Copyright © 2014 ß London, 18 th September 2014
Retail Ignition
Nov 18, 2014
RETAIL IGNITION an event from The iris Nursery, the innovation and ventures division of iris worldwide.
Clients often tell us that they’ve got mixed feelings about innovation.
On the one hand, they realize that it’s critical for the survival of their business, and that there are usually plenty of ideas floating around the business.
On the other, many have a growing sense of frustration around delivering ideas and finding the ones that will work for them in their market(s). Or, more accurately, rapidly figuring out which ones won’t work and either adapting or abandoning them.
Our Retail Ignition workshop is focussed on finding business ideas that can be rapidly tested in a series of market experiments. To create and maintain momentum and reduce risk.
Kickstarting specific innovation concepts that can be delivered in the short/medium term.
Curating bespoke combinations of partners to help inspire & deliver ideas for brands. Exploring co-investment models to share the risk and reward.
Clients often tell us that they’ve got mixed feelings about innovation.
On the one hand, they realize that it’s critical for the survival of their business, and that there are usually plenty of ideas floating around the business.
On the other, many have a growing sense of frustration around delivering ideas and finding the ones that will work for them in their market(s). Or, more accurately, rapidly figuring out which ones won’t work and either adapting or abandoning them.
Our Retail Ignition workshop is focussed on finding business ideas that can be rapidly tested in a series of market experiments. To create and maintain momentum and reduce risk.
Kickstarting specific innovation concepts that can be delivered in the short/medium term.
Curating bespoke combinations of partners to help inspire & deliver ideas for brands. Exploring co-investment models to share the risk and reward.
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Transcript
Copyright © 2014
ß
London, 18th September 2014
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Welcome & SOME INTRODUCTIONS
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John Grant Dan
THwaites Dave CaygillJohn Grant – planner,
book writer & startup veteran
Dan Thwaites– former digital & creative agency head, entrepreneur
Dave Caygill – strategic technologist, digital creative, hacker
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OUR FRIENDS IN THE NETWORK
Will Silverwood, MD, Iris Concise
Benjamin Chilcott CEO Iris Concise
Sam Noble, Chief Strategy Officer, Iris
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BRANDS / BUSINESSES TODAY
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THIS MORNING9:00- 9:40 WELCOME (DAN THWAITES, CO-FOUNDER, IRIS NURSERY) A little bit about Iris Nursery and getting around some of the problems of innovation.
9:40-10:00 MARKET VIEW (STEPHEN MILLARD, CEO E-COMMPLISHED – RETAIL TECHNOLOGY INCUBATOR) Overview of Technology & Investment Trends in the Sector
10:00-10:30 SMART RETAIL (JOHN GRANT, CO-FOUNDER, IRIS NURSERY) New Hybrids between Physical & Digital Retail
10:30-11:00 NO MORE DIGITAL DIVIDE (Facilitated by JOHN & DAN) Discussion around business and the hybrid digital / physical space
11:00-11:15 BREAK
11:15-12:00 INNOVATION DEMOS (DAVE CAYGILL, TECHNOLOGY LEAD, IRIS NURSERY) Presenting a series of micro-demos from selected innovative companies & technologies.
12:00-1pm CHATHAM HOUSE DISCUSSION (Facilitated by JOHN & DAN) Discussion on the overall sector, the business issues within it and where we should focus our attention. 1pm-1:15 Wrap up 1:15- 2pm BUFFET LUNCH & CLOSE
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A little bit about iris Nursery
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Extending Creativity Beyond Communications !
Into business ideas & products
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Opening up new markets & finding new value in existing markets. !
Often with New partners & commercial Models to bring them to life
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HELPING BrandsAccelerate INNOVATIon !
CO-INVESTING IN INNOVATIVE Ideas !
INCUBATING INNOVATIVE BUSINESSES
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Accelerating Innovation
Creating & managing bespoke processes for business innovation !Ensuring momentum through new partnerships & models !Reducing risk through rapid prototyping & testing
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Co-Investing in Innovation
Product Innovation to open new markets
Product Prototyping, Development & Go-to Market
Co-creative Product ENHANCEMENT
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Incubating Innovative Businesses
We have already invested in 10 startups this year through our fund and are actively seeking more for further investment this year
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Curated Connections
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A rare combination of creativity, consulting, delivery + global reach helps us create ideas and, importantly, make them happen.
