‘Smart’ packaging opens digital opportunities for food brands

As noted in our recent trend report on food, packaging can be a gateway to more information and content via QR codes and similar technologies. The idea isn’t new (especially in some markets), but consumers are only gradually taking to it—5 percent of American adults with a mobile phone scan any kind of 2D barcode, up from 1 percent in 2010, according to a recent Forrester study—and brands are still testing ideas around it.

Games are one value offering. In the U.K., Cadbury uses Blippar technology to enable augmented reality-style games on chocolate bar packaging. Tic Tac recently launched an AR game in which the mint box serves as background as the player tosses mints into the mouth of a 3-D character. Codes can also lead consumers to more information, like recipes or sourcing. Kraft recently added QR codes to several cheese products, giving users ideas about how to use them. In Vancouver, Foodtree is teaming up with restaurants to offer QR codes on menus that tell diners about where ingredients come from.

Another idea: General Mills’ CMO suggested to USA Today that the traditional surprise inside a cereal box could become a phone-based “visual surprise.” The cereal box is an appealing platform, with plenty of real estate and a spot in front of people eating breakfast. Last year Kellogg’s saw a respectable response to QR codes on its newly launched Crunchy Nut cereal in the U.S.

Watch for a wave of experimentation from brands seeking to tap new opportunities to extend their message and create a new channel for everything from coupons and loyalty rewards to education and entertainment. See “What’s Cooking?” for additional examples.

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Sainsbury looks to promote Fairtrade with the help of QR codes

The Fairtrade Fortnight event has begun in the United Kingdom. The event aims to promote awareness of Faritrade goods – those produced through humane means. Sainsbury, one of the world’s largest supermarket chains, has announced that it will be taking part in the event by adding QR codes to many of its products. The company hopes to inform consumers about how beneficial purchasing Fairtrade products is to farmers in the world’s most impoverished countries.

Sainsbury's QR Code
All of the Fairtrade branded products carried in Sainsbury’s stores throughout the UK will feature their own QR codes. When scanned with a smart phone, consumers will be taken to a mobile website where they will learn the various aspects of Fairtrade. The company notes that money generated from selling Fairtrade goods is making a profound difference for businesses and communities around the world. At present, all of Sainsbury’s lines of bananas, roast and ground coffee, plain cotton t-shirts, roses and tea are acquired through Fairtrade means.

In 2010, Sainsbury’s efforts to support Fairtrade brought in over $3 million in investments to the Fairtrade Foundation. This money has been used to improve the quality of life for workers living in impoverish countries. Sainsbury expects to see continued success in this endeavor and believes that this success will be enhanced through the use of QR codes and, in the future, other mobile technologies.

For more information on Fairtrade: http://www.fairtrade.org.uk/

IBM and Huawei hook up to start Chinese takeaway

MWC 2012 IBM’s enterprise consultancy, IBM Global Business Service, has joined up with Huawei to create enterprise solutions, initially for Chinese companies but with global aspirations.

Huawei wants its smartphones embedded into businesses, and to give those businesses a reason to buy its tablets too. IBM wants to push its Chinese presence and tap into the expediently expanding market, which it hopes to do with Huawei’s help, but to Huawei this is just another step on the road to global domination.

The jointly developed platform is called “Smart Workspace@Mobile” though at the moment it is little more than slideware and aspirational statements. It will involve Huawei’s device management systems, and apply IBM’s experience with enterprise resource planning, customer relationship management and supply chain management, to create a combined solution to be pushed heavily into the energy and retail industries.

Both companies reckon enterprises are posed to make greater use of mobile workers and want to be ready to exploit that market in China and beyond. Huawei pins its plans to a projection which sees a 80 per cent of businesses making their staff work on the move by the end of next year.

But this alliance with IBM is also important in painting Huawei as a full-service company, not just a manufacturer of networking kit and Android handsets. There are dozens of high-volume-low-price manufacturers in China and Huawei is desperate not to be lumped in with them. Launching a quad-core Android handset is one part of that – the Ascend D being anything but low-cost – but sitting on stage alongside IBM is equally important. ®

British supermarket chain tests iPad-ready shopping carts.

Want a side of Apple with your supermarket runs?

Shopping Cart with iPAD interface

Shopping Cart with iPAD interface

British grocery store chain Sainsbury’s is testing out new shopping carts with solar-powered iPad docks and speakers (iPads not included).

The trial, first rolled out at a Sainsbury’s location in Kensington, West London, will allow customers to watch live sports and sports-related news after docking their tablets to holders affixed to their shopping trolleys, the Telegraph reports. A built-in battery with a self-charging solar panel keeps the tablets from running out of power, and a sensor on the front bumper will beep if an engrossed shopper gets close to crashing into another cart.

The carts have been developed by broadcaster Sky TV to shine a light on its Sky Go service, which serves up television on the go on Apple devices (an Android app is reportedly coming soon).

Sainsbury’s said in a statement that the shopping carts, which may be rolled out to other stores in Britain if successful, could convince more shoppers to patronize a store.

“We strive to make our customers’ lives simpler, which is why we’re looking at these new trolleys,” said Brett Hart, the supermarket chain’s shopping cart buyer.

Look customers in the eyes to lock them in the aisles.

Shopkeepers adopt the hard sell with some tailored software, writes Mark Russell.

IN THE film Minority Report set in 2054, a brewer’s advertising billboard identifies Tom Cruise’s character, John Anderton, through a retinal scanner. As he walks past, the billboard calls out: ”John Anderton! You could use a Guinness right about now.”

