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Zugara and Richrelevance launch augmented reality shopping tool on Tobi.com

Augmented reality is one of the biggest buzzwords right now and people are looking for ways to bring this technology to every industry. As much as I love e-commerce, there is still a (purposeful) disconnect from the brick and mortar shopping experience, especially with apparel. I feel that when technology can bridge this gap, e-commerce sales can only grow as shoppers continue to turn online. Augmented reality is one of the technologies that, when used effectively, could do a lot to bridge this disconnect.

One of the coolest demos that I saw at this year’s shop.org was the augmented reality dressing room tool that was developed by Zugara in partnership with Richrelevance. This tool allows shoppers to “virtually” try on clothes, put together outfits, and share these items with their friends on Facebook. This is all made possible through the use of Flash, a web cam, and hand gestures from the shopper. Really awesome stuff.

This week, Zugara and Richrelevance have announced that this technology has been brought to online boutique Tobi.com. Through the application, called Fashionista, shoppers can now shop the catalog using their web cam and interact with their friends. It’s really great to see this technology go live.

How are shoppers going to react? Tough to say. This is still emerging technology but with a very long life cycle ahead of it. Augmented reality may just be entering the e-commerce arena, but expect many more of these applications in the future. For now, the Fashionista application is a great first step in implementing augmented reality in e-commerce. I can’t wait to see this app grow.

I’ve embedded a video, below, showing the Zugara demo at the Richrelevance booth from shop.org. Above is a screenshot showing the application being used on Tobi.com.

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JCP goes back to 1998 and releases downloadable, desktop sales application

JCP

I’ve come across a press releasing from JCPenney, announcing the release of a new downloaded desktop application called JCPToday. From their press release:

AUSTIN, Texas–(BUSINESS WIRE)–Skinkers, T3 and WTG have collaborated on the development of a unique desktop application that is helping one of America’s largest retailers, JCPenney, reach customers in a whole new way. The application, JCPToday, is designed to enhance relationships between JCPenney and its customers by delivering sales offers, new product announcements and in-depth features directly to a computer’s desktop. The application can be downloaded from www.jcptoday.com.

In essence, they’ve created a desktop calendar that allows you to keep track of things that you have to do while being reminded of upcoming sales and seeing some of the products JCP offers.

The press release intrigued me enough to download the application, but I can’t say that I’m impressed. While I appluad JCPenney for looking for different ways to reach their customer, this application seems outdated, stinks like spyware, and is short sighted in scope.

First, the good things about it:

1. I applaud retailers when they look for non-traditional ways to reach their customers. Using any sort of technology to market a retailer is a good step, since most retailers are still relying on traditional means of print, radio, and television advertising.

2. JCPenney is trying to establish a connection with the customer, reminding them to shop the entire store. As such, the application seems to not focus on any one area of the store and really tries to drive the store home, rather than individual products. Sure, there are individual products listed here, but click around and the customer gets a feel for the range of products that the store carries.

Now, my problems with this:

1. A downloadable application? What is this, 1998? In 2007, who is still trying to reach consumers with downloadable applications. Recent report states that 1 in 5 people in the world have high speed internet access. In an age of user distrust due to adware and spyware, I can’t imagine that many people are going to jump at the chance to download another application that will sit in the background of their computer and potentially hog resources and send private information to someone else. Whether or not the application actually does this is irrelevent, this is what a lot of people would think a downloadable application like this would do.

(Note: No matter how many times they put on the website that no private data is being shared or that the application isn’t spyware, how much trust do people have in corporations to actually be honest? Probably not that much. I don’t think I’m the only person to feel this way. In fact, Angelo Mandato had to develop his own uninstall application to completely get this application off of his mom’s computer. While it may not be spyware, making it hard for a user to uninstall an application is not cool.)

2. Using PUSH-technology to send information is, literally, a one way street. We PUSH the information to you that we want you to see. In an age of web 2.0, consumer-centric communities and interactive technology, people want to interact and share information. They don’t want to be spoon fed information.