GLOBAL INNOVATION NETWORK
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SNEAK PEAKSharing a Quick Glimpse at a Few of our Innovations in Progress
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HELPING BrandsAccelerate INNOVATIon !
CO-INVESTING IN INNOVATIVE Ideas !
INCUBATING INNOVATIVE BUSINESSES
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Challenging Times
Growth Disrupted / fragmenting markets
SPEED FIXING THE PLANE IN THE AIR
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6 Problems with Innovation and WAYS OF WORKING AROUND THEM
(+ a couple of new ideas that came up along the way)
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Problem
#1
Never short of ideas, the challenge is making them happen
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Building a “loose ties” ecosystem of partners who can BRING NEW IDEAS TO LIFE
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IP
CREATIVE TALENT MARKETPLACE
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Problem
#2
When we see a solution, we CAN BRIEF PROSPECTIVE PARTNERS. !But We don’t know WHAT we don’t know!
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Share as much as you can. Even if only the problems. Open source wins.
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IDEAS SPA…
THE IDEAS SPA
IP
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Problem
#3
WHICH IDEAS to take to scale?
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SPARK WITH IMAGINATION, FUEL WITH DATA
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Problem
#4
Scale & complexity of our business makes innovation harder to land
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Start small, think big Prototypes, MVP, experiments
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Problem
#5
Innovation can be seen as a distinct activity, rather than something that the business as a whole does to survive.
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BUILDING A CULTURE OF SOLVing CUSTOMER PROBLEMS
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PRODUCT TESTING CONCEPT
IP
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Problem
#6
Securing continuous effective engagement of the people who we need to develop the ideas and make them happen (upstream & downstream)
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Inspiration, Co-Creation, Sprints, Competition
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BACK TO TODAY… A STARTER
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…BACK TO TODAY
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Fuel for the imagination
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Therapy
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FINDING SOME NEW AREAS TO START TESTING
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SOMETHING TO TAKE BACK
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Eccomplished Dashboard September 2014Stephen Millard, CEO
MARKET VIEW
Working exclusively with retail technology
innovators
Accelerating growth through market validation, growth strategies, funding and
value realisation
Connecting the eco-system of complementary
technologies, partners, retailers and investors
Providing a unique combination of expertise,
retail knowledge and industry relationships
Powerful forces are re-shaping retail
Transformation of the world
economyDigital technology
Transformation of an outdated
model
Change creates opportunity
Transformation of an outdated
modelRetail innovation Speculation
“Digital technology is critical to the success of my business”
Disagree strongly
Disagree somewhat
Agree somewhat
Agree
Agree strongly 0.5
0.36
8%
4%
2%
Higher levels of investment in innovation is driving significant growth
What growth do you anticipate overall and across each channel?
What proportion of your revenues do you ascribe to each channel?
But don’t think [insert buzzword]-channel - it’s just retail
What growth do you anticipate overall and across each channel?
What proportion of your revenues do you ascribe to each channel?
