digital futures - more from less dynamic allowing brands to deliver individual promotions based on...

digital futureswe examine how brands can embrace technology and deliver personalised experiences to a generation of purpose-driven smart consumersDigital is the driving force of a major technological revolution that is dominating every sector of the economy.

According to research by Accenture Technology, 86% of executives questioned believe that the pace of technology change will increase rapidly or at an unprecedented rate in their industry over the next three years.

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pivot

digital impact The digital impact is influenced by many factors including home broadband uptake, multichannel consumer choice, growth of connectivity, the proliferation of smart mobile, click & collect and same day delivery services.

Digital ecosystems are emerging that disrupt the way businesses behave and which blur the traditional boundaries between industries.

multi-sensory experienceToday technology is developing so rapidly in so many areas that the lives and environments we live and work in are becoming a seamless blend of the real, the augmented and the virtual. We are becoming used to multi-sensory experiences and are adapting our view of what is and what isn’t possible accordingly.

omni-channel retailRetailing is no longer simply a physical world dominated by large conglomerates with traditional models of supply and distribution. It is evolving into a complex web of over-lapping, multi-functional, multi-channel, 24hr operations. Furthermore, new customer touch-points are being created all the time through the proliferation of channels, devices and applications.

personalised dataWhilst this world of invisible technology, fluid interfaces and enhanced realities presents huge challenges to brands and retailers, the data available has never been more specific and personalised. Companies that can mine this data, understand it’s value and adapt accordingly will gain a significant competitive advantage.

consumer insightsAdvances in neuroscience now enable a deeper understanding of end user decision-making behaviours, whether in reaction to advertising or at the point of purchase, providing R&D and Marketing departments with validation for new product launches.

consumer behaviourConsumers haven’t fundamentally changed; their needs are still driven by the desire for authentic experiences, value for money, convenience and relevance. What has changed enormously and continues to do so, is the development of technology that enables new paradigms across all aspects of retailing presenting urgent challenges to brands and retailers.

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“25% of the world’s economy will be digital by 2020” (digital economic value index, accenture 2016)

what does this mean for packaging?Today’s consumers are hyper connected and untethered. Innovation in smart materials, augmented and virtual reality and mobile technology is enabling product packaging to meet the needs of digital consumers.

Technology is enabling packaging to be highly personalized, interactive, immersive and to truly add value, helping brands forge deep and meaningful bonds with their consumers.

Digital services are redefining the standard for convenience; consumers can easily research, compare and transact whilst in or out of the home.

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over a third of the world’s population is projected to own a smartphone by 2017. (statista 2016)

91% of smartphone users turn to their devices for ideas while doing a given task.

source: Shutterstock

(google/ ipsos 2015)

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home deliveryHome delivery is a key competitive advantage for retailers competing on convenience with businesses such as Amazon and Argos offering same day delivery services. Companies are seeing rapid growth in purchases made via mobile devices and today’s consumers are no longer ‘going shopping’, their whole mindset is different. They will browse at their convenience, refer to their peers for advice and buy with a simple click.

In this mindset they also expect their purchases to arrive quickly and at their convenience.

Apps that permit live time tracking are being developed to further enhance the home delivery service.

The increasing demand for home delivery presents its own packaging challenge for brands and retailers. Their products need to be delivered safely and securely but also positively contribute to the customer journey, therefore the packaging also needs to resonate with the brand values.

If a brand can go further and surprise, delight or add value to the transaction even better. A delighted customer is likely to be loyal and tell their friends about their positive experience, maybe even via social media which could be exponential.

On a leisurewear fan review site, Luluaddict.com, a new brand Outdoor Voices was reviewed. An order was placed online and arrived in a cardboard box featuring Outdoor Voices branding and strapline #DoingThings. Inside the box is more on-brand messaging as well as a cheerful pop of vibrant colour. The product is nestled in crisp tissue paper with an accompanying return label, poster and welcome message. It looks and feels special.

