When the worst excesses of the pandemic were largely under control, significant numbers of retailers were cautiously optimistic about their ability to withstand the challenges posed by coronavirus and the reluctance of consumers to venture out into bricks and mortar shopping destinations. From the outset, 2022 heralded a widespread belief that technology, innovation and new business models would allow the industry to capitalise on emerging consumer behaviour and coupled with new shopping experiences. But, as if a pandemic wasn’t bad enough, consumers in 2022 have now been blighted with a cost-of-living crisis, inflation and the prospect of a war in Europe, with all its concomitant implications on supply lines and costs.
Nonetheless, new technologies are paving the way for a more immersive online experience, and in addition, new consumer behaviour is driving both product and business model innovation in bricks-and-mortar. There is a an almost universal belief that retail can emerge stronger, while much changed, from the current setbacks. Here, we look at some of the recent innovations that will contribute to the evolution of retail in a digital world. Later in this issue, Chris Smith, UK Sales Director at HYPERVSN explains the advantages of his company’s technology for retail.
The online and digital retail world is no longer the exclusive domain of startup or online only businesses. Established and formerly traditional bricks and mortar retail businesses are now embracing the digital marketplace. The modern retailer’s journey into the digital arena sees onetime traditional retail businesses, exploring digital products, experiences and transactional opportunities. Consumers are demanding frictionless and often contactless retail experiences, with retailers responding with ‘checkout-free’ stores and ultra-fast delivery. These are rapidly becoming mainstream as supporting logistics services emerge.
What consumers want?
‘Square’ has surveyed over 500 retailers and 1,000 consumers to identify how the retail industry has evolved since 2020. The key findings of the Survey are:
- An online offering is crucial
- Connecting the online and offline worlds is essential
- Next generation selling could change how we shop
- Social media commerce is on the rise
- Improved efficiency is developing with inventory management technology
- Consumers want to see continuing community support
- COVID safety measures are here to stay
As many as 97% of consumers now make monthly retail purchases online, with 53% of avid online shoppers falling between the ages of 25 and 44. To meet this trend, 87% of retail owners and managers surveyed are now selling products online. Retailers have persevered through recent challenges by expanding to online retail to stay afloat and offer more to customers. Over half of those surveyed consider it likely they will become an online-only store in the next year.
Having the flexibility to adapt to customer needs is said to be one of the key reasons why independent businesses have an advantage over larger competition. Whether introducing Buy Now / Pay Later to drive sales or automating customer feedback to build loyalty, the ability to curate their shopping experience to current trends is something of a secret weapon, since they can redefine the consumer experience.
Is online the only way forward?
Mark Childerhouse, Sales and Marketing Director of Pioneer Group believes that online will continue to play a role in an omnichannel strategy but, in general: “People want to get away from computer screens and feel part of the physical world. Shopping online has its benefits, but it does still only make up 30% of (non-food) retail spend, Humans are in general social and tactile, we want to try things on, look at things in real life and share an experience with others.”
“Covid, of course, had a significant impact on in-person retail, sales, but it also gave retailers a chance to review their offering and adjust to changes in how we now shop. For example, before Covid people didn’t think twice about picking up a lipstick tester and trying it on! Post Covid and that just seems crazy! AV technology and face mapping has allowed retailers to give customers the ability to try on makeup and clothing hygienically. This may be why these retailers have forged ahead when it comes to AV because they feel they had no other option, they either embraced new ways to demonstrate their offering or shut their stores.
The presence of online presents a viable option for many retailers, but Childerhouse believes that there are other reasons why shoppers have been slow to return to bricks-and-mortar stores: “Although the pandemic had a huge impact on stores it’s not the only reason people aren’t flocking back to stores! Online shopping stores have stepped up their game over the last couple of years, with free delivery and returns, next day and same day deliveries, free home collections etc have all made a huge difference in how people shop as well as the ability to find discount codes and surf for the best price. The rise of social media influencers has also had its impact! Consumers can now view homeware in situ or clothing being shown on “normal people”.
Social media is increasingly important: “People are now watching TikTok or Instagram videos of make-up tutorials rather than popping to a store makeup counter or following influencers who tell them what to wear and where to buy it! So, the need to see items physically and try them on has been reduced and this has affected retailers. Those stores that have embraced a more immersive sales experience and have combined the use on internet shopping with physical shopping are giving consumers a better all-round experience and they are likely to remain profitable.”
