Technology

As to be expected at events in any industry, executives at the National Retail Federation's Big Show earlier this month lapsed into lazy talk, bandying about vague notions such as "customer-centric solutions," while ticking off hot retail buzz terms like "personalization" and "omnichannel selling" without always delivering concrete examples of what those terms will mean in 2014. But along with the nebulousness came some meaty insight on what's poised to revolutionize how retailers serve shoppers: big data. IBM Chairman and CEO Ginni Rometty did a good job of demystifyng the concept. 

There are inherent advantages to shopping online — convenience, access to information (e.g., product reviews), personalized product recommendations; likewise, shopping in a brick-and-mortar store has its advantages as well — the ability to touch, feel and try on a product; personal attention from store associates; instant gratification from walking out with your purchase. Now imagine combining the best of each. Retail nirvana, right? Well, Hointer, an apparel retail startup, is trying to accomplish just that.

The evolution of technology within the retail and e-commerce space is shaping how consumers behave and interact with brands and savvy, smart retailers know that understanding shoppers’ behavior is key for success. These retailers realize they can utilize technology to capitalize on consumer needs and customize offerings to help significantly increase their bottom lines. Here's how companies are using technology to provide added value to consumers. 

Target has long looked to India to fuel its software applications and back-office projects. Now, the Minneapolis-based retailer is doubling down on the country's tech potential. Come January 2014, Target is planning to launch the Target Accelerator Program, a corporate incubator — complete with funding, and possibly equity stakes in the cohorts — that it hopes will help it tap into the country's startup culture and engineering talent to better compete against other retail heavyweights Wal-Mart and Amazon.com. The selected startups will receive up to $30,000 in funding as part of the program.

The leading trade group representing the retail industry lauded a bill introduced in Congress this week that would seek to curb frivolous but costly litigation targeting patent holders, a blight the National Retail Federation says is a growing problem for its members. The Innovation Act, backed by Bob Goodlatte (R-Va.), the chairman of the House Judiciary Committee, would provide for numerous reforms to rein in abusive lawsuits brought by entities that hold patents but don't use the covered intellectual property in any products or services. 

Under Armour knows some of the best ideas are beyond its Baltimore campus waiting to be discovered, so the company is opening its doors to more entrepreneurs with innovative concepts for future products. The sportswear maker will begin hosting innovation challenges twice a year — instead of annually — for entrepreneurs outside Under Armour to suggest ideas for new innovations the company can incorporate in future product designs. Under Armour began holding the contests annually three years ago, and the results of the first challenge will hit the market in 2014.

Fossil hopes to beef up its in-store technology within the next two years, offering customers a number of ways to access, browse and purchase products. "It's really important for our target customers," said Andrew Hess, Fossil's vice president of IT, adding that the brand's target customers are typically well-connected shoppers in their 20s or early 30s. "We're trying to meet some of their expectations."

Beauty retailer Sephora has launched Sephora University Beauty Classes, a new program designed to help beauty lovers of all ages and abilities master everything from building a skin care routine to creating the perfect smoky eye. Now available in more than 60 stores throughout the United States, these complimentary classes are the newest way in which Sephora is striving to further enhance the client experience.

Last Thursday, Diane von Furstenberg's studio in New York's Meatpacking district underwent a temporary transformation. Gone were the large pieces of furniture on the east-facing wall; in their place were cameras, studio lights and a half dozen production people, in addition to representatives from Google, the Council of Fashion Designers of America (CFDA), public relations firm KCD as well as von Furstenberg's own design company. The occasion? Von Furstenberg was hosting the first shoppable Google+ Hangout, one in a series to be held by CFDA designers.

Staples bought e-commerce software startup Runa, looking to use the San Mateo, Calif., company's offerings to personalize its online store. "With Runa, we're adding technology to better serve our customers with personalized items, offers and delivery estimates, all in real time," said Staples Chief Executive Ronald Sargent. "Runa will allow us to tap into the wealth of engineering and e-commerce expertise in the Silicon Valley area."