Newport International Group Forum In-Store Tech, Sales Driver or..
In-Store Tech, Sales Driver or Hype? Newport International Runway Group9 Years AgoLONDON,
United Kingdom — Against the backdrop of a 22-foot screen playing lush
campaign and runway videos, impeccably dressed staff members sit with shoppers
at Burberry’s high-tech Regent Street store tapping customer profiles onto
their iPads. The flagship is arguably the world’s most technically innovative
store and the brand’s much-discussed strategy to integrate the digital and
physical worlds has set a bar for retailers everywhere.
But
Burberry is by no means alone. Slick digital technology — including the use
of virtual mirrors, digital screens, RFID chips and iPads — is fast becoming a
feature of store environments across the pricing spectrum, from luxury
flagships to fast-fashion emporiums. But do these innovations really make
customers spend?
Kate Spade
is one retailer investing in the space. Earlier this year, the womenswear
brand launched interactive displays across ten of its stores, mainly in the US.
The technology encourages shoppers to touch and pick up products from a
carefully merchandised table, which then displays content, such as campaign
videos and Instagrams of women wearing the products. Kate Spade chief marketing
officer Mary Renner Beech says the technology, created by New York-based
start-up Perch, provides an engaging experience for its customers. She
describes the technology as “cost effective,” but like many tight-lipped
retailers, declines to disclose figures. “What I can share is that we believe
that technology has to have a purpose,” she tells me. “Sometimes that may be
financial or brand equity or sometimes both. Technology should always enhance
the brand. The aim was to bring Kate Spade products to life rather than being a
sales driver. That said, we’ve been incredibly pleased with the reaction. We
have seen positive results by giving customers content.”
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