RETAIL TECHNOLOGY

MANAGEMENT
END- TERM ASSIGNMENT
Faculty: Mr. Bharat Jain

Submitted By: Anchal Aryan (BFT/19/490)

Semester: IV
Topic: Research on New Retail Technologies and
their impact on Retail Business
 Introduction
1.

Generalized Retail Technologies

2.

3. Apparel Industry

INDEX 4.
Retail Technology In Apparel Industry

AR & VR
5.

Voice Control
6.

References
7.
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 INTRODUCTION
• “Retail Technology” is a term for solutions that enable
retailers (brick-and-mortar, e-commerce, D2C, etc.) to
manage and optimize operations. These technology tools help
retailers increase revenues, drive down costs, and/or advance
a combination of other key metrics: improving customer
satisfaction/experience, decreasing returns, or increasing
retail conversion rates.

• Globally, spending in retail sector technology is predicted to

grow by 3.6% to reach almost $203.6 billion in 2019, with
similar growth rates for the next several years (according to
Gartner). Retail tech spending has typically lagged behind
other industries, but customer expectations and competition
are forcing retailers to spend big on tech as retail now
surpasses the majority of other industries in IT spending.
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 7 post-pandemic technology trends to reshape
the future of retail industry

• E- Commerce Friendly
E-commerce has surged during the COVID-19 pandemic due to restrictions and fears surrounding in-person
shopping. This has motivated business owners to optimize their e-commerce platforms in order to boost their
online sales processes.

• Machine Learning In Demand Forecasting

1. COVID-19 has greatly shifted customer demand in the retail space. Understanding how to predict and take
advantage of these shifts is a vital component of staying on top of the industry.
2. Data is essential to the demand forecasting process. By using machine learning, forecasting customer
demand becomes substantially more accurate. These innovations improve automatic demand forecasting,
inventory planning, relationship management for both customers and suppliers, logistics, manufacturing, and
marketing.
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Continued…

• Virtual Fitting Rooms

Virtual fitting rooms are one of the most intriguing innovations in the retail industry that utilizes augmented reality. Since
the “try-before-you-buy” approach is more difficult to manage while adhering to public health mandates during the COVID-19
pandemic, augmented reality is in a unique position to help customers make choices on products.

• Data Science Based Personal Interaction

Consumer desires are key to this technology trend in 2021. By using consumer purchase data to develop shopping profiles
for certain types of customers, machine learning can adapt to each user to guide their shopping experience. Because of this, e-
commerce stores have historically shown a greater degree of success with personalizing the shopping experience.

• Staff- free and Cashier- Less Stores

With social distancing still relevant for protecting public health in 2021, cashier-less and staff-free stores are an important
retail trend to consider. Shekel Brain weight Ltd, a provider of weighing technologies, surveyed consumers to find shifts in
shopping trends due to the COVID-19 pandemic. According to the results, 87% of customers preferred stores with contactless
or self-checkout options.

To achieve this goal, RFID tags, computer vision systems, machine learning, IoT devices, and facial recognition can be
utilized. Technologies like these were utilized in Amazon’s Just Walk Out system, powered by their Amazon Go Grocery
model. In particular, the project took advantage of computer vision ,sensor fusion, and deep learning. Amazon’s IoT network
in the store tracks what consumers place into their cart. When the customer leaves the store, the store will automatically charge
the credit card that the customer has on file.
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• Voice Commerce
1. Artificial intelligence and NLP continue to advance in 2021. With Google Assistant, Alexa, and Siri as the
main frontrunners of the consumer voice assistant market, various improvements have been made by each to
better serve customers. Their usefulness has transcended what was previously possible due to the fact that they
do not require a screen, they need only to be able to recognize your voice.
2. Screens may not even be necessary. With voice commerce, smart speakers only need to hear the
consumer’s voice and respond accordingly. Voice commands can help customers find products or even make
purchases.
Walmart’s Voice Ordering service is a perfect example of this technology in action. By asking smart speakers to
add products to a cart, they can place orders entirely by voice. Those items can then be made available for
pickup by Walmart’s workers.

