast the six major international transportation modes and explain how they vary in terms of reliability, accessibility, and other performance metrics.
Case 12-1 Welcome to the World of Fast Fashion
The world of global fast-fashion is like a three-way horse race. Spain’s Inditex SA is the parent company of specialty retailer Zara; Sweden is home to Hennes & Mauritz AB, better known to shoppers as H&M; and Uniqlo is the flagship brand of Japan’s Fast Retailing.
Part of the appeal of fast fashion is the low prices. Also attractive is the speed at which inventories are replenished and updated with affordable versions of the latest runway trends from the world’s fashion capitals. The need for speed is fueled in part by social media. A key element for some fast-fashion brands is sourcing clothing from countries with low-cost labor in Asia and elsewhere. In Cambodia, for example, more than 400 garment factories are registered exporters.
However, some industry observers note that low prices actually carry high social and environmental costs. Chasing the latest trends means that shoppers often discard inexpensive garments after wearing them just a few times. This leads to a consumer mindset that clothing purchases are disposable, rather than long-term investments. Critics assert that unwanted clothing often ends up in landfills, and that the fast-fashion trend is not sustainable (see Exhibit 12-1).
Exhibit 12-1
Some critics assert that the fast fashion trend contributes to overproduction and a “throw-away” mentality. The result is vast quantities of discarded clothing as well as "deadstock" (out-of-season garments and unused textiles). This Saks Fifth Avenue window display by Vetements was designed to call attention to the problem.
For years, Tadashi Yanai, the founder of the Uniqlo (“Unique Clothing”) chain, pursued a business model that differentiated his company from its European rivals. Uniqlo’s focus was on everyday basics and a new-product development process that relied heavily on innovative materials.
Inditex is the world’s largest fashion retailer, with more than 7,000 stores in 92 countries. In addition to Zara, its brands include Bershka, Pull & Bear, and Massimo Dutti. The company does not advertise, and its motto is “The company doesn’t speak; the customer speaks for the company.” Unlike some of its competitors, Inditex keeps nearly two-thirds of ...
Digital technologies are being integrated into the retail space in several ways:
1. Technologies like digital signage, interactive windows, and mobile apps help attract and engage customers in stores.
2. In-store, technologies like RFID, digital displays, and augmented reality provide richer product experiences and enable customization.
3. Social features allow customers to get second opinions from friends, share products online, and influence others’ perceptions.
4. Overall, digital is enhancing the shopping experience at every step from browsing to checkout while also providing business insights from customer data.
Pioneering companies in mature economies are learning from emerging market companies a new way to expand their businesses. For more insights from s+b, visit strategy-business.com.
At idealabs we believe that there's a new innovation era coming, where big corporations and startups blend. We dive into the corporate innovation boom, showing you some examples of big corporations working together with startups.
The Hague University of Applied Sciences is conducting research on the future of retail through their Designerly Innovation research group. They are exploring topics such as future scenarios for retail in 2040, changing customer journeys, the use of big data, and new competencies required of retail entrepreneurs. The research aims to provide insights and solutions to help retail SMEs innovate and remain viable in the future.
The document discusses various topics related to retail marketing. It defines a retailer and retail marketing. It discusses the marketing mix and extended marketing mix models. It outlines some key retail industry bodies in the UK. It then shifts to discussing major developments in the Indian retail industry in 2018, including acquisitions and new store openings. Emerging trends in retail technology and personalization are also summarized.
THE DESIGN INDUSTRY’S PREMIER GLOBAL SOURCING PLATFORM.
Le Souk connects the world’s finest material suppliers directly to leading fashion & interior design buyers around the world.
Trade shows and agents don’t reach the entire market of buyers looking for quality materials.
When designers are looking for design inspiration, their #2 source of information is an internet search.*
See more in the presentation.
The document provides a feasibility study for a proposed Connected Products Studio (CPS) in London. It analyzes the current landscape of connected products startups and resources available. Through stakeholder interviews, the top pain points for startups were identified as connecting hardware and software, developing proof of concepts due to lack of expertise, and conducting user research. The report recommends the CPS provide resources like a connected technologies library, expertise through workshops and a pilot program, and opportunities for startups to connect with potential customers and vendors through showcases and networking. If successful, the CPS could help accelerate the development of startups in the connected products field in the UK.
Similar to Pioneering London's Retail Ecosystem (20)
It’s no secret that the marketing landscape is growing increasingly complex, with numerous channels, privacy regulations, signal loss, and more. One of the biggest problems facing marketers today is that they’re experiencing data deluge and data drought simultaneously.
Bliss Point by Tinuti addresses these challenges by providing a single, user-friendly platform for measuring what marketers previously struggled to measure. With Bliss Point, you can move beyond simply validating past actions and instead use measurement to guide real-time decision-making on what should happen next.
Join our product experts for a live demonstration of Bliss Point. Discover how it can empower your brand with the tools and insights needed to optimize each channel, across your entire media mix, and your overall brand performance.
Secrets of a Successful Sale: Optimizing Your Checkout ProcessAggregage
https://www.onlineretailtoday.com/frs/26905197/secrets-of-a-successful-sale--optimizing-your-checkout-process
Once upon a time, in the vast realm of online commerce, there lived a humble checkout button overlooked by many. Yet, within its humble click lay the power to transform a mere visitor into a loyal customer. 🧐 💡
Getting checkout right can mark the difference between a successful sale and an abandoned cart, yet many businesses fail to make payments a part of their commerce strategy even when it has a direct impact on revenue. But payments are just one part of a chain. What’s the next touch point? How do you use the data sitting behind a payment to find the next loyal customer?