Far-fetched? Not according to retailers who believe this type of targeted advertising may well be the future of shopping.

New York company Immersive Labs is already using built-in cameras and facial recognition software in its outdoor billboards to determine the gender and age of passers-by so it can customise the advertisement on display to suit them and prompt sales.

So if a man strolls by on a cold morning, the display might change from an ad for women’s clothing to an advertisement suggesting a cup of coffee at a nearby cafe.

As Australian online shopping – expected to be worth $21.3 billion this financial year and $30.8 billion by 2015-16 – continues to threaten bricks-and-mortar businesses, retailers are using the latest technology, combined with social media, including more shopping apps, to lure customers back into their stores.

German shoemaker adidas is planning to install touch-sensitive display walls in stores from next year. The virtual footwear wall will allow customers to view the company’s entire range of 4000 pairs of shoes. If a customer likes a particular shoe the store will order it in.

Two cameras above the screen will watch shoppers’ reactions to determine which shoes are most popular. And like other companies, adidas is also gathering feedback by encouraging customers to use Facebook and Twitter to review its products.

Brisbane company Yeahpoint believes its MiMirror creation is the missing link between instore shopping and social media that will revolutionise fashion retail.

MiMirror is a touch-screen display with a camera that acts as a mirror and takes up to six photographs of customers in outfits they are considering buying. The shoppers then email the images to friends or post them on Facebook to get a second opinion.

No retailers have installed the technology yet, but the company is confident major stores will buy the device in coming months.

”The factors driving retailers’ decisions for the future are basically that the cost of business continues to increase and competitiveness in the retail environment is being challenged by the online market,” Yeahpoint’s John Anderson says.

”On the flip side, you have the time-poor consumer who wants to have a much more friendly, fun shopping experience.”

Sean Sands, of Monash University’s Australian Centre for Retail Studies, agrees, saying many consumers are bored with traditional retail and the only way to lure them back into stores is to offer the latest technology linked to social media.

A recent report released by the centre found that online shopping was creating tougher in-store customers because they were ”better informed due to the power of the internet”.

Half the population now research their purchases online before setting foot in a store.

Many are also armed with a wide range of shopping apps that can be downloaded on to iPhones, iPod Touches, iPads and other tablets and smartphones, that allow them to hunt for the best deals.

The RedLaser app, for example, allows instore shoppers to scan the barcode of an item to get the price and then checks online to see if it’s cheaper elsewhere.

Supermarket giant Coles’ ShopMate app, which notes specials and lets you cross off your shopping list as you go, has been downloaded 400,000 times.

Rival Woolworths does not have a shopping app but has one to locate missing trolleys.

Woolies’ app-lessness is not likely to last, however, as retailers respond to consumer demand.

Russell Zimmerman, of the Australian Retailers Association, says ”every retailer has to be in the online space in the foreseeable future” or they won’t survive.

According to PayPal, 8 million Australians buy goods using the internet, and one in 10 buy them with their mobile phones.

Google Australia’s head of retail, Ross McDonald, says this increasing use of mobile phones to search for stores and products has become a noticeable trend in the past six months.

Previously, 95 per cent of online traffic for shopping searches was from computers but 16-18 per cent of online inquiries were now from mobile phones. ”What we advise retailers is that it’s not so much about the app but making sure you are visible on a mobile device when someone searches for you,” he says.

Jo Lynch from Myer – which has an iPhone app that lets you peruse and buy goods with a tap of your finger – says the company expects its online business to generate sales of $5 million for 2010-11 and be worth up to six times that in the next few years.

David Jones’ Brett Riddington says the future of shopping is all about multi-channel retailing. ”Many customers will still want to go in-store to physically see the goods after checking them out online, but we need to make that a more entertaining and engaging experience,” he says.

Mobile payments at retail to explode.

Google Executive Chairman Eric Schmidt is bullish on the growth of mobile payments in the coming year.

Speaking at the Cannes Lions International Festival of Creativity today, Schmidt said he believes one-third of all restaurants and retail outlets will allow for mobile payments within the next year, the Financial Times reports him as saying. He reportedly told those in attendance that that number should be enough for widespread adoption of mobile payments.

“I judge that based on how long I think it takes, because the terminals are available now, the software is available now or this summer,” the Financial Times reported Schmidt as saying. “How long does it take an infrastructure player to upgrade a significant percentage of their infrastructure–it’s on the order of a year, it’s not a week, it’s not a month but it’s also not five years. It’s an educated guess.”

Schmidt, who stepped down as Google CEO in April, has a vested interest in seeing more establishments allow for mobile payments. Late last month, his company unveiled Google Wallet, a service that uses near-field communication (NFC) to let users pay for purchases with their Android-based devices. Google said it will be partnering initially with Sprint, MasterCard, Citi, and FirstData on the service.

Google Wallet will be available on the Nexus S and will work with “a PayPass-eligible Citi MasterCard and a virtual Google Prepaid card.” The search giant was quick to point out that there are currently more than 124,000 PayPass-enabled merchants in the U.S. and more than 311,000 operating around the world.

Google said last month that all future Android smartphones will be NFC-compatible. Rumors suggest the next iPhone will also feature NFC technology.

But as Schmidt pointed out today, support for NFC in devices is just one piece of the mobile-payment puzzle; payment processors must also double down on the technology. However, Schmidt isn’t worried about that happening for one major reason: “fraud rates are so much lower” with the use of NFC, he said.

“Nobody knows how quickly this will occur,” Schmidt said of credit card companies updating payment terminals with mobile-payment support, “but it’s in their interests to convert as fast as they humanly can.”

 

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