By Geetanjali Sarna and Amit Prabhakar Gaitonde, Wipro
Despite
the growing use of technology in all facets of life, fashion retail has
continued to play it safe when it comes to utilizing technology to further
innovation and the customer experience. While traditional views still dominate
the industry, technology innovations, if applied correctly, can really help
elevate the creative process. Some companies have taken baby steps toward
addressing the major pain points customers report, but there is so much more
that can be done through technological innovations that have the potential to
change the retail landscape.
The
most prolific example of technology rapidly changing the customer experience in
fashion retail is the increased interest in contactless shopping. With more
than 70% of consumers claiming the checkout experience is the biggest pain
point, many retailers are attempting to update the checkout process using
methods like Apple Pay or Samsung Pay in order to create a seamless, efficient
and convenient checkout process.
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Where implemented, contactless payment has helped to eliminate the
hassle of a long checkout line and increased security for customer payment
information. Some retailers like Walmart and Amazon are working on pilot
programs that allow customers to purchase products without waiting in line at
all by ringing up items while they shop or as they exit the store using mobile
apps. Beyond contactless shopping, artificial intelligence has been continuously
growing across all markets.
Retailers have started using AI to power their e-Commerce experience.
With the ability to convert large, diverse data sets into enriched information,
AI can help improve speed, cost and flexibility across the value chain.
Companies like LVMH use an AI service that can predict fashion trends based
on an analysis of images shared on social media, and brands like Tommy Hilfiger
have begun using tools that gauge customer sentiment regarding products and
runway images.
As AI continues to grow, we can expect existing AI
applications to be further refined and new AI solutions to be introduced in the
market, to enhance personalization and provide better recommendations to users.
As the fashion industry continues to focus on personalization,
technologies like facial recognition software will be utilized. Many devices
from laptops to ATMs allow us to log in using facial recognition, and this same
technology could be utilized by retailers to tailor experiences for customers
or recognize VIP customers.
Retailers
could enable devices to determine customer satisfaction based on their facial
expression. Facial recognition could also be very helpful in letting retailers
see which in-store displays are most effective in getting the customer’s
attention; could play a role in supporting product selection; or make more
informed decisions on store planning. For
consumers, this could also mean retailers should be more attuned to their
immediate needs in providing service and information.
Additionally, retailers like Saks Fifth Avenue have
adopted the software to safeguard against known shoplifters, while Walmart is
using it to monitor checkout lines gauging customers’ moods while they wait in
line. If they appear annoyed or impatient, it could alert managers to staff additional
registers.
Imagine a customer standing in front of a shelf with multiple
brands of bags in different colors and prices, confused about which one to buy.
A simple message on their mobile device could offer assistance or could
recognize a shopper, pull past purchases and use that information to make recommendations.
With
the proliferation of mobile-based POS, customers can check out anywhere in the
store. This not only helps disperse lineups but also helps employees offer a
more informed customer experience. Using this technology innovation, staff is
more equipped to answer any customer query at checkout time.
Without
the added burden of a long line of impatient customers, they can take time out
to thoughtfully talk to customers through their purchases and help them make an
informed buying decision. For example, Walmart has announced a pilot whereby
customers are able to line up items via the company’s app while they shop.
Therefore, by the time they are done putting everything in their cart, all they
have to do is press “pay” and head home with their merchandise.
As
technology continues to grow, we can expect it to become more integrated into
landscapes that have been traditionally slow to catch up. Leading apparel retailers today
are setting the trend with the use of these innovative technologies, and we can
certainly expect this space to become more competitive, providing consumers
with personalized shopping experience and enhanced shopper choices. Technology
in retail has the potential to revolutionize the customer experience and grow a
retailer’s bottom line.
References
https://www.businessoffashion.com/articles/fashion-tech/5-technologies-transforming-retail
https://www.forbes.com/sites/rachelarthur/2018/01/15/ai-ibm-tommy-hilfiger/#15381ba378ac
Geetanjali Sarna is Principal
Consultant for Wipro’s Consumer Packaged Goods sector and
has several years of experience in the retail and management consulting
industry. Amit Prabhakar Gaitonde is Managing Consultant for Wipro’s Consumer
Packaged Goods sector and has more than a decade of consumer-packaged goods and
retail experience working with Walmart, Target, PepsiCo, and Unilever.
