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Many brands are using technology to engage with customers in a new way and drive sales.

- Dior creates its own virtual reality headset

-From Virtual Reality To Personalized Experiences: Alibaba Is Bringing Us The Future Of Retail This Singles Day

-Bits & Bytes | Amazon's Fashion-Forward Echo Look, AR Versus VR in Retail

-The Amazing Ways Burberry Is Using Artificial Intelligence And Big Data To Drive Success

-Farfetch Announces Store of The Future

-Hands-On With Tommy Hilfiger's In-Store Virtual Reality Catwalk Experience

Delivery Methods- Patricia, Ebba, Gaia, Hedvig

Key Bulletpoints:

The workers are paying the price for same- and next day delivery. They are working 24/7 to get all of these orders out in time. (Source 3)

Amazon Prime, delivery in record time. Items can be ordered and delivered within one hour in London, and to customers across Europe in one day. (Drapers, 2017) (source 5)

Delivering individual orders to people’s homes is much more expensive than restocking a store. Home delivery constitutes about 20% of the total value of the item, while delivering to a store counts for only five to seven percent. (Source 3)

In collaboration with the UK government, Amazon studies how drones can be used as an asset in the logistics industry. Launching its first Air Delivery Service in the UK in only 13 minutes to a customer in Cambridgeshire. (Source 1)

83% of shoppers consider a fast delivery service to take place within two days as compared to the previous year where majority of shoppers still considered a three to four day delivery “fast”. (Source 4)

Retailers are also having to adapt to consumers’ growing expectations of convenience, which has meant they have had cut back on physical retail space investments (cut back on staff) to switch investment from stores to their online operations to cope with changing shopping habits. (Source 6)

Matchesfashion is launching a new distribution centre close to Heathrow Airport, to facilitate speedy international deliveries. It will enable the business to handle more than 4 million shipments a year by 2020. (Source 7)

One model emerging in the luxury sector is “you try, we wait”. This involves asking a courier to wait while the customer tries on their purchases. The courier then takes back any unwanted items, eliminating the need to return them at a later date, and the customer pays for what they keep. (Source 8)

Amazon aims to take the "see now, buy now" model of making clothes seen in catwalk shows quickly available to consumers to a new level, offering one-hour delivery on items shown on london fashion week. (Source 9)
Faster fulfillment- increase in on-demand or same-day delivery. (Source 11)

Gig economy/crowdsourcing apps -UberRUSH for parcels, Postmates, Deliv and even Amazon Flex provide spot-market deliveries by independent drivers.(Source 11)

Legacy carriers have improved traceability, with proof of delivery and tracking information(Source 11)

Insourcing deliveries- An increasing number of companies are using their own or shared vehicles for last mile delivery – and that includes Amazon (Source 11)

City warehouses- organizations to build or take advantage of this urban warehouse space and have easy access to products for fast customer deliveries. (Source 11)

Carrier becomes Salesman- Using Big Data, retailers can predict what else a customer might want, even if they didn’t order it. The concept of a mobile warehouse is gaining steam. The fulfiller can load noncommitted inventory into delivery trucks, allowing drivers to upsell during the delivery process. The driver can bring items the consumer has ordered in the past or might need or want, processing a potential additional order in person. (Source 11)

Delivery by self-driving cars, drones and robots- The highest cost in delivery is labor, which accounts for 60% of the cost. Deliveries are currently limited by labor cost, availability and shifts. Robotic delivery could be done 24 hours a day (Source 11)

Robot delivery is already being tested in San Francisco for Yelp Eat24, using a Marble robot on city sidewalks. (Source 11)

1. Amazon’s Drone service delivery

2. How in home package delivery could save e-commerce

3. The human cost of next day delivery

4. Speedy delivery a prevalent priority for shoppers

5. Amazon tests one hour fashion delivery at LFW

6. Digital revolution blamed for 62,000 drop in retail jobs

7. Matches Fashion to open London distribution centre

8. Pay-later delivery model

9. Amazon Tests One-Hour Catwalk-to-Doorstep Deliveries at Nicopanda

10. Amazon Prime Wardrobe

11. Delivery -9 trends in last-mile delivery

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Robotics - April, Damien & Jacob

- automation in manufacturing increases efficiency

- application of robotics in factories improve working conditions

- “By teleoperating robots from home, blue-collar workers would be able to telecommute and benefit from the IT revolution just as white-collar workers do now.”