“Stores like Schuh have a great presence on the high street, they employee enthusiastic staff as well as having stock checking equipment within the store. If an item isn’t available, they have provided a quick and easy way for you or the store assistant to order the item from their website and deliver it to your door the next day without incurring a delivery charge all while you’re in store!” explains Childerhouse.
Enhancing the consumer experience
A recent report on the retail sector from Dolomites identified a number of trends essential for continuing success in retail. Adding an online channel to an existing business was obviously number one. Exploiting existing assets to the optimum level was the second, and the third was eliminating all unnecessary costs at every level. While this final recommendation might sound like an unreasonable restraint on innovation, investment in the customer experience is tempered by the first recommendation, to exploit existing assets to the fullest extent.
Zyler from Anthropics Technology is an AI-powered virtual fitting technology for shoppers and retailers that allows them to try on hundreds of outfits quickly and easily on a smartphone, desktop or in store. A selfie and a few measurements are all that is needed as input to enable customers to discover their style and fit remotely. How does this help the retailer?
Fashion brands and retailers can improve shoppers’ experience; increase intent to purchase and sale conversion, increase social media shares. improve brand engagement and minimize returns. Zyler enables shoppers to try on clothing in a variety of styles right on their phones or desktops, before making a purchase. Users test different outfits on themselves virtually – to see what suits them to find their style and to save time shopping – all with their own shape and size taken into account. With a large proportion of clothing purchases and sales made online now, consumers and retailers can enhance their shopping experience by using Zyler.
Zyler’s patented technology, based on the latest cutting-edge research, offers precision and accuracy down to the hips, legs, waist, chest, arms, and even shoulder and head measurements. Clothing details from the original image (e.g. texture, colour, hem, or sleeve length) as well as facial features, skin tone, body shape and overall fit are uniquely taken into account for a realistic try-on experience. Shoppers can try on hundreds of outfits – from casual wear to evening gowns and wedding dresses. These features have not been seen in virtual try-on technology before. Zyler is the most realistic clothing try-on solution to date, utilizing state-of-the-art Artificial Intelligence.
CEO of Anthropics, Alexander Berend says: “Zyler continues to evolve and succeed in enriching the ecommerce industry”. Anthropics Technology Ltd is a UK based software research and development company. Originating in The National Film and Television School, UK, Anthropics has a proven track record for cutting-edge innovation in graphics and animation, having worked with industry leaders and providing state-of-the-art technology worldwide.
Shopping as leisure
New technologies such as Zyler both extend the reach of the retailer into the community. But shopping is seen by many as a chore – what can be done to change consumers’ mindsets, to the point where shopping equals fun? Nils Karsten, Business Segment Lead for Retail, at Sharp/NEC Display Solutions. reports that the process starts way before the shopper enters the store. The fashion brand Walbusch chose felt the need to modernise its window and in-store offering. Using small format LED modules enabled the retailer to configure a large bezel-free digital surface in an unusual 3:4 portrait format. Long-life and easy to maintain, shoppers are treated to high-resolution dynamic images with deep contrasts which convey the quality of the brand.
But consumers today demand more than high quality imagery and displays. Retailers also feel compelled to demonstrate their sustainability credentials and their commitment to waste reduction and recycling Today’s consumers, largely driven by millennials, want to buy from ethical companies who take their social responsibility seriously. They are increasingly suspicious of ‘green-washing’ and are seeking to engage with brands which clearly demonstrate a genuine desire to operate sustainably.
This extends beyond sustainable product design and manufacturing to the ancillary operations of the retailer. Retailers are using digital signage to replace everything from paper signs for wayfinding to life-size pop-up stands for point-of-sale promotions. Advertising content can be updated instantly without waste, nor the associated impact of shipping. Karsten acknowledges that sustainability should no longer be considered a trend, but a long-term strategy.
Mark Childerhouse concurs: “Today’s shoppers are used to having everything at their fingertips; finding ways to get them to look up from their mobile device and interact with products in store or even get them to brick and mortar stores is an art form that retailers are researching and working hard to achieve. However, retailers are harnessing our reliance on our devices to create a personalised experience in-store that increases spend.”
“For example, we are working with a well know paint brand, they are trailing a wallpaper and paint app on large touchscreens within their decorating stores that allow customers to see how paint colour and wallpapers would work using images from the customer’s photos from their personal devices. Once the consumer has chosen the paint colour or wallpaper, the details can be sent to customers’ phones for them to purchase and collect in-store.”
