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Tiffany LungRetail Analyst
My name is Tiffany Lung, and I am a retail analyst that covers the retail industry through reports, speaking engagements and consumer research. I have close to 10 years experience across the wider retail industry.
Unified Commerce by Tofugear
I work for an IT vendor company based in Hong Kong named Tofugear. We provide Unified Commerce solutions that bridges your online and offline experiences together and vice versa. We offer modules as a silo as well, so if you need a POS, mobile app, pop-up event platform management etc, we can help with that. (Please contact [email protected] interested).
I created a video series named #TiffanysRetailPatrol where I film cool, high-tech and innovative stores around the world. You can search for my videos on LinkedIn through the hashtag #TiffanysRetailPatrol
Video link here: https://www.linkedin.com/posts/tiffanylung_tiffanysretailpatrol-activity-6552409888612540416-G7Ie
An archive of my videos can also be found here: https://www.youtube.com/channel/UCs9vc61On96-aWAqXjsFmdg
We all know the cliché saying – “retail is dead” but that is essentially fake news
Because only “boring” retail is. Take Toys R Us and their declinefor example. However interestingly enough Toys R Us has really turned around their bankruptcy from a year ago. They are now partnering with a RaaS(retail-as-a-service) company b8ta to design experiential stores that will house workshops, an interactive showroom for parents and kids to participate in. The main goal here is not necessarily making sales but to create an experiential-driven store.
Filipino retail is highly praised for their ”amazing” and “insane” malls all because of the endless retail entertainment and leisurely activities that can be done within the mall.
The future of retail is experiential and digital,
fused as one.
Asian consumers prefer online shopping over stores…
… except inthe Philippines
Tofugear, 2018
Chinese consumers are avid online shoppers -9 in 10 of them to be exact – but comes to no surprise from their mature eCommerce usage. However in comparison to the Philippines, consumers are not big on online shopping and that may be due to several factors e.g. retailers have not expanded online, poor internet infrastructure in some cities and low broadband penetration.
Why Philippine consumers prefer physical stores
Tofugear, 2018
Philippine consumers highly still prefer physical stores, mainly due to convenience, touch and feel and wide payment options. However these top three factors can easily be replaced by your online competitor through express deliveries, flexible payment options (cash on delivery) and at home trials.
In 2020,
97%of sales in the Philippines will
still take place at physical stores
eMarketer, 2018
While online penetration is low, it is still growing fast. Despite so, physical store sales will still be dominant in the coming years which is why there is a high importance in developing experiential stores.
topretail tech
trends
DIGITAL SCREENSDigital screens are often placed in-store to appease millennials in tie to their tech-savvy nature. While digital signages are great for inspirational usage, there are often stores that place a tech in-store – such as an iPad with a static lookbook and nothing more – that simply does nothing. Digital screens should be evolved to providing function for the consumer, more than just providing product information but link to social media reviews, wishlist or commerce features as an act of conversion and even create actionable insights for the retailer.
VIRTUAL REALITY (VR)This is an example of virtual reality done by Amazon India as part of their Amazon Prime demo. While VR was all the hype two years ago, we still have not witnessed commercial features through VR but more so used for gamification purposes. In Tofugear’s 2019 research, it was discovered that VR is the last thing Asian retailers want to invest on.
AUGMENTED REALITY (AR)AR initially was used more for furniture and home décor placements but recently in fashion it’s been gaining traction. This is an ASOS example of a virtual catwalk where the model can be scaled and positioned onto real-life backgrounds. You can see the fit, form and flow of the clothing as if the model is standing there in real life. This does need an additional app download as it is embedded into the original ASOS app already. Other good AR retailer examples are Gucci and Zara for their interactive campaigns.
Robots
IN-STORE ROBOTSToo many in-store robots have been used as a glorified tablet stand. In reality robots are used for gimmicks – telling jokes and dancing but most functionality have yet to be improved.
UNMANNED STORESThanks to Amazon Go’s unmanned store movement, many retailers have been obsessing over creating the likes. However fast forward three years no retailers have really been able to create the same checkout-free experience with computer vision.