The reviewer posted eight photos of the product packaging before they added a single photo of the actual product.

mobile order & payApple pay and digital wallet technology aims to make the process of ordering and paying more convenient, speeding things up for customers and retailers. Going one step further is ‘mobile order & pay’ as rolled out in 2016 by Starbucks that allows customers to pre-order from their Starbucks app, select their coffee, select their store, see when it will be ready, pay for it and collect loyalty rewards all whilst on the go.

With mobile apps empowering consumers and offering more control over when, where and what they buy, how long before algorithms pick up on our preferences, routines and health goals to customize our options even further?


source: Luluaddict.com source: Biznob.com

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information & transparencyPackaging will play a pivotal role in informing and educating future consumers. The technology exists and is becoming more affordable. Consumers are interested in health and wellbeing, in transparency and provenance and in social and ecological standards. Brands can inform, educate, collaborate and communicate with these consumers using smart labels, digital inks, radio frequency, beacon sensors, near field communication and augmented reality.

Sensors embedded into product packaging are also allowing brands to talk directly to targeted individuals and groups of consumers. Messages can be activated in-store via smart phones using NFC (near frequency communication) and the messages are dynamic allowing brands to deliver individual promotions based on time/date parameters.

Beyond the potential for personalized promotions, smart packaging solutions promise to reduce counterfeiting with consumers able to check authenticity via their smartphone prior to purchase.

Remy Martin Club connected is an example of a premium brand trying to take control in a market where counterfeit and illegitimate distribution is rife. Near field communication chips were discretely embedded in the lid to allow consumers to verify the contents via their smartphone.

As the cost of this technology inevitably comes down it will enter mainstream with powerful implications across sectors where product security is essential such as healthcare.

Consumers are demanding to be informed about where their products are coming from and how they are produced.


https://www.youtube.com/embed/nqnLXJng0C0

over 50% of those surveyed were interested in scanning packaging to learn more about the provenance of fresh produce.

(mindshare 2016)

(mindshare 2016)

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peer-drivenOne of the major influencers of younger consumers is known to be peer reviews and active involvement / collaboration.

Technology that allows participation and harnesses online, in-store, mobile and social platforms gives brands and retailers a valuable opportunity to engage with consumers on a much deeper and more significant social level than traditional methods of marketing.

Consumers are looking to brands to provide information on production standards, nutritional values, ecological footprints and sustainability. Digital packaging can offer this information directly to consumers via their smartphones or wearables.

As more and more of the objects in our homes and cars are connected, new opportunities arise.

barilla foods: meals that prepare themselves

The Italian food manufacturer, Barilla has used Radio Frequency Identification (RFID) technology as the basis for a whole new line of products. Working with Whirlpool they’ve developed an RFID-enabled oven that captures instructions from a passive tag embedded in the packaging. It then automatically mixes and cooks the ingredients. A delay function lets you schedule when cooking will take place, so you can come home from work to a fully prepared dinner, or wake up to the aroma of freshly baked bread.

https://www.youtube.com/embed/nfIZFwKD3rw


apps that support mobile-engaged packaging are a top trend set to impact the global packaging industry.

source: oursocialtimes.com

(mindshare 2016)

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personalisationAdvances in digital printing and the ability to connect smart tags to the Internet of Things will enable brands to turn the product packaging itself into a vehicle for further engagement; a sort of dynamic media interface. Indeed, brands such as Coca-Cola are developing this idea in conjunction with software company Evrythng.

As they explain on their website, brands can “Deliver ‘in-the-moment’ content, loyalty rewards or offers, based on contextual triggers like time, place, product, past interaction and purchase history, or lifestyle data pulled in real-time from social networks.”

Digitally driven data analytics and geo-location are powerful marketing tools allowing brands & retailers to target real-time, relevant information directly to an individual.

