Staff Reporters
Aug 31, 2010

New technology to lure shoppers to stores

GLOBAL - Interpublic is testing new technologies at its Media Lab in Los Angeles in order to better understand how consumers shop and encourage companies to rethink the role of the retail store.

IPG's Media Lab is testing futuristic retail technologies.
IPG's Media Lab is testing futuristic retail technologies.

A new wave of digital technologies currently being tested include virtual customer service representatives, digital scanners that offer customers personalised discounts as they shop and a device that transforms the front window of a store into a giant touch screen, according to a report in The Wall Street Journal.

Another device includes a mirror that lets a shopper scan a dress, project the clothing onto her body, view different colours, find matching shoes and send the image to her Facebook profile.

John Ross, president of shopper sciences, which is part of IPG's Mediabrands, says online shopping gives purchasers a lot of information to guide their buying decisions. Consumers want detailed data, reviews, recipes for food products, health and nutrition information.

"The role the store is playing is changing," says Ross. "Shoppers are walking up with a different set of expectations."

According to the WSJ report, the new interactive retail technologies come as retailers are putting more emphasis on their in-store marketing efforts. Faced with increasing fragmentation in traditional media, marketers hope to connect with consumers when they are in a place where they can make a purchase immediately.

Carl Preller, managing director at Kantar Retail in China, says this is happening in multiple formats globally. More high tech shopper engagement solutions that are both strikingly futuristic and actively aiming to create a more personalised shopping experience.

The price point of new technologies is dropping fast, allowing tools that were once considered space age and too expensive to be deployed at much lower costs, reports the WSJ.

Preller goes on to say that the lead channel to look out for these trends has traditionally been either in electronics or department stores where the nature of the goods and the premium pricing have made one-to-one marketing and personalised impact critical shopper marketing success factors.

"Despite this we are seeing a rapid drive into more of this type of technology right into the hypermarket and mass drugstore channels, with anything from skincare analysis centres to 3D televisions situated on gondola ends. It is absolutely viable in mass and is already happening, but mostly for the higher margin, higher price point categories."

Shops that are already experimenting with new technologies in-store in the US include JC Penney, Shop & Shop Supermarket, speciality retailer The Limited and Dunkin’ Donuts.

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