- reduces physical labour

- efficiency in delivery services

- possible increase of precision in traditionally-manual procedures (ie. medical surgery, cooking, and sewing)

- debate on whether robotics and automation in work field increase/decrease employment rate

- lessen production costs in the long-term

- limitation on type of tasks that a robot can perform

- better floor space utilisation by decrease footprint in the workplace

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Mandy Lau, Stella Cheong

Channel Development

- Duty free market, brands are using this channel to introducing and make an entry to the new market, to improve global brand awareness
- Pop-up store (temporary, new, creative, experience)
- (new retail China) desktop/laptop online shopping
- Apps that can send you an ad when you pass by the a location
- Consumers most desire for fitting room with interactive mirrors
- Uses popular movies for innovative retail ideas to attract customers (st.james street kingsman, Mr.Porter)
- Instagram introducing new feature of having shoppable tags that linked to the product
- Amazon new gadget ‘Echo look device’ is voice-enabled camera, which takes photo and give fashion advice after analysing (instagram tags) (Voice search) (Kingsman)

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Retail Innovation Digital
Mobile Retailing
-purchase via app with exclusive disscount
-pick up in store with cheaper cost or free
- attract return customer to shop in store
-offer discount using digital payment
-digital advertisement through social media e.g. Instagram, draw people attention, in order to attract more customers (impulse purchase)
-in Hong Kong, over 8000 restaurants and shops accept Alipay(one of the digital payment type) from mainland chinese users. Loyalty programmes and discount vouchers will be added to attract more users.

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- Study found that AI will be first used public in transportation, such as autonomous and self-driving, and  healthcare sector is another area that will soon be affected by AI systems. Driverless trucks will reduce the logistics’s cost.
- There is a AI app called Oyooty which can help parents to monitoring there child’s online behavior. It indicates that company can using Al to analyse customers’ shopping behaviour.
- By analysing shopping data of single customers and competitors, AI data analysis system could possibely tell retailers how to align product drops to match the demand, predict what product to order, and even how to display products in store and online.

- A online styling app, Thread, use Al systerm to make styling recommendation for it users by analysing data like what human stylists think and the basic information of the user.

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Amy Greaves, Jade Innis, Melody Cheng Bo Yee

To conclude our research, a lot of brands have invested in technology (for external and internal uses) in order to strengthen their market position, especially in the aspect of customer engagement e.g. improving customer services and shopping experience ( online and offline).

Pure e-player Amazon tried to use Dromes to deliver goods

QR codes scanning to make seamless purchases

QR codes scanning in-store to interact with consumers

Use RFID to provide a more transparent and efficient supply chain

Use RFID to track consumers’ in-store shopping preferences and shopping behaviour for future uses

Allow consumers to make quick and easy purchases via tables/ mobile in-store

Giving Amazon Prime members the opportunity to receive products an hour after seeing them featured live in Nicopanda’s fashion show. “Amazon and Nicopanda are not the only labels embracing the "see now, buy now" idea at London Fashion Week, with big labels including Burberry, Topshop and Tommy Hilfiger pursuing similar strategies.”

Concept interactive store to enhance consumer engagement with the product, for example fitting rooms with photobooths /

AI Data Analytics - Klaudia, Rebecca and Bridget

- Recruitment looking for candidates with data analytics will change the education curriculum in university. The focus on this topic is also likely to impact the job market as some positions become outdated and irrelevant and new positions will be created.
(based on )

- Personal data can be used to spot warning signs about one’s wellbeing and therefore giving opportunity to act on them.
(based on )

- An early example of this can be certain google searches result in suicide prevention line; a recent study using computer learning showed that it could be possible to identify depressed individuals based on their instagram activity. ( )

- The amount of data being collected from apps used daily could produce incredibly tailored and effective marketing and advertising in the future.
( i.e. currently, Tesco clubcard monitors customers shopping habits - Fashion retailers can adopt by sending its customers personal offers and events tailored to its shopping habits.

