Techno-revolution in retail. What will she be?

Buyers changed

There was a time when retailers had a simple idea of ​ ​ who, where and how to shop. Customers could see the ad or view the catalog and then come to the store for the right item. The development of technologies - the Internet, personal computers and mobile devices - and their wide availability provided customers with a lot of new opportunities to get information about the product and how to make purchases.

These opportunities have given rise to a new class of buyers. The buyer of "new time" is technically savvy, knowledgeable and demanding. The Internet allows him to find out the maximum details about the item before making a purchase, compare prices and the convenience of receiving the item from different sellers. He makes purchases from his computer and mobile device, and after the purchase he shares his opinion about the item with other buyers on the Internet. In this regard, modern buyers are more inclined to change the supplier of the product/service than a few years ago.

PwC analysts in their study of Internet commerce, published in 2016, note that retail is on the verge of a revolution, and 2017 is called a turning point in the development of many trends identified over the past few years. Consumers around the world are expanding the boundaries of shopping. Now it includes such components as the desire of customers to be members of a specialized community, an increase in the number of purchases made from a mobile phone, growing consumer confidence in the opinions of social networks participants and raising the bar for requirements for store employees regarding their qualifications and service culture.

Especially relevant is the influence of technology for a new, growing generation, which is often more comfortable to visit the site from a phone or computer and order something there instead of communicating with a living person.

Gennady Tarantasov, head of Retail at Korus Consulting Group of Companies, notes that the behavioral model of customers is changing, and this, in turn, opens new channels of communication with them.

More and more new communication channels are emerging. Someone who can effectively manage, sell and deliver to the client the goods that he needs in the place in which he needs, at the right time and at the right price, he will win the market and will be more effective, "he said.

New sales channels are gaining popularity

It can be stated that the role of the Internet sales channel is growing worldwide, and that mobile devices are becoming increasingly important in the shopping process. This is confirmed by the data of the PwC study, which interviewed more than 23 thousand people from 25 countries of the world on all continents, published in 2016. Of all respondents included in the global sample, 47% buy goods using mobile phones at least several times a year, and 28% use their phones for this purpose at least once a month. According to analysts, the percentage of such users will only grow.

The Russian market follows global trends - Internet sales and the use of mobile devices by customers are growing. In the first half of 2016, Detsky Mir Group reported 2.5 times on the growth in revenue from online trading. Significant growth in Internet sales in 2016 was noted by the M.Video and Eldorado networks. The Inventive Retail Group (a network of digital electronics stores, children's and sports goods) also spoke about a double increase in online sales.

We expect to increase turnover in the E-Commerce channel by at least 100% annually. All the projects that we are implementing now in the direction of expanding sales of "digital" channels are successful and accepted by customers, "said TAdviser Alexei Morozov, director of IT at Malon Fashion Group (owns befree, Zarina, Love Republic clothing brands).

Alexey Morozov, "Malon Fashion Group": "We expect an increase in turnover in the E-Commerce channel of at least 100% annually"

TAdviser was told in Leroy Merlin that the share of traffic on their company's website from mobile devices is about 35%, and the share of mobile sales in the entire E-Commerce turnover is 10%. People search and buy through mobile devices, the company notes.

Denis Rudakov, director of IT at Hoff (furniture stores), also notes the growing demand for online and mobile channels in retail. Online sales of the company account for a significant share in the total. Hoff launches online sales in new cities and works to develop mobile solutions, both for buyers and sellers.

There is already a buying mobile application Hoff, and in the piloting stage - "Mobile Assistant" for sellers, he told TAdviser. This is a tablet program that complements the capabilities of a traditional workplace, such as viewing the catalog and availability of goods, checkout, customer communication, personal offers, etc. In the future, it is planned to implement the possibility of paying for purchases with a bank card, a training mode for sellers and a number of other functions on tablets.

Denis Rudakov, Hoff: "Using the mobile application in the trading room in the format of our stores is a great potential for additional opportunities to increase sales"

Gennady Tarantasov from Korus Consulting cites Nike in Russia as an example of using tablets in a shopping room for buyers:

You go to the store, on a tablet that is installed in the store, choose a T-shirt, logo or picture to place on it, click "OK" and in five minutes you get a unique T-shirt.

At the junction of offline and online trading

At the same time, offline retail remains important for many buyers. After watching the product on the Internet, the client often wants to get acquainted with it "live" before buying. Under such conditions, retailers strive to develop in accordance with the concept of integrated sales (Omni-channel), combining offline and online channels to improve the purchasing experience.

Now offline and online sales are getting closer, and market leaders have already crossed paths. To meet the expectations of customers, it is necessary to develop technologies at the junction of these channels, "said Yevgeny Shlyapin, director of the IT department of the Mascottey shoe store chain, in a conversation with TAdviser.

