Retailers Partake in Pinterest

It’s all about Pinterest, the latest social media craze that is taking people by storm. Pinterest has now hit 10 million unique monthly U.S. visits.

So what is all the fuss about? Well, “it’s addicting, it’s social and its driving tons of site traffic.” –Artemis Berry, Shop.org

On this new social media site people have the ability to share their favorite things through virtual pin boards and amazing imagery.

On Pinterest, people can monitor the activity of their boards or “repin” from the people or brands they follow.

If you are a smart retailer, you are taking advantage of this new wave of social media. Now, retailers can watch what their consumers are doing. The power behind Pinterest is the ability to share products and merchandise with others through simple imagery.

Oscar de la Renta is one smart retailer. He is leveraging the interest in Pinterest and has created “The Board,” a virtual inspiration board inviting the masses to participate in the design process by uploading images.

“Having a sense of what his fans consider beautiful or inspirational is a very powerful tool.” -Rachel Lamb, Luxury Daily

The board allows Oscar de la Renta to interact with consumers and have them communicate with one another through Facebook, Twitter and Pinterest. As users upload new images to the board, they can “pin it” on Pinterest, tweet about it, or share the image on Facebook.

“User-generated content is arguably the most powerful tool a brand can tap into to gauge a sense of what is important to the consumer.” -Rachel Lamb, Luxury Daily

Want to find out more about Pinterest? Please visit http://bit.ly/xRQRCh. First Insight is on Twitter! Follow us @FirstInsight to keep up with the latest trends in retail.

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A Look Back at Retail’s BIG Show

Retailers and vendors arrived in NYC to network, learn and be inspired at this year’s NRF 101st Annual convention & EXPO. This year’s event focused on “Retail’s New Rules” and how the industry is innovating and reinventing the rules of retail to meet the needs of today’s customer.

During the keynote address, President Bill Clinton said: “We are slowly recovering from the economic crisis. Last year, the retail industry grew by almost 5 percent, compared to the overall U.S. economy, which grew by only 2 percent. That’s good news for all of you. As you know, retail makes up almost 20 percent of our GDP, and supports about 25 percent of our jobs.”

So, what technologies will enable retailers to accelerate growth?  At NRF, you couldn’t turn the corner without hearing about the latest mobile technologies or how retailers are benefiting from collective intelligence and predictive analytics.

During our time at NRF we spoke to many retailers that spend millions of dollars each year store testing new products, often with limited accuracy.  One example is David’s Bridal, a current user of First Insight’s solution. Listen below as Jeff Warzel, SVP Supply Chain for David’s Bridal, discusses how First Insight’s solution has helped them increase forecast accuracy by 20%.
 
 

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Here Comes the Bride – Collective Intelligence at the 2012 NRF Big Show

Signs That 2012 Might Be the Breakout Year for…

Entry posted 6:38 AM by Greg Girard, IDC Analyst

Monday January 23, 2012 

Title: Signs That 2012 Might Be the Breakout Year for Collective Intelligence

Entry: I’ve blogged about the merits of collective intelligence (CI), aka wisdom of crowds, as a “new and improved” way of “reading the tea leaves” to identify which forthcoming products will be hot and which not. I know it works–MIT’s center for collective intelligence, to cite one example among many, has assembled several proof points. Two developments last week, mid-January 2012, suggest CI is about to gain traction in retail.

Here Comes the Bride–Collective Intelligence at the 2012NRF Big Show

David’s Bridal told its collective intelligence story in one of NRF’s Big !deas session this week and of its experience with First Insight, Inc. With First Insight’s product market testing tool, consisting of a game called “What Would They Pay”, distribution of the game to populations of choice, and predictive analytics, David’s Bridal now tests all gowns under consideration for the next assortment within a 72-hour cycle, with test-report cycles now running at a clip of less than a week.

The approach is similar to that Asda started with a few years ago–buyers in market snap pictures, write quick product descriptions, and distribute the images and descriptions to a crowd of consumers. The key innovation here is the game, which is a nuanced version of the old “The Price is Right”. The nuances of the game and the predictive analytic model are a closely held part of First Insight’s intellectual property.

David’s Bridal reported several areas of gain:

  • Quicker time to revenue–three months taken out of time to market, 5.5 months compared to 8.5 months with in-store testing 20% to 30% reduction in in-store testing costs
  •  A 30% reduction in the number of styles tested in store
  • Fewer “dogs” and the markdowns they cause, saving $100K on one style alone by reducing the buys
  • Increased revenue on “winners” with deeper buys, a 120% sales increase for one product

 

For David’s Bridal the “What Would They Pay” game isn’t a total replacement for in-store testing. Photography can be a challenge for white dresses and complex products are hard to render and describe–at least for now.

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TechVibe Radio/104.7FM Interviews First Insight!

The Pittsburgh Technology Council’s Audrey Russo and Jonathan Kersting interview local entrepreneurs, business leaders and stakeholders behind the Pittsburgh region’s fast-moving technology industry.

TechVibe Radio broadcasts on 104.7 FM News Talk every Saturday at Noon. With a crystal-clear FM signal, TechVibe reaches thousands of listeners across all of southwestern Pennsylvania and parts of the tri-state area, too.

