This Cult LDN trend report looks at how digital technology is offering the solution to enhancing the retail experience more so than ever before. Cult LDN is an award-winning digital communications agency. We deliver brave and strategic campaigns for our clients which deliver measurable results. We specialise in; strategy & execution, online talent management, online advertising and trend reporting & training. www.cultldn.com

2. THE RETAIL REVOLUTION

3. With 92% of sales still happening offline, retailers needn’t feel the burn just yet, although
consumers expect more from their shopping experience than ever before
Whether it be a coffee bar in a Shoreditch menswear boutique whipping up a flat white while
you try on your button down, or live try-on technology allowing you to dodge the changing
room, brick and mortar retailers increasingly feel the pressure to engage consumers with more
than just their old-fashioned wares
In order to stand out from the competition, retailers and brands must make the best use of their
customers’ time and attention in store by designing multichannel experiences that strike a
balance between efficiency and enjoyment, relevance and surprise
This Cult LDN trend report looks at how digital technology is offering the solution to enhancing
the retail experience more so than ever before

4. “DIGITAL INNOVATION IS THE #1 MOST EXCITING THING
TO BE HAPPENING IN RETAIL”
- Edmund Ingham, Forbes Magazine
at #CultHosts The Retail Revolution

5. STREAMLINED CONTENT
Insights
KEY TECH TRENDS - 2015
a lexicon of the retail revolution
AUGMENTED REALITY
• Virtual fitting rooms, interactive window displays and pop up digital maps - AR can turn a retail space into a playground for consumers
BEACONS
• Tech that provides in-store analytics and pushes information and offers to customers within a store
POS TECH
• Point of sale technology to make retailers’ tills and cash registers moot, allowing for frictionless payments in store
RFID
• Attaching RFID tags to products in-store, retailers allow consumers to access far more information about a product
WEARABLES
• Wearable tech is allowing retailers to personalise the in-store experience with consumers
3D PRINTING
• Bespoke products can now be made quickly to-order for consumers

6. SEAMLESS RETAIL TECHNOLOGY
pioneering integrated technology in the retail space

7. “IF YOU DON’T START RETHINKING CUSTOMER EXPERIENCE,
YOU’RE SUNK.
SOONER OR LATER, AN APPLE OR AMAZON-LIKE ORGANIZATION
— OR SOME OTHER NIMBLE, INNOVATIVE FIRM — WILL COME AT
YOUR INDUSTRY FROM THE SIDE AND TOTALLY CHANGE THE
RULES YOU’VE BEEN PLAYING BY FOR YEARS.”
- Michael Hinshaw, CEO McorpCX

8. STREAMLINED CONTENT
Insights
SEAMLESS RETAIL TECHNOLOGY
pioneering integrated technology in the retail space
HOW RETAILERS CAN OWN THE SHOPPING EXPERIENCE
• The past decade has invited retailers to constantly innovate to keep the attention of the consumer, but those that have invested in a technology base are now
at the forefront of the retail revolution
• Seamless integration of technology into the retail space enhances the consumer’s experience, guiding them to discover more about a brand
• Ultimately, the longer a consumer can be kept in store, the greater the possibility of a sale and so a long-term brand relationship
• The customer experience must be positive and technology can assist each aspect of this, enchanting consumers and providing retailers with deep,
personalised data about their customers

9. STREAMLINED CONTENT
Insightsapple
BRAND CASE STUDY: APPLE X IN-STORE EXPERIENCE
• Since the first retail store was launched in 2001, Apple has pioneered the “customer experience “ in the retail space. Apple has made the conscious decision
to focus on customer happiness rather than profit. With the end outcome being that making money is the result of the firm’s actions, not the goal
• The shopping experience is a seamless one, with the shop floor entirely devoted to servicing customers through enhanced technology - a customer needn’t
queue to pay for a product and can even pick up scan and pay for lower-value products via their iPhone
• The Genius Bar resolves customers’ product faults and each staff member is dedicated to servicing the consumer, supported by a layer of Apple business
tech enabling them to put customer and product first
SEAMLESS RETAIL TECHNOLOGY

10. BRAND CASE STUDY: TESCO CONCEPT STORES X WEVE
• Tesco partnered with O2-owned Weve on a mobile couponing initiative in a bid to raise awareness of its new concept stores in London
• Prior to going live Weve set a habitual location geo fence, creating a bespoke segment for Tesco comprising consumers who passed by the Villiers Street
store or travelled in and out of Embankment Station at least six times over a two-week period
• The habitual and live geo-location was then harnessed to create messages which were pushed out over a two-week period. Weve was able to differentiate
between the different audiences to ensure that consumers were only messaged once. Consumers were sent a message which when clicked on, brought up
a unique mobile coupon barcode giving £1 off a £3 shop on food to go
STREAMLINED CONTENT
Insightstesco
SEAMLESS RETAIL TECHNOLOGY

11. THE DEATH OF BRICK AND MORTAR?
how e-commerce has shaken up the high-street

12. “INTEGRATING DIGITAL INTO RETAIL IS WHERE THE
INDUSTRY NEEDS TO BE.
AT ALLSAINTS, WE ARE A DIGITAL BRAND WHO HAPPEN
TO HAVE BRICK AND MORTAR STORES.”
- OJ Deady, AllSaints
at #CultHosts The Retail Revolution

13. STREAMLINED CONTENT
Insightshow e-commerce has shaken up the high-street
WHAT IS THE ROLE OF THE BRICK & MORTAR STORE?
• Integrating the use of digital innovation into retail space and the discussion of what is best for the future investment for brick-and-mortar space is an on-going
debate. The challenge for long standing retailers to develop to e-commerce in the last two decades has been met with huge success, but has forced a
fundamental identity crisis; what is now the role of the brick-and-mortar store?
• E-commerce has been built to reflect the physical shopping experience found in-store; from branding to accessibility and customer service to delivery
options, the convenience and ease of use has become second nature for consumers. But what expectations have now been created online that need to be
met in-store, and how can retailers begin to unlock the valuable platform of digital through a physical experience?
• We look to disruptive use of digital in the retail space, aimed at not only driving foot-fall, but delighting consumers in the physical space
THE DEATH OF BRICK AND MORTAR?