In this session you’ll learn:
• The integral relationship between payment experience and customer satisfaction
• Proven methods for optimizing the checkout journey
• Leveraging payments data for personalized marketing and enhanced customer loyalty
• Gain invaluable insights into consumer behavior across online and offline channels through data
1. The Dandy Lab powered by University College London | July 2015 - February 2016
Pioneering London’s
Retail Ecosystem
2. 32
The Dandy Lab was an interactive men’s
lifestyle shop. It curated and sold British
brands and told their stories like a real-life
magazine.
Powered by University College London, the
shop was based at 73 Brushfield Street in
London’s iconic Old Spitalfields Market and
was part British fashion shop and part retail
lab testing cutting edge technologies. The
pop up concept shop traded over a 6 month
period,duringwhichtimeTheDandyLabteam
worked closely with retail tech companies
and independent lifestyle brands to explore
and define the blueprint of shops of the future.
The Dandy Lab shop was able to innovate
without the common constraints of existing
in-store policies enabling it to be lean
and agile and to observe how the general
public responded to products and in-store
technologies. Our capacity to learn and
iterate fast to deliver better solutions for an
enhanced consumer experience made this
testbed unique.
This paper presents what The Dandy Lab and
our partners explored in-store and the key
insights achieved.If you would like to find out
more about the retail lab then please do get
in touch:
hello@thedandylab.com
3. 5
Peter Jeun Ho Tsang,
Co-Founder, The Dandy Lab
Julija Bainiaksina,
Co-Founder, The Dandy Lab
Jonathan McCoy,
Technologist, The Dandy Lab
Prof Andy Hudson-Smith,
Director, Centre for Advanced
Spatial Analysis
Dr. Alastair Moore, Deputy
Director, UCL Centre for
Entrepreneurship
Carly Newman, Governing
Board IDEALondon, UCL
Centre for Entrepreneurship
Jules Spanou, Creative
Strategist, UCL Centre for
Entrepreneurship
Sabrina McEwen, Comms
Coordinator UCL Centre for
Entrepreneurship
Dr. Nadia Olivero, Researcher
in Consumer Experience, UCL
Duane Holland,
Communications, DH Ready
Michel Sabatier, Advisory
Board
The
Team
4. The
Dandy Lab
University
College London
The
Partners
The
Retail Lab
1. Fashion
Retailing
1a. ShopShare
1b. Physical Retail
as Media
2. Retail
Technology
Innovations
2a. Shop in a Box
2b. In-store Analytics
2c. Augment the Journey
2d. MultiChannel
What we
Learnt
The Dandy Lab
in the Media
8
10
12
16
20
21
23
24
25
27
29
30
32
36
5. 9
The
Dandy Lab
“To address this fear of innovation we created a trading
retail lab to test and iterate products/solutions while
continually evolving the store’s customer experience
based on data aggregated in real-time.”
Co-Founders Julija Bainiaksina and Peter Jeun Ho Tsang
Objective 1:
Research what smart retail
environments of the future might
look like by defining the barriers
and opportunities of new retail
technology.
Objective 2:
Test how physical and digital retail
models can best be integrated.
Objective 3:
Explore how independent brands
can benefit from exposure in digitally
enhanced physical spaces.
To accomplish these objectives the
trading retail lab used the latest
technologies such as individual
product engagement analytics and
more cutting edge technologies such
as product engagement analytics,
alongside more traditional methods
such as footfall counters.
With real-time data we were able
to really understand what was
happening in-store and continually
iterate so we were able to better
support, showcase and sell
emerging British brands’ products. It
also allowed us to provide a better
overall customer experience and
to make more informed business
decisions for the trading shop’s
success. We elaborate on this in
the Retail Technology Innovations
section.
StoresacrosstheUK’shighstreetsare
becoming ever more homogeneous
in their offerings which leads to
an increasing need for retailers to
stand out. They can differentiate
their business by redefining the
shoppers’ experience through more
up-to-date in-store environments.
From the scores of retailers we
engaged with 83% identified a
greater need to innovate, iterate and
integrate digital into their physical
retail strategies, especially with the
rise of the tech-savvy Generation D.
Toensuretheycandothis,companies
are now hiring Chief Digital Officers
and many, including Sainsbury’s and
Marks & Spencer, are opening up
their own retail labs. However, many
established retailers face problems
due to their existing legacy systems
rendering it impossible to facilitate
any kind of testing or integration of
innovative technologies.
There is also often a cultural barrier
that leads to an ‘innovation fear
factor’, especially as executives want
to measure the return on investment
which is often incredibly difficult
in the early stages of technology
adoption.
To address this fear of innovation we
created a trading retail lab to test
and iterate products/solutions while
continually evolving the store’s
customer experience based on data
aggregated in real-time. The key
objectives of this initiative were to:
6. 11
University
College London
Retail is an important sector for
the UK economy that is in a state
of transition. Drivers for change
include evolutions in consumer
behaviour, new payment solutions,
smart label technology and
multichannelshopping.Thisprovides
opportunities for novel concepts,
ideas and business models to play
a role in a successful future retail
environment.
