The Retail Revolution
As arguably the most profound information- technology advancement of the past decade, the World Wide Web continues to affect the future of retailing in new ways.
It has been a long-established dynamic that retailers with both a bricks-and-mortar and online presence fare better than others, with the online presence supporting the “real” one.
But now the tide seems to be turning. The ease and convenience of Internet shopping has bricks-and-mortar retailers and tech innovators experimenting with in-store merchandising that attempts to replicate the ease and convenience of shopping online.
“In-store, high-tech kiosks can increase buyers’ spending by 25 percent or more by suggesting complementary and/or alternative product choices,” estimated Francie Mendelsohn, president of the kiosk consultancy company Summit Research Associates Inc. in Rockville, Md.
But that is just the tip of the iceberg. In just a few years, retailers could have dramatic innovations in place that could eliminate today’s cashier stations, not to mention the need to wait in line. Much of this will be enabled by radio frequency identification (RFID) technology, which utilizes small, low-cost radio frequency chips that are embedded in products and scanned by low-cost wireless readers.
Imagine walking into a clothing store, trying on a garment and then just walking out wearing the item without any required transaction. This will be possible if RFID chips are embedded into consumers’ credit cards and other items they might be wearing, such as shoes.
Prada’s Epicenter store in Manhattan is experimenting with this technology by weaving chips into some of the garments sold in the store. “It’s a great way to I.D. customers and prevent theft,” said Chris Enright, chief technology officer of New York’s IconNicholson LLC, designer of Prada’s cuttingedge RFID system.
But what can happen later? Serious privacy issues are still in the heated-debate stage. Discussions between manufacturers and retailers are underway to control and define the security and privacy standards surrounding RFID so that consumers will embrace it with confidence.
Given the requirement of Wal-Mart Stores Inc., Target Corp. and other major retailers that vendors conform to this new technology by 2005, RFID is on the launch pad. Can the in-store shopping experience be made as convenient as shopping online? Stay tuned.
Site Review: The Big D
Every major wholesale apparel marketplace has a well-developed Web site by now. But just 10 years ago, there was only one that was online: Dallas. In celebration of its 10th anniversary online, the Dallas Market Center, along with the new Fashion- CenterDallas in the World Trade Center building of the DMC campus, recently launched an improved Web site with expanded features and a streamlined appearance.
The DMC’s Web site, www.dallasmarketcenter.com, features a more navigable front page, a cleaner look and a faster load time. Additionally, expanded information and content are available for visitors. For example, companies interested in temporary leasing can now download information regarding apparel and gift and home booths in the “Exhibit at DMC” section.
“The updated Web site is a great way to mark our 10-year online anniversary,” said Bill Winsor, Dallas Market Center president and chief executive officer. “These improvements fall in line with our mission to always provide maximum convenience for our customers.”
Now, with monthly traffic of approximately 65,000 unique visitors (not a large number for a consumer site but quite impressive for a trade site), the DMC Web site is a leading destination for buyers and sellers. And, unlike some other major mart sites, the Dallas site goes well beyond just cultivating the acquisition of new showroom tenants. It also goes far to promote existing tenants and temporary exhibitors to the wholesale buying audience.
Without going the way of trying to host “virtual showrooms” and attempting to sell wholesale merchandise directly online—a practice that ultimately may have limited appeal for apparel and accessories (as evidenced by the efforts of www.magiconline.com and several other sites during recent years)— the site promotes the real facility and its many market events. For buyers, a unique suite of convenient features is available if one chooses to register—at no cost—for what the site calls “My Briefcase.”
Consisting of “My Listings,” “My Floor Plan,” “My Schedule” and “Tools,” the personalized virtual “Briefcase” offers complete appointment and scheduling features that allow buyers to plan visits to the mart. Buyers can list showrooms and exhibitors that are of interest to them with a single click and then click on company names to locate businesses in the floor plan of the vast building complex. Or, buyers can just wander around the interactive floor plan and watch the colorcoded companies from the list pop out in their respective locations. “Tools” includes free language translation and currency conversion services.
