Trends & Tides

Retailers and vendors arrived in NYC to network, learn and be inspired at this years NRF 101^st Annual convention & EXPO. This year’s event focused on “Retail’s New Rules” and how the industry is innovating and reinventing the rules of retail to meet the needs of today’s customer.

During the keynote address, President Bill Clinton said: “We are slowly recovering from the economic crisis. Last year, the retail industry grew by almost 5 percent, compared to the overall U.S. economy, which grew by only 2 percent. That’s good news for all of you. As you know, retail makes up almost 20 percent of our GDP, and supports about 25 percent of our jobs.”

So, what technologies will enable retailers to accelerate growth?  At NRF, you couldn’t turn the corner without hearing about the latest mobile technologies or how retailers are benefiting from collective intelligence and predictive analytics.

During our time at NRF we spoke to many retailers that spend millions of dollars each year store testing new products, often with limited accuracy.  One example is David’s Bridal, a current user of First Insight’s solution. Listen below as Jeff Warzel, SVP Supply Chain for David’s Bridal, discusses how First Insight’s solution has helped them increase forecast accuracy by 20%.

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The Pittsburgh Technology Council’s Audrey Russo and Jonathan Kersting interview local entrepreneurs, business leaders and stakeholders behind the Pittsburgh region’s fast-moving technology industry.

TechVibe Radio broadcasts on 104.7 FM News Talk every Saturday at Noon. With a crystal-clear FM signal, TechVibe reaches thousands of listeners across all of southwestern Pennsylvania and parts of the tri-state area, too.

This past Saturday, December 3, 2011, TechVibe Radio interviewed First Insight’s CEO and President, Greg Petro on how First Insight helps retailers keep the right products on the shelf at the right time.

Click below to listen and learn more!

 

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Are you the type of person who doesn’t like to try on clothes? Trust me, you are not alone. With unflattering mirrors and long wait lines, I ask myself, “Why even  bother?” The reason…we want the perfect fit! Well, believe it or not, fitting rooms may become something of the past.

The world’s first full 3D body scanner called the Body Mapping platform, may one day replace fitting rooms altogether. This new innovative technology provides  shoppers with 100 different measurements of their own body, ensuring a perfect fit every time.

The scanner gives exact body dimensions by scanning your body with 3D sensors that calculate your measurements. Currently, the Body Mapping platform is being used at retail store, New Look, located in the U.K. It is helping shoppers determine which jeans will best suit them based upon its calculations.

So, how much does an innovation like this cost? Will we ever get to use it? – I know, I know, pricing on technology of this sort must be astronomical, right? Well, according to Bodymetrics, their body scanner is relatively more affordable and easier to use than other scanners that exist, which means retailers could realistically deploy it in stores. This is exciting news for the shoppers who are sick of trying on clothes to get the perfect fit. Now, with this new reasonably priced technology, who knows, maybe we will be closing the door on fitting rooms all together and instead open a scanning booth door. To find out more about Bodymetrics please visit http://bit.ly/t8aX8z First Insight is on Twitter! Follow us at @FirstInsight to learn about the most recent trends in retail.

 

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Have you ever used a tablet to make an online purchase?  Although only 9% of shoppers say they have, this behavior is still encouraging for retailers. Consumers who shop online using their tablets are said to not only have higher conversion rates but when compared to shoppers who use traditional PC’s, they are also placing larger orders, in some cases adding 10% to 20% more to their tab.

But why? What is so enticing about purchasing items through a tablet? The first differentiator is comfort. Because of the tablets portability, shoppers can surf the Internet anywhere they like. Instead of sitting on an uncomfortable desk chair, shoppers can relax and get cozy on their couch while browsing the Internet, which ultimately leads to longer surf times and more possibilities of conversion.  Second, tablet owners tend to be wealthier , report Forrester Research. This gives retailers a selected audience of their best customers, which may explain why shoppers are placing larger orders.

“Macy’s, Abercrombie & Fitch Co. and Gap Inc. all say the highest conversion percentage comes from shoppers using tablets.” Other retailers like Sephora are revamping their catalogs in light of tablets, which allow them to include videos, how-to demonstrations, and slideshows along with order buttons.

For the first time Sephora is going to drop their summer catalog and solely focus on tablets, in an experiment to see what affect it has on sales. The average tablet user is spending three times as much time on the catalog app, than on the Sephora website. “Sephora’s tablet conversion rate and average order size is also higher than PC and mobile,” said Bridget Dolan, Sephora’s vice president of interactive media. “She who can afford a tablet tends to be a higher spender in general.” To learn more about the impact of tablets please visit: http://on.wsj.com/nfeydd Follow us on Twitter @FirstInsight to find out the latest trends in retail!

