Cryptocurrency and the blockchain
The wave of cryptocurrency has lapped over the world, garnering the interest of even the most guarded and technology-reluctant folk. Retailers have cottoned on to this trend, with leading South African retailer, Pick n Pay, trialling Bitcoin payments mid last year. Despite the fact that they have not proceeded beyond trial, Pick n Pay spokesperson cited cryptocurrency as a “game changer” for the retail space, and one which will inevitably be accepted as tender as it matures.
Meier, says however, that it is the technology behind cryptocurrency, called blockchain, which is making a more tangible impact on retail.
“Retailers are exploring blockchain technology to drive core processes such as buying and reselling of stock and regulating logistics. Use cases are gaining traction virtually on a daily basis. Beyond cryptocurrency, the blockchain can also facilitate other payment methodologies, such as voucher or barcode payments, which will eventually encroach on traditional payment methods,” says Meier.
The custom customer
Customer demands are changing, partly because of new shopping habits brought about by technological advancements such as shopping apps, and partly because of the advent of an entirely new generation of shoppers who’ve been born to a world of instantaneous delivery. A natural follow on from this is customisation.
Consumers today are uniquely positioned to demand what they want – and get it too. Meier points out that retailers are leveraging big data and analytics to tailor their services and products to the market. In some cases, going as far as to customise for individual consumer requirements. Customers are reaping the benefits of on-demand products and delivery, from whichever platform they feel most comfortable using.
“Customisation is gaining popularity in the likes of fashion and the automotive industry. The line between retailer and manufacturer is blurring – both have begun selling direct to the customer and retailers have invested in their own private label products. Retailers are moving into the manufacturing space, making use of technologies such as the blockchain, 3D printing, augmented reality and online app-based customer design platforms, where customers can simultaneously create and buy their own unique version of a product.”
It’s all about choice
Consumer demands and retailer’s access to technology are creating an effective meeting or engagement point between customer and retailer, where more choice is available either through the method of purchase, such as apps, or method of delivery, as with subscription-based buying.
“Products are increasingly being offered as a service, a prime example being upcoming car subscription services such as Volvo’s Care,” says Meier. “Retailers in other industries are also exploring this type of offering or looking at ways to integrate service offerings into their delivery, either themselves or through strategic partnerships with emerging players.”
For retailers, leveraging start-ups that can add value to their own customer service, becomes cost effective way of boosting their offering without building or retaining in house services of their own. Meier offers examples of replacing an in-house logistics fleet through partnering with a start-up transport service, or using the likes of PayPal or Zapper instead of traditional Point-of-Sale (PoS) systems to supplement cash and card payment options.
Electronic tokens, SMS and WhatsApp have become normalised interaction channels, particularly for retailers that target the youth. Retailers are using the likes of WhatsApp for more than just communicating with customers; it’s being used to transact, confirm payments and orders, and to inform customers of important information, such as delivery status.
Challenge of change
Meier poses that the challenge with these platforms – as with shared delivery platforms – however, is that they are difficult to monitor and manage.
“While there is value and costs savings to be had by chasing these technologies and partnering with emerging players, in that retailers are able to focus on their core business, measuring the success and true value of these ventures still poses a concern,” explains Meier. “Retailers still rely on records such as delivery notes, purchase orders, etc. For these platforms to be successfully integrated into operational functionality and become auditable, they need to tie in with the retailer’s financial system – which many don’t as yet.”
Keeping it all secure
Where financial information is disclosed, there is always a risk of security breach. Retailers are investing heavily in security measures such as encryption to minimise this risk, boost consumer trust and mitigate potential damage to their reputations. The use of multiple interaction channels such as WhatsApp can be a concern, as the security of these platforms resides with the platform and not the retailer.
“Most shoppers are familiar with the scams out there, such as phishing sites and poor security when buying from sellers via online platforms. Introducing rating systems helps to boost buyer trust and makes buying and selling on these platforms safer, by virtue of using only well-rated sellers. Consumers need to actively use the trust facilities available to them,” says Meier.
Goods-in-transit security is another concern. The introduction of smart dashboards in vehicles, and IoT devices to monitor loads, is opening the door for their use as a security and communication tool, enabling monitoring of goods-in-transit while offering other benefits, like proactive vehicle maintenance.
Change is happening
It’s not the retail industry as a whole that is necessarily driving the demand for technology though. Individual retailers are exploring things such as disruptive payment systems, ways of outsourcing their logistics requirements, or methods to engage with customers through third parties who offer multiple brands across all sectors on a single, interactive platform.