UCL (University College London)
is a leading research university
with a range of expertise in retail
applications; from big data analytics
to IoT, and from documenting
the provenance of traditionally
manufactured objects through to
new manufacturing methods such
as 3D printing.
UCL has pioneered “living labs” to
experiment with new technologies
and test new retail propositions. The
partnership between The Dandy Lab
and UCL builds upon earlier retail
research including: the Oxfam on
the Tales of Things project and the
Launchbox pop-up retail space in
Boxpark, Shoreditch.
Our collaboration with The Dandy Lab
created an experimental “testbed”
platform that could not only support
internal research projects but also
technologiesfromavarietyofexternal
partners. Access to leading retail
technologies included supporting
trials from companies incubated
at IDEALondon (a partnership with
Cisco), or companies supported
on the ERDF funded “Capital
Accelerator Programme” (working
with Capital Enterprise Ltd.).
This document provides early
examples and success stories. Many
of these interventions did not require
significant amounts of investment in
infrastructure, merely a vision. The
philosophy of rapid iteration and
failing fast to test the best ideas has
been central to the success of The
Dandy Lab : unconventional retail.
“Our collaboration with The Dandy Lab created an
experimental “testbed” platform that could not only
support internal research projects but also technologies
from a variety of external partners.”
Alastair Moore, UCL Centre for Entrepreneurship
7. The latest solution in wireless
charging for the office, home
& public spaces.
The worldwide leader in IT
that helps companies seize
the opportunities of tomorrow.
A retail space designer, maker
and engineer who explores
ways to create unique objects
and experiences.
A providerindatacentrepower
efficiency, intelligent building
infrastructure and industrial
networking architecture.
Europe’s largest and fastest
growing network of pop ups,
connecting short-term retail
spaces with pop up shop
ideas.
The
Partners An intelligent footfall
counter based on footwear
categorisation.
VMBeacon that enables
reception of details for
clothes displayed on shop
mannequins via smartphone.
A mobile payment system
allowing customers to
purchase products without
queuing at tills.
A provider of EPOS, mobile
ordering loyalty solutions for
coffee shops.
A visual search engine for
fashion, enabling purchases
based on photos of products.
A provider of innovative and
efficient technology solutions
using digital media and mobile
communications.
A London based studio
working at the intersection of
art and technology.
DELIVERYPARTNERS
STARTUPSSUPPORTED
8. Alfie Douglas
Deji George
Katie Mullaly
Peter & Porter
Alfred & Wilde
DMC
Khunu
Prickle Press
Ashley Marc Hovelle
Emily Carter
Leo Joseph
Stallard
Ballanby
Emily Hayes
London Sock Company
Shackleton
Carter & Bond
Fabric Gateaux
London Terrariums
Sloane Stationery
Charlie Noble
Forbes & Lewis
Mark Vessey
Smith/ Grey
Cedar
Foxhunt Menswear
McNair Shirts
Smyth & Gibson
Clement & Claude
Glints London
Phantom Watches
Spoke London
Coeur
Gobi Organics
Rubber Killer
The Gentle-man Range
Creel Leather
Gruhme
Rufus Country
Thomas Clipper
CSB London
Heresy
Mr D London
Tom Smarte
Dapper England
Holdall & Co.
Mr Stanford
Travel Org
Czech & Speake
Huez*
Ockham razor company
Wit Shop
FASHION & LIFESTYLE BRANDS
9. 17
Spanning over two floors and across
1100 square feet, the shop opened
for trading in August 2015. In the
retail lab we explored two areas that
are predicted to impact the future of
retail:
1. Fashion Retailing:
Trialing new strategies such as
ShopShare and using Physical Retail
as Media platform.
2. Retail Technology
Innovations:
Trialling new technologies in a real
customer facing environment and
researching strategies for effective
integration of technology into
customer journeys.
London was the perfect location to
achieve the above because it has
an established startup ecosystem.
It is rated the number one city for
supporting startups in Europe
(Startup Ecosystem Report, 2015)
and the number two for innovation
& entrepreneurship worldwide (City
Initiatives for Technology, Innovation
and Entrepreneurship (CITIE), 2015).
The Dandy Lab acted as an enabler
for young startups in fashion and
technology to prove their solutions’
value by operating in a trading
physical space. It was designed to
offer a low risk, low cost and high
value testing facility for startups.
Followingthelearningsanditerations
from 6 months of live testing 30%
of technology solutions trialled in-
store are now ready to be rolled
out into larger retail environments.
They have the evidence to prove
they are worth the investment and
commitment needed to break into
established retailers.
The startups that proved their value
through participation in The Dandy
Lab were selected on their potential
to create a smarter retail environment
for the future. This includes a more
personalised service, more engaging
experience and more intuitive
journey for shoppers alongside
better operational efficiency and
boosted sales for retailers.
The selected technologies were then
assigned to four in-store shopping
journey design principles:
Discover, Learn, Shop and Share.
This was done based on what the
companies thought their primary
use case was for their solution
and through a series of in-store
observations and data collection,
we were able to identify which areas
proved to be problematic.
By continually understanding which
tools, features, and functions caused
the most friction or had completely
failed, we were able to adjust the
journey to further improve the in-
store experience. Below you can see
how each technology was initially
assigned to these four design
principles.
