Wednesday, February 13, 2013

READINGS: Technology & Luxury Retailers


I had to share this amazing article from The Guardian. Luxury retailers leading the way with in-store technology, the sector is embracing the use of digital products to enhance the customer experience. It is being utilized more and more in all lux retailers around the world. Becoming an awareness tool being introduced in some aspirational brands as well. Regardless of the brand, is a need our society is asking for, a way to scape the busy life and the personal bubble of social media. It has become a way for shoppers to unplug themselves from the craziness, find a resting place - without feeling they are missing out. 


Photograph: Burberry London's famous shopping streets have become a hub for retailers that are transforming the way they engage with consumers, and these stores are some of the most cutting-edge in the world. 




Burberry's flagship Regent Street Store. The brand is pushing tech barriers to entice customers away from the competition. Sophisticated in-store technology is being used to capture the attention of shoppers, and luxury retailers are going the extra step to create a truly distinctive setting. This is setting the bar high for other retailers.

There is a strong contrast between the customer experience in high street stores and luxury. Instead of hustling along clothes rails and pushing through long queues, customers shopping in luxury stores are encouraged to relax and interact with the new technology presented to them.

Burberry launched its flagship store in Regent Street last year, which has been dubbed Burberry World Live. The store includes the world's tallest retail screen, 550 hidden speakers, screens which turn into mirrors when needed and a hydraulic stage for performances.

It also features RFID microchips in some items of clothing which when worn, transform mirrors into screens showing how the clothes look on a catwalk. There are no till points in this store. Instead, staff are on hand with iPads and credit card machines for transactions.

What Burberry has done is blur the divide between physical and digital; the store was designed to stand as a physical version of its website. The company has made it clear that it wants to be known as a current brand that is in touch with today's technology and its shop achieves this.
Victoria's Secret also made an impact when it launched its flagship store in August 2012. The Bond Street store features a video wall made up of 30 digital screens. Customers watch as live feeds to the latest catwalk shows are displayed, and this is controlled remotely from any smart device including iPads and iPhones. Video walls are also integrated into the shop fitting, including the cash areas, ensuring the whole store has a digital look and feel.

The label is known for being sexy and glamorous, and this echoes throughout the store. The US lingerie giant was the first to pioneer underwear as fashion back in 1977, and it still conveys this message today, using technology to enhance their brand image.

Victoria's Secret has harnessed the power of video and uses this to feature its brand ambassadors, known as Angels. Video shows the Angels walking the catwalk wearing underwear collections, used to inspire shoppers, while, at the same time, showing underwear as a fashion item.

Ray-Ban is another brand that is using digital technology to enhance its image. Synonymous with music, the sunglasses retailer created a unique in-store customer experience for its flagship store in Covent Garden using sophisticated audio technology.

Music hits the customer as soon as they enter the store and is designed to reflect what the brand stands for: style, tradition and freedom. Playlists are influenced by current trends and also include older iconic artists. Music is modified to mirror the atmosphere and time of day.
In the past few years we have seen more high street retailers attempting to incorporate digital into their physical stores – however, they aren't necessarily using it in the right way. Video, for example, is increasingly being used by high street retailers, but instead of using this channel as a standout feature, screens are often hidden and can have no sound, making it difficult for shoppers to notice.

Audio is also an important element in any store. It can evoke emotion in shoppers and improve the atmosphere in-store. But implemented in the wrong way it can have a negative effect. For example, playing pop music in a predominately indie store will make customers feel out of touch with the retailer. Music should stay in line with what the retailer stands for and should be relevant to the audience.

Consumers are more tech-savvy than ever and stores need to reflect this by offering a digitally enhanced experience. Burberry, Victoria's Secret and Ray-Ban all have one thing in common – they have made great efforts to ensure their customer is impacted by their shopping experience.
Luxury retailers are certainly leading the way with in-store technology, but we will begin to see more retailers applying digital methods to their stores to improve the customer shopping experience and enhance their brand image.

Dharmendra Patel is MD of PlayNetwork

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