QR Codes: small squares, big tech powerhouses

Hello and welcome to my monthly take on technology, beauty and luxury. These are subjects I am so passionate about that I consult in them, teach them, talk about them and even write about them.

I decided to dedicate my debut column on all things luxe, tech and beauty, to the unassuming QR codes: these small squares but big tech powerhouses. They are powerful enough to engage, entice and even create advocates out of potential consumers. But what exactly are they? QR codes, or Quick Response codes, were first introduced in 1994 in Japan, to improve the tracking of automotive parts during the manufacturing process. These teeny-tiny squares were designed to store more information than any barcode ever could. Hence the name QR or ‘Quick Response.’

They used to be popular in South and East Asia, but the pandemic made them an overnight global phenomenon. Easy and relatively inexpensive to implement, QR codes have become the go-to for contactless payment transactions, menu access in restaurants, health and safety measures dissemination, as well as for retail and eCommerce integration. The QR codes market is anticipated to grow from USD 11.2 B in 2022 to USD 51.58 Billion by 2032, with North America currently holding the largest revenue market share of close to 40%.

With so much to offer, I thought top retail brands would jump at making these powerhouses work harder for them. But the examples of brands using them, are few and far-between. Starbucks, for instance, uses them to boost coffee sales by incorporating them in their marketing and outdoor campaigns, share product information, and, enable mobile payments for a seamless experience. The result? A significant increase in coffee sales.

Luxury brands like Burberry and Ralph Lauren have always understood how important storytelling and authenticity is. No surprise then, even though it’s a first for this British luxury brand, that every single garment sold by Burberry in its Shenzhen store, has a QR code. Scan the code and their products, their collections as well as their exclusives, all come to life. Ralph Lauren, on the other hand, uses it to address a key issue on the minds of the luxury consumers – the guarantee and peace of mind of an authentic product. QR codes are printed next to Ralph Lauren product labels. Scan them and it reassures consumers that they have purchased an authentic Polo product, while giving them an option to access additional product information.

So why are QR codes still an exception rather than the norm, when it comes to retail, fashion, beauty and luxury? Especially if there are so many ways to leverage them for a better retail experience?

Post pandemic, there has been a surge of potential consumers coming back to stores, even while eCommerce continues to boom. Shopping trips may be becoming less frequent but, consumers, craving for a physical touch-and-feel experience, are dwelling noticeably longer. Here is a classic opportunity for brands to cozy up and remind them of all that they missed when they were not able to come to stores during the pandemic (Remember the mile-long line outside the Louis Vuitton store, on the 1st day they opened again in China?) ?

So why are brands leaving money on the table, by not leveraging these little tech powerhouses? Imagine, for example, if a QR code could become a consistent brand storyteller? Here’s a personal example: my favorite perfume brand is Chanel’s Coco Noir and my favorite time to shop is before a long flight at an airport duty-free store (hear, travel retailers, hear). But I cannot tell you how many times I have struggled to get more information about a new perfume - like Gucci’s enticing new fragrance, Gorgeous Jasmine. I specifically went hunting for it, after discovering it in Vogue. But the store associates were neither aware of the new fragrance nor did they know anything specific about it. In fact, I found the product languishing in some corner of the store. This is where, I believe, QR Codes can help. They can enable consumer discovery and surprise at the store – the place where the magic and the love stories still begin in many ways.

When it comes to luxury, a lot of brands may feel that QR codes are not ‘luxe’ enough. I disagree. Do them right, and they could even become a part of the brand's ultra-luxe feel, while armed with stories, additional product information as well as the potential of putting a consumer's mind at ease, about the authenticity of a product.

So where do I see them going from here? I see a future where we will seek QR codes, instead of retail associates, to help and inform us customers in stores. Need a size? Need a different color? Want to know if it can be shipped to your home? It’s all in the code. What’s also in the code is more information about the product, the designer, the history of the brand, and then some. I fell instantly in love with Gucci’s Gorgeous Jasmine (to be fair, I have always had a soft corner for the Jasmine flower!), and I would have loved to know more about the way it was created, as well as the designer behind it. Perhaps all that information may have swayed me away from my fierce and continuous loyalty to Chanel’s Coco Noir.

?I also see QR codes as a great way to delivery personalized content in a seamless manner. Do it right and it just might be the path to deliver the hyperpersonalization of one that most successful brands are vying for. Interactive packaging is another way to put them to work. Print them on packaging and they can do everything from offering immersive experiences, to 360-degree product views, to virtual try-ons, especially important for the beauty segment.

Remember when NFTs were a thing? Don’t give up on them just yet. Limited edition and collector's items, accessed through unique, invitation-only codes, is one way to up the loyalty program offerings. Sharing sustainability information is another critical way to make them a part of the brand arsenal, especially for increasingly conscious and job-ready Gen Z’s.

Customer feedback, reviews, enabling Augmented Reality (AR) experiences – I could go on and on about the possibilities with QR codes. But this, to me, is clear. Looking for a good, seamless, relatively inexpensive and easy way to create loyalty, while telling your brand story consistently as well as seamlessly? Look no further than these little powerhouses of tech, also known as QR codes!

Anika Sharma is an accomplished technology consultant and global digital expert, recognized as No. 17 on the Top 50 Global Digital Thought Leaders & Influencers. With 20 years of experience in the CPG, retail, beauty, luxury and T&H space, with a focus on eCommerce and Data, she continues to lead, large-scale technology and digital transformation initiatives for both, brick and mortar and digital-first brands. Assistant Professor of Technology at New York University’s Stern School of Business, Anika takes her passion for technology and digital to the classroom, teaching Digital Marketing, Digital Strategy, Mobile, Search, CRM and Social Media Strategy to students.

When she is not helping clients navigate the world of end-to-end technology and digital transformations, you will find her planting herbs in her garden, meditating with her friends, swimming long laps, training for triathlons and filling rooms with her resounding laughter.

Find her on LinkedIn @digitalanikasharma, twitter @TheAnikaSharma and instagram @theanikasharma