This past Saturday, December 3, 2011, TechVibe Radio interviewed First Insight’s CEO and President, Greg Petro on how First Insight helps retailers keep the right products on the shelf at the right time.

Click below to listen!

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The Tablet: The Ultimate Buying Machine

Have you ever used a tablet to make an online purchase?  Although only 9% of shoppers say they have, this behavior is still encouraging for retailers. Consumers who shop online using their tablets are said to not only have higher conversion rates but when compared to shoppers who use traditional PC’s, they are also placing larger orders, in some cases adding 10% to 20% more to their tab.

But why? What is so enticing about purchasing items through a tablet? The first differentiator is comfort. Because of the tablets portability, shoppers can surf the Internet anywhere they like. Instead of sitting on an uncomfortable desk chair, shoppers can relax and get cozy on their couch while browsing the Internet, which ultimately leads to longer surf times and more possibilities of conversion.  Second, tablet owners tend to be wealthier , report Forrester Research. This gives retailers a selected audience of their best customers, which may explain why shoppers are placing larger orders.

“Macy’s, Abercrombie & Fitch Co. and Gap Inc. all say the highest conversion percentage comes from shoppers using tablets.” Other retailers like Sephora are revamping their catalogs in light of tablets, which allow them to include videos, how-to demonstrations, and slideshows along with order buttons.

For the first time Sephora is going to drop their summer catalog and solely focus on tablets, in an experiment to see what affect it has on sales. The average tablet user is spending three times as much time on the catalog app, than on the Sephora website. “Sephora’s tablet conversion rate and average order size is also higher than PC and mobile,” said Bridget Dolan, Sephora’s vice president of interactive media. “She who can afford a tablet tends to be a higher spender in general.” To learn more about the impact of tablets please visit: http://on.wsj.com/nfeydd Follow us on Twitter @FirstInsight to find out the latest trends in retail!

 

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Do Those Pants Make You Look Fat?

Sometimes our own perception of how clothing looks can be somewhat altered or skewed. That’s why most of us, myself included, like to get a second opinion. Hopefully from a stylish friend or family member.

Unfortunately, receiving real-time feedback on outfits can be difficult when you are shopping alone. You could ask the opinion of the store’s dressing room attendant but more often than not, the response will be biased since they want you to ultimately purchase from their store.

Now, you can get an unbiased opinion on how something looks, thanks to a new App called “Go Try It On.” “It’s crowdsourcing an opinion on an outfit and getting a quick, unbiased second opinion,” said Marissa Evans, founder and chief executive.

Users of this new technology are able to quickly and easily upload an image of the outfit and solicit advice from other users.  So far 250,000 people have downloaded “Go Try It On’s “app and commented on outfits 10 million times.

Thanks to social media, crowdsourcing is exploding! Retailers have realized that the crowd wants to have a say in what they wear. If you ever are in question of what looks best on you – all you need to do is ask the Internet! To find out more about “Go Try It On” please visit: http://bit.ly/qr6aFr.

 

So far 250,000 people have downloaded Go Try It On's app and commented on outfits 10 million times.

 

 

 

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“How BI is helping to predict fashion trends” – Computer World

As Seen On Computer World

By: Robert L. Mitchell

Computerworld – Elie Tahari, the upscale women’s fashion brand and retail chain, has a pretty good idea which of its styles customers will want.

There’s no wizardry, no crystal ball. The retailer relies on the science of predictive analytics, using technologies from IBM to forecast demand for its line, which it sells through Nordstrom and other high-end retail stores. The tools pull data from a continuously updated data warehouse to forecast what needs to ship to each store every week, right down to the styles, colors and sizes each location will need to meet demand.

“That protects the customer, ensuring that any style or color they order is in stock, but also protects us so we don’t overproduce,” says Nihad Aytaman, director of business applications at Elie Tahari.

Analytics have made an indelible mark on the retail fashion business over the past decade, helping with everything from predicting the best pricing and markdown strategies to forecasting the right mix of products, colors and sizes for every location. There’s one critical area, though, that Elie Tahari and many other retailers and designers still don’t use predictive analytics for: choosing which new styles will be next season’s winners.

But thanks to new technologies, that could be changing.

“Maybe tie-dye is going to be huge or pink will be big. Those are decisions that the merchant has always made, but that can be assisted with sophisticated algorithms that point out patterns that [they] may have missed,” says Cathy Hotka, principal of retail consulting firm Cathy Hotka & Associates.

Predictive analytic tools, which rely on historical data to make future demand projections for any given product, can play a role even in predicting the whims of fashion. But right now, the hottest area for picking fashion winners lies at the intersection of analytics and social media.

While predictive analytics can help identify fashion winners, most merchandisers aren’t using the technology for that purpose, for two reasons: Unlike products that are carryovers or that will simply be revised for the next season, new fashions don’t have the historical sales data that predictive analytic tools need to work their magic, and retail buyers are wary of allowing science to intrude on the art of picking fashion winners.

