Retail post Covid-19

Covid-19, one virus that has brought every country in the world on its knees and it is hurting most economies and industries. To make things worse, there is a lock-down in most countries and as much as that is necessary, it is not helping majority of the industries. We are already witnessing a decline in airlines, hospitality, tourism, retail, automotive, etc.

If we just look at the fashion and luxury in-store retail and experience, there is no foot fall in the showrooms. Be it fast fashion brands such as Zara, H&M, Uniqlo, Levi's, etc. or the luxury brands such as Gucci, Versace, Dolce & Gabbana, etc., nothing is moving from the stores.  Also, this is because at the moment, when people do venture out they are out for essentials and clearly fashion is no longer that for some time. As per Bloomberg, about 1,089 garment factories in Bangladesh have had orders cancelled worth roughly $1.5 billion due to the Covid-19 outbreak

Imagine going to a store in 3 weeks from now as you really need new clothes to finally go back to office. You are looking for a new shirt, but will you go try the shirt in the trial room now unless you are sure that it has not been tried by someone else or is this clean? The same logic works for a dress or a pair of shoes.

It will be a big challenge for brands to create a sense of calm and trust even if there is a vaccine available. People would not want to risk getting ill just to try a new shirt or a dress or t-shirt. Life will take time to normalize. As per a research conducted by Deloitte Insights "only 35% people feel safe going to a store". A huge majority still thinks it is not even safe to go to a store.

Brands would need a lot of marketing and technology adoption to pass through this and be prepared for another pandemic. Some of the technologies I have researched that might be effective are

1. Online or mobile shopping:

Brands especially the upcoming ones, would need to strengthen their online shopping experience. Either they tie up with giants such as Amazon or Alibaba or Flipkart, or they manage in-house. As per research by Statista, " 59% of US shoppers purchased clothing online.

Hence, It will be extremely important for companies to develop a platform that provides an in-store experience virtually. E.g.  ASOS launched its app called "See My Fit" shows clothing items on models that more closely reflect individual customers

2.  Augmented Reality (AR) based mirrors:  

In 2018, Amazon had acquired a company called Body Labs that helped them develop a mirror that dresses you in virtual clothes. Similar mirrors can be used as a dressing or a trial room where, the user brings the garment in front of the mirror which scans the garment. The mirror after getting the scanned image is adapted and superimposed with the image of the person. The reflected image in the mirror gives a virtual appearance with the selected cloth.

3. Grab and Go

Amazon has developed the Amazon Go stores where a consumer can just walk in the store, pick up a product and walk out without going through a cashier. Sensors and cameras throughout the store track the purchase and the Amazon account charges when the customer leaves the store.

Nike has done something similar in their "Nike House of Innovation 000" store where members can use the service called "Speed Shop". This allows customers to reserve Nike merchandising online and arrive using a dedicated entrance to find a locker with their name on, which can be unlocked using their smartphone

4. Self check-out:

The self-check-out concept has been there since years especially in retail outlets. Shopper picks up the product, scans the barcode, pays using their card or cash and then carry the purchase. Zara has implemented this.

5. AI to read minds:

Uniqlo has installed what they call the UMood Kiosks, which shows customer various design and measures their reaction based on color and style through neuro-transmitters. Based on which products are recommended.

Maybe next time you go to a store, there might be some new tech to help you feel more comfortable, safe and also make your whole shopping experience great.