How will technology change the way consumers shop and interact with retailers?
Maxus Global's technology arm Metalworks has identified the top five biggest trends in retail tech, and how they will affect businesses.
2. About Maxus Global
Maxus
Global
is
part
of
GroupM,
the
world’s
largest
media
investment
management
group
that
serves
as
the
parent
company
for
all
of
WPP’s
media
agencies,
and
which
buys
over
one
third
of
the
world’s
media
every
day.
The
newest
of
GroupM’s
agencies,
Maxus
was
set
up
in
2008
to
take
advantage
of
the
opportunities
created
by
the
digital
age
and
to
help
its
clients
to
‘lean
into
change’
Maxus
prides
itself
on
being
a
global
network
of
local
agencies,
focused
on
large
local
business
(BT,
ABF
in
the
UK,
Tata
in
India,
Telecom
Italia
in
Italy)
and
handling
several
international
clients
such
as
L’Oréal,
FCA,
GSK,
Barclays,
UPS
and
Church
and
Dwight.
At
the
core
of
Maxus
sits
Metalworks,
its
creative
technology
R&D
division
delivering
interactive
experiences
for
clients
including
GSK,
Bayer,
Tesco
and
others
globally
via
a
team
of
creatives
and
technologists.
Maxus
Global
employs
over
2,500
people
across
55
countries
in
70
agencies
worldwide
and
is
the
world’s
fastest
growing
media
network
across
the
last
five
years
(source:
RECMA).
It
was
named
Campaign’s
Global
Media
Network
of
the
Year
2011,
Ad
Week's
US
Agency
of
the
Year
2011,
and
one
of
Ad
Age's
‘Agencies
to
Watch’
for
2012.
For
more
information
visit:
www.maxusglobal.com
Trend Reports
Our
team
at
Metalworks
are
dedicated
to
staying
at
the
forefront
of
technology,
and
ensuring
our
clients
are
too.
The
Metalworks
Trend
Reports
offer
insight
into
current
technological
advancements
that
will
be
affecting
the
way
we
use
media
in
different
industries
3. The Future of retail
Welcome
to
this
brief
document
that
provides
a
taster
of
Maxus’
point
of
view
on
the
future
of
the
retail
space.
This
is
a
topic
that
is
close
to
our
hearts;
change
in
bricks
and
mortar
retail
environments
is
gathering
pace
as
digital
technology
creates
new
shopper
experiences.
And
in
our
Maxus
Metalworks
division
we
have
built
a
creative
technology
unit
who’s
pioneering
work
in
this
area
is
giving
a
competitive
edge
to
some
of
the
worlds
largest
advertisers.
Our
view
is
that
as
consumers
move
to
online
retailers
in
search
of
the
cheapest
prices,
the
traditional
role
of
bricks
and
mortar
will
change.
We
see
this
falling
in
two
ways:
1. Bricks
and
Mortar
will
increasingly
become
about
enjoying
brand
experiences.
Consumers
expectations
of
shops
will
change,
they
will
go
to
interact
with
brands
in
a
more
immersive
and
deep
way
than
they
are
able
to
online.
Much
of
this
document
explores
the
things
that
brands
can
do
now
to
satisfy
this.
!
1. Bricks
and
mortar
spaces
will
become
more
social.
Just
as
the
marketplace
of
old
was
both
a
space
for
shopping
as
well
as
one
for
gossip,
so
we
will
see
retailers
amending
bricks
and
mortar
spaces
to
bring
people
and
communities
together.
They
will
promote
good
old-‐fashioned
face
to
face
human
interactions.
We
hope
that
you
enjoy
reading
this
document
as
much
as
we
have
enjoyed
developing
the
tech
that
sits
with
it!
Nick Vale
Global Head of Planning
Maxus
5. The
introduction
of
contactless
payments
has
led
to
an
influx
of
developments
in
payment
technologies:!
▪ Apple
Pay
facilitates
thumbprint
authenticated
credit
card
payment
on
iOS
through
its
partnership
with
startup
Stripe.!
▪ Near-‐field
communication
technology
(NFC)
enables
shoppers
with
Google
Wallet,
Visa
Paywave
and
Mastercard
PayPass
to
do
contactless
payments.
!
▪ Amazon
and
PayPal
joins
Square
to
develop
their
own
mobile
credit
card
reader
bringing
new
Point
of
Sale
(POS)
options
for
retailers.
New WAYS TO PAY + Receive payment
Trend 1
6. Impact
▪ Rise
of
an
app
ecosystem
to
help
retailers
better
manage
data
from
their
store
POS
of
choice.
E.g.
Invoice
sent
to
shopper’s
email
and
used
for
loyalty
marketing
▪ Shoppers
pay
with
their
currency
of
choice
at
the
best
available
rate
via
devices.
Crypto-‐currency
like
Bitcoin
gets
more
mainstream.
▪ More
alternatives
means
lower
barriers
of
entry
for
upstarts
to
provide
options
for
shoppers
just
like
big
retail
stores.
AMEX
or
installment
purchase?
No
problem.
Secured
contactless
payments
enabled
by
Bluetooth
and
compatible
with
Apple
and
Android
devices.
Opportunity
New WAYS TO PAY + Receive payment
(Click
image
for
video)
8. Retailers
will
start
to
use
mobile
technology
to
better
understand
their
customers:!
▪ Enabled
by
Bluetooth,
Apple’s
iBeacons
(embedded
in
iOS7
and
Android
4.4
Kit
Kat)
go
mainstream
as
stores
like
Macy’s
trial
the
technology.!
