Category: Video

In her latest audio blog, our president and CEO shares the latest trend in retail tech.

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Transcript of “Spatial Computing” audio blog:

Hello! It’s been a minute since we’ve recorded one of our KG audio blogs, but I am glad to be back and excited you have joined me today! I’m Catherine Seeds, president and CEO of Ketner Group.

Today, we are taking a closer look at the exciting world of spatial computing.

Before we dig in to see how retailers and brands are using this technology, let’s level set on what exactly it is.

According to the very smart folks at PC Magazine, spatial computing is a technology that enables computers to blend in with the physical world in a natural and seamless way. Not to be confused with a similar technology, augmented reality, which is a digital layer that augments reality by laying on top of it. 

To explain further, TechTarget defines spatial computing as a technology that “mirrors how we interact with virtual objects in the real world. For a human using spatial computing, the technology would ‘translate the two-dimensional images that they see into a 3D model of the world, make sense of objects in the world and then direct their hands to act.’”

The potential for spatial computing in retail is significant, especially with the launch of Apple’s Vision Pro and the forthcoming Google Glass. According to Brainy Insights, the U.S. market size for spatial computing will grow from 108.9 billion in 2023 to 815.2 billion by 2033. 

To further my point, McKinsey named immersive-reality technologies one of the top technology trends of the year, estimating that the “metaverse could generate up to $4 trillion to $5 trillion in value across consumer and enterprise use cases by 2030.”

So, let’s dive in and explore a few use cases on this amazing technology.

A new vehicle for product discovery and shopper interaction

In February of this year, e.l.f. Cosmetics announced one of the first beauty shopping apps for Apple Vision Pro, aptly named “your best e.l.f.” The app was created in partnership with the brilliant team at Obsess. In their blog discussing the project with e.l.f., Obsess describes the app as a way for shoppers to deepen their relationship with the brand through immersive exploration and branded games.

In the visionOS shopping app, users can participate in activities like guided meditations, stretching exercises and a “Paint by Numbers” game. With spatial computing, users can also “unwind and explore the best versions of themselves through playful, inspirational environments that contextualize an assortment of 3D e.l.f. products.”

Changing the game for all things virtual

Another first in the industry is J.Crew’s virtual closet app on Apple Vision Pro. Also powered by spatial computing, the app is an immersive shopping platform (see the trend here?) which gives shoppers the opportunity to shop J.Crew products in a 3D environment. With the app, users can:

• Use intuitive hand and eye movements to browse a selection of J.Crew items
• Mix and match pieces to create an ideal outfit for any occasion
• See how the outfits look on their personal in-app mannequin. 

What is even more amazing about the app is the SharePlay FaceTime feature, which again, allows for shared experiences for a shopper. The app uses a digital twin of a person, complete with subtle facial expressions and gestures, that allow them to do 1:1 video calls with a J.Crew expert stylist or group video chats with friends and family to get feedback in real time! 

According to Halsey Anderson, VP of Marketing at J.Crew. “We’re particularly excited for our J.Crew stylists to use Apple Vision Pro to work with customers in a more dynamic way than ever before, via SharePlay in FaceTime. This incredible technology, combined with our rich brand heritage of best-in-class service, will provide endless styling capabilities.”

Ready to go shopping, anyone?

No turning back when it comes to immersive technologies

For those of us earning our living in the world of retail, we know that as technology evolves, so do the expectations and shopping behaviors of consumers. Just like mobile commerce or the online shopping beast that is Amazon has quickly become a part of the retail zeitgeist, so too will spatial computing. 

The possibilities for this immersive technology are endless. I mean, check out what the team at Augmodo is doing in the grocery space! With spatial computing, they can

create a 3D “Realogram” for each store, aka, a digital twin or map of that store, and everything in it.

As the team at Combeenation puts it, spatial computing “could become a mass phenomenon and fundamentally change the way we shop.” Personally, I’m excited to see which retailers and brands step up to the plate next. All the data and experts tell us that spatial computing is here to stay, and I agree!

Thanks for joining me today. Let’s keep the conversation going! 

Get in touch today to find out how our retail expertise can help drive brand awareness and support your marketing goals. 

As I type this, the weather is a beautiful 83 degrees in Austin, TX. This means that I’m wearing one of my favorite Spring dresses from last year. It’s yellow with blue flowers, has the perfect size and cut of spaghetti straps, with an empire waist that “slims” me in all the right places. In fact, when taking my son to the orthodontist today, I received two compliments! 

It’s days and outfits like this that put a little extra spring in my step! 