3. 1 (the downfalls of a downloadable application) + 2 (the one-way communication of said application) = 3: the people who are likely going to take the time to actually download, install, and use the program are going to be consumers who are already enthusiastic about the JCP brand. This application is going to reach out to the already converted, but won’t do much to convert new people to the JCP brand. This goes back to relying on traditional advertising methods to market the retailer.

I hate to say it, but I think that this application is a failure. I do think they have a good concept for what they want to do, but I wish they would have executed it differently. How I would have done it:

1. JCP: retailer and desktop software publisher? Instead of using the time and the resources to create a new calendanr application, I would have reached out to already existing applications in order to create a co-branded service. There’s a myriad of organizational and calendar applications, and now JCP is competiting with them. In addition to already existing desktop applications such as Outlook, iCal, and Sunbird, there are plenty of web-based services, like those developed by Google and Yahoo, as well as others like 30 Boxes, Spongecell, and Remember the Milk. JCP should have reached out and attempted to integrate their marketing message into a pre-existing service.

2. Let’s say JCP reached out to everyone and no one wanted to integrate JCP branding into their service: I still wouldn’t have gone the downloable application route. Integrate the calendar application into JCP.com and brand it there. You are keeping the user on your own site and will have so many more opportunities to make the sale than by having the user in another window in a desktop application. Make it easy for the user to purchase what they want.

3. By keeping things on the web, JCP would have an opportunity to create a real interactive user community. The other day I laid out some ideas for ways Gap Inc. could integrate their sites together, and most of them apply here. Use a blog to showcase new fashion and reach out to the customer. JCP is expanding their stores and enhancing the in-store shopping experience – but not in my area. I’d love to see more about these new features and a blog would be a great area to show things like this.

But the key to the blog is interaction. With the application JCP has created, they’re able to feature items and trends but they’re not soliciting feedback and allowing the user to create their own connection to the JCP brand. This one way communication isn’t going to fly with today’s consumer. By building a community around the blog and calendanr, they would keep people coming back and, in turn, keep people coming back to their own website.

AdWeek has an article about the launch of this application with some quotes from people behind it. They seem to see this application as a way to reach already existing customers. While I have already pointed that out and agree with that, I think that they could have easily done this in a way that could really reach out to other people who don’t already shop at JCP.

I really wanted this application to be good, but I think JCP has missed the mark. If JCP had taken the concept and altered it, only slightly, they could have a real smash hit on their hands; something that would have enhanced their brand and something that other retailers would use a case study. But instead, they have an application that will most likely be thought of as intrusive spyware and will soon be forgotten.

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H&M to offer virutal fashions through The Sims

Fashionable retailer H&M is teaming up with game maker Electronic Arts to offer their Summer fashion collection, virtually, in The Sims 2.

Electronic Arts Inc. and H&M, the international fashion retailer, today announced an innovative partnership that encourages fans of The Sims™, designers, and fashionistas alike to participate in The Sims 2 H&M Fashion Runway and discover the summer themed collection with The Sims 2 H&M Fashion Stuff pack. The fashion runway provides participants the tools to create their very own fashions using the most popular PC game ever, The Sims 2.

In addition to the fashion options available in the game, it appears that players will be able to play with cash registers, mannequins, and clothing racks to create their own store.

On the surface, this may seem like a very strange announcement. But really, it is a good strategy by H&M to extend their brand and create more awareness of their fashion offerings. This is also a great example of a retailer embracing technology and using non-traditional means to reach their consumer.

More information from GameZone and Geek Sugar.

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Can Wal-Mart boost VOIP and Skype?

Is Wal-Mart the shot in the arm that VOIP technology needs?

Wal-Mart Stores Inc. is adding an array of Skype phone gear to the electronics section in 1,800 stores, bringing the renegade provider of cheap calling over the Internet to a huge mainstream audience.

The dedicated Skype section will feature handsets, headsets and webcams designed to work with Skype, a provider of free and very cheap long-distance calls, including to phone numbers abroad. Wal-Mart will also sell the first prepaid cards for Skype calls to be sold in this country, the companies were announcing Monday.

