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© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
Retail Technologies –Highlights from NRF
January 29, 2014
Patrick ConnollySenior Analyst – Location Technologies
connolly@abiresearch.com
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
Hot Topics at NRF
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
Table of Contents
• Case Study: First Omni-channel Stores
• Growing Importance of Mobile/Smartphones
• Role of Staff
• Dynamic Pricing
• iBeacons/BLE Location
• Next Generation Indoor Location Technologies
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
Macy’s—The First Omni-channel Store
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
Macy’s:• 5-year omni-channel strategy• QR codes/NantMobile• Indoor navigation app:10% of customers• RFiD: Inventory management• Staff iPADS• Store-based fulfillment• shopkick/iBeacons
Target:• Showrooming/price matching• Staff iPADs: Price matching• Technology Innovation Center• Social Integration: Popular on Pinterest, Target Awesome Shop• Dynamic pricing by day, time, customer, weather, use-by date, etc.
JCPenney: A lesson to be learned
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
Mobile, Mobile, Mobile…. Mobile!
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
Customer Acceptance of Mobile Shopping Increasing
• 80% of smartphone users in the United States have downloaded a shopping app• 84% use smartphone in-store• 50% increase in median basket size
Benefits:• Create a measureable link between online and bricks & mortar channels• Streamline offers/coupons, mobile payments, loyalty programs• Present opportunity to help gain control over in-store Internet usage• Enables new levels of analytics tools• Increases customer engagement and shopper marketing opportunities
RoI Analysis:• Increase customer spend through targeted offers, coupons in aisle• Increase loyalty with integrated loyalty programs, app reminders• Increase basket size through brand upselling, product location• Attract new customers through proximity marketing
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
Smartphone Applications:• Utility: Shopping list, prescription refill, flight gate alerts • Navigation• Local search, product discovery, product information• Social media integration/interaction, recommendations, check-ins• Coupons/offers, rewards• Mobile POS, ticketing
Staff Tablets:• Inventory check-up• Price comparison• Product information• Mobile POS
Product/Digital Signage Interaction:• Proximity alerts, offers, information• Scans, QR codes, downloads• Active showrooming Customer Experience
Staff
Indoor Location
Mobile App
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
Location-enabled Mobile Shopping App Forecasts
• Branded Apps: Meijer, Walgreen’s, Macy’s, Target, BestBuy, Walmart, Starbucks, etc.• Over-the-top Apps: shopkick, Shopular, RedLaser• Shopping List: Aisle 411, Point Inside, Grocery iQ• Local Search: eBay, Amazon, Google, Yelp, Foursquare• Daily Deals/Offers/Coupons: Groupon, Coupons.com, LivingSocial, RetailMeNot• SMS Alerts: O2 Priority Moments, AT&T deals, Orange France
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© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
In-store Analytics and Marketing
Customer Insight Examples/Recommendations:• 50% visited one in-store location and left without buying—identify time/day/section and optimize staff to
intercept and convert• 60% stayed within 30% of store-consider new layout/which brands are most popular• 15% hopped lanes—streamline POS by time/day/week• Install and integration fees• 20% purchase 1 to 2 items—increase basket size by catering to these users by day and time
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
Retail Indoor Location Analytics Deployments
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Other
Shopping Center Malls
Universities/Educational Institutions
Sports Venues/Stadiums
Hotels/Resorts
Airports
Small Retail Stores
Dining/Beverage
Food and Grocery
Large Retail Stores -DIY/Warehouse/ElectronicsClothing
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
Staff
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
Omni-channel SalesInventory Look-up
Online Sales
Employee DevicesMultiple Options
Mobile POSReduced Lines
Influence at Point of Decision
Improve Customer ExperienceRapidly Respond to Qs
Increase SalesEmpower Staff
Efficient ManagementImprove Brand Perception
Active ShowroomingPrice Comparison
Price Matching
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
Technology Requirements:• Staff Application: time management, inventory, alerts• Tablets, smartphones (perhaps BYOD?)• Wi-Fi/mobile coverage• Integration with back-end systems• Mobile POS , integration with loyalty applications• Analytics/performance• Staff optimization tools, e.g., IBM DSO
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
Dynamic Pricing
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
New Technologies:• Graphical digital displays• Centralized management platform• Data and pricing analyticsNew Capabilities:• Real-time price matching/display• Dynamic pricing by day, time, customer,
weather, use-by date, etc.• Showrooming is a positive• Built-in location capabilitiesPotential Issues:• Customer perception• Customer behaviors• Algorithms
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
iBeacons: The Long Tail
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
BLE/iBeacons:
• Qualcomm Retail• ilnside (previously WirelessWERX)• BestFit• Estimote• Zebra Technology (Zatar IoE platform)• Data Display Inc. (integrated into digital pricing labels)• shopkick (American Apparel rollout)• GPShopper• StickNFind
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
Bluetooth Indoor Location Installation Forecasts
• Breaking 20,000 stores in 2015• Already moving into nationwide store deployments in the United States• Potential to be much stronger if taking all implementations into consideration
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© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
Next Generation Location Technologies
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
• Magnetic Field• LED/VLC • Audio/Ultrasound: Verifone• Sensor/Data Fusion: CES, big trend • Next-Gen BLE: Quuppa • Next-Gen Wi-Fi: Cisco, Qualcomm, IBM, etc.• 3D Cameras/Facial Recognition: NEC/Microsoft, IBM,
Panasonic
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
LED/VLC Indoor Location Installation Forecasts
• Zero costs at handset or infrastructure• Ubiquitous sub-meter accuracy• Tight integration with iBeacons, sensor fusion, etc.
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2013 2014 2015 2016 2017 2018
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LED/VLC Active Handsets
© 2014 ABI Research
Scottsdale Austin New York Geneva London Singapore
Thank you!
Patrick ConnollySenior Analyst – Location Technologies
connolly@abiresearch.com
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