- Amazon new machine allows technology to predict latest fashion designs - huge possible impact on the way fashion industry operates in the future
AI developments could eliminate current fashion merchandising issues such as stock levels and discounting. (

- AI is changing how easily consumers can look and shop for products. BOF speculates that in the future, AI could make finding what customers are looking for even easier, in example describing desired product to an AI search engine would bring up the closest matches (

- Currently visual search is used by John Lewis and Asos via apps that allow scanning images of products in order to find similar ones available at the particular retailer - this also blurs the border between online and offline shopping even further. (

- Menswear brand Perry Ellis has recently launched a styling service available on Amazon’s Alexa - when asked ‘ what should I wear for…’ and specifying an occasion, Alexa sends a selection of outfits from the brand’s website to the user’s smartphone (


Kelsey Feng, Sarah 


Key Points from Research:

1. Leveraging Sales Associates Online 

Retailers will better integrate sales associates online in order to bridge the service gap between shopping online and in-store. E.g Retailers will adapt new technology where sales associates can provide personalised recommendations to online shoppers based on their past purchase history, through live chat or via one-to-one email marketing. Similarly, big-box retailers, which don’t offer personal shopper services, will leverage their store associates as a team to respond to local shoppers’ inquiries online and address local trends, inventory and pricing in order to drive shoppers in-store. Personalised customer experiences rely on trust — the associate must have a relationship with or trust from a shopper to give expert guidance and opinions. In 2017, we’ll see retailers build this trust with online shoppers by redefining the role of sales associates to outside the physical constraints of the selling floor.

2.Combining Buyer Data and Local Associate Recommendations to Convert Sales

Thanks to advanced shopper data retailers will use local store associates more to make recommendations based on this data or the shopper’s preferences, especially if they notice the shopper hasn’t made a purchase in a while. E.g retailers are using new tools to provide sellers with insights into the top product recommendations made by associates and buyer requests across the nation. Therefore, if an associate wants to recommend a handbag to her customer, she can quickly see the handbag styles that other customers have purchased and asked about while seeing the handbags recommended by other store associates.Through this type of proactive outreach and personalised suggestions, sales associates can encourage regular, repeatable sales and achieve higher overall margins, while also increasing grassroots word-of-mouth referrals.

3.Personalisation is the future of retail

Personalisation can bring more value to a customer as they receive a more targeted experience. Personalising the shopping experience also drives repeat business. KPMG's recent survey of 18,000+ consumers (The truth about online consumers, January 2017) found that customised promotions, exclusive member offers and customer recognition across channels were among the top ten drivers of customer loyalty.

4. Machine learning has the potential to revolutionise personalisation for fashion platforms of the future. By using input from several sources, machines can recognise and categorise virtually any fashion item, revealing symmetries, structures and trends from every corner of the industry.

5. Amazon blazed a trail in personalisation with its similar product recommendations, leading many retailers to emulate its model Beacon technology could also play a role in personalising the in-store experience.
Retailers including House of Fraser, Asda and Ted Baker have trialled in-store beacons that send push notifications directly to shoppers’ smartphones when they walk around store.

6. Retailers will embrace artificial intelligence for greater personalization,” Emily Bezzant, head analyst at retail technology and analysis platform EDITED told Retail Dive. “The savviest retailers are taking advantage of advancements in machine learning, deep analytics and AI for a more targeted and personalized shopping experience. Customers now have longer digital footprints, including shopping histories, social media profiles and interests.”

7. While other sectors are prioritising factors like social media engagement and content marketing, targeting and personalisation is now the top priority for retailers – with 33% citing it as one of their current three key areas of focus. Through personalisation, retailers are able to provide more of an authentic, relevant and memorable experience for consumers, in turn increasing the likelihood of repeat purchases and brand loyalty. As a result, we can see that budgets are expanding, with 57% of retailers now planning to further invest in personalisation during 2017.

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