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Next Store: Wearable and Connected Tech

How will smart devices drive retail experiences?

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An estimated four million Apple Watches were sold to consumers during this year’s Q2, according to Strategy Analytics (Boston) – are you one of those consumers? The store environments community has had a lot of early adapters, so I’m confident we’ll spot some around this month’s International Retail Design Conference (Austin, Texas, Sept. 9-11). Get ready to share how you think these smart devices will impact customer experiences as we explore this month’s topic of wearables and connected stores.

I’ll admit, I’m one of many who’ve wandered in and out of an Apple store thinking about purchasing a watch, but reassuring myself that the second version will be better. (It always seems that way, doesn’t it?) But in time, I’ll join the masses and purchase my first wearable/connected device.

Coincidentally, I have two clients who are all over the wearables market and have asked me to design some in-store solutions for them. I was also invited to be part of a “wearable panel” during this year’s MAGIC trade show in Las Vegas. Is this a fluke or is it time to wake up to the next digital wave impacting the consumer, and ultimately, retail? 

The question got me thinking about the past two years at the NRF Big Show, where the few attendees wearing Google Glass were as much of a spectacle as the “cronut” in SoHo. Similarly, the connected-device aisles at CES in Las Vegas the past couple years have also been a hot commodity, with traffic buzzing around each booth.

Last year, Google purchased Nest Labs (co-founded by Apple engineers) – a manufacturer of WiFi-connected, smartphone-controlled home devices – for $3.2 billion. “The potential partnership sets up the expectation of a world populated with Google-powered smart devices,” speculated Wired magazine just after the milestone acquisition.

WAKE-UP CALL
Big players in technology are spending big bucks to create product ranges that will connect consumers like never before. And what’s the store design community doing to prepare for this new chapter that will undoubtedly shape the customer journey? Not much, I’m afraid. 

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The days of just another hardware advancement in digital screens or smartphones as standalone items are over. Rather, we’re moving into an era where a symphony of information is accessible by consumers at the very moment they want it. Going online for an old-fashioned search will go the way of the fax machine. 

BRINGING IT IN-STORE
Now, let’s look at this from a customer’s POV: It’s 2017, and they own a tablet, smartphone and/or smartwatch, which are always on. On their way to work, they pass stores X, Y and Z. Each time they pass, the store’s technology makes a note and learns the customer’s travel patterns. Soon enough, store Y has learned the pattern and sends a promotional message just before the customer usually passes by. Stores X and Z might gather the data, but don’t have a strategy to activate analytics. As a result, store Y sees same-store sales increase by 6 percent. 

Stores with advanced algorithms, like store Y, may also introduce more specific programs for things like sizing or even personalized curated product collections, tailored specifically for you, available right when you need them. As you arrive at this store, a series of sensors direct your smartwatch to become a custom wayfinding device, guiding you to personalized zones.

To further customize the experience, the store would have the capability to play your favorite music as you enter and could even adapt the digital wallpaper to pick up your home-interior color preferences. The mirror would act as a virtual stylist that not only recalls your prior purchases, but could also offer styling advice. Simply tap your watch to purchase while data is sent to your smart mirror at home, where you can access the store’s style recommendations before that first cup of coffee kicks in.

GENERATION: NOW
While it might sound out of the realm of possibility by today’s standards, don’t roll your eyes just yet – this very scenario is poised to unfold before you know it. As creepy as it may seem to those of us over the age of 50, it’s not perceived as invasive to the younger generations, who will be shaping the store environments to come. While no one wants to be personally tracked 24/7, it’s already happening to some extent. When you’re within your carrier’s database and service range, you broadcast certain information that’s being used in mass-marketing algorithms. This mined data will increasingly help brands anticipate shoppers’ needs before our brains even light up.

Other wearables will continue proliferating the market like, for example, smart contact lenses (for which Google has already obtained a patent). These could theoretically enable store associates to command drones to bring customers’ items to a “drop zone” in the store, while behind-the-scenes systems will continue to grow more automated. Even virtual reality technology like Oculus Rift or Microsoft HoloLens’ augmented reality could be great tools in supporting furniture retailers or condominium complexes that sell hard-to-envision products or development projects.

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The “next store” has many clues surrounding us today. When it comes to wearable or connected technologies, it’s important that the design community continues its open-mindedness so the entire retail industry can design the best environments for its clients; and most importantly, stay in step with the ever-evolving demands of the consumer.

Brian Dyches is partner and director, digital strategy & experience design at OpenEye Global, a strategy, design and consulting studio headquartered in South Amboy, N.J. Follow him on Twitter @briandyches.

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