[Image of: RetailWire Logo and Tagline (for print)]

BUSINESS TIPS

Febreze:
Breathing New Life Into an Under-Served Category
SymphonyIRI Group:
Shopper-Centric Execution
DemandTec:
Demand-Driven Retail Strategies
Nestle Purina:
Center Store/Pet Category
MarketingLab:
iShopper Marketing Evolution
IBM:
Enterprise Marketing Management
Nature Made:
Vitamin Category
Precima:
Shopper-Centric Retailing
AT&T:
Experiencing Mobile Barcodes
[19 comments]

Apple's iPad Meets the Retail Business

April 23, 2010

By George Anderson

It wasn't hard to guess where the recent Ad Age article was going with the headline: IPad Poised to Revolutionize Retail Industry. So what exactly is the iPad going to do to accomplish this feat?

In simple terms, fans of the new gadget and its aps believe it will change catalogs by making them more dynamic with the use of audio, video and, of course, wireless purchasing. The Ad Age article pointed to the Gap's 1969 Stream ap as an example of what retailers can do to transform catalogs. The interactive program includes content from designers, music, geo-locators to find the nearest store and more.

Kevin Ertell, VP-retail strategy at Forsee Results, told Ad Age the iPad will eventually replace a host of devices found in stores including kiosks and hand-held scanners. "We'll need to see the price come down before it gets to chain retail stores," he said.

Edward Brojerdi, president-MDC Innovation Partners, said, "Without a doubt, the iPad will have a dramatic impact on the in-store retail experience. There are some logistical details to get sorted out -- how do we make sure they don't walk out the door, that people aren't going to different screens -- before it becomes ubiquitous, but it will happen."

As a customer-facing technology, the iPad will enable a more satisfying shopping experience by enabling customers and/or the sales associate helping them to customize purchases and place special orders. It can also serve as a de facto personal shopping device helping consumers draw items from across the store to complete a wardrobe, home entertainment system or any other component-based purchase.

Discussion Questions: Is there any reality to the hype that Apple's iPad will revolutionize the retail industry? Where do you think it will have its biggest effect? Where do you think it will fall well short of the hype?

FINANCIALS:     [NASDAQ:AAPL]

Discussion Questions



While we value unfettered opinion, we urge you to show respect and courtesy for people or companies about whom you comment. Keep in mind that this is a public, professional business discussion. RetailWire reserves the right to edit or refuse the publication of remarks that we deem unsuitable. We may also correct for unintended spelling and grammatical errors.

Instant Poll
Where do you think the iPad will have the greatest effect on retailing?








To participate in this QuickPoll, please enter your email address:

You may avoid this prompt in the future by registering / logging in.

Comments:

Tablet or pad technology will eventually revolutionize retail--but it's more likely to be in a form with more robust Wi-Fi capability and maybe a USB port.

The other key will be market penetration and, for lack of a better term, apps.

We've seen how the iPhone and other smartphones have begun to revolutionize how people come and go to market. No reason to believe we won't see the same kind of thing happen when the iPad or HP's Slate or whatever gains similar acceptance.

[Image of: View Braintrust Panelist button]
Ryan Mathews, Founder, ceo, Black Monk Consulting

It's not s stretch to see that "tablet" computers (of which the iPad is the groundbreaker) have the potential to change the landscape of retail operations. But I'm not sure whether the changes will be in the form of sales drivers or operating efficiency.

A simple, portable handheld device like the iPad could be used to communicate inventory levels, planogram changes, and so on to store management. But Apple and many other retailers have already taken the checkout process "wireless" with much smaller handheld devices than the iPad. I think a lot of these changes will come down to the type of "app" development encouraged by Apple for B2B purposes, not just for consumers.

[Image of: View Braintrust Panelist button]
Richard Seesel, Principal, Retailing In Focus LLC

I'm not sure the hype in the article matches the reality of beat-up clipboards and the impossibility of finding a pen in a retail store. Yes the technology is cool, yes some upscale brands will implement them but the cost of entry and the environment they will be placed into seem a far way off for general use. It's not a Newton but it's not a mag-stripe reader either.

[Image of: View Braintrust Panelist button]
Bob Phibbs, President/CEO, The Retail Doctor & Associates

From the moment it came out, I started to dream about the possibilities! Now, keep in my mind my focus on retail is on staff performance and coaching. I've dreamt of how multiple applications could seamlessly come together on the iPad. I've imagined an employee being able to pull off their sales performance data, click on a troublesome metric for some advice, click again to link to the specific training video and more. Managers then access the same data, click on an employee, get immediate coaching tips and if necessary more online content on how to deal with the issue. All onboarding training is contained inside the little iPad. Scheduling's there too. All training, yep. Chat rooms and every other appropriate networking site live. And imagine the interactive PK you could bring to the staff and customers alike.

