Marie Claire and MasterCard team up to revolutionize the brick-and-mortar experience (MA)

Getty Images for Mastercard

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Marie Claire and MasterCard have partnered to open a pop-up shop in New York City, dubbed The Next Big Thing Concept Shop, that features a variety of innovations aimed at revolutionizing the brick-and-mortar shopping journey.

The store will be open through October 12, and offers shoppers a unique customer experience and the chance to browse the location’s curated clothing, technology, and other offerings.

The Next Big Thing Concept Shop has a bevy of innovations that could benefit all types of retailers:

• The store features smart mirrors from Oak Labs that revamp the dressing room.The mirrors recognize products brought into the dressing room using radio frequency identification (RFID) tags, and use an on-mirror display to show other colors and sizes available. They also make recommendations for related items. (See image below.) Additionally, shoppers can use the display to request associates retrieve additional options, and pay through the store’s dedicated app. These smart mirrors have huge potential for retailers, as they've been shown to increase average basket sizes by 59%, and boost conversion significantly, Oak Labs representatives told BI Intelligence.
• There are also virtual mirrors that add new utility to in-store shopping. Clarins’ Sensor Mirror Pro is on display, helping shoppers find products that are right for their skincare needs. It works by taking pictures of customers and asking them to select their desired skin improvements and specific facial areas of interest, then it uses that information to create custom recommendations. Additionally, the space boasts a Sunglass Memory Mirror that allows customers to view how sunglasses look on them from all angles.
• The store offers digital methods for shopping and learning about products. B8ta, a software-powered retailer, has provided digital setups for products that display information on the items, pictures and videos of them in action, as well as the option to buy them. There is also a screen outside of the store that lets passersby shop the store's selection without going in. It works even if the store is closed, and purchases are delivered soon after completion.

Retailers can utilize such innovations to gather new valuable data and improve the customer journey. Oak Labs’ smart mirrors collect information on how customers shop in dressing rooms, while B8ta outfitted the store with cameras that can see which products consumers look at, and how long they spend with them. Information like this can provide new insights about the ways consumers shop on a very granular level, allowing proactive retailers to vastly improve their shopping experience and conversion rates.

Any one retail innovation will not redeem brick-and-mortar, but retailers that employ several may be able to close the gap. E-commerce provides shoppers with ultimate convenience on the purchase side, but it also comes with the possibility of having to make returns. If these new technologies can smooth out the in-store shopping process to the point where going to the store is as small of an inconvenience as making returns, physical retailers could see significant improvement. However, this will require implementing multiple innovations, in a tailored and business-specific way, to create a holistic and seamless experience for customers.

One of retailers' top priorities is to figure out how to gain an edge over Amazon. To do this, many retailers are attempting to differentiate themselves by creating highly curated experiences that combine the personal feel of in-store shopping with the convenience of online portals. 

These personalized online experiences are powered by artificial intelligence (AI). This is the technology that enables e-commerce websites to recommend products uniquely suited to shoppers, and enables people to search for products using conversational language, or just images, as though they were interacting with a person. 

Using AI to personalize the customer journey could be a huge value-add to retailers. Retailers that have implemented personalization strategies see sales gains of 6-10%, a rate two to three times faster than other retailers, according to a report by Boston Consulting Group (BCG). It could also boost profitability rates 59% in the wholesale and retail industries by 2035, according to Accenture. 

Stephanie Pandolph, research analyst for BI Intelligence, Business Insider's premium research service, has written a detailed report on AI in e-commerce that:

• Provides an overview of the numerous applications of AI in retail, using case studies of how retailers are currently gaining an advantage using this technology. These applications include personalizing online interfaces, tailoring product recommendations, increasing the relevance of shoppers search results, and providing immediate and useful customer service.
• Examines the various challenges that retailers may face when looking to implementing AI, which typically stems from data storage systems being outdated and inflexible, as well as organizational barriers that prevent personalization strategies from being executed effectively.
• Gives two different strategies that retailers can use to successfully implement AI, and discusses the advantages and disadvantages of each strategy.

To get the full report, subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now

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