So where did I get this dress, you ask? It came from my latest shopping obsession over the last few years – the subscription box.

My path to personalized shopping – the subscription box

Confession time. I subscribe to two different subscription boxes once a month – the tried-and-true StitchFix and Daily Look.

For years, I avoided these services because I didn’t want to commit myself to recurring charges. Plus, I was a little unsure of having someone else do the shopping for me. 

It wasn’t until my very good friend starting raving about her subscription services, and how much fun it was, that I slowly started coming around to the idea. 

If I’m being honest, the real reason I moved towards subscription boxes was because I had become extremely stressed and overwhelmed by the whole shopping experience.

As a working mom of two, time is a luxury. I wasn’t thrilled about spending hours helplessly combing through racks and racks of clothes, only to end up empty-handed. Which is exactly what was happening. I found myself not enjoying the retail experience at my favorite apparel stores like I used to. There were far too many options and none of them seemed just right for me.

But not all was lost. 

(Quick sidenote, in addition to jumping on the subscription box bandwagon, I started spending more and more time, and money, at a local Austin-area apparel boutique, Grit & Grace, co-owned by a college friend. The concept of her shop, and many others, is simple and brilliant. A smaller, curated selection of beautiful and trendy clothes and only offering one to two of each size per item. With this approach, I knew it was highly unlikely that I would be wearing the same outfit as other people in my town. I was also supporting a local business. Perfect!)

The joy of the box!

After doing my research and comparing the styles, prices, and customer reviews at the wide variety of subscription box options, I took a chance and subscribed to the aforementioned StitchFix and Daily Look.

For me, this new approach to shopping has been a gamechanger, as it has for millions of other subscribers. Each month, my “personal stylist” sends me curated apparel and footwear items to select from. Then, I send back the items I don’t want to keep. Easy!

Even though I typically know what is going to be in my boxes, due to the preview feature that both companies offer, it still feels a little bit like Christmas morning every time a box is delivered to my front porch. It’s made shopping fun again.

What’s more, I’m excited now about the items in my wardrobe, and I love the compliments. I only wish I had started the service sooner.

Challenges ahead for subscription box companies

As much as I have raved about my experiences so far, there have been a few bumps in the road. For each service, it took a good six months and a few personal stylist changes to get things right.

For example, I have short legs, so I am very particular about the length of my jeans and shorts. I must remind my stylist from time to time about this and other preferences that I have. Some boxes have missed the mark completely and I have to send everything back. 

Even with all of this, the time I’ve gained back and the quality of clothes I’ve accumulated over the past few years more than outweighs any mistakes or misses in my service.

But there are challenges ahead for these services.

Research shows that the subscription ecommerce market is projected to reach over $450 billion by 2025, up from $15 billion in 2019. Impressive numbers, but can they be sustained?

According to CNBCs Lauren Thomas, “Not that long ago, major retailers were scrambling to get in on the subscription craze sweeping the apparel industry. But then the pandemic upended daily routines and made shopping behaviors far less predictable. Now, some analysts and investors are questioning the appeal of these types of businesses and their ability to hold onto customers, who often sign up during a big life change but eventually lose interest.”

Battling subscription box fatigue

While this hasn’t been the case for me, the stats do show that many shoppers are experiencing box fatigue. Many are rethinking their investments in subscriptions in general:

• Over the last year, Stitch Fix has lost 95% of its value as the company’s attempts to expand beyond subscriptions have floundered.
• M Science, an analytics firm, says new customers account for a predominant share of sales at Stitch Fix, but their spending generally drops off over time. Roughly 40% of Stitch Fix’s revenue has been generated by new customers since its fiscal first quarter of 2020, the firm found.
• Data from Kearney shows that 40% of consumers think they have too many subscriptions. The survey indicated that the most spending is on streaming plans, followed by music and video subscriptions, gaming, food memberships, and beverage boxes. Shopping subscriptions, which includes fashion, came after all of those categories.

What does the future hold for subscription boxes?

Time will only tell how things will shake out with these services, but things look a bit bleak right now.

As recently reported in RetailWire, Blue Apron and Rent The Runway announced layoffs last year while restructuring. Birchbox announced in November it was considering bankruptcy. 

The Atlantic reported last year that “the subscription space was undergoing a shakeout.” Columnist Amanda Mull wrote, “As more markets become oversaturated with these kinds of services, more buyers will get bored of the concept entirely, and investors will eventually become weary of waiting for profit.”

As a new fan of subscription boxes, I am saddened to hear this. But if the business model doesn’t work or excite shoppers, then their long-term viability is at risk. 