Denis Rudakov from Hoff told TAdviser that their company also develops omnichannel services at the junction of online and offline trading: these are traditional things, such as the ability to pick up goods in a store to choose from when ordering via the Internet, and the creation of "smart" zones with terminals in trading rooms that provide online sales inside a traditional store.

In 2016, the Malon Fashion Group took a course in implementing the Omni-channel concept, TAdviser was told in the company, adding that the company is focused on additional sales channels. For 2017, the Malon Fashion Group plans to expand them, offer additional services in the form of different types of deliveries, convenience of working with orders, and others. So, this year the company launched a pilot operation of public Wi-Fi inside some stores "by analogy with the successful networks of America and Europe, next year it will expand this service," said Alexey Morozov.

Director of Internet Commerce "Leroy Merlin" Nikolai Kozak in a conversation with TAdviser noted that in the near future - 1-3 years - among the most promising technologies for himself, the company considers technologies that allow the company to transform into an omnichannel. This is primarily the creation of Master Data Management (MDM) systems, CRM, Digital Platform, a number of logistics programs, he says. In these areas, pilot projects have been launched at Leroy Merlin.

Adamas (a manufacturer and network of jewelry stores) is trying to combine communication with the client and transfer it from offline to online, giving its customers the opportunity to make a purchase directly in an offline store, or order goods from a neighboring store, Stanislav Melinger, director of the company's technological development department, told TAdviser. In addition, in the stores of the Adamas network, the client can pick up his order, having previously reserved it in the online store. Since December 2016, the company has also extended the self-pickup service to retail stores located in large cities in the regions.

Stanislav Melinger, Adamas: "The company is trying to combine communication with the client and transfer it from offline to online"

Over the years, retail has been actively moving towards the development of the omnichannel. Some areas of retail - fashion, electronics, computer and household appliances, food networks - have already advanced far in this matter. Gradually, omnichanality also comes to the trade in jewelry. I can say with confidence that in the coming years we will definitely develop this direction, "says Stanislav Melinger.

An example of the introduction of technological new trends in Adamas is a single CRM system that works in omnichannel mode for online and offline.

The term omnichannels is now very relevant for all companies. Russian companies that could boast full-fledged omnichannality are probably units, or maybe they are not at all, if we talk about what omnichannality is in the classical sense, "said Gennady Tarantasov from Korus Consulting.

To support the omnichannel strategy, a very significant overhaul of the entire IT infrastructure is needed. Firstly, the retailer should have a single base of customers with whom it works, says Tarantasov. The seller must understand that through whatever channel they are contacted, they can raise the entire pool of information and work out the buyer's request. The customer coming to the offline store should receive from the seller the same mechanisms, the same discounts, the same processing as through electronic channels. This means that the loyalty program should be very closely integrated with all channels of the retailer.

In addition, all back-office systems that relate to order processing should also be integrated, says an expert at Korus Consulting. The seller should show in the database, for example, that the item was bought in the online store, but returned through the cash register because it did not fit. This means that [[POS, shipping system, online store, system loyalties must be closely integrated among themselves - they must all work in real time, exchange information among themselves.

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For you only: a personal approach

Modern technologies allow sellers to collect more and more information about their customers in traditional stores and online channels, including social networks, in order to provide a more personalized approach to them. Personification can be called one of the main trends in retail both in Russia and in the world.

One of the opportunities to work more effectively with the buyer is predictive analytics: when the seller knows who this buyer is, what he is buying, what would be right for him to offer, at what point in time and at what price, Tarantasov says. To do this, you need to identify the client in a timely manner both in the physical store and on the Internet.

Technologies have appeared that allow you to identify a client in offline retail: video surveillance systems with facial recognition, Wi-Fi tracking technology, when the client is identified by the mac address of the phone, etc., noted in Corus Consulting. Having determined that the buyer is near or already in the store, the retailer can use this information. Data mining systems allow you to analyze history, look for obvious patterns and make models, forecasts and check how they work based on them.

In this area, for example, for the Mascotte network, the technology of indoor geo-targeting based on iBeacon/Eddystone is now of great interest. It allows you to receive detailed information about visits to offline stores, the buyer's interest in a particular product and make personalized relevant promotions to a particular customer in the right place and time, for example, at the time of entering the store, or a few minutes after the visit, explained TAdviser director of the IT Mascotte department Yevgeny Shlyapin.

There are different opinions about this technology, he noted: for example, that the coverage is small - only 20% of people with smartphones include Bluetooth, and even fewer people with a mobile application installed, it is necessary for the entire chain to work iBeacon. However, the use of numerous "wearable devices" and the ability to integrate with mass applications such as Edadil, Wallet or Yula, Avito and others, which cover up to 80% of customers, make it possible to ensure applicability now. Of course, it is necessary that the chain of stores can work with these massive mobile applications, and this is not a problem: Mascotte, for example, has a successful experience with Wallet, says Shlyapin.