• Robots and Autonomous Vehicles

1. Customer service robotics has also been improving this year. In January, Hyundai deployed a robot called
DAL-e to a showroom in Seoul. DAL-e greets customers and helps them find the vehicle that’s right for them.
DAL-e also can automatically detect when customers do not have face coverings and will advise that they wear
a mask.
2. Another application of robotics in the retail industry is inventory management. Computer vision and
machine learning plays a major role in machines like Smart Sight, which can identify misplaced items on
shelves and notify staff when certain items are running low.
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 APPAREL INDUSTRY

• Fashion has always been known by definition as mutable. It is an industry of new trends, ideas,
innovation, and bringing a fresh wave of collections for all seasons. The industry is not only
transforming but setting up a gear with new technology and changing consumer trends and
demands.
• The crisis created by the coronavirus pandemic has created a seismic shift in the fashion industry.
There is a shift in consumer mindset, with the rapid development of technology, the traditional
shopping patterns and customers’ attitude towards the purchase is also changing.
• Customers are no longer brand loyal, ‘Gimmicks’ are becoming ‘must-haves’ in today’s time as
gamification of products is encouraging the excitement and thrill for exploring the unexpected.

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 Retail Technology In Apparel Industry

• The clothing retail is one of the most competitive businesses in the textile industry. Apparel
retailers need to constantly keep re-inventing the stores and use newer ways to reach their target
market. The dot com bubble has made it even more challenging for brick and mortar stores to keep
up with the pace. Besides attractive offers, discounts, and sales apparel retailers are adopting new
and innovative ways to keep customers lured.

• Apparel retailers are using out of the box ideas to make the experience of shopping more
enjoyable for their customers. The "buy one get one free" is a pass and retailers today by providing
seamless and queue-less payment services, quiet and relaxed ambience, and by gamifying the
shopping experiences are using interesting concepts to create a unique selling environment.
• Helping shoppers feel confident that a garment will provide the fit they want reduces cart
abandonment and increases conversions while also reducing returns. The result is increased brand
loyalty and a healthier bottom line. 
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Continued…

• Cumulative data compiled within The Fashion and Apparel Industry Report paints a bright portrait
with worldwide revenue expected to rise from $481.2 billion in 2018 to $712.9 billion by 2022:

• Although fashion and technology are often perceived as entirely distinct fields, the two have
always intersected — generally to the betterment of both industries. In recent years, technology
has been dabbling in the fashion industry. With the shift from brick-and-mortar retail shopping,
technology’s impact has been difficult to ignore — especially with e-commerce in full force.
• As in all sectors, tech is revolutionizing how businesses operate, with the use of data analytics,
artificial intelligence, virtual technology and so on -leading to streamlined and efficient processes.
In light of these technologies, the retail sector is growing as well as the need for retailers to adapt
to the new landscape and embrace the turning point of the fashion industry. 9
• Retail is evolving and adapting to digitalization or the phygital. Online is destroying the way retailers, or
some of them, understood physical shopping. Business Models that successfully grew during the 20th century
are closing stores. Most of them are department stores: Big buildings strategically prepared to keep customers
inside, without external windows, an outside-in retail approach. In many cities, department stores were the
only place to find such a wide fashion assortment and people visited them as a regular plan. Big parking,
large stocks, good prices. Many shoppers didn´t have an alternative until online arrived.
• Many fashion retail brands are investing in flagship stores but forget second-tier stores. These are sometimes
ugly and dirty, a pile of clothes is stocked anywhere, and it´s not easy to find what you are looking at. It´s
a labyrinth. Then, queuing for the fitting room, and same thing when going to pay. No doubt, online is going
to kill those stores that only sell products like water bottles in supermarkets. I have seen, more than once, a
vacuum cleaner and lots of wrinkled clothes in flagships stores. And the “touch & feel”  shouldn´t be
exclusive to luxury fashion retailers, because experience and story telling is something expected in any
segment of the fashion pyramid. 
• Omni channel shopping demands a totally different approach to the customer and the way products and
services are delivered. Customer experience demands the reinvention of product display and information
(traceability and transparency), customer service, store layout/architecture, stock management, etc. 
• Traditional retail KPIs need also to adapt to Omni channel: Sales growth per store, Availability, Stock Turn,
Average Ticket, Conversion ratio, Sales per square meters (or foot), for example, aren´t realistic when
customers can window shopping, Research Online Purchase Offline (ROPO), See Now-Buy Now, etc.

