digital fitting rooms – making shopping smooth at stockmann

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1 Copyright 2016 FUJITSU

Fujitsu Forum 2016

#FujitsuForum

Digital fitting rooms

– a part of Stockmann’s digitalization

roadmap to make shopping smooth and

creating enhanced customer experience

Elina Savolainen | Fujitsu Forum 2016

Agenda for today

September 2016

Stockmann in brief

Digital transformation

Case Digital Fitting Rooms

September 2016

Stockmann in brief

Stockmann in brief

September 2016

• International multichannel retailer

founded in 1862

• Revenue*

EUR 1 435 million

in 2015

• Personnell* 9 734

at year-end 2015

• Shareholders 52 415

at year-end 2015

* continuing operations

• 9 department stores in 3 countries

(Finland, Estonia, Latvia);

online stores stockmann.com

and hobbyhall.fi

STOCKMANN RETAIL

• 5 real estate properties in

4 countries (Finland, Russia, Estonia, Latvia)

REAL ESTATE

• 479 fashion stores in 17 countries; online

store lindex.com; purchasing offices in 5

Asian countries

LINDEX

No 1 source of inspiration

for modern

urban life

Our strategy in brief

September 2016

Stockmann Retail,

Real Estate and

Lindex will focus

on customer

experience and

efficiency in all

operations.

Creating

inspirational

shopping

experiences

CUSTOMER

”Every day is a new opening”

– focus on providing

a top-notch shopping experience

and increasing sales

EFFICIENCY

”Every square metre

to be profitable”

– efficient use of retail space,

optimal store network and

effective support functions

September 2016

Digital transformation

STOCKMANN 8

The best time to start was twenty years ago.

Second best time is NOW.

To drive digital transformation we aim at…

• Shared understanding and a starting point

• Basics first, no gimmicks

• Close business & IT co-operation

• Agility and small steps towards vision

• Data-driven business model

– Customer

–Order

– Product

– Financials

• Culture and mindset

STOCKMANN 9

To make it happen we need better solutions…

Customer Relations Management

Marketing Automation

Loyal Customer Programme

Product Information Master

eCom Sales Assistant application

POS Mobile Customer Application

To enhance digital in customer experience, we focus in 2017…

One Stockmann customer experience to support all actions

• Customer profile and “360 view of customer”

• Always-on marketing and sales support through inspirational digital content

Omnichannel shopping

• Digital to become “window to stores”: whole selection online, including store availability

• Click & collect, Seek & reserve, Express delivery, Buy online – return in-store

In-store digitalization

• Develop further sales assistants’ tools

• Digitalize displays (signage, price tags etc.)

• Use mobile to guide customers in stores

17.11.2016 STOCKMANN 11

Future customer journey looks today like

September 2016

Case digital fitting rooms

We started digital fitting rooms with a

small pilot to validate our idea and to

learn more.

17.11.2016 STOCKMANN 15

Digital dressing room was first piloted

• Digital Dressing Room was piloted in Helsinki Flagship Lingerie Department

during Summer 2015

• Pilot was executed with 30k budget including the software development and

devices.

• During the pilot sales personnel scanned 50 000 times items in department

and served nearly 3000 customers. Instant feedback result was 86%

positive.

• Pilot targets were met based on results and feedback

1. to bring convenience to new level for customer,

2. to create omnichannel customer experience in stores and

3. increase the sales personnel capabilities to close every deal in sales floor.

16

Digital fitting rooms connect the customer and sales staff

Digital fitting room application

Sales personnel application

WiFi

Development needed for both sides!

Digital fitting room development

Helsinki Flagship Lingerie

Finland all stores Lingerie

Finland all stores Men’s Fashion

Tallinn store Lingerie

Riga store 2017

Prototype

Centralized management and improvements to

front end

Localization for Baltics

New barcode scanners

UX improvements and new

functionalities

Pilot training close to end users Department trainings and close

feedback loop

Best practices shared and continuing

feedback loop

Solution roll out

Software development

Transformation and change

Sales personnel application development

17.11.2016 STOCKMANN 19

• Around 800 sales tablet tools in

Finnish.

• All non-food departments in Finland

since Autumn 2015

• Pilots in Baltics in Autumn 2016

• Software development is agile and

done step by step.

• Concentrates areas of product, order,

customer, sales management and

internal communications.

Enhanced customer

experience

• Building tool that enables sales

staff to fulfill customer needs and

questions more quicker!

• E.g. Instant customer feedback

survey

Close every deal

• More time to face the customers in

sales floor and more information

to serve them in sales floor with

mobile solutions!

• E.g. mobile ERP solutions

Smart & efficient working

• Easy-to-use tools,

replacing/renewing processes –

developed to solve our customer

& sales personnel pain points,

together with them.

• E.g. Sewing & alterations booking

system

Sales personnel application

17.11.2016 STOCKMANN 20

Lessons learnt so far - transformation starts from fearless mindset

• Culture

– Close to customers

–Old processes don’t work with new solutions – holistic

view

– Continuous learning and trials: 1000 ideas better than

one

• Direction

– Effective and open internal communications of vision

– Our solutions are owned by their users – ownership

• Team

– Cross organizational small teams consisting right

motivated people

– Speeding up the way of doing: agile does not mean

loosing responsibility

• Opportunities

– Focus on vision & clear priorities

– Co-creation with end users – every day

• Solutions

– User experience, keeping it simple

– From pain points to functional solutions with same time

automatizing processes

• Technology

– Eat the elephant piece by piece – avoid complexity

– Prepare the roll outs well

17.11.2016 STOCKMANN 21

September 2016

Thank You! Elina Savolainen

Senior Omnicommerce Development Manager

[email protected]

+358 46 8763 223