▪ Microsoft,
Cisco
&
Intel
create
microsites
to
help
retailers
adopt
Internet
of
Things
(IOT)
solutions
that
will
enhance
logistics
operations
and
shopper
experience.!
▪ Predictive
analytics
informs
marketing
tailored
to
shoppers’
data.
Watch
how
Target
use
data
to
drive
sales.
Data Drives Brick & mortar stores
Trend 2
9. Impact
▪ Proximity
marketing
is
now
possible
with
beacon
technology.
Loyal
customers
are
rewarded
and
new
shoppers
are
given
offers.
Stores
can
tailor
suggestions
based
on
shopper
interest
and
purchase
history.
▪ Retailers
can
collect
data
such
as
footfall
traffic,
dwell
times
and
repeat
visits,
using
the
data
collected
to
adjust
store
displays
and
layouts,
increasing
sales.
▪ Retailers
can
monitor
inventory
in
real-‐time
via
IOT
enabled
devices
without
the
need
for
a
stocktaking
exercise.
Use
store
data
to
inform
your
marketing
just
like
eCommerce
stores.
Gather/push
data
from
beacon
Technology.
Opportunity
(Click
image
to
view
video)
Data Drives Brick & mortar stores
11. Retailers
are
putting
real
emphasis
on
the
shopping
‘experience’
with
these
digital
technologies
taking
consumers
beyond
the
store
walls:!
▪ Trekking
equipment
store,
Mammut,
uses
virtual
reality
headset
Occulus
Rift
to
allow
shoppers
to
experience
cliff
climbing
in-‐store.!
▪ Macallan
released
its
1824
collection
with
holographic
display
telling
the
story
of
its
heritage
and
whisky
distillation
process.!
▪ Transparent
displays
starts
to
go
mainstream
with
electronic
brands
like
Samsung
and
LG
manufacturing
their
own
versions.
Interactivity sells products
Trend 3
Photograph:
Michael
Bowles/REX
12. Impact
▪ Product
weaves
into
the
brand
story
seamlessly
and
becomes
a
talking
point.
▪ Novelty
of
the
presentation
cuts
through
busy
advertising
and
drives
longer
dwell
times
that
encourage
purchase
from
increased
attention.
▪ Interactive
content
can
be
used
to
impress
and
educate
new
customers
to
help
increase
brand
affinity
and
value
perception.
E.g.
teaching
a
shopper
how
to
appreciate
good
wine,
or
Swiss
watches.
Bringing
‘gamification’
in
the
shopping
experience
e.g.
A
mirror
that
provides
make-‐up
suggestions
based
on
a
real-‐
time
face
scan
of
the
customer:
Opportunity
(Click
image
to
view
video)
Interactivity sells products
14. Printed
billboards
lining
shop
walls
are
no
longer
enough
to
engage
with
digitally
switched-‐on
consumers,
who
are
seeking
entertainment
in
their
shopping
experience.!
▪ TESCO
Homeplus
set
up
virtual
supermarkets
in
South
Korea’s
subway
station.
Items
can
be
purchased
by
scanning
QR
code
via
a
smartphone.!
▪ Ralph
Lauren
transformed
London
Bond
Street
retail
store’s
building
façade
into
a
3D
video
show
using
projection
mapping.
Store space AS media space
Trend 4
(Click
image
to
view
video)
15. ▪ Inject
energy
through
light
and
sound
display
to
an
otherwise
mundane
environment.!
▪ Retail
store
owners
can
generate
additional
advertising
revenue
from
renting
media
displays
of
product
in
stores.
!
▪ Traditional
advertising
and
media
spaces
can
be
transformed
into
retail
showrooms
for
the
masses
to
engage
or
shop.!
▪ Technology
presentations
help
shoppers
associate
innovation
to
the
brand.
Store space AS media space
A
smart
shelf
that
detects
the
product
a
shopper
touches
and
serves
product
reviews
and
upsell
suggestions
via
video
or
still
image
advertising.
Impact Opportunity
(Click
image
to
view
video)
17. Fusing
brands
and
products
with
content
that
tells
a
story
enables
retailers
to
sell
a
‘lifestyle’,
as
these
examples
show:!
▪ Theme-‐based
pop-‐up
retailer
STORY
collaborates
with
Target
to
bring
holiday-‐themed
products
in
a
mountain
lodge
designed
store
in
New
York
City
for
Christmas.!
▪ Hardware
enabler,
PCH,
collaborates
with
Radioshack
to
bring
emerging
consumer
devices
from
startups
to
the
public.!
▪ Target
creates
short
film
with
store
products
for
its
Fall
collection
where
viewers
can
shop
while
they
watch.
Content collaboration
Trend 5
18. ▪ Retailers
may
inject
new
energy
to
their
store
collection
by
including
curated
products
from
designers
and
emerging
startups.!
▪ Storytelling
stretches
beyond
TV
spots
and
can
be
expanded
through
online
or
offline
experiences
that
lead
to
a
purchase.
!
▪ Regular
scheduled
content
that’s
highly
curated
and
targeted
builds
brand
loyalty
and
following.
E.g.
sending
a
couple
that
is
about
to
be
married
wedding
themed
content
and
products
.
Content collaboration
VideoFoundry
-‐
A
web
application
that
allows
busy
marketing
teams
to
create
and
tweak
multi-‐variant
HD
videos
on
demand
based
on
a
single
designer
themed
template!
Impact
Opportunity
View
brochure