“AR” IS A KEY BUILDING BLOCK IN CHINA’S NEW RETAIL
Augmented Reality is quickly becoming common place inside the shops of leading brands in China. While its still early days, innovator brands, Nike, Burberry, Zara, Sephora, LV, Starbucks and Uniqlo have years’ worth of experience in fashioning new models for experience driven retail. These innovator brands (often with the close cooperation of Tencent and Alibaba) have clear formula’s in place - those formula’s are now being applied among a wider set of brands.
The formulas are about; (1)linking profiles to/from CRM systems, (2)using those profiles to make shopping experiences more personal and interesting, (3)while facilitating omni-channel sales and fulfillment options, (4)usually supported by a focal AR feature for entertainment sake. These efforts are as much about supporting conversions from online-to-offline as they are about activating, attaining new followers offline. Long-term the shop becomes more about experience and affinity and less about sales.
DATA, PERSONALIZATION & LOYALTY COMING TOGETHER
In a retail environment like China which is so overwhelmingly digital, offline shops are being configured to act as extensions to the online experiences that customers are so familiar with. New (offline) retail in China melds social, commerce, service and entertainment - with the smartphone acting as the navigation instrument.
Customers stepping into shops, sign-in with existing online credential (WeChat or Alipay ID) and browse products and experiences …at each stage …allowing the brand to collect data on the user.
Cameras in shop and other retail data provide additional insight into shopper habits.
Behavior at each checkpoint becomes a ‘tag’ on a CRM profile, allowing the brand to personalize engagements and customize product selections, messaging and service solutions to its customers.
Cameras in shop and other retail data provide additional insight into shopper habits.
Immersive Shopping Experiences with Burberry
Burberry has created a pilot ‘immersive retail’ shop in Shenzhen. The shop focuses on creative AR features, to provide customers with social-worthy, ’sharable’ experiences (AR entertainment) and brand/product information (Scan a product to learn more). With support from Tencent, all of the features are connected to a customized Mini-Program and social CRM.
VANS’ Intelligent Retail System
Van’s recently launched its first ‘intelligent retail’ shop in Shanghai. The shop features an array of AR features; (1)Scan a product to learn more, check inventory or purchase, (2)Arrange deliveries or service, (3)Create avatars and mix-and-match products in the “Wear Lab” game.
