Tag Archives: retail

Technology In Fashion Retail

I wrote earlier this year about changing retail habits and the resulting empty malls, or dead malls as they have sometimes been labeled. More people are ordering goods online and having them delivered directly to their home. That is all well and good for batteries or electronics, but how do you shop for clothes and fashion accessories online? How can you tell if something is going to fit or if it will look good on you without going to a store to try it on? What is the future of fashion retail? Will retail clothing stores fold completely, or will they revamp their offerings to stay relevant in the digital age? How will technology play a role in fashion and the shopping experience?

Augmented Reality and Virtual Reality

Pokemon Go introduced us to augmented reality by placing on-screen characters in the physical world. Retail stores such as Nordstrom and Neiman Marcus are working with developers to trade Pokemon characters for clothing and accessories. New technology such as Memory Mirror is being developed to allow someone to try on clothes without actually trying on clothes, at least not repeatedly. Memory Mirror will be a kiosk which looks like a mirror but can be controlled by hand gestures or voice commands and has icons for changing color or size. It can even project accessories such as various belts or handbags. It will connect to social media so shoppers can send pictures of themselves in the new outfit to their friends for a thumbs up or thumbs down. This technology is designed to limit wardrobe changes, which tend to drive customers out of a store. Products such as Zugara’s Virtual Dressing Room has partnered with Microsoft Kinect to create a similar product, but their offering will be available as a web app as well so you can see how online merchandise may look on you before buying. Most of these products are in development but promise a functioning product soon.

In this case, the old department store may turn into a giant dressing room but all of the sales channels will need to be synchronized so a person can buy the clothing while shopping, or order it online via smartphone. From first encounter to purchase, the technology will need to work flawlessly to provide a seamless shopping experience.

Visual Search

Visual search lets you search via an image as opposed to text. With modern smartphones, a shopper can capture an image of an item and search online for the best price for that particular item. This is bad for brick and mortar retailers because it turns their stores into showrooms without sales, especially if the shopper can find the item cheaper on Amazon or Zappos. The retailer is paying to display the merchandise but without the resulting benefits. GPS technology could turn that around for them. If the search engine knew that a customer was standing in Macy’s, for example, it could push the store higher in the search results and possibly offer a coupon for being a loyal customer. In this case, technology would enhance the traditional shopping experience by keeping the customer focused on your store.

Look

The new Amazon Echo Look, which is currently available by invitation only, promises to be your style assistant as well as a hands-free camera. As an extension of the Amazon Echo, you can take hands-free full length photos of yourself with depth perception technology and store those photos for comparison. You can get a second opinion of your outfit by something called Style Check “…a new service that combines machine learning algorithms with advice from fashion specialists.” If I were a retailer I would try to find a way to insert ads to push Alexa to recommend my physical or online stores.

Thoughts

It’s not clear if retail stores will ever regain their preeminent position, but just as fashion trends change, so does the way we interact with these stores. Whether it be online through a computer or smart phone or actually talking with a sales clerk, we have more choices than ever before as to how we buy fashion.

Do you still visit stores to browse or buy clothes or do you purchase strictly online? What would draw you back into a store? Let me know your thoughts.

Author Kelly BrownAbout Kelly Brown

Kelly Brown is an IT professional and assistant professor of practice for the UO Applied Information Management Master’s Degree Program. He writes about IT and business topics that keep him up at night.

The New Face of Retail Delivery

The Future of Transportation

I recently ran across an interesting collection of YouTube videos called the Dead Mall Series. This series is filmed and narrated by Dan Bell and has nothing to do with suburban zombies but highlights our changing shopping habits. Bell tours and films shopping malls that have an 80 to 90% vacancy rate and then dubs in a personal narrative about his experience. It is a stark reminder that our buying habits have changed significantly since the 1960s, partly due to the popularity of online shopping. In watching these videos, I think not only about our changing retail experience but also about how the entire supply chain has evolved. Instead of driving to suburban shopping malls supplied by large trucks, we place orders online and our purchases are delivered to our doors by UPS or FedEx or USPS. While the video series shows declining retail shopping, this blog examines how transportation is changing to keep up with our new demands.

Trains

In the U.S. trains are used primarily for transporting industrial products such as lumber and chemicals, but are seldom used for retail products. Part of the reason is that we do not have an extensive infrastructure of stations, unlike in Europe. In Europe, the German Aerospace Center is working on next generation trains for both passengers and freight. They are proposing a train system that is more flexible and can get closer to filling retail orders. There the train is the backbone of retail delivery not the large trucks we see on our highways. In the U.S., the nearest train station may be 50 or 100 miles from the customer.