Successful businesses will use the vast flow of data to deliver highly personalized services based on a more up-to-date and complete insight into their consumers.

Source: Evrythng


“now consumers can digitally interact with products to unlock personalized content and rewarding brand experiences at the point of sale, or post-purchase. And manufacturers can operate every product as data-driven interactive media to drive brand attraction, differentiation, and 1:2:1 consumer connections.”

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evrythng

evrythng

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internet of thingsThe Internet of Things (IoT) will be a catalyst for the expansion of digital transformation to all corners of the economy.

It is predicted that IoT devices and solutions will fundamentally alter how consumers interact with businesses as well as how businesses interact with their supply chain and distribution partners.

A major focus for digital transformation over the coming years will be in the area of creating models and algorithms to support consumers when they shop. Already, the development of automated assistance technology is helping shoppers pull together huge quantities of disparate information to help them make decisions.

Predictions suggest that the most active IoT development will cluster around the manufacturing, transportation, retail and healthcare industries.


by 2018 there will be 22 billion IoT devices installed, driving the development of over 200,000 new IoT apps and services. forbes

in 2018 6 billion connected things will be requesting and responding to service requests from things. forbes

source: Shutterstock

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source: NHS

IKEA (source:BBC) https://www.youtube.com/embed/wwBO4PU9EXI

augmented realityAugmented reality refers to real-time view with augmented elements made possible by computer-generated sensory inputs (audio, graphics, video).

Augmented reality is allowing brands to bring their story and values to life.

In May 2016 the National Health Service launched an out of home advertising campaign using augmented reality to allow people to donate virtual blood via an iPhone. The public hovers the iPhone over a sticker on their arm indicating where the injection would normally occur and can then watch as their ‘blood’ is taken.

On the outdoor ad, the patient looks healthier as the blood is donated and a thank you message personalized to the donor is flashed on screen.

Brands and retailers have also adopted augmented reality to allow consumers to have a virtual ‘try for size’ before they buy. For example, IKEA uses augmented reality to allow customers to scan a catalogue product and then view it in situ in their own homes via their smartphone.

Face and body mapping also allows consumers to try on a variety of products from glasses and clothes to hairstyles in a risk free virtual environment.

Sephora has been trialing an instore digital mirror that captures live video of consumers and allows them to try on virtual eye shadow. It’s an extremely engaging and easy way of ‘try before you buy’.

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https://player.vimeo.com/video/119767361?color=fc083d

https://www.instagram.com/837nyc/

blippar

Augmented reality is also allowing advertisers to drive brand engagement instore. Blippar lets consumers interact with actual products via an app on their smartphone that triggers interactive experiences.

Coca-Cola, Nestle, Disney, L’Oreal and Perrier are just some of the brands already using blippar to deliver exclusive and immersive content to consumers. Incorporating augmented reality into product packaging not only offers brands exciting ways to engage with consumers instore but also allows them right into the consumers home.

Perrier used blippar to offer consumers exclusive digital ‘party’ experiences with animated cocktail mixology lessons and recipes and an interactive DJ mixing deck as well as destination guides.

In this way, digital technology is facilitating actual gatherings of like-minded people and the most in-tune brands understand that people are ultimately social and want connections with each other. This trend can also be seen across a host of flagship stores that have given over valuable selling space to curate and showcase or host social and community events.

The Samsung flagship store on Washington Street, New York is entirely given over to playing and sampling. As the place where ‘ tech & culture collide’, the store is all about experience as their Instagram page illustrates beautifully.

Furthermore, Apple’s new flagship store in San Francisco has donated space to the community as a communal social space to be used and enjoyed together. Digital technology is being used to return retail experience to its original status as a community hub.

Source: Curbed San Fransisco

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https://www.youtube.com/embed/qObSFfdfe7I

wearables

Currently, wearables are mainly limited to fitness bands and watches but an explosion of wearable technology is expected in 2016. In testing currently is a ‘smart’ jacket created by collaboration between Levi’s and Google.