The
Retail Lab
10. 1. DISCOVER
The app worked in conjunction with
in-store beacons allowing customers
to browse our product catalogue on
their mobile phones. Even when the
store was closed they could see the
cost of items in the shop window
and be directed to purchase online.
> Sales conversion rate.
> Customer adoption rate - % of use.
> Effect of push notifications in
converting street traffic to in-store
visitors.
> Customer adoption of apps to
enhance the shopping experience.
Data Gathered:
Rationale:
In-store product recommendation
tool developed in collaboration
with The Dandy Lab - customers
were able to search for matching,
clashing or complimentary products
in the digital catalogue by scanning
a colour they liked.
> Customer adoption rate - unique
use of colour search tool.
> Use of a non-invasive digital tool
for product recommendations VS.
face-to-face contact with a sales
assistant.
Data Gathered:
Rationale:
Mobile payment app allowing
customers to scan a product and
pay directly via personal mobile
phone rather than via the till.
> Customer adoption rate - % of app
use and % of payment completion.
> Customers motivations in by
passing a till queue.
> Mode of integrating mobile
payments into the customer journey.
3. SHOP
Data Gathered:
Rationale:
We gave 200 RFID enabled cards
to top customer, installed a tracker
at the shop front and analysed data
through a back end system. The
above facilitated us to trial a loyalty
system of 10% off all stock and
helped our sales staff to provide a
more personalised service based on
the customer’s details, tastes and
purchase history.
> Adoption rate of the loyalty cards.
> Customer return rates.
> Sales conversion rates.
> Impact of personalised service on
customer engagement and product
sales increase and on brand and
customer relationship improvement.
Data Gathered:
Rationale:
2. LEARN
Interactive displays built into the
store’s shelving units to show brand
and product information. To activate
the display customers scanned the
NFC tag attached to any product
on the reader below the screen.
Alternatively, customers could
search for particular brands and
items on the screen.
> Sales conversion rates.
> Dwell times.
> Customer adoption rate - % of use
of the display units.
> Customer interaction with displays
and impact on product engagement.
Data Gathered:
Rationale:
In our event space we provided free
WIFI through Meraki access points to
encourage our customers to share
their experience and download the
in-store apps.
> Dwell times.
> Number of devices connected.
> Adjust of visual merchandising to
reflect dwell times.
4. SHARE
Data Gathered:
Rationale:
Wireless phone charging points
that were integrated into the bar to
encourage longer dwell times and
ensure that customers had power to
facilitate digital interactions.
11. 21
We used two key concepts to explore
the hypothesis that most retailers
will evolve to embrace a showroom
format as a viable way to stay ahead
of the competition, keep fresh and
in so doing attract returning and
new customers. Implying that the
future of retail will not be limited to
a traditional wholesale model, but
instead have more flexible business
models to create additional revenue
streams. The two concepts were:
1a. ShopShare:
We selected ShopShare to prove the
method works to satisfy a demand
from small independent brands
wanting to showcase products in a
physical retail space but without the
finance and reputation to do so.
1b. Physical Retail as Media:
We selected Physical Retail as
Media to test the theory that retail
is no longer simply about sales per
square foot, but instead about the
experience which should be tied
into the media consumed everyday
by customers online. This approach
turns physical retail spaces into
offline marketing platforms to extend
their online presence.
1a.
Shop-
Share
The Dandy Lab stocked a total
of 52 British product brands on
a concession basis ranging from
completely new startups such
as Syndicut (swimwear), McNair
(clothing) and Clement & Claude
(Candles), to more established
brands such as Smyth & Gibson
(shirting) and Czech & Speake
(fragrance).
The brands were ‘curated’ on the
strength of product offering, ability
to fulfill and the brand stories that
could be narrated through the digital
touchpoints. Each concession in the
store was required to commit to a
minimum of three months and be
menswear shop appropriate.
We only stocked British brands
and of those over 65% originated
in London, over 57% were available
exclusivelyatTheDandyLaband54%
operated on a ShopShare rather than
a conventional concession basis.
Brands in-store blurred the online
and offline, categories included
Digital Blend, (predominantly online
services additionally going offline)
and Digital Luxury (an e-tailer
expanding operations into physical
stores).
One such Digital Blend brand was
Spoke, an e-tailer that came offline
to offer their made-to-measure
trouser service in The Dandy Lab.
They hoped to gain an insight into
how their operations would work
within a physical format and increase
brand awareness. They successfully
extended their customer base and
1. Fashion
Retailing
12. 2322
illustrated the potential operational
challenges with taking their offering
offline. For example finding the
accuracy of tailoring varied more
offline than online, something
they’ve since addressed.
To prove the ShopShare model
we worked with We Are Pop Up,
an online platform providing
temporary retail spaces to their
userbase of over 25,000 brands
who find the flexibility they offer
invaluable. The Dandy Lab worked
with them to generate a pipeline of
menswear brands, connect to the
independent brand community and
process transactions through their
automated system.
Collaborator:
We Are Pop Up
For us, The Dandy Lab was a
pioneering retail idea. The We Are
Pop Up community is made up
of creative retailers pushing the
boundaries of what’s possible on
the high street and it was beneficial
to have The Dandy Lab in the retail
ecosystem.
Through regular feedback and user
suggestions, both teams worked
collaboratively to co-create and
evolve the tools and dashboard that
we provide space owners to help
them better manage enquiries and
bookings in their retail space.
