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immersive retail

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i m m e r s i o n

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contents

Eleanor Hathorn HAT13387667 : Futures and Innovations Trend Report Year 3I, Eleanor Hathorn, certify that this is an original piece of work. I have acklowledged all sources and citations. No section of this essay has been plagiarised.

3. Sensory Immersion4. Omni-channel5. Immersive Retail6. Customer Interaction7. Trend Analysis8. Trend Drivers9. Trend Patterns10. Key Influences11. Artistic influences12. Survey13. Concept14. Future Trend Direction15. PPD16. Bibliography

Pinterest

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sensory immersion

WHY SENSORY IMMERSION IS THE FUTURE TREND OF RETAIL

in relation to visual merchandising and the Fashion industry.

Pinterest

This trend has manifested from the ‘Digital Wave’(WGSN), a cur-rent technological trend which al-lows brands to communicate with their consumers, and allows con-sumers to connect to what they’re buying on a more personal level. This links to the mircro trend of customer interaction where brands are now offering more tangiable in store experiences.The fututre of in store retail will be more about the consumer experience rather than the selling point. Stores will act more as a gallery space, using design and technology to adjust the spaces.

Sensory immersion is an emerging trend that has manifest-ed into Immersive Retail. Sensory and immersive environments are becoming icreasingly popular due to the current up rise of technol-ogy that we are seeing happeing around us. Retail companies are adopting immersive elements be-cause of this technological change in order to sustain against tcom-petitors. Immersive retail enhances brand awareness by bringing their products to life using technology to manipulate consumers’sens-es in line with augmented reality.

“Multichannel retailing has sparked new trends in the way retailers offer goods and services, not only because of strong competition, but also because of consumer demand and advances in technology.”(Fashion Retailing, page 26.)

Most highstreet brands use in store techology, and in the future, this will inevitably develop into immersive retail ele-ments and sensory experiences.

The responses of sensory immersion are positive for both the brand and the consumer, in pro-viding a meaningful customer ex-perience. This will inevitably make the customer stay longer, therefore spending more time and money.

This will then translate into immersive fitting rooms.It has only been adopted by a few companies and is not yet mainstream, therefore, Immersive fitting rooms is the futuretrend of Immersive Retail.

WGSN

In order to be immersed one must ‘involve oneself deeply in a par-ticular activity.’ (Wiki)

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omni-channel

It is evident to say that brands are alreadysuccessfully bridging the gap between their online and offline platforms, sustaining themselves by adopting technology in their omni-channel presences. The majori-ty of highstreet brands are becoming more diverse and tech savvy be-cause they know they have to keep up with the ever changing industry.Brands are linking what was once multichannel approaches “into one experience whereby the consumer can easily navigate between each channel.”Fashion Retailing, page 26)Ontop of this, by incorporating their products with digital enhancements, brands attract different markets and customers stay longer if they are interacting with the product or experience. “In a tech-driven era, people are embracing digital convenience”(WGSN)

Social MediaBy bridging the gap betwen the physical and the digital, consumers fall into the comfort of merging the two during their shopping experi-ence.“Consumers who use social media during their shopping pro-cess are 4x more likely to spend more on purchases as a result of a digital shopping experience.” (Navigating the digital divide)Results show how profitable this can be for businesses, as well as leaving customers happy.

QR codes have developed into so-cial media likes on the hangers; digitally immersing and engag-ing customers with the products.

BRIDGING THE GAP By 2025, we would expect the integration of digital and physical to be far more seamless

and intuitive across forward thinking retailers.

complex

Sonos sound have landed their first retail space; with several different mini homes to listen to your music in each designed in a unique way.“Now when you visit, you can see for yourself how the physical space can enhance your sound.”(Sonos)They are providing a tangiable ex-perience with touch points where the customer can adjust them-selves to a home like environment, This creates comfort and sensory immersion for the customer, play-ing with their senses and inviting them on a digital journey. It also makes the experience enjoyable and meaningful, where customers can take something away with them.For brands like Sonos, Immersive Retail is a brand extension, how-ever more luxury companies may incorporate immersive elements into their existing stores to adapt.