It's more about the software possibilities than the hardware, but somehow just seeing that gleaming little tablet made these possibilities seem more realistic than ever before.

Now, if only I knew how to write applications that could make this happen!

[Image of: View Braintrust Panelist button]
Kevin Graff, President, Graff Retail

We've been working with partners on an iPod Touch mobile POS solution (similar to that used in Apple stores), so I don't think an iPad version is far-fetched at all. The key will be getting device management right. For use in the enterprise, there have to be ways to lock the device down, and keep it updated automatically.

The iPad, and I guess tablets in general, are great for clientelling in the aisles, and for replacing kiosks. Heck, you could attach one to a pole and just about be done. But I'm not sure the iPad has anything better than existing tablets, so I don't see adoption in this area increasing.

[Image of: View Braintrust Panelist button]
David Dorf, Sr. Director of Technology Strategy, Oracle Retail

The user interface is elegant and easy to use, and beautiful. I have no doubt that the potential to transform the retail experience is there, on the software side.

But what concerns me more than anything about a store environment is ruggedness. At NRF, nearly every vendor with a mobile app had an iPhone in their booth, but I haven't seen iPhones or iPod Touches in the wild in a retail environment with a retail application outside of the Apple Store. When you can drop them, step on them, run a cart over them, and pour a Coke in them, and they still work, then I'll buy that they are ready to revolutionize retail.

[Image of: View Braintrust Panelist button]
Nikki Baird, Managing Partner, RSR Research

The iPad is still just a fancy web browser. It won't be useful at retail until it gets a camera and lets the head office know what's actually going on on the floor.

More people will be browsing more sites, so expect a slight boost to e-commerce.

Dan Desmarais, President, Cantactix Solutions Inc.

There's a gap between hype and reality here that I have trouble bridging. The iPad is a perfect device for interactive media consumption, but it's not portable in the way a phone is. Yes, people will take it on the plane to watch movies, or have one kicking around the kitchen/family room/dining room, but I don't see people walking into a retail store with an iPad under their arm.

So, retail applications will require store-owned iPads as the interface. Putting a fragile, steal-able, $500 device in the hands of shoppers is a recipe for disaster. Retail environments require fully-hardened, drop-proof, scratch-proof, drool-proof devices, so I don't see this generation of iPads fitting the bill.

That said, there's no denying the appeal of the interface, and the amazing interactive media experiences that it could enable. But I think we are a few technology generations away from seeing those applications become a regular part of the bricks-and-mortar retail experience.

[Image of: View Braintrust Panelist button]
Ben Sprecher, Founder and VP, Marketing, Incentive Targeting, Inc.

It's not hard to imagine sales associates with something like an iPad on their belts where they could call up information at the blink of an eye to help customers get what they want; much the way the mobile devices revolutionized the car rental business. It is harder to imagine handing them out at the door and letting customers use them at their discretion, but still quite possible/do-able.

All that is imaginable, but no device should ever take the place of a great, personable sales associate who innately cares about helping people find what they want. Those who believe that mechanical devices can replace quality human engagement (quality being the operative term there) are sorely mistaken. However, where the human engagement is severely damaged (airlines) or really doesn't matter (rental cars), you're probably going to win-win.

Somehow, I could never imagine devices taking the place of the great sales associates in an Apple store. I can only imagine them helping them do their job. Maybe as our first clue to the Apple devices "revolutionizing retail," that'd be the place to look.

[Image of: View Braintrust Panelist button]
Lee Peterson, EVP Creative Services, WD Partners

Absolutely! The iPad has the possibility of building apps that give people in the store access to information allowing them to answer questions, demonstrate products, retrieve customer's files and get special offers, etc. There will be many more apps as people in the stores think about what would make their lives easier. The handheld checkout devices made the lives of people in retail locations easier. The iPad can do much more than just be a checkout device (it can be a checkout device).

[Image of: View Braintrust Panelist button]
Camille P. Schuster, Ph.D., President, Global Collaborations, Inc.

The iPad alone may not be the answer, but we are inexorably moving toward the personal digital sales assistant. As a sales assistant, the device must engage the shoppers mind, and step through the PROCESS that leads to the close. Unfortunately, most of the people pushing these devices are "gee whiz" merchants, with a poor understanding of the human mind, and specifically, how to bring that mind to the sales close.

