Exploring the future for wearable technology in retail

1. Exploring the future
for wearable technology in retail
eTail France 2015
04/11/2015
Yvon MOYSAN
CEO, Saint Germain Consulting
Lecturer Digital Marketing, IESEG School of Management

2. Insight into the
innovative developments
within the wearable tech community

3. Wearables in retail: shoppers’ point of view
63% mentioned security fears as a major concern
52% will be discouraged if only a few shops allow them to use it.
40% say concerns about privacy might dissuade them.
Only 11% said wearables might be too complicated to use.
(Vista Retail Support, 2015)
72% of shoppers believe wearables will be the future of retail
51% believe wearables will be common in stores within two-to-five years
82% view speed at the checkout as the main advantage
49% say it will improve their experience by receiving personalized offers

4. Discover how wearable tech is bridging
the gap between your customers
imagination and their reality

5. Challenge : create a virtual reality window display for London Fashion
Week AW14
Solution: Topshop customers can have a front row seat at the Fashion
show with the virtual reality Oculus Rift head-sets
Key benefits to customers:
• Access to a 360-degree virtual world combined a live feed from the
runway, backstage action, VIP arrivals, set design and other animated
features
• Customers were able to pick and buy favorite runway looks and playlists
online in real time
Topshop: Visual in-store experience

6. Situation: It can take 2 days to visit 10 houses because of traffic or even
more if you live abroad.
Solution: oculus rift provides customers a real life view
Key benefits to customers:
• Save time as It allows buyers even from abroad to check out homes
before to take a flight to finalize the deal.
• Allow owners of expensive homes to focus only on buyers with
legitimate interest in purchasing
Sotheby’s real estate: Visual in-store experience

7. Challenge : Creating excitement before customers even think or plan their
vacation.
Solution: Samsung Gear VR headset provides real view of desired vacation
destination.
Key benefits to customers:
• Consumers can experience vacation before departure.
• A real view will help them to decide the tourist destination or hotel
• Virtual tours include a helicopter ride over Manhattan, a poolside visit in
Rhodes and a restaurant trip in Cyprus.
Thomas Cook: Visual in-store experience

8. Situation: In several cities, space areas are limited to display cars and high
traffic density limits the capacity to test them.
Solution: thanks to an Oculus Rift virtual reality headset, Audi offers an
immersive virtual experience to try the car. The helmet is equipped with
Bang & Olufsen speakers (e.g. to hear sound made by closing the door).
Key benefits to customers:
• Can virtually drive his future Audi
• Can observe all options (color, equipment, leather interior ...)
Audi TT: Visual in-store experience

9. Audi: Goodwood Festival of Speed
https://www.youtube.com/watch?v=3Mp4-BjGHQw

10. How can the early wins
of wearable tech be implemented
within the retail sector?

11. Challenge : “All in one creating Disney moment - just like Magic”
Solution: MagicBands are to enter Disney theme parks, unlock Disney
Resort hotel room, use the FastPass+ entrance for attractions and
entertainment experiences, charge purchases.
Key benefits to customers:
• A more immersive, more seamless, and more personal experience
Disney World: payment

12. https://www.youtube.com/watch?v=2buVLVO-6F8
Disney World: payment

13. Challenge : Creating the ultimate retail experience
Solution: beacons in its mannequins. Customers entering the store will be
able to receive push notifications about the products on display, purchase
the items directly from Ted Baker's website, or find out where they can be
located in the store.
Key benefits to customers:
• Customers receive details about the clothes on display via their mobile.
• Shoppers can use the information to create look-books, share fashion
inspiration with friends or access additional offers and rewards.
Ted Baker: Customer location within store

14. https://www.youtube.com/watch?v=5gouBpwwcvM
Ted Baker: Customer location within store

15. Challenge : Streamline the customer experience
Solution: Starwood Hotels has installed iBeacon technology in over 30 of its
hotels and resorts.
Key benefits to customers:
• Starwood guests with the brand’s mobile application can now check in,
receive their room number and even unlock their hotel room doors
without having to trek to the front desk
Starwood: Customer location within hotel

16. https://www.youtube.com/watch?v=Fcy0NXNML9U
Starwood: Customer location within hotel

17. Is there a valid business case
for wearable tech?
What should you fight for
and what should you avoid?

18. Wearable technology is projected to
drive potential operational savings of
$1B per year by 2017
(Rivera, 2013)

19. Challenge : replace the thousands of walkie talkies it uses for in-store
communication.
Solution: Theatro Wearable Computer is roughly the size of a matchbox, but
a bit thicker, and clips to a pocket, lapel or lanyard.
Key benefits to customers:
• enables hands-free voice communication, the "disturb everybody button"
lets you speak to everyone in the store, not unlike a walkie talkie.
• let the company track employees when they're at work
The container store: Hands-free
communication, employees location in store

20. Challenge : Inventory for retail
Solution: a drone which provides shelf space analysis. Equipped with a
camera, the UAV travels rays, scans the shelves, identifies missing goods
and real-time warning of shortages. The business is trialing the technology
with a consumer goods firm in Dubai.
Key benefits to customers:
• The drone is used to take pictures of shelves across a store and feed
information back to staff on what needs restocking.
Wipro: effective use of space

21. In 2015, Half of the top 100 retailers
in the U.S. are testing beacons, that
are expected to directly influence
over $4 billion worth of sales
(Business Insider, 2015).

22. Challenge : Special offers to promote Magnum ice cream’s Pink and Black
Solution: Customers who download the MPulse app received exclusive
coupons for discounted Pink and Black Magnums when they pass by
iBeacons located in 270 Tesco Express stores across London via push
notifications
Key benefits to customers:
• Exclusive coupons for discounted Pink and Black Magnums
Tesco: promotions

23. Challenge: send current promotions or discounts to the shopper’s mobile
phones once they enter the store
Solution: more than 4,000 beacons in over 800 of its stores to provide
shoppers with customized offers and promotions straight to their mobile
devices when in-store.
Key benefits to customers:
• Customers receive beacon messages that will let them know about
products they might be interested in when going into a store
Macy’s: promotions

24. https://www.youtube.com/watch?v=c3h0eKGfUfI
Macy’s: promotions

25. Challenge : “reorders your favorite item with the press of a button”
Solution: Sign in with Amazon Prime Account in Amazon App. Connect
Dash Button to Wi-Fi and select the product you want to reorder. Once
connected, a single press on Dash Button will place your order
automatically. Confirmation will be sent to your phone.
Key benefits to customers:
• Never run out of your favorites products with Amazon Dash Button.
• There is 29 popular brands for 6 categories: Household Supplies (9)
Beverages (4) Grocery (5) Health & Personal Care (6) Baby (3) Pet (2)
Press Dash Button and Amazon quickly delivers

26. https://youtu.be/EHMXXOB6qPA
Press Dash Button and Amazon quickly delivers

27. Wearables: retailers’ point of view
Transforming Retail Operations
• Streamlining Communication and In-store Collaboration
• Hands-free communication, employees location in store.
• Store Layout and Backend Efficiency
• Effective use of space, access to interactive step-by step instructions for task completion.
(Deloitte, 2015)
Improving the Customer Experience
• In-Store Shopping Experience
• Visual in-store experience, payment.
• Personalization and Real-time Marketing
• Customer location within store, Promotions.

28. Questions ?
Saint Germain Consulting
Yvon MOYSAN
yvon.moysan@saintgermainconsulting.com
Tél: + 33 (0)6 62 84 71 00
www.saintgermainconsulting.com