The CES (formerly known as the Consumer Electronics Show) is renowned for showcasing the latest and (potentially) greatest technologies. Given that there are so many applications and real world uses for the tech on display, the show always has significant retail implications, particularly this year with the presence of Amazon and Alibaba.
The RTP editors discuss their takeaways from CES 2017 and how they relate to the intersection of retail and technology, and share what retailers can learn from the trade show.
Debbie Hauss, Editor-in-Chief: I think the big question is going to be which company or companies rise to the top of the Artificial Intelligence (AI) arena as time moves on. It’s not always the first or loudest one out of the gate, so while Alexa has made the most noise this year, that doesn’t mean Microsoft and others are not going to rise to the surface. In December 2016, Techworld.com reported that nine tech giants currently are working on AI, including Uber, Skype, Salesforce and Shell. And yes, Apple is on it as well, even though the company doesn’t typically show up at CES, as noted by Bloomberg.com.
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Adam Blair, Executive Editor: On New Year’s Day I was talking with some baby boomer friends about things that had actually improved in the world in recent years. As happens with conversations like this among my nostalgia-minded cohort, the list wasn’t particularly long, but one area of agreement was EZ Pass, the RFID-based system that pays bridge, tunnel and highway tolls automatically. Time and fuel are saved and there’s no more fumbling for change to aim at a basket mounted on the side of a toll booth. That’s why I think one of the most exciting takeaways from CES 2017 is the introduction of in-vehicle payment. While it’s currently limited to fuel and parking applications, the next logical step is fast food drive-throughs, and I’m sure clever retailers are thinking up many more ways to leverage the technology even as we speak. This seems to me like a real benefit of mobile wallet-style technology, as opposed to using a smartphone to pay in a store where your own wallet or purse is equally handy.
Alicia Esposito, Content Strategist: The heightened presence of Amazon’s Echo, in my opinion, points to the future of service. As humans, we’ve always sought an easy experience — whether we’re shopping, cooking or looking up directions. The Echo illustrates how technology can help retailers augment the service experience. Rather than relying on humans, retailers can use smart technology that has natural language understanding. That means if a shopper has a somewhat easy question (i.e. “Do you have this in my size?” or “Where is the shoe section?”), they can get their answers…fast. What may be even more fascinating, though, is the convergence of this smart technology, appliance manufacturers, and brands and retailers. Where does the future of collaboration and partnership among these forces lie? If someone has a smart fridge, and taps into the Echo app to build her shopping list, will a food brand or retailer have the opportunity to push coupons, deals or recipe ideas through the app? The opportunities are endless and I’m so excited to see how this particular area develops.
David DeZuzio, Managing Editor: With Amazon’s Alexa as the reigning King, er, Queen of CES, it is obvious that the retail titan’s grip on the industry will not be easing up any time soon. But for those retailers who insist they can slay the giant, there are numerous trends from CES that may give them a fighting in-store chance. First, virtual reality and artificial intelligence (as seen in the charming, but somewhat creepy, Pepper), will make shopping more seamless and interactive. Fashion brands can use VR to market their products in new ways, from Snapchat activations to novel in-store experiences that blend shopping and entertainment. One such experience is Dressing Room by Gap, an app developed by the apparel retailer along with Tango and fashion software company Avametric, which enables users to virtually “try on” clothing. Will it help the struggling retailer? Time will tell, but it can’t hurt to try something new. Overall, VR might help give brick-and-mortar retailers a slight advantage over Amazon; at least for the time being. And, in case anyone forgot, IoT is getting bigger and becoming part of the fabric of retail, both literally and figuratively. From refrigerators to mind-reading smart sunglasses, the future, for lack of a better, less-overused phrase, is here.
Glenn Taylor, Senior Editor: Retailers have slowly adopted connected devices within their stores, but this year’s CES showed more of what the tech can actually do for people using them. Smart home products, while still in the emerging stage of development, are gaining mainstream appeal and can give retailers a greater idea of how to serve their consumers. For example, the GeniCan “smart garbage” sensor seems like an oddly unnecessary creation, but it can improve the customer-retailer relationship if used correctly. Users can scan a barcode or tell the device what items they are discarding, and the device will automatically add them to a shopping list. The gadget can even link up with Amazon’s Dash service to ensure automated replenishment. I still think these devices are going to take until around 2020 to really capture the attention of both retailers or consumers, but the continued evolution of these platforms is a promising sign that many of these technologies will be more practical going forward.
Klaudia Tirico, Features Editor: Virtual reality was a hot topic at CES, and for good reason. Whether it’s smart robots or unique fitting room technologies, consumers are sure to find these experiences to be worth a trip to the store. And the more foot traffic, the better! David’s example of Gap’s Dressing Room app also brings VR to consumers’ homes, which aids in the online shopping department. I believe this technology has the potential to even reduce the amount of returns retailers see from online purchases. It will be interesting to see how Gap’s app does, and which retailers will jump on the bandwagon. In addition, another interesting trend, in my opinion, is the growing interest in 3D printers as a means for driving engagement to brick-and-mortar stores. I see this technology being implemented to create a unique experience for consumers, hence driving even more foot traffic to stores. Experiential retail is bound to get a whole lot better in 2017.
