The retail industry is changing rapidly, consumers are buying more and more product on the internet and traditional high-street retailing models are failing to provide growth. Today, brands and retailers recognise that to engage consumers and increase spend they must provide an exciting and engaging store environment. Technology is key to creating consumer engagement before and after a purchase, and Luma believe that in-store experiences are in their infancy. Tim Williams is Commerical Director at Lumacoustics - http://www.thisisluma.com a leading digital experience agency. var _gaq = _gaq || []; _gaq.push(['_setAccount', 'UA-31055124-1']); _gaq.push(['_trackPageview']); (function() { var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true; ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s); })();
I saw these in Virgin Megastore in Mall of the Emirates, Dubai this week. A lovely little install of a checkout numbering system using two-way mirror with an LED alphanumeric display hidden inside. Simple yet surprisingly beautiful.
Burberry just seem to keep pushing boundaries with their experimental and mega-high-end approach to digital retail. I have visited the Regent Street store and the success is not only in its super-slick technology and hardware but the integration. Screens are not just stuck onto the wall showing any old content, this is all about amazing, high-end, integrated digital.
Just a couple of days ago Burberry announced that consumers can buy the 2013/2014 collection right after it was shown at London Fashion Week. Embedded in the clothes are 'special' chips that Burberry are keeping secret about, except that the aren't RFiD chips (according to Mashable). So, interesting that they are not just doing things other people have already thought of - somewhere in Burberry are some very knowledgeable people.
Excite and engage - but make it worth the investment
Here at Luma (http://www.thisisluma.com) we have been involved in some really high-brow interactive installations in retail environments. These range from static digital signage (not very interactive!) to full-on gesture controlled experiences using the latest hardware and software.
Our niche is that we develop these type of solutions from scratch - our team is made up of software engineers, product designers, electronics experts and top class installation engineers. Making a fun, exciting consumer experience in store is becoming a big part of our business.
....but where is the value in all this fun stuff? Sure, it's great to make the high-street more exciting and give consumers a reason to visit a store but how does this translate into purchases?
At the moment it's probably fair to say that assessing the real value of interactive digital store experiences is difficult. There are many reasons for investing in digital interactive retail installations in-store: enabling consumers to buy product, helping their purchasing decision, increasing footfall in-store and increasing spend when in-store or through another channel. The retailers and brands who make the most of this exciting new technology will be those who gather, analyse and use data from these experiences.
Engage consumers in new and exciting ways in-store - then gather and use the data effectively. I will be looking at this more throughout 2013.
This is a really interesting concept. Interactive mirrors are not new, and can be found in many stores already. Nike Boxpark, London has a virtual mirror wall that is activated when you walk up to it - but it isn't very interactive.
This John Lewis install is more interactive, but as yet I haven't tried it so cannot comment on how good it is. Still, its made by Cisco and four other companies so you would assume it is pretty amazing.
I love this concept - Euclid Elements installs simple technology that monitors all smartphone wifi pings in a given area and then begins to correlate the data. This means retail stores can track people walking past, how many people walk in to the store, how often they return and how long they stay in store - and loads of other metrics.
This technology looks like it has a lot of potential. Essentially it gives retailers instant feedback on store window design and in-store experience.
There has been a lot of press coverage about Nike's new store at Boxpark, London which opened at the beginning of March. Nike have promoted the store as "the future of retail" but is it really? No, I don't think so - that isn't a negative comment, its just that the term "the future of retail" is too broad to be applied here.
For starters the store is very small and dark, it is very difficult to see the product clearly and there is little day light. That leads onto the product - there are just a few items on display at any one time, but again, this isn't a criticism. The problem here is definition. This is not a retail outlet, this is a brand space. And this, I believe IS a major trend for the high street over the coming years. Brand spaces are living, breathing interactive adverts and there is no better way to engage consumers in a brand than to let them feel and touch it.