Incisiv – Recent research from Incisiv and Windstream/BRP show that retailers are actively investing in digital initiatives across the enterprise, yet they still face challenges across many areas. We sat down with two key executives to understand where retailers should prioritize and focus to ensure success.
Dave Weinand, Chief Customer Officer, Incisiv:
The increasing influence of digital is driving retailers to experiment with new store experiences and formats to deliver on customer expectations. In your opinion, what are the most compelling new in-store applications and/or formats you are seeing in the market?
Jeffrey Neville, Senior Vice President and Practice Lead, BRP Retail Consulting Firm:
One of the more compelling store formats is the “new retail” concept, called Hema, run by China’s e-commerce giant, Alibaba. The Hema stores simultaneously act as marketplaces, commerce platforms, fulfillment centers and innovation hubs where they allow customers to experience new brands and products. The 25 Hema stores are a unique and entertaining experience that act as a destination.
The in-store shopping experience is centered around the Hema mobile app and shoppers must use the app to fully optimize the services. These include:
Scan barcodes on products for information on sourcing, branding, pricing and nutritional value.
Pay for products by scanning them at a self-checkout counter and pay using the app, which is integrated with the Alibaba mobile payment service, Alipay.
Request products delivered to their home free of charge within 30 minutes. Hema associates collect the products, bag them and place them on an in-house transportation network that spans the store’s ceiling.
The mandatory use of the Hema app allows the store to leverage big data to optimize the store’s offerings.
Ken Feyder, Senior Director, IT Business Solutions, Tapestry (Coach):
With so many applications available on the marketplace, it is difficult for me to pinpoint a particular app or concept that I would rate dramatically more innovative than others. That being said, I think we are experiencing a significant shift in customer behavior. We’re seeing this globally and I’ll use as a example a scenario we experienced with the world’s foremost luxury shoppers – Chinese consumers.
About 6 or 7 years ago, I remember seeing a Chinese tourists’ group schedule for visiting Paris. It allocated more time to visiting Galleries Lafayette Department Store for shopping than it did for visiting The Louvre! Over the last decade, this notable group of customers has shaped the retail experience of many brands. The retail-centric behavior of Chinese shoppers continued to drive a more focused response from many retailers. That, in turn, created a market place for countless point-solutions related to improving a particular aspect of the shopping experience.
However, I have recently observed a shift in this group’s behavior. When traveling to tourist destinations like Paris, New York, or London, today’s Chinese tourists are less inclined to adhere to a shopping-centric itineraries in lieu of cultural experiences. Less time is being spent on shopping. To me it signifies the beginning of the evolution where a retail experience becomes a logical bi-product of tourism, as opposed to its former position “at the center” of travel. Hence, digital technology that focuses strictly on retail (i.e. improvements in payment, seamless omni-channel, ease of returns etc.) while remaining important, will only deliver marginal results. In my opinion, better focus on digital technology that is NOT dedicated to purely commerce (such as partnerships with Chinese travel service CTrip, or integrations with hospitality technology providers etc.) would ultimately deliver better results as it relates to delivering a more logical and cohesive retail experience many brands desire.
Read full article: Retail’s Superpower: Leveraging Digital to Reinvent the Enterprise