Movement, light, and sound will play an important role

The development of POP is very closely linked to the packaging materials market. Any product packaging is the basic key to the creation of POSM, from which the final graphic design, the selection of materials for the production part, and the subsequent implementation at the point of sale are derived.

Case study: How to handle the chaotic management of POS realizations?

Many entities are involved in the production and installation of POS materials. It involves many people on the part of a manufacturer, client, and seller. The larger the project, the more likely it is that the realization will not go smoothly. So how can we ensure that the management of each project is more efficient and transparent?

Retail after Coronavirus? More online activities and strong Christmas

Precautions to prevent further spread of coronavirus are slowly being released. Life seems to be returning to normal. But it is already clear that the economic consequences of the crisis we have experienced in recent weeks will be long-lasting and will affect most sectors. How will Covid-19 affect the future of the retail environment?

Supplier or strategic partner – who will bring a greater value within P.O.P.?

The Czech Republic and Slovak Republic are incredible in the In-store marketing segment. We produce an enormous amount of carriers, we do many promotional activities and we have plenty of stores where people purchase and companies, similar to us, help to sell. But, is the sales effect also growing? Should we always focus only on sales revenue, or should we build a brand? How do we stand in comparison with abroad?

BLOG: 10 tactics to stimulate impulsive purchases

At the time when people do more and more purchases online, impulsive in-store purchases are becoming increasingly important. They’re stimulated primarily by choosing the right products, placing them into the right place, or attracting attention of shoppers. Below, you can learn about 10 Shopify tips on how to increase their frequency and value. In these 10 tips, you can learn how

Case study Birell: How to cut a bicycle in halves?

The client’s order was simple: create a permanent end cap for non-alcoholic refreshment Birell. It was supposed to resonate with the main elements of the product – focus on people, spending time outdoors, having fun with friends and a summer relax. Therefore, we created several different proposals which have gradually developed until we finally … cut a bicycle in halves. What made us to do this?

“Fragments” from POPAI PARIS

Popai Paris gives us great expectations each year, as we will see new technological procedures and design ideas. This year’s Popai took place at a very interesting place by the river, but there was very limited space, thus it could hold only exhibition showpieces unlike last year, where stands of producers were also displayed with a possibility to talk to them personally.

Interior of a store: what to focus on

Creating the right atmosphere of a store is one of the key factors, which stimulate customers to purchase. It is important for shoppers to feel good already when they enter the store and to feel positive emotions. Customers p…

The Augmented Reality and the Artificial Intelligence will change our shopping experience

The Augmented Reality and the Artificial Intelligence are experiencing boom in the retail marketing. It seems that the importance of the Artificial Intelligence (AI) as well as the Augmented Reality (AR) will increase during the next 12 months. Last summer, the application PokemonGo was accepted on the mass scale and this year, AR applications are entering the market already with the specific use in retail. And the Artificial Intelligence is starting tobe used to improve communication and assistance services.

In addition, customers themselves believe that retailers should invest into the AR and the AI, especially to be able to offer more personalized and more intense shopping experience. According to the report “Retail Future” of the company Apadmi, more than a quarter (26 %) of consumers would like retailer to implement AI tools into shopping applications; and almost a third (29 %) of consumers believe that retailers should invest more into augmented and virtual reality platforms. A quarter of them believe that these technologies will allow them to view customization of products, as for example different colours, sizes and patterns. Retailers would in turn help to create stronger brand relationships with customers who would know what they could expect from products, which would then be reflected in sales and profits.