Mobile
Online
In-‐Store
Total 40%
37%
46%
44%
47%
41%
51%
50%
2014 2013
Mobile
On-‐line
In-‐store 45%
38%
17%
Good logistical efficiency and competitive delivery
pricingEnglish is the language
of technology development
Purchase protection through credit card purchases
Availability of digital / design skills
Competitive and comprehensive broadband and networks
Adoption of debit / credit cards for online purchase
Common tax laws and pricing across UK
Legal requirements to accept returns
23% of retail online
Trusted relationships with
retailers
We are a nation of
shopkeepers
201213.5%
of retail online
2016
Go global
Retail innovation
!!Reinventing
entire industries
Disrupting and allowing us to do things we’ve never done before
Improving and enhancing how we do things today
Retail innovation models
Retail’s transformationThe new retail reality
in-storeat home out & about
What’s trending?Data
Privacy Payment Personal Location
Eccomplished Dashboard September 2014Stephen Millard, CEO
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SMART RETAIL
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Neuroimaging research[2] has reported spikes in reward-circuit dopamine activity related to shopping, similar to those seen in addictive behaviors, such as drug use and overeating
DEEPLY DUMB: RETAIL AND PRIMAL INSTINCTS
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“So strong is the endowment effect that we don't have to physically own something for the effect to take hold. The mere suggestion of ownership is enough to get our guns going. One recent study found that people who touched an item felt an increased sense of ownership toward it.” (Peck & Shu, via FastCoDesign)
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You're More Likely To Buy Something When Shopping On Your iPad The "Endowment Effect," Which Makes Us Overvalue Items, Is Stronger On A Touch Screen. (Brasel & Gips via FastCoDesign)
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“No matter how much smarter or more experienced we have become, there's still something called "retail magic," where someone is able to put something out there in a way that makes us fall in love with it and have to have it.” (PACO UNDERHILL)
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“…according to a French study the phenomenon still swings a considerable number of shoppers. Researchers found that lowering the price of a pizza from 8.00 euros to 7.99 euros boosted sales by 15%.” (BBC)
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After investigating a marked drop in melon sales, a retail psychologist's report for Tesco suggested that the modern preference for smaller breasts, as modeled by the likes of the superwaif Kate Moss, is informing customers' decisions to reject larger melons. The company has instructed growers in Spain to produce Galia melons of no more than 0.55kg, rather than the 1kg melons that were proving slow to sell. A Tesco spokesman insisted that the sales results spoke for themselves. 'Since we introduced the smaller melons two months ago we have sold more than a million.’ (THE GUARDIAN)
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Ecommerce AS ‘MAIL ORDER’
Digital shopping & digital delivery eg media, travel agency !
vs Digital shopping and physical delivery = 90% of ecommerce? !
-> Surprising implicationseg huge advantage if fits through letter box
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Mail Order dumb too – RETAIL PORN?
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BUT (UNLIKE MAIL ORDER?) ECOMMERCE ATTRACTED THE brightest & best
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Who created SOME OF THE world’s best retail brands (THAT happened to be on web)
“Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.” AMAZON.COM
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Amazon’s SMART ideas
1. Customer at the centre 2. Incredible range – the long tail 3. One-Click ordering 4. Customer reviews/recommendations 5. Marketplace 6. Showrooming - & now Firefly 7. Kindle & digital content platforms
DEFINITION OF SMART?
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BUT It’s still been VERY hard miles
After 20 years of Amazon
& by 2025 McKinsey predicts 15% Online
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WHAT KEEPS TESCO AWAKE AT NIGHT?
VS
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ALDI RATED 1= WITH WAITROSE FOR QUALITY
“…the lobster, scallops and venison I was served by celebrity chef Jean-Christophe Novelli last week at Home House, the private members’ club on London’s Portman Square, was part of a four-course, fine-dining experience created entirely from the products of the German chain Aldi.” INDEPENDENT
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THE RETURN of THE own brand
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& ETAIL NEVER MISSES A TRICK
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EVEN BIGGER TREND – CLICKS & BRICKSThese click-to-brick retailers report e-commerce sales lifts of three to five times in the built-out markets AT KEARNEY !Andy Dunn of Bonobos, told Bloomberg only 5% of visitors to their website make a purchase. In its 10 stores, that number is 83%. FORBES
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Clicks & Bricks
Made.com encourages shoppers to digitally interact with physical products using tablets provided in their showroom, which incorporate real-time content, reviews and recommendations. Customers are only asked to identify themselves at end of the experience, in order to have access to the data they created in-store after they leave.
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Clicks & Bricks
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Clicks & Bricks
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Clicks & Bricks
JEANSONLINE.COM
FIRST IN NL TO OFFER SAME DAY DELIVERY
NEW 15 MINUTE ‘EASY FIT & RETURN’ SERVICE
ONLINE LOWEST PRICE GUARANTEE
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DIGITAL CAN DO DUMB: TEMPTING OFFERS
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DIGITAL CAN DO DUMB: SPECTACLES
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shopping is getting smart(WHETHER STORES ARE OR NOT)
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CUSTOMER CENTRED IS HAPPENING:DIGITAL BUT ONLY ON MY TERMS
OPINION LABS, 2014
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SO WHAT COULD SMART SHOPS LOOK LIKE?