Virtual technology
Does this mean that virtual technology had the answers to delivering enhanced retail experience? Childerhouse believes it depends on the circumstances: “Ten years ago, the average consumer wasn’t used to VR technology so the idea of using this within a shopping situation was alien to them, putting on a headset and wondering about while others could see you but you couldn’t see them to many would have felt awkward and embarrassing. Now we have a generation entering the consumer market who have grown up with VR gaming and interacting with technology, so the barrier has been removed. In some situations, VR has really taken off, kitchen stores like Wren have taken this technology on board as it allows their customers to see what their finished kitchen could look like to scale, and it allows them to show off different options.”
No matter what the retailer’s level of commitment to new technologies. there is absolutely no doubt that a commitment to sustainability is here to stay. Sustainability is the major influence on consumer behaviour particularly among generation Z consumers. This has led to massive growth in sales of second-hand clothing, which are expected to grow at a higher rate than fast fashion. The other side of the sustainability coin is ‘traceability’ – increasingly essential if climate targets are to be achieved. Collaboration with industry peers can also help co create transformative solutions to address major societal issues such as climate change. ‘Experimentation with the metaverse’ are becoming watch words among those keen to learn how it can enhance the customer experience and add value to a retail business.
The digital signage advantage
Even those retailers reluctant to embrace cutting-edge virtual technologies, the move to digital signage is basically a done deal as regards providing shoppers with an enhanced experience. In a recent blog post, Sharp / NEC commented: “Embracing technology and providing people with an immersive experience has been shown to increase the average transaction spend but it is also helping save costs elsewhere. Instore purchasing leads to less returns and this is a huge benefit to retailers. Furthermore, the value of reliable and durable signage should not be underestimated in shaping brand perception – a black screen is worse than no screen!”.
Digital signage is also an important element in NEC’s ‘Repair, Reuse, Recycle and Reduce’ initiative for sustainable signage. For example. The company’s dvLED technology is becoming more and more prevalent in the retail sector as the technology of choice for large digital surfaces. dvLED is described as ‘highly serviceable’ with components that can be repaired and replaced to support its extraordinarily long lifetime of over 10 years. Sharp/NEC is driven to ensure its customers enjoy the best possible experience over the entire lifetime of its products, to which end the company has developed a comprehensive, tailored service program to accompany dvLED products.
Sharp/NEC argues that its modular design policy also extends usage: the display solution you need for today will continue to meet changing needs in the future. By upgrading the computing power of the display, for instance, signage isn’t disposed of, but repurposed or reconfigured, extending the life of the display and reducing waste. Open modular slot-in options offer an interchangeable selection of solutions including computing technology, media playback and signal distribution (e.g. AVoverIP) for unlimited versatility. The embedded device reduces power usage resulting in significant energy savings, whilst cabling and additional mounting systems become obsolete.
Next, for recycling. metal completes the circle. Even in the entry level display series, Sharp/NEC chooses to use metal, rather than plastic or polycarbonate, for the structural components in Large Format Display and dvLED solutions. Metal is almost infinitely recyclable and as such is an important element in the circular economy. Metal is also highly durable, fire-retardant and heat resistant – all vital properties in the manufacture of electronic devices, safeguarding safety and longevity. Sharp/NEC uses recycled materials for all its products and avoids hazardous substances. In large format displays, 97.4%, of components are almost entirely recyclable.
Finally, using sensor technology, any digital display can be transformed into an engaging shopping experience. In combination with audience measurement, retailers can capture valuable data about their customers, enabling them to harness greater efficiencies. One very simple example is the use of a human presence sensor. The sensor recognises that someone is approaching, this triggers the display to power up with content to entice the shopper to look more closely at a promoted product. Once the person has moved on, the display will power down to save energy.
Sharp/NEC’s mission is to provide much more than reliable, long lasting digital signage hardware. As a trusted solutions provider, we work with our customers to ensure they achieve their aspirations, fully supported along the journey to generate a positive ROI where sustainability remains at the core of its business model.
Competing for attention
AV technology such as Video Walls are a visually powerful way to compete for shopper attention and make the retail experience more engaging and immersive. The accessibility of dvLED, as a viable alternative to LCD in the video wall market, has come on leaps and bounds. The world of standard VESA mounting points still does not exist in dvLED technology.
However, the cost is decreasing, with ultra-narrow pixel pitch increasing in popularity, lifespans are improving and LED is now more available in the channel. From a mounting perspective, the game is changing. dvLED applications in the retail sector range from basic flat-to-wall 130-165” FHD walls, where the retailer wants to make a bold statement, up to giant and unique bespoke video walls of any size, shape or configuration. Curved, convex and concave displays with missing rows, suspended, half globes, indoor to outdoor through pane glass, on a track system, floor pedestal, recessed – are all available to meet the needs of a retailer who has a creative vision and wants to make maximum impact.
