ten inventions that will revolutionize retail

1. T E N IN V E N TI O N S TH AT WI L L R E V O LU TI O NI Z E R E TA I L Jon Bi rd, Global Managing Di rector, Labstore David Roth, CEO, The Store WPP

2. Within 10 to 1 5 years, the typical US mal l, unless it i s completel y reinvented, wi l l be a hi storical anachroni sm. Rick Caruso, Caruso Aff i l iated, Jan. 2014

3. No new enclosed mal l bui l t in the US since 2006 Source: I CSC

4. Source: Ron Lohse

5. Retai l guys are going out of business and ecommerce wi l l be the place where ever yone buys. Software eats retai l." -Marc Andreessen

6. Source: Labstore

7. Source: Labstore

8. INN O VATI O N C E N T E R S Y&R Zurich Iconmobi le Ber l in Iconmobi le Santa Monica VML Kansas City VML Sydney Beyond Tel Aviv Y&R Singapore Spark Plug New York Barrows New York Barrows Durban PLUS Intel Port land Oregon Buenos Ai res Sao Paulo Bogota San Juan Mexico City M iami New York Johannesburg Auckland Sydney Bri sbane Mani la Bangkok Chicago Toronto Madrid Antwer p Prague Vienna Budapest Santiago

9. Source: VML

10. Source: Y&R

11. Source: Ideaworks Austral ia Source: Iconmobi le Source: Barrows & Mondelez C R E ATIN G TH E R E TA I L F U TU R E Smart products Smart shelves Smart stores

12. 5 Known Unknowns 10 Inventions 1 Indi spensable Ingredient Ag e n d a Source: Labstore

13. F I V E K N O WN UN K N O WN S

14. Source: NPR 1. Moores Law Sti l l Holds

15. Source: Apple 2. Computing power wi l l become almost free

16. 3. Computer size wi l l become almost invi si ble

17. Source: NBC News

18. Source: Lowes 4. Computers wi l l be al l seeing - able to understand space and di stance

19. Source: AT&T 5. Ever ything (and we mean ever ything) wi l l be connected

20. Source: slashgear.com

21. T E N IN V E N TI O N S TH AT WI L L R E V O LU TI O NI Z E R E TA I L

22. Drone Free Zone Technology Hype Legi slative framework

23. The future i s al ready here. Its just not ver y evenl y di stri buted. Wi l l iam Gi bson

24. 2006 Source: Labstore

25. Source: Labstore 2008

26. Source: Labstore 2009

27. 201 1

28. 201 1 Source: DesignBoom

29. ! The Face of Retail 1. Holostores and Augmented Retail 1. Holostores and Augmented Retai l 2. Shop Anywhere, Serve Anywhere 3. Smart Vending 4. Sentient Stores 5. Intel l igent Shelves 6. On-Demand Merchandi se 7. Off The Grid Retai l 8. NFC and Wearable Payables 9. Vi brant Data 10. Arti f ic ial Intel l igence

30. T h e a r c h i t e c t u r e o f i n v e n t i o n The Face of Retai l The Bones of Retai l The Brains of Retai l

31. The Face of Retai l

32. 1. Holostores and Augmented Retai l Source: Samsung

33. Source: M icrosoft

34. Source: Intel

35. Source: Intel

36. Source: VML

37. 2. Shop Anywhere, Serve Anywhere Source: Awear

38. AWEARISTHEMISSING LINKBETWEENSOCIALAND RETAIL -WWDMAGAZINE 2. Shop Anywhere, Serve Anywhere Source: Awear

39. 1. MODIFIED BLUETOOTH LOW ENERGY CHIP WITH THREE-YEAR DURABILITY ! 2. WASHABLE: RESISTS TEMPERATURES OF WASHER AND DRYER! 3. SERVER COLLECTS LOCATION AND TIME DATA BASED ON CHIP MOVEMENT! 4. ENCRYPTED SIGNAL CHANGES EVERY 10 MINUTES ! Source: Awear