In my own personal experience, it hasn’t always been perfect. But as far as I’m concerned, it sure beats the alternative. And have I mentioned the compliments I receive when wearing one of my new subscription box outfits? 

All kidding aside, I hope that these companies continue to evolve and adapt to ever-changing consumer behavior. It won’t be easy. I’ll leave that part to the experts, save one suggestion: be sure to keep the “joy” of personalized shopping with a monthly or quarterly box of new apparel items at the center of every decision. That’s what brought me here in the first place, and what will, hopefully keep me sticking around.

If you have any comments or insights on subscription boxes, our crew would like to hear from you! The Ketner Group team loves to talk retail! Give us a shout to learn how our retail expertise can help elevate brand awareness and support your marketing goals.

According to our president Catherine Seeds, one of the best parts of her job is learning “the next big thing” happening within the retail industry. Her latest video discusses the latest trend: Direct-to-Avatar.

Prefer to read a transcript of her video? We’ve included one below!

Catherine Seeds presents: Direct-to-Avatar

The best part of my job is learning and researching “the next big thing” happening within the retail industry. For more than 20 years, I have had a front seat for hundreds of game-changing innovations. It’s always exciting to see what’s coming next.

Hi, I’m Catherine Seeds, president of Ketner Group – thanks for listening in.

Right now, there is a huge momentum shift for brands to create strategies around direct to consumer (DTC). We all know that the customer experience is everything.

This means it is critical for brands to figure out how to create closer connections with their customers. Whether that means bypassing the more traditional retail model or even opening retail concept stores. Our very own Jeff Ketner talked about this trend in his most recent blog. 

When it comes to creating closer consumer connections, the “next big thing” on the retail horizon is a step beyond the DTC trend. To be more accurate, it’s a step into the vast virtual world of avatars.

Direct-to-Avatar: changing the digital economy game

The Direct-to-Avatar term, or D2A, refers to the business model of selling products directly to shoppers’ avatars. The model sidesteps the management and logistics of sending an actual physical product to a consumer. 

It was described in a recent Decode_M article, as this, “The DTC business model forever changed how we shop, cutting out the middleman. The next evolution of sales channels (D2A) will bypass humans completely, selling straight to our avatars instead.”

This might sound like a trend for only future generations. Wrong! Direct-to-Avatar is here and now. According to Crucible, Direct-to-Avatar expects to be the largest digital economy in history, topping $1 trillion during this decade. 

Need further proof? 

According to Nicola Mendelsohn, vice president of global business group at Meta, “Within the next decade, the metaverse will reach one billion people, host hundreds of billions of dollars of digital commerce and support jobs for millions of creators and developers.” 

The complete potential of the Direct-to-Avatar business model has yet to be realized. The fashion and luxury industries, however, have certainly already taken full advantage of this movement. More on that later!

Roblox and Gen Z: a match made for the metaverse

If you are familiar with the Direct-to-Avatar trend, then you have most certainly heard of Roblox. As the biggest player in the metaverse, Roblox has more than 50 million daily active users with nearly 10 million developers on the platform.

67% of Roblox users are under the age of 16, also known as Gen Z. For fashion brands, Roblox is a perfect gateway to Gen Z – a generation whose disposable income has reached an estimated $360 billion, according to Gen Z Planet. 

Brands dipping their toes into the metaverse should also be paying attention to Generation Alpha, those born after 2010. These young consumers influence $500 billion in purchases per year. 

As Christina Wootton, VP of global brand partnerships at Roblox says in NYLON, “Self-expression is a huge part of any shared experiences, be it in real life or in the metaverse. The Roblox community, over half of which is over 13 years old, is very engaged, spending billions of hours on the platform every month, and digital fashion plays a hugely important role in our community’s creative self-expression.” 

According to Wootton, 25 million virtual items were created by the Roblox community in 2021 alone, and over 5.8 billion virtual items (both free and paid) were acquired on the platform.

Becoming fashion-forward with D2A

Given their proclivity to all things digital, it’s easy to understand why the Direct-to-Avatar model is so attractive to younger consumers. This is especially true for the fashion industry. It creates an easy way to access and engage with younger demographics. It also provides a more impactful way for companies to connect with their shoppers beyond digital ads and content.

Here are a just a few examples of fashion brands releasing D2A digital collections, as featured in a recent Wunderman Thompson blog:

• Ralph Lauren released a 50-piece digital clothing collection in August 2021, available for purchase in social networking app Zepeto. 
• American Eagle announced a digital clothing collection for Bitmoji avatars in July 2021. 
• Gucci and The North Face released a joint collection for avatars on Pokémon Go in January 2021. 
• In March 2021 Gucci released virtual sneakers that can only be worn with AR, using technology developed by Wanna. 
• Digital fashion house The Fabricant has partnered with brands like Adidas, Puma, and Tommy Hilfiger to virtualize their garments.

