Friday, September 21, 2018 14.32PM / AngelList
Startups
are saving retail.
Brick-and-mortar
spending is expected to grow by $36 billion over the next four years, and
e-commerce by $50 billion, according to a study by Deloitte. But as new technology closes the gap
between online browsing and in-store buying, spending could go even higher.
This summer Nike launched "Nike Live," a concept store in LA
promising to “unite digital and physical shopping experiences for its
consumers.” The store lets NikePlus members send products to in-store lockers,
scan barcodes to learn about color or availability, and more. It's the latest
in a line of digital-first moves by the company. In April, Nike bought Tel
Aviv-based Invertex to use the startup's AI and 3D imaging
advancements.
Invertex had a "simple" goal—revolutionize the way people buy
shoes—and its software didn't fall short. With its tech, Nike would be able to
analyze customers’ feet in-store and suggest what models or sizes might fit
them best. Buyers could do the same at home before shopping online or showing
up at a store.
Other advancements start long before checkout. Five years ago, Nike invested in
Grabit, a startup using static electricity to make shoes more efficiently. Last
year, the startup provided Nike with machines that promise to work 20-times
faster than human hands. That means Nike can make more products available to
customers faster than ever, and they're not the only one.
Nordstrom is pushing digital progress, too.
In February, the company
reported a 4.1% increase in sales year over year, which it credits mostly to
men’s and children’s apparel.
One month later it
announced the acquisition of startups BevyUp and MessageYes. The technologies make it easier for sales
associates to connect with each other, to suggest products directly to
customers, and to make buying an item as simple as texting “yes.”
Now, Nordstrom’s Manhattan men’s store is hoping to improve employee-customer
interactions even more. From the company’s app, buyers can choose what they’d
like to try on while they’re still at home, that way a dressing room will be
ready when they get to the store—one attempt, among many, to stand out from
competitors.
"As they work toward success in the retail renaissance, brands must think
beyond product as a differentiator and become more granular in how they
identify and satisfy customer wants and needs," reminds the Deloitte
study. "Brands must offer frictionless engagement across marketing,
commerce, and service touchpoints, from the showroom (either online or
physical) to the call center to how they fulfill orders."
More Startups That Simplify Shopping
Oak Labs, a software company, launched in 2015. In its
founders' minds, retail fitting rooms were a problem. "They are the place
of the highest conversion in-store (⅔ of fitting room sessions convert to purchase)
from your best customers (who spend 80% more than shoppers who don’t make it
into the fitting room)," they wrote. "Yet, it is the place of highest
dissatisfaction in the retail store."
So, they built an interactive dressing room mirror that could display
merchandise in different sizes and colors for shoppers, make stylist
recommendations for accessorizing a look, and more. Store tests were promising,
helping triple expected clothing sales in Rebecca Minkoff stores. The company
was acquired by Zivelo, a self-service kiosk maker, in May.
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