We Are Pop Up is passionate about
user-centred design and we found it
beneficial to work closely with The
Dandy Lab , one of our super-users,
to refine and improve this tool set.
A further benefit of working with The
Dandy Lab was that it helped us to
generate a higher quality pipeline
of men’s fashion, accessories and
grooming brands that were not
previously active on the site. As
a double-sided marketplace, our
growth and success relies on the
growth of both brands and spaces,
and better matches between them.
The store has provided a new
opportunity for menswear brands to
have rapid access to prime retail
space at a cost and lead-in time not
possible until very recently on the
high street.
- Abigail Freeman
Marketing Director
“
“
1b.
Physi-
cal Re-
tail as
Media
Many brands are now seeing the
potential of using the physical
space for more than simply driving
sales. This was the case when
OnePlus, a smartphone company
who approached The Dandy Lab
to collaborate on the November
2015 launch of their new device -
the OnePlus X. OnePlus’ marketing
campaigns have been surrounded
by a great deal of hype, their invite
only system amassed a huge base
of super fans and a Facebook
following of over 2.3 million, quite a
feat considering they only launched
in 2013.
The Dandy Lab created a fresh in-
store experience for the OnePlus
launch event by transforming all of
the in-store digital assets, including
the interactive screens and product
displays,tobetterreflectbothbrands.
They worked with us to extend their
marketing by taking their online
offering offline. The store acted as
a showroom, a marketing tool, and a
sales channel while putting them in a
space demonstrating the latest tech
innovations that appeal to a high
fashion audience. Thus attracting a
particular customer base.
OnePlus held four European launch
events. The Dandy Lab was the only
UK retailer to launch the device,
following Colette, Paris, and later
came Rome and Berlin.
We had queues for over 6 hours
outside the store, and visitors
travelled from beyond the UK to
purchase the new OnePlus phone
and it sold out within 2 hours.
The event elevated the appeal of the
retail space due to the exclusivity and
scarcity of the product stocked and
the accompanying online marketing.
As a direct result of the campaign
we saw our social media increase
by 30% and store visits increase by
300%. The event demonstrated how
retailers can push the boundaries
of traditional shopping, the sale of
products is no longer strictly tied
to the store itself or the traditional
metric of sales per square foot, but
rather is more about experience per
square foot.
platform inquiries
98
total agreed inquiries
37
1/4exte
nded contracts
13. 25
Fast moving mobile technologies
have a significant impact on
shopping habits so retailers must
adapt quickly and implement
technologies relevant to their target
customer demographics.
Wecreatedtheretaillabtocontinually
iterate the design of the customer
journey and help nurture better
solutions to address the mindsets
of the tech-savvy millennials. The
lab provided a perfect environment
for us to test innovative retail
technology and offer feedback to
the companies so they could iterate
and improve their solutions.
We could then better integrate the
technology into The Dandy Lab’s
customer journey for a seamless
multichannel experience. Through
manual and digital A/B testing we
collated rich data sets that we used
as a basis for our business decisions.
We looked at the following areas of
retail technology:
2a. Shop in a Box:
Plug and play solutions that
enable retailers to execute and
trade instantaneously without the
requirements of lengthy installs.
e.g. pre-fabricated modular units.
2b. In-Store Analytics:
Technologies in order to better
understand the consumer behaviour
both in and outside the shop.
e.g. footfall counters, wifi analytics,
etc.
2c. Augmenting the
Customer Journey:
Methods of taking the shopping
experience beyond the physical
limits of the store and creating retail
theatre.
e.g. interactive display units,
interactive mannequins, interactive
products through RFID tags.
2d. Multichannel:
About connecting every distribution
channel and customer touchpoint,
across the physical and digital, in a
seamless way.
e.g. Online browsing and research
at home but purchasing in a physical
store.
2a.
Shop in
a Box
The Dandy Lab unit was a Grade II
listed building which meant there
were a number of constraints around
the deployment and installation
of furniture and technology. We
addressed this by designing modular
shelving units, flexible enough for
most spaces and with cabling and
networking already built in, to allow
2. Retail
Technology
Innovations
14. 2726
2b. In-
S t o r e
Analy-
tics
We deployed a number of analytics
tools in the store and used the
resulting data in making better
business decisions. Some examples
of how analytics helped us to shape
our operations and increase sales
are:
Footfall & Demographic Data: By
analysing footfall and customer
demographic data from a number of
different sources (including footfall
cameras, wifi analytics and manual
counting), we iterated our product
selection and displays in real-time
to correlate with customer segments
and time periods.
for a quick and easy deployment in-
store. The units were designed to
allow for the easy addition of screens
and other relevant hardware such as
Cisco Meraki access points.
By integrating our pre-fabricated
modular furniture with Cisco
technologies, we were able to
simplify the deployment of the IT
infrastructure and demonstrate
how an entire shop could be easily
and quickly connected to the
cloud. Cisco’s Universal Power
over Ethernet Switching (UPoE)
- the store’s network and power
distribution gear, acted as the
central nervous system for the
store, enabling rapid deployment
of a plethora IoT sensors and digital
equipment.
Collaborator:
Cisco
Working with The Dandy Lab
has enabled Cisco to gain insight
into the barriers that retailers face
wanting to adopt technologies in a
busy high-street location on tight
margins and little resource. Trying
to achieve frictionless and robust
technologies that were easy to
insert into store operations was one
of the key objectives for us.