The jacket will allow wearers to answer phone calls, get directions and play music through voice activation or a simple tap of a cuff or a press of a button.

The smart jacket is the first creation to come out of Google’s ‘Project Jacquard’ that is working on conductive yarns that can be woven into everyday materials and connected to tiny processors that fit into a button.

For developers, the major challenge is ensuring the practicality of the wearable and its utility. Levi’s chose to develop a smart jacket because they recognized the ‘urban cyclist’ as a receptive audience and one with real needs that could be addressed through the technology.

It won’t be long before consumers will be constantly interacting with products via their wearables, collecting and returning data via sensors instore or built into packaging. This data will help inform the purchase decision probably interpreted via an app and will allow real-time variables to come into play.

Software developer IFTTT (If This Then That) is already developing technology to work with wearables to allow consumers to set purchase parameters based on dynamic variables such as the weather or price. i.e. ‘if the sun comes out this afternoon, buy burgers for a bbq ’.

Grocery retailer Tesco is the first European retailer to sign up to IFTTT. Tesco’s deal with IFTTT allows consumers to connect with Tesco via over 300 digital channels including wearables such as, Fitbit, Nike+, Strava and UP by Jawbone as well as popular music, sports, news, social networking, productivity, commerce and connected home channels.

Shopping in this way changes the decision-making process from an impulse instore to a planned one based on pre-set variables. Live streaming of data will inform and update as apps talk to each other and the retail process will have to evolve to cope with instant demand and remote ordering patterns. Cloud based inventory and warehousing will help facilitate this.

Source: WGSN Insider (Levi’s & Google)

Tesco

wearable device sales will generate a total revenue of $28.7 billion in 2016. gartner

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virtual realityVirtual Reality will enhance and possibly replace classic e-commerce platforms,allowing consumers to go shopping at their convenience using a VR headset. Ebay is already offering this service through a partnership with Australian retailer, Myer. Viewing merchandise virtually through a ‘shoptical’, shoppers can browse and inspect up to 12,500 products simply by looking at them.

Virtual reality is set to change the way consumers interact with brands. High-end fashion brands such as Dior and Balenciaga are keen to get onboard with VR, using the technology to bring some of the magic of the catwalk to every consumer. Dior has even designed its own VR headset, ‘Dior Eyes’ with the view to immersing customers in a 3D brand experience. VR offers brands and retailers a way to delight and surprise consumers and connect with them in a real and meaningful way.

Another exciting development in e-tailing is the ‘buy pins’ on Pinterest that will allow users to buy the items they can see with a simple click through to purchase via Apple Pay or card without leaving the Pinterest site. This facility to share and collaborate with peers, tap into expert opinion, browse curated content in a non-sales environment and then actually purchase brings on-line purchasing into a completely new and exciting digital space.

experienceCustomer journeys include many touchpoints that occur before, during, and after the experience of a product or service.

The customer journey is even more important today because there is more opportunity to get it wrong. The challenge is to think of the customer journey as an integrated series of physical and digital interactions. There needs to be a seamless interaction between physical retail space and digital and social media.

sales of VR headsets are forecast to reach 22.5 million units for non-video game playing consumers by 2018.

“companies that provide the customer with the best experience from start to finish along the whole journey can expect to enhance customer satisfaction, improve sales and retention, reduce end-to-end service cost, and strengthen employee satisfaction”.

Source: LVMH

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kZero

mcKinsey.com

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burberry, london flagship

Designed specifically to be a fusion of the physical and digital, the London flagship Burberry store on Regent Street offers its customers an immersive experience. The store is beautifully designed and spacious with multi-sensory digital technology integrated into the entire offering.

Digital rain showers delight and amaze, large video displays stream live events and Burberry fashion shows into the store bringing the magic of the catwalk directly to shoppers. Interactive mirrors transform to show items on the catwalk and throughout the store screens show product design and creation. The store also hosts live events and collaborates with third-party artists.

