Twelve Transformational Digital Retail Technologies Explained (Part 1)

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1 Twelve Transfrmatinal Digital Retail Technlgies Explained (Part 1) By Richard E. Last

2 Twelve Transfrmatinal Digital Retail Technlgies Explained (Part 1) Will these 12 emerging technlgies transfrm retailing? Yu decide! 1

3 Twelve Transfrmatinal Digital Retail Technlgies Explained (Part 1) 1. The Interface Explsin 2. Respnsive Web Design 3. Open A.P.I. Platfrms 4. Clud Cmputing 5. Big Data 6. Mbile Payments 7. Augmented Reality 8. Gefencing 9. Beacns D Printing 11. The Internet f Things 12. Bitcins 2

4 Twelve Transfrmatinal Digital Retail Technlgies Explained (Part 1) 1. The Interface Explsin: Keybard and muse as primary interface are nearing the end f their lifecycle Tablets, smartphnes, game cnsles, in-car: all represent a shift t natural human interfaces Vice will becme the mst sught ut interface between the cnsumer and his r her technlgy Many retailers reprt 50% f mbile traffic is thrugh tablets Tablet cmpensates fr size weakness f smartphnes Tablet enables lifestyle merchandising thrugh rich imagery and experiential navigatin Retailers have t adapt experiences t leverage these interfaces 3

5 Twelve Transfrmatinal Digital Retail Technlgies Explained (Part 1) 2. Respnsive Web Design What is it? : Design apprach aimed at crafting sites t prvide an ptimal and cnsistent viewing experience with a minimum f resizing, panning, and scrlling acrss a wide range f devices Allws fr same site and cntent regardless f device Single cde base / single set f URL s (make changes nce) Less expensive t maintain than multiple sites Flexible grids / Breakpints by screen size 4

6 Twelve Transfrmatinal Digital Retail Technlgies Explained (Part 1) 2. Respnsive Web Design (RWD) tday: Can help imprve search engine ptimizatin Allws fr a single cntent management system Designers can nw take a mbile first apprach Originally deplyed fr creative sites and blgs, but nt retail Only 8% f Tp 500 ecmmerce sites have fully adapted Respnsive Design Still early fr best practices t fllw by retail merchants 5

7 Twelve Transfrmatinal Digital Retail Technlgies Explained (Part 1) 2. Native Mbile apps vs. Respnsive Web Design: Mbile Specific Site Advantages Faster lad / lighter weight Quicker t execute: 3 rd party template slutins have existed fr several years Mbile Specific Site Disadvantages Re-directs needed fr each page (e.g., ½ f s are pened n mbile devices ) Creatin and maintenance f duplicate cntent Ggle SEO penalizes bad r missing redirects 6

8 Twelve Transfrmatinal Digital Retail Technlgies Explained (Part 1) 2. Native Mbile apps vs. Respnsive Web Design (RWD): RWD Site Disadvantages Expensive fr large sites (similar t re-platfrming) Many retailers have already recently re-platfrmed Can slw dwn site (if starting pint is a desk tp design) Technical skill set is still scarce in retail IT shps Cmplexity f designing strng experiences in Respnsive Difficult t A/B test vs. mbile specific site testing and desktp specific site testing Tablet experience ften better than smartphne experience in Respnsive 7

9 Twelve Transfrmatinal Digital Retail Technlgies Explained (Part 1) 2. Respnsive Web Design : QVC Case Study In 2013, QVC/ Liberty Media ranked #5 in ecmmerce sales and #3 in Mbile Cmmerce (behind nly Apple and Amazn) QVC launched Respnsive Web Design in Nvember, 2013 Taking a step-by-step apprach starting with checkut Why Respnsive? QVC wanted a cmprehensive in-huse slutin fr fast implementatins They recgnized that 33% n nline sales were already ccurring thrugh mbile devices It is still t sn t draw cnclusins n results 8

10 Twelve Transfrmatinal Digital Retail Technlgies Explained (Part 1) 2. Respnsive Web Design: Other Case Studies Tmmy Hilfiger was first majr brand r retailer t g Respnsive (Q1 f 2013) Gap annunced a majr investment in respnsive design acrss all f its sites (April, 2014) 9