First try then buy

In 2015, the company Statista evaluated the market of the augmented reality to 2.35 billion USD and we can expect its increase up to 117.4 billion USD by the year 2022. Its potential lies in a number of opportunities for a revolution in a shopping experience, primarily by allowing people to “try products before buying them” in the comfort of their homes. It can be used to place a picture of furniture in the form of a real view of the room, or to try clothes virtually without the necessity to go to a fitting room.
Thus furniture retailers, home appliances retailers or hobby markets can work with the Augmented Reality. Through their applications, customers could place a selected furniture or refrigerator directly into the picture of their flat, examine it from all sides and consider if it fits or if a different colour would be better (Jesenský, 2017a). Such application is being used already by, for example, Home Depot (D´Innocenzio, 2017) or Ikea presenting up to 2,000 pieces fitting to living rooms (Semerádová, 2017). The FaceCake shopping platform in co-operation with the company Nars Cosmetics allows their customers to test their products from make-up to handbags using its application (Sotille & Kent, 2017).
The Augmented Reality can also be integrated into shelves where, after picking up products, additional information, colour samples and discussion forum comments appear (Jesenský, 2017a). It can be placed also to a shop-window, as for example Hugo Boss brand showed in London. The brand placed a screen into their shop-window at Sloane Square, which was playing a private fashion show after scanning “an invitation card”. And in the end, it invited them to the store, where customers could play black-jack for discount vouchers (Hugo Boss Augmented Reality Promo, 2016).

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Increasing sales goals

The Artificial Intelligence goes one step further with its revolutionary nature. According to the IBM survey, 91 % of retailers have the power to disrupt the groovy functioning of the retail. Up to 83 % of them think that it will play a crucial role in their future business. Their opinion also confirmed the estimation of the company Research & Market saying that the market with the Artificial Intelligence should reach the value of 23.4 billion USD by the year 2025. It will enable retailers to automate the consumer tracking, deeper understanding of the customer path and better customization of their offer.

On the Czech market, for example, Česká pojišťovna uses the Artificial Intelligence analysing phone calls recorded on the Customer Services line using the EMMA tool. This helps them to identify weaknesses and improve the Customer Services (MSM, 2017/3). Within the on-line Customer Services, the Artificial Intelligence is present through Chatbots responding to queries 24 hours a day.

With the help of the Artificial Intelligence, retailers can also offer so called personal assistants who can recognize the customer´s interests, preferences and shopping habits. The outdoor clothing brand North Face recommends appropriate products to their customers in conjunction with the Watson cognitive system developed by IBM. And the application Digital Tire Journey by the shopping centre Sears helps with selection of tires (Forbes, 2017). Macy´s with Watson and a localization software can guide shoppers towards demanded brand; and the e-shop with gifts and flowers brings its customers to a perfect gift with a virtual advisor GWYN.

Together with the Artificial Intelligence, there comes also more advanced predictive analysis that can, for example, predict what a customer will order based on his previous buying behavior and adapt supplies and dynamic pricing to it. In practice, an application of the Artificial Intelligence may be following: a customer forgets to take his mobile phone charger to his business trip and so he orders a new one at the airport with a required delivery to his hotel room on the eve of his business meeting. However, Amazon can predict that the customer might want also headphones for his flight based on the analysis of his previous behavior, thus offering a cost-sensitive customer a competitive discount price (Sharma, 2016).
The AI finds its sphere of action also within the visual search, in which it searches similar products after uploading a picture and provides personalized recommendations.

Last but not least, the Artificial Intelligence can contribute to security in stores. In video systems, it can detect thefts and also analyze visitor according to the demographic indicators. The so called smart camera is offered by, for example, the company Axis Communications, whose technology, in addition to monitoring behavior of visitors, can also count visitors, create heat maps, monitor queues by cash desks and identify sold out products (Brands & Stories, 3/2016). The advanced behavior evaluation using the Artificial Intelligence is only a presage to more advanced analysis and preparation of personalized, real-time communication that will soon become the matter of course (Jesenský, 2017a).

Especially for the retail sector, the AR and the AI are likely to have very strong benefits and might change the way of shopping in the near future. As technology is evolving and customer expectations are shifting, retailers should start investing more in developing their services also with their help.

Daniel Jesenský, DAGO, s.r.o.

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