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 AR & VR

• Augmented and virtual reality are customer-oriented features that will revolutionize the way customers
experience the brand online. They have been closing the gap for a number of years now; however,
owing to various factors the trend has accelerated this year and will strengthen further in 2021.
• By using AR technology in the store, brands can allow customers to access any apparel through digital
media while VR technology would help the users try outfits virtually. In addition to brand experience
and customer satisfaction, the technologies will also help in reducing the number of return cases.  
• The potential of 3D CAD design and VR imaging to visualize finished designs virtually has been
streamlining and accelerating advancements in textile engineering.

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• A Virtual Reality technology not only creates a creatively entertaining milieu for customers but
also plays a crucial role in driving sales. 
• A virtual reality store ambience, also known as 3D shopping space, allows customers to evaluate
the merchandise as if in a real outlet, but at the comfort of their homes. The customers can zoom in
and out to configure the product from different angles and make purchases. Virtual technologies
are empowering fashion retailers enabling new features to create an unforgettable experience while
shopping.
• Thus, 3D design is being positively looked upon to open new doors for the fashion industry that
might allow workers more time to be creative in their present job roles. Automation of their daily
roles will not replace, but empower them to use their energy for betterment.

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 Obsess, a start-up using e-commerce VR, saw a collaborative project
with Dior for the launch of its virtual store in Champs-Élysées, Paris.
The Shanghai Luxury Art mall in China also launched the first virtual
store in China, which gives shoppers a virtual tour of the mall and
allows purchase from 46 different stores. Designers ofC Dior’s virtual
stores say that Dior’s ultimate motivation was originally to share its
Paris store experience with ‘a wider audience’ that otherwise could not
have had the chance to visit Paris.

The luxury brand Valentino recently inaugurated their virtual outlet on

T-mall by Alibaba, which allows its shoppers to take online tour to the
brand’s pop-up store physically located in Beijing, and even shop for
products placed on the shelves through Alibaba’s T-mall.
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 Gucci – ‘try on’ shoes in AR
• Gucci is the latest luxury brand to do so, adding an AR feature to
its app to let users ‘try on’ sneakers.
• Pointing their smartphone camera downwards, users can choose to
see a digital overlay of 19 different sneakers on their own feet,
swiping left or right to change to a different pair. The app also
allows users to take photos, which can then be shared on social
media or in messaging apps.
• A highly functional example of AR for retail; by giving customers
a visual representation of how a product will look in real life, the
technology can theoretically reduce returns and boost customer
satisfaction.

Named the “Dressing Room”, the augmented reality app lets

customers try on clothes anywhere using a Google Tango-
enabled device.
You can customize an avatar based on your body type and see
how the different pieces of clothing will look from different
angles. And, if you’re satisfied with the item, you can buy it
straight from the app.
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 • Retail giant Zara does this by using augmented reality for
their in-store displays. Customers can hold their mobile
phones in front of a select shop window, and they will see
models wearing pieces from the latest line.
• Aside from the wow factor, the feature makes shopping
convenient. Customers can just click on certain items to
automatically purchase them. Zara also adopts augmented
reality for online purchases. Packages show alternative outfits
to the pieces delivered, enticing customers to make repeat
purchases.

Belarus-based developer, Wannaby, is working further to make

the “Try-On” AR app work while the user is standing in front of a
mirror. Mimicking the in-store shopping experience can
potentially drive more online sales.
Wanna Kicks, an iOS app that enables customers to try on
different pairs of sneakers from the 3D models available.
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 Tenth Street Hats’ Virtual Try-On
The California-based designer hat brand offers an augmented
reality option on their product pages. Shoppers can select items
tagged “Virtual Try-On”, click the “Try it on in AR” button, and
see how they look. According to the brand, engagement levels
increased by 33% thanks to the augmented reality feature.

