Digital Retail
Digitalisation is one of the most important challenges for businesses. Yet, at the same time, it is the only way forward. Multichannel is key. But which technologies do Düsseldorf’s retailers use to shape the customer journey? From life streaming assistants to AI-based self-check-out – VIVID presents some exciting examples.
Large international businesses have been investing heavily in omnichannel retail, and not just since the coronavirus crisis. The Swedish fashion retailer H&M, for example, is growing its online presence and closing stores at the same time, including several in Düsseldorf. Smaller retailers and independent shops have also used the pandemic to push their omnichannel approach further. Premium fashion retailer C. Wirschke in Düsseldorf, for example, set up its online shop in just ten days. Small fashion boutiques in Düsseldorf such as Hammermann in Unterbilk or Aest in Flingern sell products via social media, especially Instagram and live shopping – a trend among fashion and lifestyle companies. Whether in the online store of Esprit or in the small fashion boutique around the corner – clothing, shoes, bags and accessories are advertised live in a format that is situated somewhere between Insta-Story and shopping channel! Tools like the Live Streaming Assistant by the Düsseldorf start-up Hello Lisa make live shopping an experience.
But digitalisation also satisfies new customer needs, such as digital delivery platforms like Picnic, which deliver purchases directly to the customer’s home. But digitalisation encompasses more than just omnichannel retail – it optimises the sales approach, the customer journey and, above all, customer loyalty. P&C Düsseldorf is going all out for digitalisation, especially when it comes to customer loyalty. The smartphone serves as a comprehensive-use loyalty card across the fashion chain’s stores. At the checkout customers can simply scan the QR code with their smartphone and collect points, manage vouchers and orders or take part in competitions. Another forward-looking trend is transparency through digitalisation. Customers can track goods and raw materials with, for example, the app and blockchain-based technology developed by the Düsseldorf-based start-up Retraced. This helps fashion brands to monitor their supply chain and present it to the consumer in a transparent way. The customer can then query the details of suppliers and individual materials in an online shop or via QR code, too.
This is what cashierless payment by mobile phone can look like.
“We are turning from a retailer with an online shop into a digital company with a brick-and-mortar business”
‘Digital First’ is also the motto of Douglas. E-commerce was focused on at an early stage and made Douglas a successful omnichannel retailer with a rapidly growing online business – now Douglas is becoming the first fully integrated European beauty platform. The goal: to improve all processes in the company through digital solutions. “We are turning from a retailer with an online shop into a digital company with a brick-and-mortar business”, says CEO Tina Müller.
Metro, furthermore, continues to drive the digitalisation of its target audiences through a threefold approach: numerous digital solutions for gastronomy, an online marketplace for non-food products and tools that improve the shopping experience. In the area of self-check-out, Metro is working together with start-ups, for example Nomitri and Supersmart, to speed up the payment process with artificial intelligence. Timo Salzsieder, CIO METRO AG says: “We are developing modern applications – with our own teams and also together with partners such as Google or Nomitri – that now integrate AI and machine learning in almost all areas. The benefits of AI for internal users, but also for our customers, are clear. Together with our partners we continue to drive innovation forward.
For example, in March 2021 we founded a Cloud Competence Hub with Google Cloud and Wipro.” Nomitri is one example: the young Berlin-based start-up, founded in 2019, has developed a smart shopping assistant that enables retailers to accept payment via smartphone without the need for a check-out. Likewise, by interacting with the intelligent smartphone camera, buying behaviour can be detected and predicted. To do this, Nomitri relies on “embedded visual AI” and uses, among other things, intelligent image recognition that is executed directly on the smartphone. Metro has supported an initial offline test. In the future, the technology could easily be integrated into existing apps such as M|Companion – for example in form of a mobile application to make the customer shopping process easier. Through the use of image recognition and applied algorithms, the mobile phone does not only register which products are placed in the shopping basket or taken out again later for payment, but also learns about individual customer behaviour, which can then be converted into personal customer recommendations.
In principle, every retailer is called upon to deal intensively with digitalisation in 2022. Without accessibility via email, website or a presence on social channels such as Facebook or Instagram, there is no future. The local shopping experience in Düsseldorf in person is one thing, but at the same time, online retail must be served, too. This way, the business can position itself nationally and even internationally and thus generate additional sales. Not only the shopping process itself is digitalised, digital tools are also indispensable behind the scenes and in planning. Smart data usage has long been used for CRM, inventory management and shift scheduling systems. Businesses can find valuable support in matters of digitalisation through the IHK and associations.
“the future is by no means digital only. “Online only” does not work, which is the reason why many formerly online-only retailers are increasingly opening ‘real’ stores.”
Augmented reality and smart devices at the point of sale – this is what the interaction looks like when it is put into practice.
However, the future is by no means digital only. “Online only” does not work, which is the reason why many formerly online-only retailers are increasingly opening ‘real’ stores. Dealing with people is becoming increasingly valuable and important – a notion the pandemic has definitely contributed to. Emotionalisation is the most important driver. It is crucial to understand stores as places of experience and encounter and to create excitement by merging digital and analogue, for example with augmented reality and smart devices at the point of sale. Because, in the end, each shopping experience ends and begins with a human encounter. •
Free Digital Consultation and Coaching
They strongly advocate especially small and medium-sized retailers who want to plan and implement their individually suitable digitalisation strategy: The digital coaches at the NRW trade association have been in action since the end of 2019. “We not only provide know-how free of charge, but also clarify current funding opportunities at state and federal level. Since November 2021, for example, there is a new grant of up to 2,000 euros for businesses with up to 49 employees, e.g. for hardware and software, cash register and merchandise management systems or further training in social media”, says Markus Schaaf, digital coach for the Rhineland region.
Words Karolina Landowski
Pictures iStock