“For us right now, key styles are picked by merchants in their discussions with designers, who present products that are inspired by trends and what’s happening in the world,” says Louise Callagy, a spokesperson for Gap Inc. But Gap expects analytics to play a bigger role in the future. “Although it’s in the early stages, we apply analytics from our early online sales globally and in certain markets to help gauge a better read of what we predict will sell in stores,” she says.

High-stakes Game

“Computer-aided fashion projections are something everyone is talking about,” says David Wolfe, creative director at The Doneger Group, which predicts fashion trends the old-fashioned way: using seasoned experience and insight. But it’s a high-stakes decision for merchandisers and fashion designers — and one that can be tricky to get right. Fashion retailers stake their fortunes on the experience, intuition and gut instincts of an elite cadre of buyers. For smaller retailers, the effect of a buyer who loses his mojo can be devastating to the bottom line.

“Apparel is a very fickle business. If you miss one season, you can go under,” says Aytaman. Most buyers simply don’t trust technology to do the job. So they turn to consultants like The Doneger Group for predictions as to what colors and styles will be in — and what will be out. Those insights, in turn, are based on experience, intuition and regular visits to designers and fashion shows.

Adding to the pressure is the fact that the consumer market has fragmented and shoppers are less willing to embrace styles dictated from the runway or by designers and retailers. Just 19% of consumers listen to manufacturers or retailers these days, according to an IBM survey. Consumers today tend to make their own decisions about fashion, in conjunction with their peers. More than ever, the industry needs to listen to the customer.

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Shoplifting: A Sign of Economic Recovery

According to a recent NRF survey, shoplifting also known as “five finger discount” or shrinkage is on the rise. The retail value of lost merchandise is cost retailers $37 billion in 2010, up from $33.5 billion in 2009. Typically, an increase in shoplifting is an indicator of tough economic times but the recent spike in stealing could very well mean the economy is on the upswing.

When the economy was at its lowest point, many employees were concerned about job security. “They were so worried about their future, their families and paying the mortgage, they realized that their jobs are keeping their family afloat,” said Richard Hollinger, a criminology professor at the University of Florida and author of the security survey. They were less likely to shoplift and take the risk of loosing their jobs.

However, as our economy begins to recover, shoplifting begins to rise. According to Jim Angel, associate professor of finance at the McDonough School of Business at Georgetown University, “…many employees feel more secure in their positions, and are more inclined to take risks.” Employees may be more tempted to shoplift if they feel the company can afford it and they are only being paid minimum wage.

Unfortunately, shoplifting and employee theft is something that every retailer faces. Preventing employee theft is a constant challenge for retailers. Loss prevention systems are often used to reduce the opportunity and motivation of employee theft. To read more about the rise of shoplifting please visit http://cnnmon.ie/mIoD6v.

 

 

 

 

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Divalicious: The Virtual Dressing Room

E-commerce is powering the retail industry! For the first time, the web has become the preferred shopping channel for multi-channel consumers, surpassing stores, says a new consumer survey from The E-Tailing Group Inc. Consumers say they prefer shopping online because they are able to locate harder to find products, they have access to greater selections, they can avoid crowds at malls and it saves them time and money. Even with all of these great benefits to e-commerce, apparel retailers still face many obstacles when selling items solely online, one of them is the customers desire to “try on” or see how they would look in an item that they are considering purchasing.

But now, thanks to a new mobile app called Divalicious, having the ability to “try on” clothes from online stores is no longer an obstacle. Consumers can now pick clothes to try on and virtually “see” their selected items on them. It’s a virtual dressing room! By uploading a full-body image of themselves onto virtual mannequins. Customers can place a top the image pictures of clothing from more than 300 fashion and beauty brands. “You no longer need to go to the stores to see what you would look like in a dress from BCBG, shoes from DSW or a handbag from Saks,” said Rich Kessler, chief technology officer at Weyrich Enterprises. When you shop through Divalicious, everything is in one place for you. To find out more about the new app Divalicious, please visit http://bit.ly/nPsGJP To learn more about consumers preferred channel of choice please visit http://bit.ly/r0Xdbk.

 

The Divalicious iPhone app enables shoppers to "try on" clothes on their smartphone.

 

 

 

 

 

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No Need For Sunblock!

Due to the hectic and demanding lives of millions of Americans today, clothing is now being designed to perform multi-functional purposes. Clothes that serve various roles have proven their success in the mainstream market. There are toning shoes, gut-reducing undergarments, and parkas with drawstrings that double as earphones. It was only a matter of time until someone came up with the idea for… sun proof clothing? That’s right! UV Cut a new line of clothing sold at Uniqlo in NY, is said to “filter ultraviolet rays in style,” by incorporating sunscreen into its cotton T-shirts, linen trousers and even hooded sweatshirts. It’s “wearable sunscreen.” And for the men Uniqlo also carries “anti-odor” polo shirts and “silk dry” perspiration-wicking T-shirts. Clothes are working overtime to fit the needs of busy consumers everywhere. But how does Uniqlo know what is going to be the “next big thing”? To successfully deliver the “right” new products, Uniqlo stays connected with the rapidly changing wants and values of today’s customers. To learn more about UV Cut please visit http://nyti.ms/jL7KkY

 

Uniqlo's UVCut

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