Does the world of retail need more disruption? Hell Yes!!

Consumer needs have changed over the past 30+ years since I started working in retail…. and those needs have become increasingly sophisticated. Yet, retailers have been slow to innovate and disrupt to keep up. Numerous research studies of industries show that retailers are well behind all other sectors in making innovation and disruption a top priority. Instead, many have focused (or over-focused) on day-to-day core operations. There are many reasons why, notwithstanding the laser focus demanded on short-term results. But this lag led to the rise of innovative newcomers wresting a larger share of the market from former industry heavyweights.

My "official" X-files Newsletter for April/May has covered this in detail.

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?But disruption can come in many different forms and the following retailers (and retail associated products and services) have carved out something special to provide a competitive edge in the market, where others did not. And there are great lessons to observe.?

Walmart Studios?

Last month, the world’s largest retailer opened the doors to its new creative epicentre, an 80,000-square-foot complex – roughly the size of one-and-a-half football fields – to house its own state-of-the-art production studio and internal agency of record, Walmart Creative Studio.?

?The magnitude of Walmart Studios’ capabilities is significant:?

• From a production standpoint, the facility boasts a sound stage, recording studio, daylight studio, social photo studio and an array of editing and post-production suites.?
• Among its guest-friendly amenities are a lobby, fully equipped kitchen and a smattering of conference rooms.??
• The team produces everything from lifestyle photography to full commercial shoots.??

All of this an effort to help Walmart “create content at the speed of culture and retail.”

?What makes this disruptive?

Walmart Studios is an in-house production company and creative agency company rolled into one and its creatives exclusively produce commercial content for Walmart.?

Since its opening on March 11 this year, it has already churned out 40,000 individual assets with a current team of 50 creatives. If you think about the trajectory for “retail media” the options and alternatives are endless….and so is the revenue.?

Prior to this, Walmart undertook a $2.3 billion deal to buy TV maker Vizio. This is where it gets a little complicated but clever. While linear TV is reducing, streaming TV is growing. This Vizio deal could impact the entire industry as the Vizio automated content recognition data (ACR) tracts viewership of content and ads on Vizio TVs and has been widely adopted by the industry. What happens if Walmart stops selling that data? It could hinder the ability to measure viewership in streaming TV or lead advertisers to cut more deals with Walmart to secure access. This is a complex marketing puzzle in which Walmart has made some incredible disruptive moves and may outshine their competitors (and or drive more ad revenue).?

AI and “real beauty”?

For the past two decades, Dove has advocated for “Real Beauty” and what that means for woman of every age and stage wherever they live in the world. According to research they have uncovered, they reckon by next year 90% of the content people see online will have been generated by artificial intelligence. I’m not sure I believe this stat but it certainly is attention grabbing.?

They have embarked on a new ad campaign on how we should define real beauty in a real world through its ‘Self-Esteem Project.’ In this they highlight biases with computer-generated photographs and how its redefining what beauty looks like in the digital age.??

This is not new territory as Dove has continued to drive their disruptive stance brilliantly with campaigns such as ‘Cost of Beauty.’ Central to this approach are the detrimental effects that ‘perfect’ images can have on people’s mental health and self-worth….”one in three women feel pressure to change their appearance because of what they see online”.?

It’s a fabulous campaign.?

The Code Commercial

What makes this disruptive?

Dove continues to be proactive in its approach to the issue and embrace AI for the positive. Rather than rejecting AI, Dove aims to empower the audience curious about the technology with alternative prompts that promote diversity in digital representations of beauty.?

• By acknowledging the inevitability of AI’s presence in our lives, Dove is opening important conversations around beauty standards?
• Be it online or offline, there is a call-to-action within this ad and demonstrates Dove’s authenticity and leadership status empowering woman to reframe what beauty is and means to society.?

?Australian-first biometric security for payments?

Payments technology and Open Banking leader, Waave is bringing biometric security access to its Pay by Bank payment method, in a first for Australia.?

Waave’s Pay by Bank was launched in early 2023 in response to costly merchant fees for businesses which are often passed onto consumers as surcharges or higher prices. This is Australia’s first account-to-account payment method powered by Open Banking and the New Payments Platform (NPP) to give consumers a free, secure and instant payment experience that bypasses card payments – at a fraction of the cost to the merchant.?

?In simple language?

• Users of Pay by Bank simply create their Waave Wallet, connect to their desired bank on first use and register their biometrics.??
• Next time they go to pay for something, it will be as simple as scanning their face or fingerprint and then authorising the payment from their account – no entering names, passwords or card numbers, and with far greater security.?

Is it safe and how does it work??

• In addition to existing Open Banking security, which includes strict industry data-sharing protocols, users now sign up to the Wallet (via web) upon first use. ?
• Within this, Waave has built a multi-factor authentication layer using biometric technology for customers to leverage their device fingerprint or face ID to authenticate themselves before authorising a payment.

What makes this disruptive?

Finally, what we have all been waiting for…….giving consumers a free, secure, and instant payment experience that bypasses clunky, expensive, and risky card payments – all at a fraction of the cost to the merchant. Yippee

What Waave has achieved is building a multi-factor authentication layer using modern biometric technology for the web. This allows customers to use their device fingerprint or Face ID to authenticate themselves before authorising the payment from their bank account. This level of authentication reduces the risk of fraud and transaction disputes while maintaining a frictionless customer experience.

Game changer!!?

Alongside my team here at RX we work with retailers of every shape and size to adapt their business to grow. We are a consultancy that does things from brand positioning, innovation development, category and merchandise planning, operational refinement and development, store and concept development and marketing. Do reach out for a chat if you are struggling to grow your business. www.rxgroup.co.nz or [email protected]