 

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Sometimes our own perception of how clothing looks can be somewhat altered or skewed. That’s why most of us, myself included, like to get a second opinion. Hopefully from a stylish friend or family member.

Unfortunately, receiving real-time feedback on outfits can be difficult when you are shopping alone. You could ask the opinion of the store’s dressing room attendant but more often than not, the response will be biased since they want you to ultimately purchase from their store.

Now, you can get an unbiased opinion on how something looks, thanks to a new App called “Go Try It On.” “It’s crowdsourcing an opinion on an outfit and getting a quick, unbiased second opinion,” said Marissa Evans, founder and chief executive.

Users of this new technology are able to quickly and easily upload an image of the outfit and solicit advice from other users.  So far 250,000 people have downloaded “Go Try It On’s “app and commented on outfits 10 million times.

Thanks to social media, crowdsourcing is exploding! Retailers have realized that the crowd wants to have a say in what they wear. If you ever are in question of what looks best on you – all you need to do is ask the Internet! To find out more about “Go Try It On” please visit: http://bit.ly/qr6aFr.

 

 

 

 

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As Seen On Computer World

By: Robert L. Mitchell

Computerworld – Elie Tahari, the upscale women’s fashion brand and retail chain, has a pretty good idea which of its styles customers will want.

There’s no wizardry, no crystal ball. The retailer relies on the science of predictive analytics, using technologies from IBM to forecast demand for its line, which it sells through Nordstrom and other high-end retail stores. The tools pull data from a continuously updated data warehouse to forecast what needs to ship to each store every week, right down to the styles, colors and sizes each location will need to meet demand.

“That protects the customer, ensuring that any style or color they order is in stock, but also protects us so we don’t overproduce,” says Nihad Aytaman, director of business applications at Elie Tahari.

Analytics have made an indelible mark on the retail fashion business over the past decade, helping with everything from predicting the best pricing and markdown strategies to forecasting the right mix of products, colors and sizes for every location. There’s one critical area, though, that Elie Tahari and many other retailers and designers still don’t use predictive analytics for: choosing which new styles will be next season’s winners.

But thanks to new technologies, that could be changing.

“Maybe tie-dye is going to be huge or pink will be big. Those are decisions that the merchant has always made, but that can be assisted with sophisticated algorithms that point out patterns that [they] may have missed,” says Cathy Hotka, principal of retail consulting firm Cathy Hotka & Associates.

Predictive analytic tools, which rely on historical data to make future demand projections for any given product, can play a role even in predicting the whims of fashion. But right now, the hottest area for picking fashion winners lies at the intersection of analytics and social media.

While predictive analytics can help identify fashion winners, most merchandisers aren’t using the technology for that purpose, for two reasons: Unlike products that are carryovers or that will simply be revised for the next season, new fashions don’t have the historical sales data that predictive analytic tools need to work their magic, and retail buyers are wary of allowing science to intrude on the art of picking fashion winners.

“For us right now, key styles are picked by merchants in their discussions with designers, who present products that are inspired by trends and what’s happening in the world,” says Louise Callagy, a spokesperson for Gap Inc. But Gap expects analytics to play a bigger role in the future. “Although it’s in the early stages, we apply analytics from our early online sales globally and in certain markets to help gauge a better read of what we predict will sell in stores,” she says.

High-stakes Game

“Computer-aided fashion projections are something everyone is talking about,” says David Wolfe, creative director at The Doneger Group, which predicts fashion trends the old-fashioned way: using seasoned experience and insight. But it’s a high-stakes decision for merchandisers and fashion designers — and one that can be tricky to get right. Fashion retailers stake their fortunes on the experience, intuition and gut instincts of an elite cadre of buyers. For smaller retailers, the effect of a buyer who loses his mojo can be devastating to the bottom line.

“Apparel is a very fickle business. If you miss one season, you can go under,” says Aytaman. Most buyers simply don’t trust technology to do the job. So they turn to consultants like The Doneger Group for predictions as to what colors and styles will be in — and what will be out. Those insights, in turn, are based on experience, intuition and regular visits to designers and fashion shows.

Adding to the pressure is the fact that the consumer market has fragmented and shoppers are less willing to embrace styles dictated from the runway or by designers and retailers. Just 19% of consumers listen to manufacturers or retailers these days, according to an IBM survey. Consumers today tend to make their own decisions about fashion, in conjunction with their peers. More than ever, the industry needs to listen to the customer.

(more…)

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