LED is ideal for digital storytelling to engage both the shopper inside the store and the public passing by outside. At the Berlin flagship store of a multinational sportswear manufacturer, AV systems integrator InfraStor GmbH was responsible for the new dvLED video wall installation. The primary objective was visibility of the retail brand’s sustainability content to the public from the pedestrian zone. In addition, the design of the LED solution had to be integrated into the overall concept of the store, in which LED displays were also installed in the entrance and around the elevator shaft. Ultimately, the installation time on site was limited, so a fast and smooth setup was required. In addition, the solution needed to be functional, easy to install and slim to wall to save space in the window location.
For this install, the video wall load needed to be taken by the floor as well as the wall. InfraStor recommended a SEAMLESS Bespoke dvLED Mounting System from Peerless-AV to support digiILED LED modules in a 5×9 (600 x 337.5mm) configuration. Bolted to the floor (sitting 50mm high) and bolted back to the wall, the mounting system was custom manufactured to have a meticulous fit with built in x, y and z axis adjustment to ensure the video wall surface remains flat.
“The extensive adjustment options of the Peerless-AV mount substructure have enabled a very flat LED surface without visible lines between the cabinets, so that the customer is very satisfied with the result. The solution fits perfectly into the environment in the store and the desired current campaign and the sustainability story can now be optimally displayed on the video wall”, said Max Schwarzkopf, Project Manager at InfraStor.
Outdoor growth
The opportunity for outdoor digital signage is also on the increase and Peerless is seeing demand across a wide range of applications aimed at taking the message outside to the consumer, reaching them with targeted advertising and tailored messaging at every point of their retail shopping experience. For example, the Peerless all-weather high bright outdoor displays have been installed at a major furniture store in Germany for the customer click and collect area at the rear.
Also, in retail parks with QSR drive-throughs, outdoor digital menu boards are being installed to enhance the ordering experience for customers. An important consideration with outdoor digital signage applications, which might seem obvious, is that the requirements are very different to indoor applications owing to environmental and human elements, which can vary day to day. Based on the nature of the setting, a key priority is durability and ruggedness in an unattended, 24/7 environment. Outdoor displays, mounts and kiosks need to withstand impact, high winds, extreme hot or cold temperatures, water, dust, insect, ice and snow. Anything that falls short in terms of performance runs the risk of damage; and screen downtime means lost revenue and lost ROI.
Fashion brands and retailers can improve shoppers’ experience; increase intent to purchase and sale conversion; increase social media shares. improve brand engagement and minimize returns. Zyler enables shoppers to try on clothing in a variety of styles right on their phones or desktops, before making a purchase.
LED is ideal for digital storytelling to engage both the shopper inside the store and the public passing by outside. At the Berlin flagship store of a multinational sportswear manufacturer, AV systems integrator InfraStor GmbH was responsible for the new dvLED video wall installation.
The opportunity for outdoor digital signage is also on the increase and Peerless is seeing demand across a wide range of applications aimed at taking the message outside to the consumer, reaching them with targeted advertising and tailored messaging at every point of their retail shopping experience
LED: Choosing the right display?
LED, OLED, QLED, dvLED, xLED, direct-view LED, microLED – areal available. And what about resolution? 4K, 8K, 12K? Luke Westin, Sr. Product Manager at Chief / Legrand comments on the most pressing concerns when selecting the right display.
Pixel pitch and resolution are the big factors to consider when deciding on a technology. That’s largely determined by how far people will be viewing the content from and how good you want the content to look. Integrators in particular should be aware of how the displays connect together, power consumption, length of install and whether the display is front serviceable. It’s also unlike installing LCD displays in that each manufacturer is very different, so experience with one dvLED is not the same as with another. Be sure your account for experience when calculating installation time.
Caution
Make sure there’s an actual mount available for the specific dvLED model you’re considering.
- Be aware of the opportunity for non-flat installs like corners and curves.
- Direct View LED is not a simple one-to-one sale. One display does not usually pair with one mount.
- With no standard VESA patterns, it can be difficult to know what you need for an order.
- The Chief / Legrand web tool generates a bill of materials for the displays you are using. In addition, it proactively automates other design needs like outside dimensions, 2D drawing files, and files that support REVIT generation.
When is LED is not right for an application?
LED is probably not the right choice if the display is under 100 inches and you could achieve the same experience with a large LCD screen.
