1.

• "The Future of Internet Retailing: considerations for fashion (r)etailing"

London College of Fashion October 2009

www.ianjindal.com

www.internetretailing.net

2.

Future of Internet Retailing

The context in which youll be selling and addressing customers of fashion apparel

Talking about the internet and customers usage, rather than fashion itself.

Future founded in data and the network

Technology makes magic normal - taken for granted

Experience is immersive - challenges brands.

Augmented Reality - the new reality

Challenge to shops, place, pricing.

3. Framework for data, networks and epiphenomenology 4. Data: Not where youd expect to start in fashion! Number of freely connected nodes where exchange cost is near zero Hyperdata Metadata Data Endodata Hypodata 0 1 3 10 100 1000s+ 5. Data Business analysis Services Mashups Number of freely connected nodes where exchange cost is near zero Responsive and self-configuring Responsive; agents APML Microformats Hyperdata Web2.0 Social Metadata Data Endodata Hypodata 0 1 3 10 100 1000s+ 6. Data

• Attention Profiling Markup Language -www.apml.org

• Beyond personal: interchange and exchange value of behaviour

7. Data 8. Data Business analysis Services Mashups Number of freely connected nodes where exchange cost is near zero Responsive and self-configuring Responsive; agents APML Microformats Hyperdata Web2.0 Social Metadata Data Endodata Hypodata 0 1 3 10 100 1000s+ 9. When the network knows more than anyone 10. Business analysis Services Mashups Number of freely connected nodes where exchange cost is near zero Responsive and self-configuring Responsive; agents When the network knows more than anyone Hyperdata Web2.0 Social Network Metadata Data Endodata Hypodata 0 1 3 10 100 1000s+ 11. Business analysis Services Mashups Number of freely connected nodes where exchange cost is near zero Responsive and self-configuring Responsive; agents When the network knows more than anyone Hyperdata Web2.0 Social Network Metadata Data Endodata Hypodata 0 1 3 10 100 1000s+ 12.

Over 100 million customers profiled

40% active across multiple retailers

70 billion user-generated reviews

4.2 billion reviews served each month

575 retailers (October 2009)

http://www.texastechpulse.com/bazaarvoice_releases_traffic_stats/s-0021683.html

When the network knows more than anyone 13. Number of freely connected nodes where exchange cost is near zero When the network knows more than anyone Hyperdata Web2.0 Social Network Phenomena Metadata Data Endodata Hypodata 0 1 3 10 100 1000s+ Business analysis Services Mashups Responsive and self-configuring Responsive; agents Predictive 14. Predictive? You must need hypodata! 15. Business analysis Services Mashups Number of freely connected nodes where exchange cost is near zero Responsive and self-configuring Responsive; agents Predictive Hypodata Brain Scanners can predict a decision up to 10 seconds before a person is aware of making that decision Nature Neuroscience, April 2008 Hyperdata Web2.0 Social Network Phenomena Metadata Data Endodata Hypodata 0 1 3 10 100 1000s+ 16. Business analysis Services Mashups Number of freely connected nodes where exchange cost is near zero Responsive and self-configuring Responsive; agents Predictive Hypodata - MITs Sixth Sense http://www.flickr.com/photos/whiteafrican/3253881037/ Pattie Maess TED talk on MITs Sixth Sense: http://www.youtube.com/watch?v=blBohrmyo-I Hyperdata Web2.0 Social Network Phenomena Metadata Data Endodata Hypodata 0 1 3 10 100 1000s+ 17. ABSTRACTA headphone-type gaze detector for a full-time wearable interface is proposed. It uses a Kalman filter to analyze multiple channels of EOG signals measured at the locations of headphone cushions to estimate gaze direction. Evaluations show that the average estimation error is 4.4 (horizontal) and 8.3 (vertical), and that the drift is suppressed to the same level as in ordinary EOG. The method is especially robust against signal anomalies. Selecting a real object from among many surrounding ones is one possible application of this headphone gaze detector. http://portal.acm.org/citation.cfm?doid=1125451.1125655viahttp://liftlab.com/think/nova/2006/06/09/wearable-gaze- detector-in-the-form-of-headphones/ Hypodata - mashed up 18. But what about hyperdata? 19. Hyperdata: Location-specific Plus gestures, image processing, bio-input... (heartbeat? Match.com?...). 20. Any sufficiently advanced technology is indistinguishable from magic 21. The Gamut of data Number of freely connected nodes where exchange cost is near zero Hyperdata Web2.0 Social Network Phenomena Metadata Data Endodata Hypodata 0 1 3 10 100 1000s+ 22. Any sufficiently advanced technology is indistinguishable from magic Nodes Open Structured Data Business Web 2.0 Social Network Phenomena ESP? Epiphenomena 23. Enabling epiphenomenology: device integration