Trucks

Tesla CEO Elon Musk recently revealed that Tesla plans to unveil an electric semi truck in September 2017. The company previously announced it is working on vehicles other than autos. It makes sense Tesla would go after this market, but I think they will need to somehow extend the battery range in order to make it viable. The Model S runs 265 to 300 miles per charge. Large trucks travel constantly with two drivers and can go approximately 1000 miles between stops. Batteries are generally heavier than fuel for the amount of energy output, so electric planes don’t make sense yet and electric semis may need some newer technologies to make them mainstream.

Now, if you could outfit an electric semi truck with autonomous or semi-autonomous capability then you would have something. An autonomous truck made a beer delivery from Ft. Collins to Colorado Springs, CO in October 2016,  so it has been done. This could be the next wave of truck delivery.

Drones

Amazon launched Prime Air in December 2016 and completed the first two deliveries via drone. An Amazon video shows a small package that took 13 minutes from purchase to delivery. Amazon plans on increasing the customer count eligible for this service to dozens and then hundreds. A customer would have to live close to a fulfillment center in order to get the prime service. Apparently, next day or even same day delivery is no longer fast enough.

Thoughts

There are many pieces that make up retail sales and delivery, and companies are using technology to efficiently move goods to customers. Whether in the future we see a sky full of drones or a road full of electric autonomous trucks is anyone’s guess. Shopping options are definitely changing and the supply chain will have to change as well in order to keep up. What do you think the future holds? Let me know your thoughts.

Author Kelly BrownAbout Kelly Brown

Kelly Brown is an IT professional and assistant professor of practice for the UO Applied Information Management Master’s Degree Program. He writes about IT and business topics that keep him up at night.

The End of Cyber Monday

Photo of a young woman in a clothing store looking at her phone.As I write this blog entry, we are still two weeks away from Thanksgiving, Black Friday, and Cyber Monday. While I believe the first two will continue into the future, I think the term Cyber Monday has become irrelevant, largely due to technology changes, and will end this year. In this post I will lay out my reasoning for predicting its demise and invite you to give me feedback as to whether you believe Cyber Monday is doomed.

History

The term Cyber Monday was coined in 2005 by Shop.org, the digital arm of the National Retail Federation. Shop.org also runs the website Cybermonday.com in which they invite participating retailers to share their Cyber Monday shopping deals. The term refers to the Monday after Black Friday when the most online Christmas shopping is done. It was not true in 2005 but was by 2010. Now it is only one of many large online shopping days reaching back into mid-October.

Technology

I believe that the biggest threat to Cyber Monday is technology. The theory was people would go to work on Monday after the long Thanksgiving weekend and purchase all of their remaining Christmas items online using the faster company internet connection. That is now irrelevant for two reasons:

  1. Home internet connections are now fast enough to stream digital content such as movies so they are more than adequate for shopping.
  2. More people are shopping now from a mobile device such as a smartphone or tablet so they do not need to be tied to the home or office internet connection.

The term “showrooming” was coined to define the practice of visiting a store to view merchandise before ordering it online at a lower price. Best Buy has been referred to as the showroom for Amazon. In theory, you could even stand in a brick and mortar store and order the same product online through your smartphone. I think this practice will decline as we get closer to price parity between online and traditional retailers.

Web sites and apps such as Buyvia.com and Dealnews.com have taken the steam out of Cyber Monday by advertising a wide range of retail deals 365 days a year. I can define my product search and get alerts as to the best price and retailer, regardless of whether it is on Thanksgiving weekend.

Timing is everything

Retailers are creating shopping events earlier and earlier. I can already see “leaked” Black Friday ads from several retailers even though Thanksgiving is still several days away and Christmas is more than a month away. Soon we could have our Christmas shopping done in September, eliminating the whole holiday rush of late November and early December.

Thoughts

I realize that retailers will continue to roll out special deals on certain days like Black Friday and Cyber Monday, but I think that technology advances and the way that we choose to do business will make these exclusive days less of a bargain.

Am I just being a Scrooge or am I on to something? Is technology changing how and when we shop? Has Cyber Monday become irrelevant? Let me know your thoughts.

Author Kelly BrownAbout Kelly Brown

Kelly Brown is an IT professional and assistant professor of practice for the UO Applied Information Management Master’s Degree Program. He writes about IT and business topics that keep him up at night.