RevTech Event Spotlights Retail Innovation: Which Technologies Will Win Out?
RevTech, a venture accelerator focused on developing early-stage retail technology companies, is hosting its 11th semi-annual Tech Trends in Retail event in the flagship Neiman Marcus store in Dallas on April 5. This event showcases new retail strategies and the technologies that power them, and includes presentations from several RevTech “graduates,” including:
The RTP editorial team has handicapped the technologies and companies being featured at the RevTech event, with each editor selecting their standouts.
Debbie Hauss, Editor-in-Chief: I am definitely fascinated by what Bottlefly is offering: “a patented method for tracking consumer preferences in sensory-based products.” Invented by an impressive group of graduates and a professor from Cal Poly, the Palate Profiler uses “flavor chemistry and emotion-based adjectives” to provide a virtual sommelier for stores and restaurants. But I imagine most high-end establishments will continue to offer the personal touch of a human to interact with customers, talk about the product, open and pour the bottle — and take it back if it has been corked. The other startup that is saying all the right things when it comes to retail innovation is Xenio Systems, and the company holds 74 patents across IoT, positioning, hardware and software design. The platform touts capabilities beyond beacon technology, citing: “patented hyper-positioning technology that can pinpoint a shopper’s location within two feet and monitor where they are, where they’ve been, their velocity, and what products they’ve interacted with.” But…it still requires integration with a mobile app and it has a number of different physical components that must be installed at the store.
Adam Blair, Executive Editor: Two of the featured RevTech innovators, Envizzo and Cherry Pick, cleverly leverage popular activities. Envizzo places products into short-term rentals and boutique hotels, providing a platform to collect consumers’ insights and offering the products for sale. Cherry Pick uses an AI-powered engine to identify beauty products customers are commenting on in social media networks, and then delivers product-specific email and advertising at the “moment of intent.” Both companies recognize that data-driven insights are today’s newest high-value currencies. I do have one caveat, however: there’s only so far you can go in monetizing consumers’ interactions — particularly when you’re intruding on other experiences. When I travel, for leisure or business, my hotel room is the last place where I want to be “sold” something (except perhaps from the minibar. Mmmm, Toblerone and macadamia nuts.) And social networks have more than enough advertising for my taste. I understand the value of targeting customers and creating relevant interactions, but a light touch is needed for it to be effective.
Marie Griffin, Managing Editor: Innovation is the only way forward in an economy that bends toward commodification. Among the startups making their pitches at RevTech, the two I find most interesting are decidedly non-tech — Roopa and the Akola Project, retailers of handcrafted items from India and Uganda, respectively. Both empower women by enabling them to profit from their crafts. I am pleased to see that a group of venture capitalists can appreciate the value of innovation that isn’t technology-based. Besides, it’s smart business. Millennials and Gen Z consumers are gravitating toward products that are not mass produced and companies trying to do good in the world. However, the company I think has the best chance of being financially successful, as well as most beneficial to retailing, is Xenio Systems. By combining IoT, RF and indoor positioning technologies, Xenio promises to go “beyond beacons” to more tightly integrate the in-store and offline customer experience, which, of course, is exactly what physical stores need most.
Glenn Taylor, Senior Editor: The way retailers have handled (and continue to handle) the convergence of online and offline shopping has been one of the biggest factors in their success in recent years. In almost all cases, brick-and-mortar stores have difficulty thriving without an online presence, and more online-only brands continue to see the value in at least a small physical presence. With that in mind, Xenio Systems has positioned itself pretty well as a competitor in the mobile space. At RTP we talk a lot about the customer journey, particularly the need for merchants to stay connected with them at all times, and Xenio appears to bring that value to retailers. Including SDK and LED fixtures to measure shopper traffic and in-store behavior is already important for brands, but I think the intertwinement with marketing campaigns gives this technology the kind of presence that will be necessary to improve shopping experiences across all channels.
Klaudia Tirico, Features Editor: Since physical retail is not dead, despite rumors of an apocalypse, I am intrigued by the concept of Neighborhood Goods. It is described as “an app store for physical retail” where a variety of (mostly digital-only) brands host their own pop-up-type locations in a single, experiential environment. After hearing Matt Alexander, Founder and CEO of the company, describe Neighborhood Goods in a podcast with NextGen Venture Partners, I can’t help but think that it represents a new generation of brick-and-mortar stores, one that the younger generation could really get behind. Alexander calls it “a contemporary alternative to and evolution of the department store.” It’s a dynamic space that houses dynamic signage, events, live artwork displays, live podcasts and even a restaurant. It really takes experiential retail to new heights and allows consumers to discover new, sometimes digital-only brands in a cool environment. I can see this becoming “the store of the future.”
Bryan Wassel, Associate Editor: While it may not single-handedly turn the retail industry on its head, the technology being developed by Bottlefly could be the key to better-targeted food and beverage sales. The company is using flavor chemistry, machine learning and a dual-taste preference system to make science-based personalized wine recommendations, which other industries could eventually adopt. Taste can be a barrier for consumers who might be interested in trying a new edible product — you can put that sweater back if it looks ugly on you, but once you open that box of expensive cookies you’re out of luck. Wine is a strong point of entry for Bottlefly’s service. The beverage is popular yet esoteric, and some extra assurance could convince shoppers to purchase more expensive bottles. The average liquor store can’t afford a sommelier, but targeted recommendations may bridge this customer service gap.