Burberry has launched a new Augmented Reality (AR)

shopping tool through Google Search technology. The AR tool
allows consumers to experience Burberry products embedded
in the environment around them, enhancing their research and
shopping experience online.
When searching for Burberry items using Google Search on
their phone, consumers can see an AR version of the product at
scale against other real-life objects. For example, a user can
place a TB bag next to an existing outfit to gain a better
understanding of the product before purchasing and simulating
the in-store experience. 18
 Chanel organized an event called Augmented Reality Snow
Globe to celebrate Christmas and engage with customers. For
four days, a New York boutique hotel was turned into a festive
semi-digital shopping area. Those outside the city could
“attend” the event by downloading a special app or using a
Snap chat lens. The show helped bring many existing and
potential customers closer to the brand.

H&M
The retailer is focusing on the use of augmented reality imagery and
animation combined with integrated photo sharing on Facebook.
H&M shoppers will be able to virtually try on outfits, take photographs
and post these images to Facebook to create their own personal look
books.
The H&M augmented reality initiative is GPS-linked, which not only
obviates the need for hardware or codes to scan, but also means the
retailer can place objects at any location. 19
 CONCLUSION
• With consumers not being able to go to the store for now and try on a pair of jeans or a pair of shoes, many
companies are looking at ways to bring their virtual goods for a try on to them in the comfort of their own
home. Brands are also seeing an uptick in consumers using augmented reality to virtually try on makeup or
even clothes. 
• Virtual try ons could even lead to the minimization of carbon emissions released into the air due to people
traveling to clothing stores. With people becoming more conscious about how their buying habits affect the
environment, and social distancing becoming a reality, perhaps digital fashion will become more of a norm.
Virtual try on and digital couture could lead to a world in which people no longer need to go to stores to try
on clothes because they never plan to wear those clothes in the physical world.
• Augmented fashion poses a significant development to the way we understand our body movement and our
sense of self as linked to materialism; already we project elements of ourselves through our clothing, now
with immersive tech we have almost limitless ways to reinvent how we are perceived and experienced. When
it comes to all things mixed-reality, we need to remember we can redefine every standard of our current
reality.

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 VOICE CONTROL
• Voice technology, now ingrained in our mobile phones and personal devices, is shaping consumer
behavior — helping people search for information, consume content and shop in a more natural,
frictionless way. This innate familiarity makes voice attractive and easy for consumers to adopt,
taking away the learning curve that comes with many new technologies. Voice benefits from its
unique ability to pair conversational and more contextual inputs with hands-free convenience.

• The rise of voice is transforming not just search but shopping as well. Today, you no longer need
to open your laptop, much less go to the store, to make a purchase. The buying process begins by
saying “Hey, Google.” The novel functionality and hands-free convenience of voice is especially
attractive to younger shoppers who live on mobile and shop on the go. Millennial are the largest
segment of early adopters to voice commerce and make up more than half of its regular shoppers . 
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 Is voice search in e-Commerce the next revolution?

• As per Statista, the global smart speaker market revenue is expected to grow from USD 11.9 billion in 2019
to over USD 35.5 billion, by 2025
• By 2022, 55% of households are expected to own a smart speaker.
• Another voice commerce statistics by Comscore reports that 50 percent of all online searches will be voice-
activated, by 2020
• 60% of people owning a voice assistant have used it to buy something through voice
• Juniper Research forecasts that voice commerce will be over USD 80 billion by 2023

