In a perfect world, we would seamlessly integrate technology and retail to make a happy consumer. Although, as we can imagine-this is not as easy as it sounds. The new concept of retail is to make goods available through an online platform and the integration of mobile apps. However, this leads a lot of room for error.
The consumer today is far less willing to tolerate failure, and this article that I found captures the concept of this demanding consumer, a new platform for eCommerce, and the discussion that some retailers are having about this changing landscape. Take a look at this article, and think about what they are saying-do you feel that the retailers today are prepared enough, or taking necessary preparations, to conform to this new type of consumer effectively?
After reading this, I personally was left wondering what will happen to the retail industry if the current major retailers do not effectively leverage the widespread use technological advancements and online based platforms. I fear that the retailers are not going to keep up with the growing demands of the consumer, and a quickly evolving consumer at that!
Determining Personal Solutions – How Are We Going to Deal With Disruption?
Determining the solution(s) to tackling disruption has been a leading question we have been discussing throughout this course. Our primary solution for dealing with disruption is awareness complemented by interest. There are numerous platforms to enhance awareness of technology disruption in education, healthcare, media, music, personal computing, transportation, etc., just take a look at the findings each group has made. This information has been acquired through outside sources from Fast Company, which is my personal favorite, to Mashable, there are numerous ways to become aware. However, what strikes awareness is interest. With interest the possibilities to dealing with disruption are uniquely various.
Determining Business Solutions – How Can Businesses Help Employees Deal With Disruption?
One factor that was addressed in our discussion was a subscription service called Lynda.com. This service helps anyone with an interest learn new skills to meet academic, professional, and individual goals. A business’s investment in this type of software can be monumental for employees in terms of preparing for disruption.
Giving the term “Disruption” Awareness – Does “Disruption” differ from “Change”? “change”.
It is more impactful and carries different affects then what the definition of “change” provides. The two are different and this can be one possibility for the lack awareness. If the term “disruption” was given a formal definition then people might become more responsive to its existence, as opposed to considering that the drone that just flew right above them was a “change”.
Analyzing the Brick and Mortar Experience – Will stores disappear?
We have concluded that brick and mortar stores are still in existence because of the experience they provide. The experience provided is a salvage point for physical stores. Thus, although the inside of a store might change (new designs, shortage of workers, new selling tactics, price matching strategies, etc.) the stance of a store will not disappear, because people will not want to abandon the experience of walking into a store whenever they like.
Although this is our final deliverable, remember you can deal with Disruption with devoting an interest to trends and be aware, so here are a few retail disruption themed sites to keep you up to date on retail disruption!
If one watches a movie or a reality show set back as little as ten years ago, about the rich and famous, one thing they had that most people don’t is a personal stylist. A personal stylist is a person that studies your personal tastes in clothing, keeps up with trends, and presents current clothes that fit your style for you to buy. One could argue that a personal stylist has to have a certain creative trait about them, however what if that creative trait could be translated as an algorithm on a computer? Well those personal stylists out there better figure it out considering that time is here. Our technology is gradually disrupting the job market, some are already aware of that as who ever is reading this blog should be. A big assumption however is that the jobs being replaced by technology are strictly mathematical, or strategic jobs. You could easily assume that technology could not do what a person does, like creativity for example. But never say never in this world, in order to deal with disruption one must stay aware and expect the unexpected.
One example of the online personal shopper/ stylist would be this web site Keaton Row. They start out asking you a bunch of questions about your style, show you pictures asking you to choose what you like, and then give you style advice. Its one of tons of fashion websites that do the same like Fabletics, JustFab, and ShoeDazzle. Also BirchBox and BirchBox Man do similar things.
The example in the beginning was about fashion but personal selling is being disrupted from more angles than just fashion. Health and personal products of any kind are being disrupted. People used to go to other people with certification for advice but now it is so much cheaper, easier, and more convenient to go to your phone or computer. Plus you have access to opinions of either hundreds of reviews, or a system that asks you what you like and based on that comes up with options you would like. Both are options that are taking people by storm, while leaving many without jobs. It really is a double edged sword.
We have constant access to almost everything due to the internet. We are able to tell how much a sweater is at Walmart to how much it is at J.Crew to how much it is at a small boutique in Idaho. With technology giving us access to everything, companies have become very price transparent. We know how much a product is at any store in any location.
For example, a Louis Vuitton bag in Europe is significantly less than the prices in America and the only way you would know that is because of the internet and the access we have to the world. With the smart phone we have become smart consumers. Today’s customers are well informed on what they want, where they want it from, and how much they will pay for it. They go into the store knowing a lot more about the products than the consumer used to know. We used to go into the store and ask the salesperson for what we should get.