“There is a technological convergence happening in the market place, where consumers can access whatever they are looking for across different traditional industries, in one place, and have it delivered in a manner of their choosing. Maintaining pace with this expectation, and innovating to meet it easier, quicker and with better returns, is driving technological adoption, even as technology drives the change,” concludes Meier.
Millennials turning 40: NOW will you stop targeting them?
It’s one of the most overused terms in youth marketing, and probably the most inaccurate, writes ARTHUR GOLDSTUCK
One of the most irritating buzzwords embraced by marketers in recent years is the term “millennial”. Most are clueless about its true meaning, and use it as a supposedly cool synonym for “young adults”. The flaw in this targeting – and the word “flaw” here is like calling the Grand Canyon a trench – is that it utterly ignores the meaning of the term. “Millennials” are formally defined as anyone born from 1980 to 2000, meaning they have typically come of age after the dawn of the millennium, or during the 21st century.
Think about that for a moment. Next year, the millennial will be formally defined as anyone aged from 20 to 40. So here you have an entire advertising, marketing and public relations industry hanging onto a cool definition, while in effect arguing that 40-year-olds are youths who want the same thing as newly-minted university graduates or job entrants.
When the communications industry discovers just how embarrassing its glib use of the term really is, it will no doubt pivot – millennial-speak for “changing your business model when it proves to be a disaster, but you still appear to be cool” – to the next big thing in generational theory.
That next big thing is currently Generation Z, or people born after the turn of the century. It’s very convenient to lump them all together and claim they have a different set of values and expectations to those who went before. Allegedly, they are engaged in a quest for experience, compared to millennials – the 19-year-olds and 39-olds alike – supposedly all on a quest for relevance.
In reality, all are part of Generation #, latching onto the latest hashtag trend that sweeps social media, desperate to go viral if they are producers of social content, desperate to have caught onto the trend before their peers.
The irony is that marketers’ quest for cutting edge target markets is, in reality, a hangover from the days when there was no such thing as generational theory, and marketing was all about clearly defined target markets. In the era of big data and mass personalization, that idea seems rather quaint.
Indeed, according to Grant Lapping, managing director of DataCore Media, it no longer matters who brands think their target market is.
“The reason for this is simple: with the technology and data digital marketers have access to today, we no longer need to limit our potential target audience to a set of personas or segments derived through customer research. While this type of customer segmentation was – and remains – important for engagements across traditional above-the-line engagements in mass media, digital marketing gives us the tools we need to target customers on a far more granular and personalised level.
“Where customer research gives us an indication of who the audience is, data can tell us exactly what they want and how they may behave.”
Netflix, he points out, is an example of a company that is changing its industry by avoiding audience segmentation, once the holy grail of entertainment.
In other words, it understands that 20-year-olds and 40-year-olds are very different – but so is everyone in between.
* Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter and Instagram on @art2gee
Robots coming to IFA
Robotics is no longer about mechanical humanoids, but rather becoming an interface between man and machine. That is a key message being delivered at next month’s IFA consumer electronics expo in Berlin. An entire hall will be devoted to IFA Next, which will not only offer a look into the future, but also show what form it will take.
The concepts are as varied as the exhibitors themselves. However, there are similarities in the various products, some more human than others, in the fascinating ways in which they establish a link between fun, learning and programming. In many cases, they are aimed at children and young people.
The following will be among the exhibitors making Hall 26 a must-visit:
Leju Robotics (Stand 115) from China is featuring what we all imagine a robot to be. The bipedal Aelos 1s can walk, dance and play football. And in carrying out all these actions it responds to spoken commands. But it also challenges young researchers to apply their creativity in programming it and teaching it new actions. And conversely, it also imparts scholastic knowledge.
Cubroid (Stand 231, KIRIA) from Korea starts off by promoting an independent approach to the way it deals with tasks. Multi-functional cubes, glowing as they play music, or equipped with a tiny rotating motor, join together like Lego pieces. Configuration and programming are thus combined, providing a basic idea of what constitutes artificial intelligence.
Spain is represented by Ebotics (Stand 218). This company is presenting an entire portfolio of building components, including the “Mint” educational program. The modular system explains about modern construction, programming and the entire field of robotics.
Elematec Corporation (Stand 208) from Japan is presenting the two-armed SCARA, which is not intended to deal with any tasks, but in particular to assist people with their work.
Everybot (Stand 231, KIRIA) from Japan approaches the concept of robotics by introducing an autonomous floor-cleaning machine, similar to a robot vacuum cleaner.
And Segway (Stand 222) is using a number of products to explain the modern approach to battery-powered locomotion.
IFA will take place at the Berlin Exhibition Grounds (ExpoCenter City) from 6 to 11 September 2019. For more information, visit www.ifa-berlin.com