Evgeny Shlyapin, Mascotte: For the Mascotte network, indoor geo-targeting technology is of great interest

We conducted tests of technology iBeacon + mobile application. Technically, we're ready to work with her. Next on the queue are questions of marketing activity, what exactly we will offer to a specific customer. I think there is an opportunity to widely deploy this project in 2017, "Shlyapin told TAdviser.

He added that Wi-Fi analytics have long been used for the location of the buyer in shopping centers, but this is a misuse of Wi-Fi technology, which imposes a number of restrictions now and in the future. For example, the new Wi-Fi connection policy for iOS prevents Wi-Fi analytics, he said. Therefore, in the future, iBeacon/Eddystone has the best prospects for accurately determining the location of the buyer and personalized interaction with him, Shlyapin explained.

Personalization is reflected in the management services of various campaigns, promotions, when introducing loyalty programs at Hoff, Denis Rudakov notes. The company collects information about the buyer: about his transactions, what he bought, what he did on the site, etc. This information is used to form personal offers to the customer, starting from birthday promotions (loyalty according to master data) to targeted offers to the customer based on the analysis of his purchases and behavior on the site. To do this, the company uses its own developments in the field of data analytics from loyalty programs, and also considers ready-made solutions for similar purposes.

Nikolai Kozak from Leroy Merlin also speaks about a systematic approach to working with personalization in his company. According to him, projects have been launched to create a single customer database (online -offline), CRM project, Service Map project.

Alexey Morozov from the "Malon Fashion Group" notes that, unfortunately, earlier the company was engaged in personalization only as part of research. In development plans for 2017, the Malon Fashion Group put the development of customer segmentation, purchasing analytics, personalization and other elements of CRM, he says.

Adamas is currently only considering options for developing the capabilities to use personification technologies.

Like everyone else, we are moving in this direction, but at the moment we are using a fairly standard set of tools - for example, the formation and generation of analytical sections that allow us to highlight key segments of our target audience, "said Stanislav Melinger in a conversation with TAdviser.

Technology on the Go

Retail companies in mature markets have been experimenting and introducing new formats of interaction with the buyer for more than a year at all stages of sales - from selection of goods to payment for delivery. One of the technological trends both abroad and in Russia can be called virtual and augmented reality. In the fashion industry, for example, virtual imprints are becoming more widespread - in online format and in traditional stores, along with smart mirrors.

One recent example is the introduction of virtual smart mirrors in the stores of the Italian fashion house and the Brioni brand in Rome, Milan, Las Vegas and New York. Standing in front of an interactive mirror, the customer can choose suitable clothing from more than 1500 models.

In 2016, eBay, together with Australian retailer Myer, launched the world's first virtual reality store. To buy the necessary goods in it, you will need a smartphone and VR glasses.

In January 2017, Coop Italia, the largest supermarket chain in Italy, in collaboration with Accenture, developed a new concept of customer experience for food stores and opened a "supermarket of the future." The new flagship store, located in the University of Milan in Bicocca, has created innovative conditions for obtaining information and making purchases. The combination of physical and digital aspects allows you to recreate the atmosphere of the traditional open-air market, complementing it with digital solutions that provide the necessary product information and help you navigate the store.

Coop Italia Supermarket of the Future

Separately, you can distinguish the developing topic of self-service and rejection of cashiers and other personnel in trading halls due to complete automation. One of the first such famous projects was a supermarket in Sweden, which opened in 2016. It has no cashiers and no guards. Access to goods and purchases in the store are carried out through a special mobile application.

A grocery store of a similar format in 2017 plans to open Amazon. The AmazonGo will use artificial intelligence and computer vision technologies, and funds for goods will be automatically debited from a bank card at the exit from the store. The company launched its testing at the end of 2016.

Amazon is testing an offline product store without cash lines and sellers in Seattle

In one form or another, Russian supermarkets are testing the full-cycle self-service format, but it has not yet received mass distribution here. Gennady Tarantasov believes that in Russia this is unlikely to work in the near future, because so far in the country labor is much cheaper than in the West, where sellers are expensive, and it makes sense to optimize their use.

Another scenario of interaction between sellers and buyers, which may become widespread in the future - through smart refrigerators: they themselves can track the availability of certain products and automatically order the missing ones. Such models already exist, for example, in the Samsung portfolio, but so far their price is quite high.

We can talk about prospects 3D Printing in retail. With to trade this technology, you can produce simple items, such as a regular coffee cup, having only the code of the desired item for printing.