This was taken further by the
extraction of customer analytics in
a crowded location, which required
careful tuning in order to optimise
data collection. Our partnership set
out to achieve the following:
Scale: Conducting testing was very
easy within this environment. The
smaller nature of the store, enabled
a highly agile environment, which
enabled new capabilities to be tested
at speed, and reducing the time taken
to arrive at commercial decisions.
This approach had advantages
over the deployment challenges in
larger retail environments where
implementing one single trial has
to be planned in detail, taking
significant time to deploy.
Modularity: By deploying a
hardened technology, using Power
Over Ethernet (PoE), this enabled the
ability for devices to be connected
and powered very quickly with the
deployment of one single Ethernet
cable. This showcased the cost and
practical effectiveness of locating
equipment in temporary shop fittings
that have a potential return on
investment of up to 49% reception
of Opex from power savings and a
reduction of 11% in the Capex of
electrical installation and hardware.
Showcase: A number of visits
were made by a number of larger
retail organisations to see how
technology can be used to enhance
the shopper experience and this
would have contributed to creating a
positive sentiment to deploy similar
approaches.
- Bob Garland,
Vertical Solutions Architect
UK Retail
“
“
For example, it was shown that
females were more likely to visit the
shop during the first weekends of
the month so more unisex products
were stocked during these times
resulting in an increase in sales. This
in the future could be automated
throughout the supply chain, which
would allow for retailers to react at
speed, based on accurate data.
Dwell Time Data: The Meraki
systems integrated into the furniture
collected data as heat maps. Through
these we identified the hot spots in
the store and could deduce the most
popular products based on dwell
times. For example, real-time data
demonstrated that the stationery
was the most popular range in terms
of customer engagement time.
It was originally positioned in the
middle of the store but, based on
this data, the decision was made to
move it to the store entrance. This
pulled in more custom and further
increased engagement times which
dramatically increased sales.
By continually adjusting the visual
merchandising in this way, we were
able to create a better customer
journey led by data. Within time, this
manual process could be automated
by machine learning to reinforce
the creative decisions that visual
merchandisers make.
Interaction Data: Based solely on
observational data, the engagement
with interactive screens was by
customers below the age of 25.
U
N
ISE
X
U
N
ISE
X
U
N
ISE
X
salesstock
M TW F S ST
shopping pattern
15. 2928
However we found that adoption
rates for the screens remained low,
implying that customers preferred
looking at physical products and
talking to sales advisors rather than
browsing on screen for product
information.
Despite the interaction being as
simple as scanning the product’s
swing tag on the screen it still proved
to be too much of a friction point
for the customer. Based on this we
integrated the product information
into the purchase path through
the mobile payment system which
resulted in better engagement.
Collaborator:
Hoxton Analytics
Showcasing our prototype
footfall counter at The Dandy
Lab allowed us the freedom to
test new systems and networking
protocols. For a growing technology
company like ours, having the
support of the lab was valuable in
iterating and improving the real-
world performance of the product.
Commercially, we got some great
exposure through The Dandy Lab
network to large retail chains such
as New Look, and some fantastic
press with coverage on BBC Click.
Deploying our equipment in a small,
controlled environment such as The
Dandy Lab has been a stepping stone
into larger deployments. We have
since installed units in large global
fashion retailers and across large
shopping centres. Furthermore,
the opportunity to collaborate with
the other technology companies,
especially Cisco, has been
invaluable. We now have a very
close relationship with the company
and are currently integrating our
technologies with an aim to deploy
it in Cisco’s client sites.
- Owen McCormack & Will Thomas
Co-Founders
“
“
2c.
A u g -
m e n t
t h e
J o u r -
ney
We harnessed real-time data to
personalise the in-store journey
for individual customers which
enhanced the discovery phase of
the customer journey and improved
the service delivered by sales
assistants.
Through Reward Technology we
offered an RFID enabled loyalty
card to our top customers (based on
spend), to receive a better service
85% were happy to share their data.
As a relatively young store we lacked
the historical customer data sets that
established retailers have access
to so needed an alternative, the
solutions in The Dandy Lab focussed
on real-time data which we used to
better understand customers and
thus improve our service to them.
The shop served mainly the
surrounding city professionals and
local inhabitants, but attracted a
variety of customers, 17% of which
returned as a result of either the
RFID enabled loyalty cards or in-
store marketing initiatives.
Sales staff were alerted when a
returning customer with a loyalty
card entered the store, they would
know who the customer was,
their transaction history and their
style preferences which had been
previously profiled by staff. This
helped store staff to offer product
recommendations that really suited
the customers, thus developing
better relations with them to
ultimately boost sales.
Tactics like this demonstrate how
data can be exploited in new
ways to create non-invasive sales
opportunities rather than sticking
to more traditional invasive push
marketing.
This could signal the dawn of more
advanced retail CRM systems that
would ensure the same level of
personalised service that spans
across both online and offline
channels without location restraints.
Collaborator:
Reward Technology
The Dandy Lab project had
3 key objectives, illustrate the rapid
male
69%
female
31%
25-40y
60%
<40y
30%
>25y
10%
~87 15K
6months period
daily visitors total visitors
“
16. 3130
digital on-boarding of customers into
a loyalty system, deliver detection
solutions to deliver data on customer
frequency and purchasing behaviour
and finally to enable staff to deliver
personalisation in the selling process
with their loyal customers.