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A FEW SMART SHOP IDEAS
Data from interactionswith Top Shop “Customise The Catwalk” app were then used to inform merchandising decisions.
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A few smart shop ideas
Adiverse displays turna small shop into a Flagship store – ableto browse 8000 shoes. In UK rollout an average40% sales uplift seen.
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A few smart shop ideas
Debenhams is embarking on a social selling strategy in the build-up to Christmas encouraging customers to share special offers with friends in return for rewards, based on co buying (group rewards, leaderboards…)
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Clicks & Bricks
Westfield Collect Lounge - collect your items and try them on in a very snazzy private changing room. Even better if it doesn't fit or you don't like it you can return there on the spot. 1 hour free parking too. Not too shabby aye ?"Callie, fromthecornersofthecurve.com
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A few smart shop ideas
Innovative “magazine style” retailer STORY uses Prisma cloud based analysisplatform that turns videofootage into heat mapsand realtime analytics.
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A few smart shop ideas
Many stores use tablets to show extended choices, content etc. Saks Fifth Avenue use 3,500 tablets equipped with the Raymark clienteling application, with a customer-specific database including high-resolution images of customers’ past purchases.
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A Few Debates
Where are we on the smart-dumb scale? To compete in future, where should we be? For the hybrid digital/physical ‘total retail’ era…(centred on the customer not the channel) - What are our challenges? - What are our conflicts? - What are the key opportunities?
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NO MORE DIGITAL DIVIDE
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NO MORE DIGITAL DIVIDE
TALK WITH YOUR NEIGHBOUR
!10 MINS
COMPARE WITH THE TABLE !
10 MINS
SHARE WITH THE GROUP !
10 MINS
Conflicts, OpportunitIes & CHALLENGES
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Break
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STARTUP ACCELERATION
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POST IT NOTES brainstorm
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launch LEAN AND LEARN
98
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THEY DON’t go far before VALIDATING LEARNING OR PIVOTING.
99
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MATCHMAKING BRANDS AND STARTUPS.100
In-Store Data Capture & Electronic Receipts!
without EPoS Integration
Ryan
Ryan is a happy customer.
Head of CRM & Loyalty, Mothercare
“yReceipts delivers customer visibility and data capture capabilities that replace traditional swipe card-based loyalty schemes and helped us increasing in-store
customer data capture 18-fold.”
100,000 identified customer every week in 200 stores!That’s every 2nd customer!84% marketing opt-in rate!65% feedback rate
107
108
One store sending 300 digital receipts a week can fill a stadium the size of Centre Court with known customers in a year
50 stores and you know all of the!650,000 Royal
Wedding visitors
Ryan now knows every person in Hamburg (after 9 months)!1,837,327 new customer profiles
7,181,593 sale items
1,837,327 new customers!bought
7,181,593 products!in
2,979,594 transactions!across
200 stores!served by
6,592 sales assistants
Electronic Receipt
Mobile App
Feedback System
CRM Database
Product Review Service
Loyalty System
Customer Web Login
Analytics System
No EPOS integration required
Receipt Data
yReceipts puts data where it belongs: in real-time
Customer Data
Newsletter Database
yReceipts Hub
Join Ryan and many more happy customers in Europe, Australia and the US
thank you
119
In-Store Digital Media: Reinventing the Retail Space
Click & Collect
Click & Collect
PHYGITAL
API
Basket ID Store ID
Checkout details
Payment ConfirmationHTML Templates
& XML Data Feeds
IN-‐STORE SCREEN
1
3
2
4
5
SHOP THE VIRTUAL INVENTORY
ENABLE AN OMNICHANNEL, CONNECTED SCREEN STRATEGY
PREVENT “WALK AWAYS”
LEVERAGE EXISTING ONLINE COLLATERAL
RE-‐INVENT THE PHYSICAL RETAIL SPACE
DEMO SCREENS
!“What would physical retail’s role be if it were invented today”?!