Alexey Morozov from the Malon Fashion Group believes that 3D printing is an interesting approach, but thinks that in the coming decade, classic delivery methods will be a priority. Moreover, considering this purchase process as a high-quality service, and not a money-goods relationship, there are many difficulties: for example, difficulties with returning, exchanging for another size and others, he said.

Another new format that the world's largest retailers are starting to master is the delivery of goods using drones. Despite the ban on drone flights in human settlements in most countries, they can be used to deliver goods in remote areas. Amazon, Wal-Mart, Alibaba have already begun to work with this format.

Amazon tests delivery of goods by drones

Nikolai Kozak from Leroy Merlin noted that in the segment where his company operates, this type of delivery would not be very justified, but in general, drones can really be an excellent delivery solution, especially in Russia.

In Russia, there are such hard-to-reach zones where "aircraft do not fly and trains do not go." And drones are the only way to deliver there. But this is a difficult logistic model for implementation, it is still unjustified to invest funds and resources there, "he said.

Evgeny Shlyapin from Mascotte is sure that delivery by drones is more suitable for "one-story America" or rural Russia, where single-story houses and long distances. In the conditions of large cities, for example, Moscow, with the peculiarities of its infrastructure, the development of such a service would be difficult, he notes: "I think that in Moscow such drones will be quickly lost. They may become entangled in wires or they may simply be knocked down. "

Methods of delivery, including drones, instant teleportation of goods and sensation delivery technologies are not yet considered in relation to the company, but to the applicability of the method. Well, what drones in St. Petersburg with gusts of wind up to 30 m/s and Moscow with its forbidden zones? - says Alexey Morozov. - Moreover, it is now that our wonderful customers prefer live communication: whether it is with a seller or an employee issuing goods, for example, a courier.

Store of 2025 - what will it be?

In the center of the retail store of the future should be a customer whom stores will instantly recognize. Stores will have the opportunity to interact with the client on all channels - the Internet and others. An additional assortment will be available, which the client will be able to order on the Internet through information kiosks, says Nikolai Kozak from Leroy Merlin.

According to Yevgeny Shlyapin, the world is gradually moving away from physical implementation, virtual/augmented/mixed reality technologies will become widespread in the store of the future. Perhaps by that time traditional stores will not be needed at all, he suggests.

People who encounter these technologies are amazed by the reality effect of what they see. I think that even earlier, already in 2020, all the capabilities of virtual and augmented reality will become widely available and will be massively used, "says a Mascotte representative. - Considering how much you can save on renting premises, paying employees, logistics of goods balances, and for the buyer to get an absolute level of personalization, these technologies will be actively used.

He added that already now, using the example of the e-commerce channel, the company sees that the possibility of physical contact with the product is becoming less and less important for the buyer - it is compensated by digital product information.

Stanislav Melinger believes that in the foreseeable future we will see how much less staff will be in stores who are "at the forefront" of communication with the consumer. If you go to McDonald's, now you can see that some of the traditional cash desks have been replaced by self-service cash desks, he says.

I think that in 2025 there will be practically no traditional stores, mainly these will be points where it will be possible to pick up your purchase made online. Or, as an option, these will be showrooms in which you can see/feel/try on products. Retail development in this direction is proceeding rapidly. Judge for yourself. More recently, we could only dream of the opportunity to buy a car online. I mean not an ad aggregator, but a full-fledged sale with a card. And in 2016, this dream began to be realized: the media began to announce such sales, "Melinger notes.

Denis Rudakov suggests that in 2025 the trend for mobility will still be relevant. Through the development of data analytics technologies, personalization can give higher efficiency. Existing imaging technologies will develop, such as the smart Digital Signage and augmented reality technologies, he thinks.

Already now there are many augmented reality applications, augmented reality glasses with which you can come up with a lot of interesting scenarios for the store. For example, show how a piece of furniture will look in the room. The main problem now is content: someone must sit down and draw all these items. It costs a lot of money and takes time. When the market matures, perhaps suppliers themselves will begin to draw out their products and formats for exchanging this information will appear, then, I think, augmented reality will become the norm, "Rudakov notes.

The fundamental difference between today's store and the store of the future will be in the concept, believes Alexei Morozov. Instead of "demand forms supply," the concept will be approximately as follows: proactively, until the moment of desire, a product/service will be provided that is guaranteed to be consumed by this particular individual. This is the unconditional development of BigData technologies and world globalization, he notes.

Nevertheless, that is why, let's say, retro stores with classic sales technologies will be especially appreciated. Most likely, such stores, due to the classic service, will become a luxury boutique, regardless of the goods sold inside, "said a representative of the Malon Fashion Group.

Read also

• TAdviser IT Retail Day Conference March 31, 2017