40. Source: Mobi l i buy

42. Source: Intel 3. Smart Vending

43. Source: Labstore

45. The Bones of Retai l

46. 4. Sentient Stores

47. Source: Ebay Inc.

48. Source: VML

49. 5. Smart Shelving

50. 6. On-Demand Merchandi se

51. Source: Engadget, 3D Systems

52. Source: 3D Printing Industr y

53. 6. New Power Sources6. Off-The-Grid Retai l

54. Sources: Labstore, e-spaza

55. Source: AppleSource: Apple 7. NFC and Wearable Payables

56. Source: Barclaycard

57. Source: Intel

59. The Brains of Retai l

60. 9. Vi brant Data

61. Source:Auckland Bioengineering Institute Digital avatars - able to convey emotion Projected into real wor ld in 3D (without glasses) On your devices Seamlessl y moves from physical to digital 10. Arti f ic ial Intel l igence

62. Source: Lenovo, YouTube

63. O N E I n d i s p e n s a b l e i n g r e d i e n t

64. CBLF GMA I L Cl Cl C N OH CBLFC a r b o n - B a s e d L i fe Fo r m s

65. Source: Lumina Source: Dina Gianagregorio

67. Source: Labstore,

68. 1. The future doesnt happen - we create it 2. There are known unknowns that guide our way 3. The future i s al ready here - its just unevenl y di stri buted 4. You can frame the future according to the face, bones and brains of retai l 5. Dont forget the feet and nose for retai l S u m m a r y

69. teninventions.com Rev 0.99 A vision for the future of shopping and the smart shelf Intel Labs and The Store WPP with Steve Brown, Futurist, Intel Labs Edited by David Roth, CEO, The Store WPP, EMEA and Asia A Report by THE SECOND ERAOF DIGITAL RETAIL PREVIEW EDITION SXSW RETAILERS- TRENDSANDCHALLENGES 5:2 As they look to the future, retailers are facing an unprecedented number of major challenges. These challenges are: The shift to online Traditional retailers have to navigate an omni-channel world and compete head on with pure play online retailers. Footprint Retailers are nding they need smaller retail spaces in different locations as urbanization hikes rents and shoppers demand more local shopping. Polarization As retailers specialize and focus to meet customer expectations they are polarizing along four important vectors. Security and trust As retailers gather and store more and more personal data on their customers they will need to guard security and honor privacy if they want to avoid breaching trust with shoppers. Oversupply Too many retailers with too many brands are leading to a highly competitive high street. Inefficiency In a highly competitive environment, retailer efficiency becomes more important than ever. The shopping experience can feel very inefficient, and many stores host highly unproductive space showcasing rarely purchased items. Manufacturers currently have very limited (or no) visibility of their products once they hit the loading docks of retailers. They are demanding much more insight into whats hap- pening inside the retail store. They want to get closer to the customer, and have new ways to interact with that customer in retail. Major consumer goods manufacturers are moving to simplify their brand portfo- lio, having either acquired or created too many brands over time. They are battling customer confusion caused by choice overload. Proctor & Gamble recently announced it is selling off or ending the life of up to 100 of its brands. It will focus its attention on the 70-80 brands that they see making them the most money in the coming decades. Manufacturers see continued downward price pressure due to increasingly commoditized, undifferentiated products. Manufacturers face increasing competition from retailer own brands. 29 MANUFACTURERS/BRANDS TRENDSANDCHALLENGES MANUFACTURERS, RETAILERSANDSHOPPERS 5 RETAIL TRENDS AND CHALLENGES 5:1 Manufacturers and brands are facing a range of ongoing challenges.Retail sales represent about 18% of the US GDP, equivalent to $3 trillion in 2013, and rising to $4.1 trillion by 2020. At the same time, consumer spending patterns are shifting and their dollars are now being attracted to other sectorsto healthcare, to services, and to other non-retail household spending. Globally, UNI estimates the retail sector employs around 142 million people across the 82 countries for which they have data. The top 250 retailers account for roughly 40% of global retail sales, but operate on low margins. Again according to UNI, the composite margin earned by those top 250 retailers in 2011 was just 3.8%. In this section we will review the trends affecting each of the main constituents involved in retail manufacturers, retailers, and shoppersand also the challenges that these trends present to future retail growth. 28 Each of these six challenges is explored in the following sections. MANUFACTURER RETAILER SHOPPER Goods Services Discounts Convenience Trafc Experience Loyalty $ Goods Services Co-Op MDF $

70. BEYOND AN ISRAELI INNOVATION CENTER

ten inventions that will revolutionize retail

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