14. STREAMLINED CONTENT
Insightstopshop
BRAND CASE STUDY: TOPSHOP x DEAR TOPSHOP
• High-street retailer Topshop integrated the use of Pinterest into their flagship stores for Christmas 2013, with the campaign ‘Dear Topshop’, that enabled
consumers to share content from the brand and products coveted from the store
• In both UK and US flagship stores, consumers were able to interact with giant touchscreens that allowed them to pin, share and shop their favourite Topshop
products
• Utilising a strong visual platform allowed consumers to garner inspiration and wish lists to share over the festive period, which in conjunction with the physical
component, created a true ‘shopping experience’
THE DEATH OF BRICK AND MORTAR?

15. STREAMLINED CONTENT
Insightsjohn lewis
BRAND CASE STUDY: JOHN LEWIS X IBEACON TECH
• John Lewis established technology incubator scheme ‘JLAB’ in 2014 which sought to track the growth of 10 start-up technology firms to help the brand
refine their products and business
• The aim of JLAB is to identify technological innovations that can shape the shopping experience for consumers and develop the future of brick and mortar
retail
• Proximity based firm Localz won a £100,000 investment last year, and now work alongside the retailer on the brand’s click-and-collect service. Trialling an
iBeacon service which triggers a notification once a customer who has placed an online order, walks into a John Lewis store
THE DEATH OF BRICK AND MORTAR?

16. THE RISE OF EXPERIENTIAL MARKETING
utilising the retail environment as an experience venue

17. “TO MAKE SPACE FOR THE CONCEPTUALIZATION OF
EXPERIENCE WITH TECHNOLOGY WE HAVE TO BE
ABLE TO SEE THE POTENTIAL IN EVERYTHING AND
BE OPEN TO SURPRISE AT ANY TIME.”
- Technology as Experience,
John McCarthy and Peter Wright

18. THE TWEET SHOP
Daisy Marc Jacobs
THE RISE OF EXPERIENTIAL MARKETING
utilising the retail environment as an experience venue
CONNECTING AUDIENCES TO BRANDS THROUGH DISRUPTIVE EXPERIENCES
• For retailers, the recognition that it is important first and foremost to remain faithful to the consumer and their values, whilst coupling the heritage and essence
of the brand is a winning formula to introducing technology into the store environment - not leading with technology for the sake of it
• Retailers must understand that a touchscreen monitor or interactive furnishings are not the brand experience being provided to the consumer; it’s the content
you use it for
• Ultimately, it’s not the technology that you use, it is how you use it. Consumers are more tech-savvy than ever and face more technological distractions by
way of smartphones, tablets, laptops etc. It has never been more critical for retailers to acknowledge this development in society and understand that
consumers are looking for immersive brand experiences that are enriching and engaging

19. THE TWEET SHOP
Daisy Marc Jacobsburberry
BRAND CASE STUDY: BURBERRY FLAGSHIP
• In 2012, British luxury brand Burberry launched their new Regent Street store, a manifestation of their ecommerce site known as ‘Burberry World Live’. The
44,000 square-foot stores’ aim to combine both digital and physical realms has been named the most technologically advanced store in Britain
• The Grade II listed building is a hub of technological experimentation; customers are thrown into an enveloping digital experience through features such as;
satellite technology to live stream events into the store on the worlds tallest retail screen, interactive mirrors that transform into screens showcasing runway
footage and exclusive content and free guest wifi throughout the store
• Garments feature RFID technology microchips (Radio-Frequency Identification) that when worn and approaching one of the interactive mirrors, video content
on manufacturing, runway content and product information are presented onto the screens
THE RISE OF EXPERIENTIAL MARKETING

20. BRAND CASE STUDY: CHLOÉ X #CHLOESHADESOFROSE
• This Spring, Chloé launched the world’s first Insta-window and Social Florist for it’s fragrance collection: Shades of Rose
• Consumers were invited to step into the window and pose with one of the giant fragrance bottles while a famous Instagramer took their picture
• They were then invited to browse the Social Florist and print their picture, whilst also claiming a rose bouquet and vouchers to purchase the fragrance in store
• The campaign saw a reach of over 10 million on Instagram alone and increased sales of the fragrance by over 100%
chloé
THE RISE OF EXPERIENTIAL MARKETING

21. TAKEAWAYS

22. Technology isn’t the answer, but it’s application is. If retailers can clearly map
our their business goals, then tech can answer the brief, supporting every
aspect of the retail experience
It is through this enhancing of the retail space that consumers come to
experience brands, rather than just browse brands. And it is the former that
leads to sales and long-term consumer loyalty
Technology for the sake of it will not work hard for a retail brand in a
competitive market, the tech must be useful and beautiful if it is to show long-
term value for a retailer
Smart use of digital technology gives deep information about individual
consumers that can be used to remarked to them online too - the virtuous
circle becomes complete

23. holla@cultldn.com 020 305 123 90 @cultldn