This is one way for digital
and physical to work
together.
To take this synergy a step
further, we have digitized
brick-and-mortar stores.
Two key technologies are
involved here: immersive
technology and deep
learning. Immersive
technologies can run without apps. Technologies like virtual fitting rooms where
customers can try on clothes and smart mirrors that can diagnose skin health or
put on digital make-up have been around since 2015. These technologies are
yet to gain traction and become permanent fixtures in physical stores.
Big brands like Payless Shoes, Crocs, Office Depot, and
Abercrombie & Fitch are shutting down a
number of their physical stores. Is this a
sign of brick-and-mortar’s demise?
And is digital the culprit?
Alibaba will be the first major retailer to have a wide scale integration of
immersive technologies in their physical five-story mall called
More Mall. This mall was designed to be fully enabled by
various digital technologies to make online and offline
worlds meet.
Another example of this is Amazon’s physical store,
Amazon Go. This store is enabled with a host of cutting
edge technology such as computer vision, sensor
fusion, and deep learning. These technologies allow
them to implement their Just Walk Out Shopping
experience. No more lines. No more checkouts.
Customers just pick up what they need, walk out,
and get charged on their Amazon app.
Y
BU
The term “digital evolution” makes it clear
that on the flipside, there is extinction. In
this narrative we can identify three key
factors: customers, organizations, and
technology. In recent years, we have seen
how technology empowered customers. As
a result, organizations were compelled to
adapt to growing customer expectations
by digitally transforming and taking on new
mindsets.
In the past, physical stores upgraded into having
eCommerce counterparts. In these two
examples, we see the reverse. This further
supports that digital is not here to kill
brick-and-mortar, but to synergize
with it.
We then derive that digital does not kill
businesses by itself, nor is it enough to
guarantee success. The key to success
(and the way to avoid extinction) is to
re-center on the needs and expectations
of the customers.
In this article, we explore technology
executions that addressed real customer needs in
the world of retail. Spoiler alert: digital is actually helping
brick-and-mortar.
Take a look at
how Amazon Go
operates by scanning
this QR code.
Power of Personalization
There will be a growing customer expectation
of personalization that goes beyond marketing.
Personalization is expected to be part of the entire
experience and even product design.
Purchase Decisions with
AR Apps
Digital has changed the buying journey.
Before the internet, customers got most of
product information from the store itself.
Google labels this as the Zero Moment
of Truth. Whether the purchase decision
leads the customer to the eCommerce site or to a physical store, success in
retail rests on how much information you can supply to your customers to help
them in making purchase decisions. Most websites would offer side-by-side
comparisons of products especially for appliances and gadgets. To address the
same need, brands are employing immersive technology.
CaliBurger, an eatery in California, links facial
recognition to activate customer loyalty accounts and
give