Expect to see lots of "mud on the wall" for some time. But whether by design or luck, these devices WILL revolutionize retailing.

[Image of: View Braintrust Panelist button]
Herb Sorensen, Ph.D., Scientific Advisor TNS Global Retail & Shopper, Adjunct Senior Fellow, Ehrenberg-Bass Institute

Let's think about all segments of retail and how often store personnel actually utilize something bigger than a handheld. For inventory management, mobile POS, product info, etc., when is a larger screen, clipboard/tablet-style device truly desired? I feel form factor is the driver in a store environment. No matter how cool a tablet seems, real-world will dictate the devices that endure long-term. No store employee wants to carry a tablet-sized device for more than a few minutes. Long-term, that device will stay in the back room.

[Image of: View Braintrust Panelist button]
Ralph Jacobson, Global Consumer Products Industry Marketing Executive, IBM

A chic boutique selling $500 dresses in LA or NYC...iPad is in. Probably Neimen Marcus, maybe Nordstrom...iPad is in.

Over to Walmart, JCP, Sears etc...what iPad?

It's just not about the cool touchscreen display. There have been a number of tablets over the years. The most I've seen of them is probably in a pediatrician's office. iPad is far far away from becoming mainstream and transforming retail.

It's a niche device for niche players with niche capabilities.

Let's bring out an iPad-like, flexible folding device that can fit in an associate's pocket and can take a 10 foot fall without missing a beat...then we are talking. Oh yes, and at a price point that doesn't pinch the department's numbers.

Aakash Pahwa, Consultant, Cognizant Technology Solutions

There's a good deal of discussion regarding the iPad's ability to show catalogs, support personal shoppers, and customize pieces on the floor; however, most people, particularly the audience that Gap and others target, aren't that patient and they will walk if what they're looking for isn't on the shelf. Is the iPad ideal for auto showrooms, furniture retailers or computer and home audio? Absolutely. Think about the possibilities for snagging car buyers for example. Salesmen could show options and promotions via their iPads from outside car lots without prospects venturing into high pressure showrooms. Furniture retailers the same.

(Perceived) first mover advantage, battery life, apps, profile, cool factor and the increasing fandom around Apple's brand are giving the iPad traction right now; however, the novelty could be fleeting and is completely dependent on the apps ... just like it's big sister, the iPhone. Price, connectivity, usability and availability are all Achilles' heels and other tablets are moving into the market this year that have lower price points and familiar Windows-based features.

Remember in-store video screens that were supposed to create exciting or educational in-store environments? Shoppers have tuned them out and last time I looked, many have disappeared. Will the iPad follow?

Lisa Carver, Principal, newmarketbuilders

It has the potential to be a unique technology, but the lack of a camera and the lack of a true network support (since AT&T is overwhelmed) may lead to a lack of interest.

Mark Johnson, President and CEO, Loyalty 360

Every few months or maybe a little longer the next newest, greatest product hits the market with a marketing campaign blitz that makes one wonder what the product does not do because the campaigns make you think it will solve everything but world hunger. It won't. That is being left to the next generation of "latest and greatest."

OK. Sarcasm is done. Each generational product is one step closer to what we think to be the ultimate. Then we find the flaws and wait for the next generation. Certainly we are improving. I am enjoying watching this from the sidelines as I ponder which new version of the Blackberry or iPhone I should purchase.

[Image of: View Braintrust Panelist button]
Ed Rosenbaum, CEO, The Customer Service Rainmaker, Rainmaker Solutions

Well, I am using one right now so I can confirm that it is revolutionalizing my life.

[Image of: View Braintrust Panelist button]
John Crossman, President, Crossman & Company

"But what concerns me more than anything about a store environment is ruggedness." - Nikki Baird, Managing Partner, Retail Systems Research

Ruggedness is a big factor especially in grocery. We see things break due to employee abuse. In addition functionality that adds value/improves processes for operations is equally important.

Brian Legate, Sr. Product Manager, Unified Grocers.

I am using my iPad right now to write this. It has changed my life and will continue to be impactful to the industry.

[Image of: View Braintrust Panelist button]
John Crossman, President, Crossman & Company

Follow Us...
[Image of:  Twitter Icon] [Image of:  Facebook Icon] [Image of:  LinkedIn Icon] [Image of:  RSS Icon]

Welcome to the new RetailWire!
Send your FEEDBACK so we can keep the improvements coming.