The Future of Pervasive Retail
The retail apocalypse has completely shaken up the retail industry. Well-known brands and retailers are closing left and right from low end to high end. This begs the question of how retailers can stay afloat in an evolving market and crippling recession. With another big economic hit due to the COVID-19 pandemic, companies must look to technology in order to attract more customers and sales. Currently, 92% of luxury sales take place in physical stores. These interactions are usually anonymous which means that the majority of shopping experiences are not being adopted into useful data. Retailers gain considerable insights from online interactions and searches, both desperately needed information in their biggest market. Luxury brands are learning how to modernize the way they tackle customer loyalty, storytelling, and fascination. The more customizable and valuable the product, the more confident the customer will feel.
Jose Neves, the founder of the online luxury retail platform Farfetch, has developed a new OS to reinvigorate the physical retail experience. Farfetch Store of the Future aims to utilize augmented retail to bridging the gap between e-commerce and brick-and-mortar stores in order to increase retail productivity and enrich the user experience. The store is built on a universal login for each customer and focuses on tracking their shopping preferences, browsing behavior, and purchase history for a more personal experience. This includes various features such as connected clothing rails that allow items to be picked off clothing racks and logged into a customer’s store wishlist, smart mirrors that can suggest recommended items or allow the user to request items in another size, and interactive holographic displays for customers to create and order customized shoes. This store concept also proposes the use of emotion-scanning software and innovative payment solutions to blend physical and digital channels for a seamless shopper experience.
Augmented retail or augmented shopping uses AR technology to allow customers to engage with brands and products by interacting or personalizing products virtually. The goal is to deliver detailed, intuitive product information that cannot be achieved on a standard website. Consumers typically expect to feel confident in choosing the right product, for the right price, and without it being hard to obtain. Augmented retail allows customers to satisfy these expectations through better product information, personalization, or immersive brand storytelling. The automotive industry is an excellent demonstration of this strategy.
This platform is a game-changer for shoppers and retailers because of its intuitive interface and flexibility. Customers can accurately find the products they are looking for while cutting down on time spent in the store. The modern app design feels fresh and inviting to match the luxury store. The open API allows flexibility for Farfetch to build new features onto the platform. The technology is also versatile because one supply source can be accessed by physical stores and the global network. Moreover, it can be easily implemented into all boutiques, department stores, flagship stores, pop-ups, and more. With growing online sales and a loyal offline market, Farfetch will be making considerable gains by combining these platforms and gain more vital user insight to increase marketing productivity. This is an excellent and necessary step for the future of their business.
It is crucial for luxury brands to have a strong emotional connection to their clientele while collecting fundamental data on customer behavior. The intention is to humanize the retail experience. Store of the Future is providing visibility to retailers — an offline cookie — that will bridge the divide between an influential online presence and an omnichannel retail strategy with in-store augmented technology.
The glaring issue of implementing this technology is the security and privacy concerns. I believe that this has dire implications for user data collection. For many, this implementation of technology, although convenient, may be perceived as unnerving. Farfetch will have to answer privacy concerns and ensure transparency. Augmented retail has been described as location tracking on steroids. Not only will this technology obtain a large amount of user data stored on the app, but it will also track your movement inside the store by logging items taken off of clothing racks. Users will be compelled to sacrifice their data for a convenient and personalized experience. Keep in mind that this OS can be updated with even more pervasive tactics. We already sacrifice our privacy online through targeted ads and cookies. These intrusive practices are already considered annoying to many users as advertisements stalk from one site to the next. I would imagine that many customers might find this technology off-putting which would consequently drive away potential sales.
As a result of these privacy concerns, the company will have to ensure that its platform is secure from data breaches to protect customer data and garner trust. Since the stores will heavily rely on consistent performance, they must also guarantee stability and resilience against network issues and outages. Quality and reliability are key factors when executing technology into any industry and must be taken into serious consideration.
Moving onto interface constraints, the key to AR shopping is how well the crucial aspects of a product can be realistically translated digitally such as materials and details. This is a huge challenge in the fashion industry considering the current technological limitations of accessible object rendering. Another obstacle is accurately and conveniently approximating the size and shape of a customer to deliver precise information. Farfetch must also reflect on the current technological limitations of creating 3D assets to represent products. This is somewhat avoidable since it is not a main feature of the platform however, it would increase immersion and customization which tends to be valued by customers. Besides, whether these flaws outweigh the positives will be up to each user.
There are several clear opportunities for improvement of the Farfetch Store of the Future. Increasing transparency through a solid privacy policy would be an important first step. A walkthrough of the basic security system would establish credibility. Customer trust is important in the retail industry which involves a sincere recognition that one’s data is protected and secure. An option to opt-out of targeting and data collection would be another vital decision. Regarding the interface, Farfetch should implement sensors to scan items and view pieces on models, granting the option to see clothing in motion. Another smart feature would be focusing on accurate sizing. Many people have issues with selecting the right size especially with several brands having different cuts and fits. There are a couple of different approaches to this; either approximating size with fixed options or using an algorithm with user information to estimate the size. A personalized and convenient experience is crucial to the success of this operating system and there are certainly many avenues for improvement.
It has been made clear that the future of luxury retail is augmented. There is a huge demand for accessibility, customization, and speed while shopping. It is now the responsibility of retailers to keep up with the desires of consumers. There is so much room for discovery and exploration into AR and 3D technology, what better time than now?
Sources and more readings:
Augmented Shopping: The Quiet Revolution
Enabling The ‘Offline Cookie’ — Why Farfetch’s Store Of The Future Is All About Data