Sonos

(Insider Trends)

“”

These examples are the beginning of Immersive Retail,“due to the digital and omnichan-nel revolution.”(Nexis)

Experiential, Under Armoour

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immersive retail

consumer empowerment and bespoke environments“flexible retail”

The Dandy Lab is a menswear life-style brand that fuses concept retail stores with living labs that are en-hanced with technology. They “find syngeries between two different busi-ness levels” combining their skills to innovate for the future of retail. The concept store allows the cus-tomer to walk around and map their wifi analytics which analyses customer behaviour around the store as well as providing data that will improve their store layout and product placements. The im-mersive elements in store in-clude touch and pause pointsthat interact with the customers anddigitally present product information. ,

Fashion brands are collaboratingwith tech companies to extend and advance their offerings, as this is what the future of retail and visual merchandising is looking like.

Sensory Immersion is a mac-ro trend (SS16/17) that is pres-ent in various different market sectors, and Immersive Retail is the micro outcome of this trend. There is a strong pres-ence of customer interaction in retail stores at the moment. where brands are providing cus-tomers with the control over the outcome of their chosen prod-uct, or their customer jour-ney throughout this process.Because so many brands are adopting these attributes, con-sumers are expecting immediate convinience in retail where tech-nology not only speeds up their shopping experience but makes it a more enjoyable, meaning-ful one too. Future retail spaces will be compared to an exhibition type space or a showroom layout, (Quote)

Dior

DandyLab

Triumph

However, some may say that “dig-ital will never replace a great in-store retail experience, but it will greatly influence customers’ perceptions of what a great experience is.”(Russ Roberts, Practical Minds, Insider trends.)Not every audience warms to these digital elements, howev-er sensory immersion offers a new experience for most consumers as it plays with all senses, intimatley inviting customers into their brand narrative and product offering.

Hoalition

“Designed to create an interactive consumer experience, The Fantasy Mirror used a motion sensor cam-era attached to a screen, and using 3D infra-red technology to scan be-low the clothes, it created a female avatar in the shape of the custom-er that mirrored their movement.”which “may well be a pivot-al development in the retail bat-tle to allow online consumers to get the perfect fit.”(Hoalition)Only a few retailers are adopting these technological advancements,however the future is digital so it willbe sure to become mainstream.

“Dior offers the ultimate immer-sive experience”taking customers through their fashion shows us-ing Virtual Reality, a macro trend that has recently been adopted by companies within the retail sector.

LVMH

The Dandy Lab

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customer interaction

stimulating the senses

Consumer empowerment and personalisation.

Your Store is a pop up around Lon-don that allows customers to de-sign their clothes from scratch, and upload them via touchscreens.This empowers consum-ers through personalisation as they are acting as the seller bytaking control over the products.

YrStore

Sensory immersion is present in a wide range of market sectors.“As the industry grows but its tan-giable extent shrinks, retailers anx-iously look for those tech outlets that will differentiate them from their com-petitors.” (Fashion Retailing, 162.)

Google Wall

This strategic game powered by google has “touch-based controls that have become a tantalizing new frontier of game design, delivering a more immediate connection be-tween the player and the game.”Customer interaction benefits both the brand and the customer, and by stimulating the senses brands per-sonally connectwith their customers.

Audi

WGSN

Diesel

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trend analysis

technology up rise

“Retailers will focus less on transacting with customers by merely selling their products to them and instead will be focusing on creating winning

brand spaces that customers can be immersed into and share on.”

(Insider Trends, Lucy McLaren, Senior Strategist, Household Design)

Not all brands can adopt because of how expensive tech equip-ment is on a large scale and for all stores. The immersive el-ements could be in just their flagship stores to keep budget down which will sway customers to go to the flagship, that is a prime selling opportunity as it has the most merchandise.The industry could face ecological challenges due tothis technological up rise in the mar-ket, as it is using mostly electricity as its equipment, which in the long run is bad for the environment.However, by using digitalised advertising, it saves physical ma-terials being wasted as they are being replaced by technology.