A major problem companies are facing today is showrooming. Since consumers know that they can buy a product online for a cheaper price, they go into the store to actually look at and hold the product. Companies like Walmart, Target, and Home Depot are facing this issue because Amazon has the same products for a cheaper price. Also, consumers just stay at home and do some online shopping in their pajamas and the product shows up at their door in a mere 2 days.
To combat showrooming, companies have realized that they can use their price transparency to their benefit. Since we know how much products are at other stores we choose the cheapest option. Companies are now using a Price Match Guarantee. This means that if the consumer brings in proof that the same product you are buying is cheaper at a different place, you can get it that price. This means that competition will not be based on the price of the products now because you will be able to get the same price everywhere. Now, the competition will be based on brand loyalty, convenience, preference, and experience. Companies have to set themselves apart from each other in different ways because prices will be the same.
In our Deliverable 2 you watched a YouTube video of each member of the group sharing feedback on research conducted on each of the 4 Cs. I explored the idea of the customer (you and me) and how they relate to the three P’s of Marketing (Product, Placement, Promotion). Also taking into account the past, present, and future to exemplify our research process.
Take a look at the Customer integration of research complied into an animated video. Here you can see how the customer experience will change in the retail industry.
Mobile applications are instrumental platforms that allow the retailer to become one with customer and remove the barrier between the two. As I mentioned in an earlier post, the tagline “there is an app for that” has become modern language and a way of life. With that, the retail team downloaded three mobile apps and tried them.
Out of the applications that we chose to test (RedLaser, Pounce and Mallzee), RedLaser was the only app that actually was a reliable source. Pounce, which allows a user to take a picture of an item and purchase it right through the app, did not effectively work. It pulled up similar items, but not the actual item we wanted.
The other, Mallzee, was “awful” as my team members identified. This personal shopper app was not intuitive or helpful, in fact one of my team members uses Wanelo, which is an app that you can purchase items through in one place.
It is interesting to note that the applications that claim to be intuitive and helpful, are actually not helpful. I instead prefer to use apps such as the one for Nordstrom and Macy’s that are directly linked to the retailer. Let us know what your thoughts on the applications are, and if you have any other applications that ease the interactions with the retailer!
Vests may be in today but, tomorrow high waisted jeans are so in. Fashion is constantly changing and just like that the retail industry is constantly evolving. I focused on the cost of retail and how it has changed over the years. I broke down the information I found into the Past, Present, and Future. I further divided it into the Price of Goods, Occupancy Costs, and Marketing Costs. This helped organize this information and easily compare all the information. The common disruptor in all three is technology. With new machines and softwares, producing goods has become a lot cheaper and easier. It is more efficient than a human. This technology has replaced the actual store and salespeople too because now people focus on online shopping.
We started in the past with a higher cost to produce due to having little to no technology. There were occupancy costs associated with the store, holding areas, and factories. They also had to hire more employees to sell and produce goods. Most of their marketing budget went towards billboards, tv/radio ads, and print ads.
We go into the present where we are surrounded by technology and see that the price of producing has gone down because we have replaced humans with more efficient and fast machines. The occupancy costs are similar to the past. Today, companies focus on digital marketing with website, social media, and targeted advertisements.
Looking towards the future, a big question comes up. Will there be a brick and mortar store? What will companies do with online ad blocking softwares? How cheap will it become to produce goods with faster and smarter technology? Find out more about the Disruption in the Cost of Retail in this video!
In the recent semester, from September 2015 to December 2015, myself (Deniz Yalcin), Jordan Panella, Abraam Dawoud, and Elizabeth Giovine have been separated into different sectors of technology and disruption. Our team was given the privilege to focus on the sector of Personal Computing, in which almost all other sectors were disrupted because of PC’s.
As our final consolidated blog post here are all the links to the blog posts we have created, please take a look and enjoy! Our plan is to continue to find and post more into the blog even when we are no longer take the DTL course so please for future reference keep an eye out for more compelling information from our team!
After researching the various technologies disrupting the healthcare and science industry, a video has been made to compile all of the findings of the healthcare-sciences team. The technologies discussed in the final presentation video are IBM Watson, 3D printing, tissue engineering, and genetic modification. Each new piece of technology offers a different way in how people’s lives will be impacted, however all bring about changes to the social system society has set in place. Changes include how long people are now able to live for, an increased ability to detect diseases, reduce risk during organ transplants, and assist those struggling with disease. The video is posted above but please refer here to discover the team’s research findings.
If you click here it will direct you to a video that shows the evolution of the iOS from iOS 1 to iOS 2. This youtube video really shows the disruption and the process the iPhone went through to get to this point. Make sure to really listen to iOS 5 and 6 since it shows how the disruption of the iphone changed drastically with siri and pc free. At that point is when the iphone can start to take over the role of a computer and how someone can do all of their messaging hands off due to siri.