This is an example of an unmanned store I’ve been to in Taiwan. Most unmanned stores I have experienced were usually pilot pet projects and are pop-ups but this is the second actual store that is available to public. Have a watch and decide if you think it’s truly innovative or an obstacle/gimmick.
Watch video here: https://www.linkedin.com/posts/tiffanylung_tiffanysretailpatrol-activity-6541693690132426752-O-zI
50%of retailers will invest in
Scan and Go
Tofugear, 2019
Top customer facing innovation to invest in the next year:
As unmanned store technology is rather hard to deploy due to the technical know-how and talent needed, many retailers have opted for a more practical and accessible technology such as scan-and-go. In our recent 2019 research, 1 in 2 retailers are likely to invest in scan-and-go technology for the next year. This is an evolution from supermarket scanning guns-in-a-dock days and has now evolved to mobile checkout through the consumer’s own device. A great retailer example of this is Decathlon.
2 in 3Philippine shoppers most likely
switch to online due to long queues
Tofugear, 2019
Philippines has a tendency of long queues. With that being said, 2 in 3 shoppers are most likely to switch online due to long queues – a point that I have previously raised as a replaceable advantageous quality of online shopping over in-store retail environment.
84%of Philippineshoppers would use apps aspart of aconnectedretail experience
Tofugear, 2019
Therefore retailers should take advantage and invest in the connected retail consumer as 84% of Philippine shoppers would proactively use an app as part of a connected retail experience. Here is an example of what Tofugear has done for a local Hong Kong fashion retailer with connected retail app experience through beacons and others, where we are able to profile a customer and create a personalised shopper’s journey.
Consumers in the Philippines are more connected now than ever…
Tofugear, 2018
More reason to invest in digital experiences –Filipinos uses their phones more than 8 hours a day compared to the average Asian.
20181. Lack of clear ROI 52%
2. Overcoming resistance to change 45%3. Achieving cross-departmental
co-operation 41%
20191. Integration with legacy systems 65%
2. Lack of in-house expertise 30%3. Combining data and scaling the
technology 30%
BARRIERSTO INNOVATION
Tofugear 2018, 2019
the experiential store The experiential store does not necessarily
have to have technology involved.
Back then there was a trend of stores in stores, and even cafes. While these initiatives drives footfall, it does not create brand loyalty.
Toby’s Sports, Manila Jordan Brand, Chicago
Nike, New York General Pants, Sydney
Basketball courts seems to be a common theme for “innovative retailers”. But this works because consumers are playing in their store, getting involved and immersed into the retail environment.
Lululemon, Chicago
Lululemon is a great example of a community-led retail experience. Their brand ambassadors are not paid influencers, but actual personal trainers from studios around the city. This way their target customers are in close contact with an actual Lululemon user and these personal trainers are a walking living and breathing model for Lululemon, essentially practicing the brand’s ethos.
Lululemon, ChicagoLululemon café with healthy food offerings, suited for their health-conscious customers.
Lululemon, ChicagoThey have a gym studio for anyone to participate in. Consumers are given the choice to borrow Lululemon gear for the workout as well. What better way is there to build a connection with the user by inviting them into their world?
Lululemon, Chicago
Their shower toiletries are their own latest skincare launch where consumers can also actually use and try before purchase. Again building a connection at a trial stage.
Fast Company, 2019
82%delivering a positive
customer experience is critical to success
3 in 5retailers can agree
that they’ve met their customer expectations
Tofugear, 2019
1. Be phygital. Filipinos are mobile-driven and store lovers.
2. Don’t abuse technology. Solve problems with technology.
3. Find the right partner. Achieve your goals together.
4. Don’t be a gimmick.
Additional Tofugear research reports can be downloaded here:
2018 Asia Digital Transformation Report
The Digital Consumer in Asia 2018
AVAILABLE SEPTEMBER 2019
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APAC RESEARCH STUDY150 C-LEVEL RETAIL EXECUTIVES
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