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.

Dolce & Gabbana launch luxury make-up line

MILAN – Italian designer duo Dolce & Gabbana, among Milan’s top fashion names, are branching out from dresses to lipsticks, launching a make-up line they say they have been dreaming of for years.

Extending their creativity to the cosmetics industry, Domenico Dolce and Stefano Gabbana have turned to the Sicilian and Mediterranean roots of their brand for the range, modeled by Hollywood actress Scarlett Johansson.

“We have been dreaming of Dolce & Gabbana make-up for years,” Stefano Gabbana said in emailed comments to Reuters.

“If it was the right time we don’t know … We have followed our instinct and we went on, also because it was a long time that we have been thinking about a make-up collection.”

Assisted by make-up artist Pat McGrath who has worked at their shows for more their 10 years, the designers say they were at the helm of every step in the making of the range.

“It was a studied and searched project, more than usual, because for us it was completely new and we wanted to do it very well,” Gabbana said, adding the lipstick was his favorite.

The designers are known for their use of gold embellishments and the line’s packaging has pure metal gold. Products include eyeshadow named “Guilty” or “Elegance” and lipsticks called “Drama” and “Devil.” Prices range from 21 euros ($26.33) to 49 euros.
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Source: By Marie-Louise Gumuchian, Reuters

RnB Retail and Brands AB streamlines JC fashion concept

Swedish clothing retail and distribution group RnB Retail and Brands AB announced on Wednesday (12 November) that it has decided to streamline its JC fashion concept.

The streamlining involves extending the JC range to include smaller sizes and discontinuing the J-Store range. The change will affect 24 positions at RnB retail and Brands’ head office.

“Purchasing patterns among our customers in the JC stores have changed as fashion has become increasingly ageless. Within the JC concept, we are also experiencing higher demand for products in smaller sizes, while demand for products in the J-Store concept has declined,” RnB Retail and Brands said.

The streamlining, combined with a previously announced cost savings programme, is expected to reduce annual costs by SEK104m from the 2009/2010 financial year.

RnB Retail and Brands, headquartered in Stockholm in Sweden, operates 450 proprietary and franchise stores in Sweden and abroad.

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