Qudini’s Solution
Qudini’s Solution
Qudini’s Solution
Service retail
Service retail
• 25% mention!!
• More conversations!!
• 40% reduced walkouts!!
• Increased footfall!!
• Serve faster and better!!
• Increased spend!!
House of Fraser Click and Collect
House of Fraser Click and Collect
• Productivity doubled!!
• 2 in queue!!• 40% reduced walkouts!!
• Aids low resource!!
• Faster more professional!!
• Increase repeat purchasing!!
150
Shop the visible
151
Lovethelook was set up to find outfits without subjective keywords.
People want immediacy. I see it, I want it now
Marketers want insight and need to be where their market is
Publishers are looking for new income streams. Their images are dead assets
What problem are we solving?
152
Our solution Technology that automatically finds product/s in any digital image and offers similar, unbiased buying opportunities
Automatically finds product/s in any digital image
Automated
Can be white labeled against a closed list of products
Customization
Iteratively learns so accuracy improves over time
Iterative Works on rollover so doesn’t obstruct user experience
Unobtrusive
Can scale up to huge image collections for legacy projects
Scalable
Not just fashion and interiors. Any product in any image
Not just fashion
153
Easily integrated solution for publishers
Lovethelook is quickly and easily integrated in any web content allowing rapid monetisation of images. Commission is shared between publisher and Lovethelook. Legacy projects of large image libraries can be quickly implemented due to Lovethelook’s scalability.
Lovethelook as a service
154
Unique solutions that drive engagement
We can build branded apps using your catalogue feed so results only feature your product/s. For example street fashion images generate the closest match in your catalogue. This builds brand engagement and offers a unique user experience whilst also driving valuable insight in to buyer behaviour.
Closed catalogue apps
155
Lovethelook is robust and infinitely scalable. We work with and partner some of the world’s largest digital companies dealing with billions of page impressions each month.
Enterprise
Saa
We can process billions of images
156
We’re not just in fashion and ecommerce
We are now using Lovethelook technology in a range of lateral applications including Google Glass. We are also working in sectors such as security, engineering, healthcare and military as well as other ecommerce areas such as interiors.
Lateral applications
Saa
157
Leading experts in computer vision and AI
Our unique mixture of techniques
More in depth learning and recognition than competitors
Our advantages
Unparalleled scalability and iterative tech
158
159
Contact us to request a demo
@lovethelook
E4F, Birmingham Science Park, Aston University, Birmingham
linkedin.com/lovethelook
Lovethelook.com
160
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166
We create omnichannel customers
167
Most valuable data isn’t being captured
© 2014 CloudTags -‐ Confidential and proprietary
90%
Retail Sales
Online Sales (intent data is tracked)
10%
In-store sales (Intent data not tracked)
© 2014 CloudTags -‐ Confidential and proprietary
Harvey Nichols Video Case Study
169
MADE
© 2014 CloudTags -‐ Confidential and proprietary
Consistent Results
Furniture (MADE)
Lifestyle (DropDead Clothing)
Pick up
Sign up
Come back
53%56%
46%21%
41% 14%
16%
Luxury Department
Store(Harvey Nichols)
44%
31%
© 2014 CloudTags -‐ Confidential and proprietary
AOV +15% +18%+42%
171
LOCATION MARKETING
1. LOCATION Registration MAC authentication
2. CONTEXT Location profiling User profiling Social tracking Usage Other profiling
3. RELEVANCE Offers Recommendations Promotions Advertising Content
4. COMMUNICATION SMS/MMS Email Push notifications Vouchers/passbook Social
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CHATHAM HOUSE DISCUSSION
BREAKOUT GROUPS !
30 MINS
SUMMARISING FINDINGS !
10 MINS
SHARE WITH THE GROUP !
20 MINS
What YOUR BUSINESS is doing RIGHT, WRONG, NOT FAST ENOUGH, what YOU should TRY and WHAT SHOULD YOU LEAVE ALONE.
Copyright © 2014
WRAPPING UP
Copyright © 2014
London, 18th September 2014
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