The new section at more than half of Wal-Mart’s roughly 3,300 U.S. stores will feature Skype-compatible gear made by Motorola Inc., Plantronics Inc., Logitech International SA, Royal Philips Electronics NV and others.

Obviously there are huge positives in this move for Skype. The more doors that they are able to sell in, the more consumers that they are exposed to, the more their sales increase. Although Wal-Mart already offers Vonage products, increasing the VOIP offerings in the retailer will also increase aware of VOIP technology as a whole. Offering a lower cost alternative to major telephone companies, Skype could be a very good fit for the Wal-Mart demographic.

My concern is whether or not the consumer walking into Wal-Mart is going to be able to really find out what Skype and VOIP is about. I’m going to guess that in the majority of cases, they are not. It seems that product knowledge is not a trait that most retailers are pushing on their employees these days. I hope that this really isn’t the case, as Wal-Mart makes a huge push to increase their electronics offerings, but I have my doubts.

More from the Asbury Park Press / Associated Press.

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Apparel outsells computer hardware online

The New York Times is reporting that, today, the trade organization Shop.org will release a report saying that, in 2006, apparel outsold computer hardware online while still offering tremendous room to grow sales:

In 2006, revenue from skirts, suits and shoes reached $18.3 billion, surpassing that from PCs, printers and word-processing programs, which totaled $17.2 billion, according to a report to be released today by a major trade group.

The surging popularity of clothing on the Web defies predictions that fashion — which is hard enough to buy in stores, with the aid of sales clerks and fitting rooms — would be difficult, if not impossible, to translate onto the Internet.

[...]

Consumers are still largely reluctant to buy clothing online, at least compared with products like computers. In 2006, they made only 8 percent of all clothing purchases on the Web, compared with 41 percent of computers, 21 percent of books and 15 percent of baby supplies, according to the Shop.org report, which was prepared by Forrester Research.

This is great news for apparel retailers and very good news for e-tailers (does anyone still use that term?). Since the overall saturation percentage is still low, online, that means retailers still have tons of room to grow their interactive marketing.

With the rise of web sales, I hope that more brick and mortar retailers further their commitment to e-commerce and continue to realize the power of the Internet not only for sales, but also for a means to interact with consumers.

More from the New York Times (see: Less Risk Is Seen in Buying Clothes Online).

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Macys.com, and staying on top of tech trends

Federated Department Stores, the parent company of Macy’s and Bloomindales, has announced that they are investing $100 million into their online operations.

Of course, not all of it is going to fancy flash widgets and outsourced Indian php developers:

Most of the $100 million will be spent on a 600,000-square-foot distribution center in Goodyear, Ariz., that will be the main West Coast shipping point for Macys.com. Construction will begin this spring and take a year.

Some will be spent in San Francisco to support technical upgrades and infrastructure improvements. It is on top of $130 million being invested in such improvements in 2006-2007, including a 600,000-square-foot distribution center opening this month in Portland, Tenn.

Over a million square feet of distribution space should help Macys.com very nicely (see: Macy’s to invest $100M to build online store operation). They want to grow their online business to be a billion dollar slice of their overall sales.

I do. I’m expecting huge things from Macy’s online division this year. I think Federated has a chance to lead all retailers into the new social media revolution. Afterall, they did a test run of IconNicholson’s “Social Retailing” concept at Bloomingdale’s in NYC last month (see: Bloomie’s woos young shoppers with social retailing).

Bloomingdale’s may be known as a fashion destination, but that doesn’t mean it can’t reach out more to teens and young adults. So in a recent test at its flagship 59th Street Store in New York, it offered an interactive sales-floor mirror that let shoppers view themselves in outfits as well as comments—and images of alternate garments—sent to the mirror by their online friends.

If the shopper likes the looks of a dress suggested by a friend, she can touch the mirror to make the image of the dress appear life-size, then stand in front of the of it to virtually try it on.