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• The initial intersection of voice and apparel shopping has come from re-order/replenish purchases, in which
shoppers already know the style, size and color they desire. With this, ordering new socks for your child can
be easier than yelling at them to do their laundry. This capitalizes on the rudimentary advantages of voice,
speed and convenience, allowing shoppers to make instantaneous purchases without having to pick up their
phone. As voice commerce continues to evolve, we expect to see this shopping behavior amplified and
expanded beyond routine purchases to aided discovery.
• The apparel industry is large, filled with product depth and variety, and can be hard for shoppers to navigate.
With this, discovery is fundamental to shopper success. The more natural interaction of voice aids itself well
to discovery, expanding the search bar into a conversation so shoppers can provide more specificity in their
search. If you’re going camping for the weekend, Siri wants to know and can use this context to help give you
more personalized results. This added context and intent is kept from traditional search, forcing shoppers to
settle for standardized categories and, thus, generalized results. Through its more conversational inputs, voice
simplifies the apparel industry for shoppers, helping them discover products and find their style.
• With this, discovery is fundamental to shopper success. The more natural interaction of voice aids itself well
to discovery, expanding the search bar into a conversation so shoppers can provide more specificity in their
search. If you’re going camping for the weekend, Siri wants to know and can use this context to help give you
more personalized results. This added context and intent is kept from traditional search, forcing shoppers to
settle for standardized categories and, thus, generalized results. Through its more conversational inputs, voice
simplifies the apparel industry for shoppers, helping them discover products and find their style.

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• Apparel brands are already taking advantage: Perry Ellis is using voice to overcome a common
barrier for millennial men; dressing for occasion-based events. Through voice commands, it is able
to gather more contextualized inputs and provide personalized results to specific shopper requests,
pulling together curated looks and encouraging shoppers to buy now. By using the conversational
elements of voice to their advantage, Perry Ellis is able to solve for a barrier and simplify the
shopping process. 
• Mallama, a direct-to-consumer men’s skincare brand, implemented voice assistants to
complement its e-Commerce shopping experience and guide consumers through the process on an
as-needed basis. New innovations in this space may encourage brands to consider how they can
create their own branded experience using voice.
• British online fashion and cosmetics retailer ASOS is doing that with Enki, its shopping guide.
 Enki with Google Assistant as its driver introduces users to their latest collections in menswear
and Womenswear categories.
• H&M too launched a shopping guide for its Home Store. On the other hand, Estee
Lauder introduced custom-made skincare solutions through voice activation.
• Meanwhile, in China, Alibaba recently launched an eight-inch smart mirror Tmall Genie, which
not only reacts to voice commands but also offers beauty tips and information about skin-care
services.
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 CONCLUSION
• We’re still in the growth stage of the voice shopping market. It’s challenging to predict exactly when
platform- and device-agnostic voice searches will be standard on smart speakers, and when smart speakers
will become an essential item for the home or office. But the consumer demand is there, and the big tech
players like Facebook, Apple, Google and Amazon are going all in — to the tune of $750 trillion dollars in
spending over the next decade to research and develop voice recognition to see who can take control of the
market. 
• Retailers should expect that their customers will begin demanding more voice shopping experiences over the
next few years as voice search technology continues to grow.
• Retailers and consumers must navigate a minefield of potential online fraud when using voice search and
shopping services.
• AI fixed the broken data chain of retail, which ultimately helped to streamline personalization, image search,
cataloguing and styling in fashion retail. It can do the same for voice technology if brands successfully
identify what needs to be fixed and who can fix it.

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 References

• https://apparelresources.com/technology-news/retail-tech/3d-design-turning-fashion-industry-phygital/
• https://apparelresources.com/technology-news/
• https://www.indianretailer.com/article/tag/fashion-retail/
• https://www.indianretailer.com/article/whats-hot/trends/future-trends-fashion-retail-in-2021-beyond.a6721/
• https://econsultancy.com/14-examples-augmented-reality-brand-marketing-experiences/
• https://www.alperguler.com/chanel-augmented-reality-snow-globe/
• https://www.burberryplc.com/en/news/corporate/2020/burberry-brings-products-to-google-search-through-
augmented-real.html
• https://arpost.co/2019/02/11/how-augmented-reality-is-redefining-the-fashion-industry/
• https://www.techtoreview.com/top-picks/ar-and-vr-in-fashion-industry.html

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THANK YOU 30