This digitalised trend can be adopted by retailers who in-vest in technology and the future of their market sectors.‘The global technology retail industry experienced steady growth over the last five years and is expected to continue its growth momentum, reaching approximately $1,210 billion in 2017 with a CAGR of 5.8% over the next five years’.(Nexis)This statstic proves that brands need to adopt thetechnological changes happening around them in order to sustain in the market against their competitors.

Immersive Retail’s target audience is Generation Y and Z because “they are the early adopters, the brand influenc-ers, the social media drivers, the pop-culture leaders.”They are the most tech savvy, and interested generation when it comes to technology and adapting towards the future.

One Europe

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trend drivers

Emerging examples of the trend manifesting in the market:

Where it’s presented:

The innovators adopt sesory immersion within the retail space as a trend and the customers drive it.

Exhibitions

Pop upsDom Perignon

StoresDover St Market, Vivienne WestwoodxMelissa

Bjork, Infinite Mix

All Authors Own

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trend patterns

the scale and potential impact of the trend

Optimizing the shopping ex-perience is a more productive and profitable way for retailers to engage with their customers.It encourages customers to come back to interact with the brand in new and innovative ways.

The virtual fitting room is a “shiningexample of customer empower-ment. Shoppers can, using the built in touchscreen, see what they would look like in other colours or pat-terns in the mirror.”(Insider Trends) This refelects the future of visual merchandising in stores; convin-ience, personalisation and immer-sive elements will all come togeth-er to form a seamless shopping experience for brands that wish to adopt and sustain in the market.

Samsung

Ralph Lauren Uniqlo

“Patrons also had full control over fit-ting room lighting, ranging from settings like ‘Fitth Ave Daylight’to ‘Evening at The Polo Bar.’” The mirror also auto-generated suggested items to complete the look based on what’s being tried on.(Jessica Bianchi)This gives the brand opportu-nity to cross sell as well as pro-viding customers with full in-teraction and personalisation. Samsung’s experiential store is a

‘digital playground’that desires interaction over transaction as you can’t actually buy anything inside.“Samsung regularly refreshes the content, encouraging customers to come back to interact with the brand in new and innovative ways.”(Jessica Bianchi)This concept reflects how the future of retail is heading towards a more ex-perience focused customer journey.

Immersive Retail will impact fashioncompanies in such a way that they will focus more on deliver-ing a seamless experience rather than the selling point. This will pro-vide an enjoyable journey and will enthuse the consumer to stay longer, therefore more likely to spend money.

Ralph Lauren

Samsung Uniqlo

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key influences

Immersive Cocoon

Projections

Mechatronics

Stores

Museums

Designers

Installations

Holograms

Trend Forecasters’ Handbook

Harlequin, John Lewis

Hoalition

Authors Own Designmilk

Designboom

The Vatican

Hunter

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artistic influences

Artist Refin Anado uses projection mapping

to focus on connection “between the sim-ulacrum space created by the projec-

tion technology, and the physical space where the viewer stands.”

Miguel Chaveliuer

Refik Anadol

designmilk

Pixel Wave

Artist Miguel Chaveliuer uses pixels and heat mapping to create move-ment when people interact with it.

pinterest

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survey

the potential impact of the future trend

IMMERSIVE FITTING ROOMSA survey was taken on Survey Monkey about Immer-sive Retail and there were 56 responses, 82% falling into Generation Y and Z.The survey shows how this demographic is interested in technology within the retail environment and how their experience matters to them.

Results show that 77% of people make most of their pur-chase decisions in the fitting room, meaning that there is room for expansion for Immersive Fitting Rooms. Over half said they’d be interested in either a dig-itally enhanced experience or an interactive one.

Authors Own

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concept

how this trend will translate into a conceptual idea

The three dimensional, immersive environments may translate into a retail space like the Fitting Rooms in the future. Some have al-ready reached an interactive level using 3D mirrors and lighting to ad-just to their customers senses. However, no brand is fully immersing their customer with a 360 degreee, full immersion, and this may devel-op into a micro trend of immersive Fitting Rooms, taking it one step fu-ther into a 360 degrees consumer immersion whilst trying clothes on.