Voila—social retailing. If web-based social networking can work wonders as a marketing and branding tool, online social retailing just might do the same for in-store retailing, says Tom Nicholson, CEO of IconNicholson, the company behind the “Magic Mirror.”

“We see this is a way of bringing the power of the web into stores to support customer sales,” he says.

Back in January, I got to see this concept first hand at the NRF Expo and let me say, I was floored. I think that IconNicholson has developed a very brilliant concept – a way to bridge the physical shopping experience with an online buddy list. It’s a costly project, but I think that a retailer is going to score a home run with it in 2007.

Macys could get their billion dollars in sales if they keep doing what they are doing. Invest in infrastructure, better order fulfillment, and stay on top of trends in technology.

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Photos: NRF Annual 2007

Got a chance to go to the NRF Annual 2007 today. Just wanted to share a couple of quick photos from the X07: Ultimate Pop Up Boutique exhibit:


360 degree LED display by Dynascan. Really bright, really attractive video system. I can see this popping up in malls all across the country in a big way this year.


The really awesome Fogscreen. A thin, dry layer of fog is sent down from a suspended device. A video loop is shown on the screen using a projector. The best part is that you can walk through the fog (and walk through whatever is being shown on the screen). Really wild – a lot of people were taking photos and stopping by this setup.

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iPod Levi’s

I think that the integration of technology and fashion is awesome. With the proliferation of iPods and other digital music devices, fashion designers have more reason to offer some sort of convergence between fashion and technology.

The picture above is the first picture of the Levi Redwire DLX jeans, which contains an iPod port, a built in remote control, and retractable headphones. More pictures and original information from the Dutch site, bright.nl. Although I think that these jeans are not that great looking (what’s with the contrasting stitching?), I love the concept.

Looking aroudn lately, I see an increased amount of iPod-related fashion offerings. Outwear is one area that this does really well in, but looking at the backpacks that most stores have rolled out for the BTS season, one may think that it isn’t possible to get a backpack that isn’t iPod-ready in some way or another.

More coverage from the Unofficial Apple Blog and Gizmodo.

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In case you didn’t get the BTS memo …

In case you didn’t get the BTS memo, the trends for this season are as follows:

Denim:

Denim:

Denim:

Denim:

Denim:

Denim:

Denim & tees:

Denim & trees:

and finally.. comforters:

You may finish shopping now.

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6/25/06 Retail Notes

Another one of my exciting weekly rundowns of quick things going on around the retail industry:

Maybe I need to put on my tin foil hat, but I’m not a fan of one test currently going on in Florida. Coast to Coast convenience store in Tampa is currently testing in-store payments via biometrics. That’s where you put your finger into a scanner and your fingerprint is connected to your debit account information. Makers of the system, Pay By Touch, say it is a secure alternative to carrying cash or credit cards. Critics of biometrics say that the system can be defeated with gummi bears. Is this the future of retail payments? I hope not! I use my debit card for a majority of my purchases – but as much as I embrace technology, I don’t know if I am ready to link personal information in to my fingerprint. [story via Slashdot]

ManagersRealm writes about the new Home Depot customer service plan that they have launched. I talked about this the other day – they’ve earmarked $30m to give to stores and employees who provide great customer service. Is it going to work? Probably not. It seems that Gary Bourgeault shares this opinion and offers up some ideas on how the company could improve service.

J.Crew prepares for their IPO this week. Looking to raise $280 million through this stock sale, how will Wall Street react? I’m thinking investors will love this stock – a first quarter profit increase of 60%, the launch of the kids’ store, crewcuts, and the development of a new women’s store, Madewell. J.Crew has enjoyed a great turnaround over the past two years and this IPO is just another step forward.

Gap Inc. has announced three more locations for Forth & Towne, all in the Los Angeles area. All three will be opening sometime in the Fall.

Speaking of new stores, looks like Kohl’s has officially put out their list of new stores opening in October.

In somewhat lighter news, I hear a crew over at a local hardware store chain was loading pallets when they knocked into the sprinkler system, causing a minor flood. What better place for there to be a plumbing problem than at a hardware store?

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