RevTech, a
venture accelerator focused on developing early-stage retail technology
companies, is hosting its 11th semi-annual Tech Trends in Retail event in the flagship Neiman Marcus store in
Dallas on April 5. This event showcases new retail strategies and the
technologies that power them, and includes presentations from several RevTech “graduates,”
including:
The RTP editorial
team has handicapped the technologies and companies being featured at the
RevTech event, with each editor selecting their standouts.
Debbie Hauss, Editor-in-Chief: I am definitely fascinated by what Bottlefly is offering: “a
patented method for tracking consumer preferences in sensory-based products.”
Invented by an impressive group of graduates and a professor from Cal Poly, the
Palate Profiler uses “flavor chemistry and emotion-based adjectives” to provide
a virtual sommelier for stores and restaurants. But I imagine most high-end
establishments will continue to offer the personal touch of a human to interact
with customers, talk about the product, open and pour the bottle — and take it
back if it has been corked. The other startup that is saying all the
right things when it comes to retail innovation is Xenio
Systems, and the company holds 74 patents across IoT, positioning,
hardware and software design. The platform touts capabilities beyond beacon
technology, citing: “patented
hyper-positioning technology that can pinpoint a shopper’s location within two
feet and monitor where they are, where they’ve been, their velocity, and what
products they’ve interacted with.” But…it still requires integration with a
mobile app and it has a number of different physical components that must be
installed at the store.
Adam Blair, Executive
Editor: Two of the featured RevTech
innovators, Envizzo and Cherry Pick, cleverly leverage popular
activities. Envizzo places products into short-term rentals and boutique
hotels, providing a platform to collect consumers’ insights and offering the
products for sale. Cherry Pick uses an AI-powered engine to identify beauty
products customers are commenting on in social media networks, and then
delivers product-specific email and advertising at the “moment of intent.” Both
companies recognize that data-driven insights are today’s newest high-value
currencies. I do have one caveat, however: there’s only so far you can go
in monetizing consumers’ interactions — particularly when you’re intruding on
other experiences. When I travel, for leisure or business, my hotel room is the
last place where I want to be “sold” something (except perhaps from the
minibar. Mmmm, Toblerone and macadamia nuts.) And social networks have more
than enough advertising for my taste. I understand the value of targeting
customers and creating relevant interactions, but a light touch is needed for
it to be effective.
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Marie Griffin,
Managing Editor: Innovation is the only way forward in an economy that
bends toward commodification. Among the startups making their pitches at
RevTech, the two I find most interesting are decidedly non-tech — Roopa and the Akola Project, retailers
of handcrafted items from India and Uganda, respectively. Both empower women by
enabling them to profit from their crafts. I am pleased to see that a group of
venture capitalists can appreciate the value of innovation that isn’t
technology-based. Besides, it’s smart business. Millennials and Gen Z consumers
are gravitating toward products that are not mass
produced and companies trying to do good in the world. However, the
company I think has the best chance of being financially successful, as well as
most beneficial to retailing, is Xenio Systems. By combining IoT, RF and indoor positioning
technologies, Xenio promises to go “beyond beacons” to more tightly integrate
the in-store and offline customer experience, which, of course, is exactly what
physical stores need most.
Glenn Taylor, Senior
Editor: The way retailers have handled (and continue to handle) the convergence
of online and offline shopping has been one of the biggest factors in their
success in recent years. In almost all cases, brick-and-mortar stores have
difficulty thriving without an online presence, and more online-only brands
continue to see the value in at least a small physical presence. With that in
mind, Xenio Systems has positioned itself pretty well as a competitor in the
mobile space. At RTP we talk a lot
about the customer journey, particularly the need for merchants
to stay connected with them at all times, and Xenio appears to bring that
value to retailers. Including SDK and LED fixtures to measure shopper traffic
and in-store behavior is already important for brands, but I think the
intertwinement with marketing campaigns gives this technology the kind of
presence that will be necessary to improve shopping experiences across all
channels.
Klaudia Tirico,
Features Editor: Since physical retail is not dead, despite rumors of an
apocalypse, I am intrigued by the concept of Neighborhood Goods. It is
described as “an app store for physical retail” where a variety of (mostly
digital-only) brands host their own pop-up-type locations in a single,
experiential environment. After hearing Matt Alexander, Founder and CEO of the
company, describe Neighborhood Goods in a podcast with NextGen Venture Partners, I can’t help but think that it
represents a new generation of brick-and-mortar stores, one that the younger
generation could really get behind. Alexander calls it “a contemporary
alternative to and evolution of the department store.” It’s a dynamic space
that houses dynamic signage, events, live artwork displays, live podcasts and
even a restaurant. It really takes experiential retail to new heights and
allows consumers to discover new, sometimes digital-only brands in a cool
environment. I can see this becoming “the store of the future.”
Bryan Wassel,
Associate Editor: While it may not single-handedly turn the retail
industry on its head, the technology being developed by Bottlefly could be
the key to better-targeted food and beverage sales. The company is using flavor
chemistry, machine learning and a dual-taste preference system to make
science-based personalized wine recommendations, which other industries could
eventually adopt. Taste can be a barrier for consumers who might be interested
in trying a new edible product — you can put that sweater back if it looks ugly
on you, but once you open that box of expensive cookies you’re out of luck. Wine
is a strong point of entry for Bottlefly’s service. The beverage is popular yet
esoteric, and some extra assurance could convince shoppers to purchase more
expensive bottles. The average liquor store can’t afford a sommelier, but
targeted recommendations may bridge this customer service gap.