The time required to get customers
digitally signed up to the loyalty
system was less than a minute and
was seamless, they had the options
on the type of communication of
offers when they entered the store -
SMS, Email or App notifications.
The RFID detection of returning
customer by detection The Dandy
Lab card enabled data to be
captured on, frequency of visit, time
of day, day of week, time in store
and purchasing or just browsing
behaviour data capture.
However the core component to
increase the engagement of staff
and personalisation of service was
through our ability to notify staff
of the customer’s profile data. The
last time they entered the store,
their previous purchases data was
illustrated, that allowed them to be
clear on the segmentation profiles
of these customers and engage
them with enough data to convert
sales from an informed position
around basket size and category
preferences.
Our next steps are to deliver richer
recommendation models based
on what other customers also
purchased.
The key objective was to continually
iterate in an open innovation
environment, which The Dandy Lab
provided. The focus was on putting
in place the right infrastructure and
both teams working collaboratively
to fast track this with additions to
the platform. Our key learning was
that if a retailer’s team is focused
on delivery with the solution, then
time frames for full integration can
be slashed. This has helped us to
understand the critical path required
for different types of retailers and
the potential speed that we can
roll out our solution across multiple
stores.
- Paul Sheedy,
CEO & Founder
2d.
M u l t i
C h a n -
nel
As previously discussed in the In-
Store Analytics: Interaction Data
section the interactive screens had
low adoption rates so we instead
“
integrated product information
into the purchase path through the
mobile payment system, provided
by MishiPay.
The above was possible through the
app’s ‘Read My Story’ feature, which
transfers the product and brand
stories from the very public in-store
setting to their personal device. It
also allowed the customer to save
items discovered in-store into a wish
list which they could later refer back
to. This allowed our product offering
to be truly multichannel.
One of the common challenges with
such multichannel delivery is a fear
of privacy intrusion, but we found
this wasn’t an issue in reality. When
we paired a promotion of the app in-
store with pricing incentives we saw
a high adoption rate of MishiPay’s
technology, with 42% of customers
happy to pay using their phones
despite it being their first interaction
with the app.
This reiterates that by embedding
technologies as experience and not
just as facilitators, the mobile phone
can be a powerful tool at service level
within the customer journey aiding
continued interactions beyond the
shop floor.
Collaborator:
MishiPay
This was our first live test in
a trading store and it was amazing
to see our technology in action. The
Dandy Lab gave us the opportunity to
“
“
interact with customers purchasing
products through our platform and it
allowed us to test both the app, the
integration with the cloud and the
hardware with RFID tags.
In a short space of time we refined
both the system architecture and
technology, as well as the overall
business strategy and plan.
What really surprised us was the
interest from other companies
as well, this helped us to expand
our offering into areas such
as integration with Blockchain
technology and end-to-end supply
chain visibility.
Since launching in The Dandy Lab
and validating what we offer, we
have been able to progress a great
deal towards raising our seed round
of £400K. Over 10 different investors
and potential clients visited the store
to experience MishiPay making the
opportunity invaluable for us.
- Mustafa Khanwala & Tanvi Bhardwaj
Co-Founders
17. 33
So what will future retail
environments look like?
It was evident from our
observations that in the future
retailers will need to embed and
use technologies in their retail
strategies to better differentiate
themselves.
They must overcome the ‘fear of
innovation’ to really understand
how holistic digital strategies
can be effectively executed, not
just used as standalone solutions
loosely connected together and
forced upon the customer.
Several new retail formats
emerged from the Retail Lab
including digitised physical
spaces used as showrooms, in-
store services that use real-time
data and analytics to personalise
shopping journeys, and systems
that improve logistical operations.
Objective1:
Research what smart
retail environments of
the future might look like
by defining the barriers
and opportunities of new
retail technology.
The exploration of the
boundaries between non-invasive
technologies such as the RFID
loyalty cards and push notifications
such as beacons or interactive
screens allowed us to see how
far we could use machines to sell
products.
Smart retail environments of
the future may not necessarily
have technology visible to the
customer, but solutions that sit in
the background to allow the retail
environment to intuitively adapt to
the individual customer.
By continually analysing data
sets we were able to dynamically
update our retail environment
and in so doing demonstrate the
paradigms for future smart retail
environments. Shops will be
able to perform functions such
as mapping out individual visitor
profiles to specific locations,
which will in turn transform the in-
store experience in real-time.
Overtime, retailers will be able
to utilise artificial intelligence
to automate data-crunching so
that the physical environment
can be hyper-personalised to the
individual whereby lighting units
and displays dynamically change
according to individuals’ shopping
habits and preferences.
At present this automation is
very difficult to scale across
international chains, however
this personalisation will be key.
Solutions like that provided by
Hoxton Analytics, offering more
qualitative data, will become
more sophisticated. With machine
WhatWe
Learnt
18. 3534
learning environments personalised,
seamless, multi-channel journeys
will be a reality.
Objective 2:
Test how physical and
digital retail models can
best be integrated.
Throughthetradingretaillabwewere
able to test how physical and digital
strategies can be better integrated
into the shopping journey. It was a
success that garnered interest from
a diverse range of global brands
including large fashion retailers,
supermarkets and even hotel
groups, all of whom were trying to
understand how to better integrate
digital strategies into their retail
channels.