With us everywhere

Accesses data

Interlinking

Connected

Visualisation

Touch interface...

Location (GPS)

Direction (compass)

Image processing...

24. Bringing data alive PlazeMarks2D codesNeat, but very now 25. Augmented Reality... Layar.eu - overlay realtor data on street scenes 26. Augmented Reality 27. Augmented Reality - brands and interaction http://www.metroparisiphone.com/index_en.html 28. The Outernet Marking and spraying http://www.junaio.com /

Mobile device

Screen

GPS

Gameplay overlays

Personal scores

Network scores

Network-invoked events

hearts and kisses left for others...

Oh, and SMS

29. Augmented Reality University of Washington, 2008:http://uwnews.org/article.asp?Search=contact+lens&articleid=39094

Easy to dismiss as hacked-up geekery...

But - contact lenses with LEDs being developed

Even without 3D AR, even coloured confirmation lights could have impact.

30. How will this impact retail and eCommerce? 31. Basic level - it already does.

AR barcode - by SMS

Price comparison?

Colour options?

Buy online?

32. Shopping: present, yet elsewhere 33. Elswhere, yet present

Oasis

• iPhone App (by NN4M)

• Good integration with product

• Newsletter and storefinder

• Basket... but web checkout for now

• Just very, very ordinary and do-able!

34.

Nearly 2 years old

All components now exist and are free

Copyright Icon Nicholson - http://www.iconnicholson.com/nrf07/

Yesterdays future looks more prescient 35.

Augmented Reality + merchandising + gesture-based navigation

See also Ciscos in-store screens - very Mission Impossible.

Now!

http://www.youtube.com/watch?v=NxQZuo6pFUw

Yesterdays future looks more prescient 36. Challenges 37.

Concept Store taking control of the brand image, ambiance and merchandising

Training the customer

Vendor Relationship Management and live prototyping opportunities

Whats the point of a store? 38.

Nappies - should be a subscription product. Draw for supermarkets, but cant be great for Pampers...

Razors - POS an experience shave or info point

Configuring a sofa: the resulting bar code is an augmented reality image of the sofa, with embedded voucher and tracking code

Service point - think Collect+: delivered, tested, accepted or returned... from 0700-2300 7 days a week

Whats the point of a store? 39. Obama-Preedy Pricing Principle Its been a long time coming, but tonight, because of what we did1. on this day,2. in this election,3. at this defining moment Change has come to America President-Elect Obama, Victory Speech, November 2008 http://news.bbc.co.uk/1/hi/world/americas/7434843.stm 40. Obama-Preedy Pricing Principle

Its been a long time coming, but today, thanks to profit-algorithms and data,

on this day,

in this location,

for this defining product

for this individual customer

Fixed pricing has ended in retail

41. Obama-Preedy Pricing Principle

Vouchers - expire when stock reaches 10 or fewer (eg buy it now)

Stacked discounts: sale, cashback, card-holder, end of sale, channel... Why?

According to availability

Proximity of alternatives (time and space)

Time limited: premium for first (eg 3GS), nephews birthday

Extent to which has shopped around

42. Taking aim 43. Taking aim - retails new realities

Unprecedented data, integration and access: challenges our notions of shop and of activity: time is the new place

Data leads to insights about attitudes and behaviours - unlocking connection and selling

Channibalisation: dont watch the channel, watch the customer

Use of the basics is free: now need retail sparkle and credible personality and products to win: for this customer, at this time, for this product!

44. Thank you "The Future of Internet Retailing: considerations for fashion (r)etailing" London College of Fashion London, October 2009 www.ianjindal.com www.internetretailing.net