The target audience for Immersive fitting rooms would be between Gen-eration Y and Generation Z as these are the most “connected, ed-ucated and sophisticated generations ever.” They are tech savvy, and are interested and influenced by new technology. (Generation Z)

The future focus for sensory immersion should be in the fitting room as this is the most important part of the customer journey as it is the de-cision pivital point of sale as to whether they will buy their items or not. This is where there is a gap in the market, as brands are not ful-ly using this space to engage or immerse their customers into what theyre buying, a time where brands could even persuade the buy-er and have their full attention to create a strong customer connection. Ideas could lead to future innovations; transforming the interac-tive mirrors of brands like Uniqlo, into real like environments that adjust depending on what they’re wearing and the mood they’re in when wearing that particular outfit. For example, if the custom-er were trying on an evening outfit, their surroundings could ad-just accordingly to enhance the senses for that particular setting.Lighting, sound and levels could adapt around them, bring-ing all of the current immersive elements togeth-er into this one method that could be the future of Fitting rooms.With the constant retail advancements happening around us, it is clear to say that brands are focusing less on their fitting rooms, which are still pretty basic, and more on their in store elementskeeping the customer for longer.

IMMERSIVE FITTING ROOMS

This idea is focused on tailoring the environment bespoke to the cus-tomers needs and desires, where the future of retail is convinience and experience, fully immersing the customer in what theyre buying.

Visualisation environment: Christie Mirages

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future trend direction

This trend would be adopted by companies who are tech savvy/ or who collaborate with tech companies to enhance their offering. The mar-ket would range from luxury, to high end concept or experiential stores.Brands that may adopt this trend would be the likes of Dover St Mar-ket as their retail environment is focused on the visual, design aesthet-ic just as much as their selling point is. Because of this, they attract all sorts of markets, not just their usual customer who buys their luxury ap-parel from there. Brands may adopt this trend as a pop up to try with cus-tomers before actually implementing it in their stores. Brand like Adidas, who are dominating their market and who are interested in experien-tial marketing would be the perfect example of a brand who may adopt the Immersive Fitting Room trend, who has access to elite technology and they could use it to promote a new collection or material for example.

The concept will take off from digital screenings that adjust to the cus-tomers movements that are present in todays retail spaces. For example; the Nike screens at Dover St Market are a few different screens behind one long mirror that fully immerse you into a digitalised capsule. This could be translated into a fitting room where all four walls are like this and could digitally immerse the customer into different environments and settings.The environment could also inform the customer about the clothes they’re wearing and where they’re come from through the supply chain. It could advise the customer on what theyre wearing through ex-tensive cross-selling. The real purpose is to provide a meaningful cus-tomer experience where they are left feeling more excited about the brand and their products.This future trend celebrates the functionality behind fashion and how this can be enhanced by digital, immersive elements.

IMMERSIVE FITTING ROOMS

Authors Own

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ppd

To conclude:

Sensory immersion has developed into Immersive Retail spaces, where elements are currently being adopted by brands who are sustaining with technology and their competitors. The predicted future micro trend of this will develop into the fitting rooms, because it is the prime selling space and the most important part for brands connecting with their customers on an intimate level.

PPD:

My initial idea of Immersive Fitting Rooms stemmed from the ‘Immersive Cocoon’in the Trend Forecasters’ handbook, that fully ecloses you into an immersive space. Combining this with the immersive elements already happening in retail, I have predicted this to develop into the fitting rooms as there is a gap in the market for this where brands have only incorporated minimal elements as of yet.This subject may be approached in my FMP as I want to focus on sustainability in the visual merchandising industry in contrast to the textiles in-dustry. I want to combine this with technology in oder to deliver a meaningful customer experience based on sustainability but using an artisinal ap-proach. This trend report has helped me to build up a range of research looking towards the future of retail and how these environments can be ad-justed to consumers needs whilst delivering a strong message.

Beehance

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