Augmented Retaility: How mobile internet, social media and geolocation will change shopping behaviour.

1. Augmented Retaility:
How mobile internet, social media and geolocation
will change shopping behaviour
Digital and mobile are the „Drivers of Change“ that are dynamicising
the boundaries between offline and online. With dramatic consequen-
ces for retail: the entire world is turning into a department store,
consumers can buy anything anywhere with a single click. WHAT
WILL HAPPEN TO THE CLASSIC POINT OF SALE WHEN CUSTO-
MERS CAN SHOP INDEPENDENTLY OF TIME OR PLACE?
FACTS OFFLINE + ONLINE = MULTICHANNEL
Online sales cannibalise offline sales. But declaring war is pointless:
the web isn‘t about to go away. Digitisation has evolved into the do-
250 mn minant interaction strategy for social and economic exchange. It‘s in-
of Facebook’s users tegration and cross-promotion that count, not trench warfare bet-
worldwide login to the ween the individual channels. For the consumer intuitively uses the
platform daily. systems as required: as far as he‘s concerned there is JUST ONE
(Mashable, 11/2010) CHANNEL: MULTICHANNEL .
COMPLExITY REDUCTION
56 % Multioptions entail the danger of information overload. The challenge
of online shoppers increasingly lies in mastering the endless and often overtaxing multi-
“follow” or “friend” tude of offers, channels and information. IN THE FACE OF THIS
retailers, yet only one COMMUNICATIONS CHAOS, HOW DO I GET THE CUSTOMER TO
quarter of the Top 100 BUY FROM ME? Retailers can simplify the path through the data
E-Tailers have a Face- jungle by means of situation-specific and convenient real-time
book presence so far. offerings.
(ForeSee, 04/2010)
TRUST IS THE REWARD FOR SERvICE
53 % In future, rather than the customer looking for offers, the offers will
of all retail sales will find the customer. Gaining the target group‘s trust is the prerequisite
be directly or indirectly for personal service. The major challenge providers have to overcome
influenced by the web if they don‘t want to end up in the spam filter is to gain entry into their
by 2014. customers‘ relevant set. Instead of data protection, it‘s data manage-
(Forrester, 03/2010) ment that‘s needed. If RETAILERS make it onto their customers‘ „whi-
telist“ as TRUSTED SALES AGENTS, they can cater to individual
needs and enhance shopping experiences.
22 mn AUGMENTED RETAIL
Germans will buy their With the intelligent linking of information, locations, offers and indivi-
Christmas gifts online duals, retail is entering a new level. AUGMENTED EvERYTHING:
this year - that’s 57% each and every brand contact stands a chance of turning into a
more than the year purchase occasion. The challenge of digital linkage lies in „augmenta-
before. tion“, in extending the relationship with the customer beyond the act
(Bitcom, 10/2010). of purchase. ALL CHANNELS HAvE TO OPERATE AS A SINGLE
ENTITY whilst factoring in the specific characteristics of the respec-
tive communication media. For the individual user, Augmented Retail
means added values in the dimensions of geo, time and ego location.

2. Development Dimensions for Retail:
Geo, Time and Ego-Location
GEO-LOCATION: Loca-
tion-based services fac-
tor in the user‘s location
and augment the local
reality with a virtual le-
vel. Via interaction bet-
ween customers, pro-
ducts and places, online
and offline promotion
merge into a single ex-
perience. BEST PRACTI-
FACTS
CE Facebook Deals:
companies are making $732 mn
special offers and issuing virtual discount coupons for logging into worth of sales are pre-
the store via Facebook Places. Everyscape eats (iPhone App): Boston dicted to be generated
Edition‘s „Google Street View“ equivalent for restaurants. by augmented services
by 2014.
TIME-LOCATION: Always-in-touch means offers and services are (Juniper, 11/2009)
only ever a click away. The challenge for providers lies in gaining ent-
ry to customers‘ relevant set despite information overload. Conveni-
ent solutions convince consumers by saving them time and lightening Q3 2012
their load. BEST PRACTICE Coca Cola village Israel 2010: Thanks to an m-commerce will ac-
RFID chip, roller coasters can be „liked“ on Facebook in real time. count for 2% of retail
Burberry Runway Theatre: Invited guests at the firm‘s stores could see sales in the US and thus
the London fashion show live on an iPad and order what they saw grow faster than traditi-
immediately. onal e-commerce, which
will then amount to 6%
EGO-LOCATION: Individual and bespoke solutions are a tempting of sales.
reward for whitelisting. Surprise and gaming effects provide enter- (Morgan Stanley,
tainment and involve the consumer at personal level. BEST PRACTICE 11/2010)
Levi’s Friends Store: Via Facebook, customers receive an assortment
of products that have been pre-selected and rated by their social
contacts. Airwalk Invisible Pop-Up Store: In a scavenger hunt, aug-
mented reality turns the pedestrian zone into a showroom. 23 %
of smartphone users
AUGMENTED BENEFITS have broken off a
Anybody that‘s not present on the traditional, mobile and, increasin- purchase as a result of
gly, augmented web does not exist. Rather than weighing individual mobile internet infor-
channels up against one another in terms of sales and coverage, mation. (GO-SMART
companies should see them in terms of their joint effect. For in cus- study for Otto Group
tomers‘ eyes, it is the offline and online stores together that build the and Google conducted
company‘s image. OFFLINE IS GOING ONLINE AND ONLINE IS by Trendbuero and tns
GOING OFFLINE — AND EvERYTHING IS ALWAYS-IN-TOUCH. infratest, 06/2010)
Individual services and personal relationships to social consumers
create trust. AUGMENTED RETAIL IS THE FUTURE: The linking of
geo, time and ego-located data to create an individual benefit and
cement the relationship with the customer beyond the act of trendbuero.com
purchase. . p.schenck@trendbuero.com
j.sporer@trendbuero.com