The Omnichannel Weekly – Edition 2
12 Jan 2018 The Omnichannel Weekly – Edition 2
Welcome to the second edition of the Omnichannel Weekly. It is that time of the year where New Year resolutions start getting packed neatly into tight boxes and put up on the top shelves for next year. Which means it is also time to pick our inspirations from elsewhere in the world of retail.
Let’s get to the point.
Artificial Intelligence Empowers Designers In IBM, Tommy Hilfiger And FIT Collaboration
- 52% of female Generation Z fashion shoppers would like customized products for themselves. This combines with an ever-increasing expectation in speed of delivery.
- AI (computer vision, natural language understanding and deep learning) is being used to speed up the design process and predict demand for hyperlocal products.IBM has tied up with Tommy Hilfiger and the Fashion Institute of Technology to demonstrate this.
- The machine learning analysis threw up insights about colours, silhouettes and prints which could not be interpreted solely with the human mind.
Retail Trends in 2018: The Evolution of the Omnichannel
- For Lowe’s, the home improvement retailer, 60% of their e-commerce sales is currently click and collect with 40% of those customers buying additional products when they come to the store. 10%-15% of orders are shipped from the store while the remaining 25%-30% are traditional e-commerce deliveries.
- 75% of Tractor Supply Company’s online orders were picked up in the store in the third quarter of 2017. Customers add another 15% to the ticket value when they visit the store.
- Impulse purchases online and through click and collect orders will be the next area of experimentation for retail.
3 Reasons Why Customer Experience in Your eCommerce Business is Terrible
- 74% of users become frustrated when they get served irrelevant offers, ads and promotions.
- Amazon experienced a 1% decrease in sales for every 100 milliseconds of extra page load time.
- An ideal e-commerce platform should take into account all of the following factors
- Load time
- Mobile performance
- SEO capabilities
- Security features
- Ease of use
- Available payment options
Retail workers feel disruption from shifting shopper habits
- Commission rates in retail in the US have increased but hourly wages have dropped.
- In 2017, 66,500 U.S. retail jobs disappeared. In the last 10 years, about 15% of all jobs have vanished in sectors such as clothing and consumer electronics.
- 60% of all retail jobs in the next 10 years will be new roles or revised duties. The number is about 10% now.
- Walmart has 18,000 personal shoppers who fill online orders from shelves. To meet their store goals, they have to pick one item every 30 seconds or, if it is not available, an equally good or better substitute.
- Best Buy has started a “free” home recommendations service in key markets where employees provide advice on various things such as setting up an office or a home theater system. This project follows Amazon’s test program for “smart home” recommendations.
- Target uses visual merchandisers to create vignettes in specialty stores to “tell stories on each rack”.
- Amazon is testing out a grocery store in Seattle without cashiers and using cameras and shelf sensors to keep track of items picked up and ordered.
- Eatsa is an automatic restaurant in San Francisco without cashiers and waiters. Customers order through kiosks and workers prepare the food behind opaque walls.
Planning to set up your omni-channel business? We can help.