The whole design aesthetic reflects Burberry’s brand values and is continued across on-line and mobile media creating a seamless experience across the customer journey.

On a beauty blog a consumer has received her first ever Burberry product through the post and enthusiastically states

“First off look how beautiful the packaging is!”Brands and retailers need to understand that their consumer’s ‘journey’ isn’t over until their purchase is home or delivered safely and then unwrapped. Beyond this even, the experience garnered during after-sales contact is just as vital to shaping the customer’s view. With consumers keen to review products and services on social media and then also refering to peer reviews to inform future decision-making, it is crucial that brands take the opportunity to meet or exceed consumer expectations.

https://uk.burberry.com/shows-events/live-at-121-regent-street/#/flagship/1

Source: : simplylouisehouse.wordpress.com

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blurring of physicial and digitalAs consumers shop differently and technology enables new retail platforms and opportunities, the physical and digital retail worlds are becoming increasingly blurred.

argosArgos has recently launched several digital concept stores – including Argos Old Street – with in-store Wi-Fi and interactive screens throughout the store that can be changed dynamically to provide general information, product advertisements and offers.

Customers now browse the catalogue on tablets, which gives them access to much more information including product videos and reviews. It’s also much easier for Argos to adjust prices by updating the data feeds, rather than having out-of-date catalogues. Using the tablets, customers can order products online and collect immediately by using the FastTrack Click & Collect service. Beacon technology can recognize receptive customers and push notifications directly to them and certain pages in the digital catalogues are blippable allowing browsers to bring the product to life via their smartphone.

Some retailers are looking even further into the future, imagining how digital technology can facilitate a meaningful experience for each and every customer. A future that not only uses interactive components but artificial intelligence built-in to permit the environment to adapt as it learns about shoppers and their tastes.

https://www.youtube.com/embed/GUjGtaJpySA

https://www.youtube.com/embed/IKouQFI1aM4

faster, easier and more seamless by combining the best of shopping online and shopping on your high street - an experience like no other. argos.co.uk

>< the future of global packaging+44 (0)1279 874641 morefromlessglobal.com

>< insights

the future of retail and consumption is changing as the digital revolution takes hold and product packaging needs to reflect this and at the same time add value to the new shopping experience.The digital revolution is spawning smart packaging solutions with technology offering increasingly affordable solutions to build additional functionality into packaging. Sensors that unlock content at the point of purchase or in the home will transform the way consumers interact with products. Whilst there is obvious potential for promotions and advertising, the brands that seek to create deeper consumer engagement will need to go further and create open and honest conversations with their consumers focusing on transparency and personalized utility.

benefits of smart packagingtrackingSmart packages are provisioned with a unique identifier (NFC) or EPC code (RFID), so they know who they are and can identify themselves, for enhanced control and more efficient management from source to consumer. Smart packages can be tracked precisely at any point in the value chain, smart products can report where they are, where they’ve been, and where they’re going.

authenticityA smart package can verify the authenticity of its contents, so consumers can be sure what they’re buying is genuine. Packages can also be equipped with sensors to monitor environmental factors, such as temperature, so people can be confident that products that require special handling, including foods and pharmaceuticals, are safe to use.

interactive Smart packaging can also respond to questions, providing valuable information and interactions when asked. Local information can be shared or the cloud can be leveraged to extend the conversation and offer tailored options. Digital packaging can unlock information about ingredients – where they’re from, how they’re produced, or connect users to installation instructions or service guides.

personalisedSmart packaging can unlock personalised special offers, invitations to brand-related social communities and exclusive loyalty rewards. This information is instantly accessible and can offer up-to-the-minute accuracy for real-time targeting of individuals.

insightsEvery interaction can be captured by a tracking platform in the cloud, providing new market intelligence allowing marketing and operations teams to acquire greater insight into consumer interests and behaviors.


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