The technology companies
we worked with all gathered
invaluable insights to improve
their solutions. We continually
pushed the boundaries of the in-
store environment to offer better
customer service. Technologies that
are fully integrated into the natural
purchasing path are more likely to
be adopted by the customer.
MishiPay’s trial proved that
customers were more than happy
to provide confidential information
if it allowed them to enjoy a better
in-store experience. The retail lab
clearly defined the context of the
app for the startup and in the process
identified that queue omission and
payment simplicity are key issues
for the customer.
The next step for solutions like
Mishipay is supply chain integration
to overcome logistical barriers for
larger organisations. This would
allow technology that is currently
deemed too disruptive for adoption
to become more universally used.
Similarly, if technology from any
touchpoint along the customer
journey integrates with large scale
logistics then its potential to disrupt
expands exponentially.
Objective3:
Explore how independent
brands can benefit from
exposure in digitally
enhanced physical spaces.
Showrooming is feared by many
retailers. We clearly demonstrated
that, instead of fearing it, brands
can instead benefit from exposure in
digitally enhanced physical spaces.
The OnePlus X launch proved that
Physical Retail as Media can be
a successful strategy, and in this
particular case the success of the
event demonstrated that if executed
effectively, both retailer and brand
can reap rewards through sales or
increased brand awareness.
This has resulted in categories
including Digital Blend and Digital
Luxury emerging from platforms
such as We Are Pop Up’s online
solution, which has enabled smaller
independent brands to create
engaging offline experiences.
Such technology has nurtured
the London retail ecosystem and
proved that future retail models
will be more successful if they are
more malleable. Thus retailers will
survive, even on homogeneous high
streets, by providing customers with
new shopping environments
Looking into the future:
The ‘Innovation fear factor’, that came
up time and again in conversations
with The Dandy Lab’s visitors, is
something that organisations must
address now in order to thrive over
the next 10 - 15 years. Retailers must
build long-term digital strategies
that better address the need and
desires of more complex and
digitally inclined customers.
Retailers can no longer rely on
more traditional formats. Smarter
retail environments will need to be
created using technologies that
are engaging and responsive to
the individual customer. Artificially
intelligent stores using data will
eventually be the next step that
retailers must deploy in order to
evolve with the ever changing
customer consumption habits.
The Dandy Lab has demonstrated
that the future of retail will require
the harnessing of data, more
malleable retail formats and more
personalised customer journeys.
Retailers must develop smarter
retailing environments around
these core requirements now to
ensure their survival in a continually
evolving and ever-more competitive
retail landscape. To flourish, rather
than simply survive, they must invest
in new and innovative technologies
imminently.
19. 37
ES Magazine
ES Magazine
ES Magazine
Timeout
The Dandy Lab
in the Media
Drapers
Internet Retailing
Vice
press pieces
47
TV Shows
4
in
a
6
W
eek Launch Period
readers
60M
panel discussions
PSFK
RBTE
WGSN Futures
IDG
Internet of Retail
London Technology Week
FTFutureofRetail
award
nominations
InternetRetailingAwards2015
TheDigitalStoreAward&MarketEntry2015
TheWGSNFuturesAwards2016
BestNew
RetailConcept2016
shop tour visits
16
New Look
H&M
John Lewis
Panasonic
Sainsbury's
Marriott Hotels
Creuna AS
Carrefour
Nike
The Future
Laboratory
Cognizant
Fung 1937
WGSN
Metro AG
German
Retail Federation
NESTA
20. 3938
Asafullimmersivedigitaltransformationexperience,Cisco
was able to demonstrate the possibilities of disrupting
the retail industry. The value of collaborating with many
partners highlights how we can be truly innovative, this
was shown with the amount of traction that fused Cisco
and The Dandy Lab story such as at NRF 2016 in NewYork
City, and the sheer volume of press coverage and social
media interest we received.
Jackie Nixon, UK & Ireland Marketing Director, Cisco
The OnePlus X Pop-up, hosted and organized by The
Dandy Lab, was a huge success in creating a fun, intimate
experience for our biggest UK-based fans.
David Sanmartin, Head of EU Marketing, OnePlus
Retailers and curators are literally building businesses on
top of the We Are Pop Up platform using ShopShare as a
quick route to market,or as a tool to curate a unique retail
experience. As a result, brands are booking short-term
retail space for anything from a day to 6 months plus and
changing the retail landscape in London.
Abigail Freeman, Marketing Director,We Are Pop Up
Working with The Dandy Lab was a real eye-opener to the
challenges of dealing with a live retail environment and it
helped us to really understand the depth of the challenges
with our solution.
Mustafa Khanwala, CEO, MishiPay
21. The programme has benefitted from many
contributions in kind. UCL is the underwriter
of capital costs and The Dandy Lab has
maintained the overhead costs. Through
Capital Enterprise and UCL the programme
has received financial support from Greater
London Authority ERDF financed Capital
Accelerator Programme.
Weareverygratefulforthesupportofallthose
mentioned here as well as the generosity and
kindness of others not specifically thanked.
CAPITAL
ACCELERATOR
PROGRAMME
EUROPEAN UNION
Investing in Your Future
European Regional
Development Fund 2007-13