11 Twelve Transfrmatinal Digital Retail Technlgies Explained (Part 1) 3. Open API Platfrms: Why needed? The prliferatin f devices and f interfaces makes it imperative t share develpment beynd the IT department Opening up f the prduct catalg enables innvative business mdels and mash-ups t be created by independent and partner develpers 10

12 Ggle Maps API API cmmn example: Ggle maps: Fr a few pennies per click, any retailer r restaurant add mapping capability t their stre lcatr 11

13 API = web services carved ut f enterprise systems 12

14 Twelve Transfrmatinal Digital Retail Technlgies Explained (Part 1) 4. Clud Cmputing: Fr CIO: Fr CEO: architecture mves frm rigid physical servers t sftware-like flexible systems frm capital expenditure budget fr IT resurces t n-demand virtual cmputing Fr small t mid-size retailers: Remves capacity cnstraints: equalizes the playing field scalability Fr the Cnsumer: The persnal clud. Data cnsistency acrss persnal devices 13

15 Twelve Transfrmatinal Digital Retail Technlgies Explained (Part 1) 5. Big Data: The amunt f cnsumer data is s large and cmplex that it requires increasingly cmplex management tls t ptimize the ptential benefits Accrding t McKinsey, if retailers culd full ptimize big data, They d see 60% increase in perating margins Integratin f data frm many surces is challenge Transactin data, web brwsing data, custmer data, prduct data, lcatin data, demgraphic data, scial data, etc. Infgraphic: Retailer's guide t Big Data 14

16 Twelve Transfrmatinal Digital Retail Technlgies Explained (Part 1) 6. Mbile Payments: Mbile will eventually fuel cnversin t a cashless ecnmy (But when??) U.S. behind ther markets like Japan in cnsumer use f mbile payments Mbile payments will cnnect cnsumers smartphnes with POS, digital signage, kisks, etc. Only 25% f cnsumers are even smewhat interested tday Mbile payments this year frecasted t be $1Billin Expected t be $58 Billin by

17 Twelve Transfrmatinal Digital Retail Technlgies Explained (Part 1) 6. Mbile Payments: Cmpeting mbile wallet technlgies will slw dwn adaptin. NFC (Near Field Cmmunicatin) embraced by Ggle (Ggle Wallet) Already in sme Sprint phnes (rll-ut cming sn) Isis, a jint venture f AT&T, Verizn, and T-Mbile is als embracing NFC (rll-ut cming sn) MCX (Merchant Custmer Exchange) is a cnsrtia f retailers: Wal-Mart, Best Buy, Target, 7-Eleven, CVS, Lwe s, Sears, and thers Develping a mbile app fr nearly all smartphnes CVS pulls Apple Pay s as nt t cnflict with cnsrtia gals Paypal has been testing an app fr mbile payments Square already available in Starbucks, but nt a lt f tractins verall Visa and MasterCard each have their wn mbile payment apps Andrid devices frm Samsung equipped with NFC chip Apple had nt embraced NFC chip r any f these initiatives until nw Standards will cntinue t be an issue: Hardware (chip), Carriers, POS 16

18 Twelve Transfrmatinal Digital Retail Technlgies Explained (Part 1) 6. Mbile Payments: Will Apple Pay be the game changer? Nw available n new iphnes and ipads Des nw cntain an NFC chip Hundreds f banks n bard. Timing is right as cnsumers lack cnfidence in traditinal card security at retail stres Built in custmer base millins f registered itunes accunts 17

19 Twelve Transfrmatinal Digital Retail Technlgies Explained (Part 1) 1. The Interface Explsin 2. Respnsive Web Design 3. Open A.P.I. Platfrms 4. Clud Cmputing 5. Big Data 6. Mbile Payments Have any f these six impacted yur retail business? Are yu investing r plan t invest in any f these Technlgies? Interested in sharing a case study? We are here t assist and advise. Cntact fr cmments, Feedback r additinal infrmatin abut TRTT 18

20 Twelve Transfrmatinal Digital Retail Technlgies Explained (Part 1) Will these 12 emerging technlgies transfrm retailing? Yu decide! Watch fr Part 2 in March, exclusively in The Retail Think Tank Insights 19

21 Fr mre infrmatin cntact: The Retail ThinkTank, LLP 5999 S Custer Rad., Ste. 110 Frisc, TX T

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