Most recently, youth retailer Pacsun, announced its first dedicated experience on Roblox called PACWORLD, a fantasy interactive mall experience where players are the owner and operators of a new mall. Their objective is to make the mall as profitable and popular as possible.

Is Direct-to-Avatar the future of shopping?

Time will tell if the Direct-to-Avatar movement will stick. Looking at the stats, however, the odds are certainly in its favor. Digging into this topic has encouraged me to borrow my son’s Oculus headset and journey into the world of the metaverse.

The Ketner Group team will be keeping an eye on this trend as it continues to develop. For brands, Direct-to-Avatar brings endless financial and customer loyalty possibilities.

As WGSN Insight’s Cassandra Napoli said recently at NRF 2022, “The possibilities are truly endless for brands in this avatar economy, as avatars will extend the scope of storytelling for brands. And while digital fashion is not a new concept, it’s gaining momentum. It provides brands with a potentially more sustainable and inclusive — not to mention lucrative—way to reach consumers.”

Thanks for joining me today. Let’s keep the conversation going! 

Get in touch today to find out how our retail expertise can help drive brand awareness and support your marketing goals. 

Today we are digging into a topic that I find incredibly interesting – Generation Z and their shopping habits. Gen Z, the group of 72 million youngsters born between 1997 and 2012, can’t remember a time before the internet and widespread digital technology. According to McKinsey, Gen Z has a greater interest in human rights, race and ethnicity issues, LGBTQ+ equality, and feminism than generations before them.

Gen Z has never known a country not at war. As well, most have seen first-hand the financial struggles of their Gen X parents. In my opinion, they are old souls always searching to find their unique identities but are grounded in fiscal and social responsibility.

And I should know – I have two! 

I recently sat down with the oldest of my two Gen Z’ers, Madeline. Born in 2005, Madeline is a high school junior busy with her various school and volunteer activities. She also holds down a part-time job at a local pizza restaurant. But just like any high school teen, she loves hanging with her friends and, of course, shopping.

I was able to pull Madeline away from her very busy life to have a conversation with me – her Gen X mom who still doesn’t understand exactly how Snapchat works – to spill the tea on her likes and dislikes when it comes to retail shopping. 

What I found was not surprising at all. Madeline’s habits match up to the general characteristics of Gen Z. She is digitally connected all the time, but fiscally aware when it comes to spending her hard-earned money.

Check out our full conversation in the video or transcript below!

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Transcript from “Dishing with my Daughter”

Tell me a little bit about what you like about shopping in the store and what you don’t like.

I like being able to see all the clothes in person and being able to know what kind of material is really used, because different styles and materials all fit differently.

I like knowing exactly how everything will fit. What I don’t like about in-person shopping is all the other people around me. As well, in my experience, retail workers are sometimes rude.

When shopping in store, do you like having the help of a retail worker?

Sometimes. But I mainly do things by myself because they (the retail worker) are not in my head. They don’t know what I really want. I could tell them what I want, but I would rather not. 

I know you do a lot of online shopping! I’m curious, what do you love about online shopping and what is maybe frustrating about shopping online?

I like it because there are more options–in terms of sizes and other options. You could find something you like in-person, but they might not have your size or the color you want. With online shopping, they’re more likely to have your size. It’s easier to find things online because you can just search the style you are looking for. It also seems more organized to shop online than in the store.

Tell me a bit about the brands that you like to shop at online and why you keep going back to those shops?

I really like Shein because they have so many options. As soon as you think you’ve found all their options or you got to the bottom of the list, there are always hundreds of more items to view. And it’s also very cheap, for the most part. I don’t think I’ve ever spent over $15 or $17 on one thing at that store.

With online shopping, you can take as long as you want, instead of feeling like you’ve been in one store too long. I feel like the retail workers are thinking, “What is this girl doing here for so long? Is she lost or something?” 

I’ve spent almost two hours just on one website making sure I got all the colors in, the size and the style. I spend my own money when I shop, so I want to make sure I’m getting exactly what I want.

Let’s talk about social media shopping – very popular with Gen Z. Can you give us an example of how you use this?

I find a lot of the things that I’m interested in on Instagram and Facebook the most. Because of the algorithms, I think they (the social media channels) consider what pages I follow and what things I like on Explore pages. I really like a lot of Western, 60s, 70s and early 2000 styles, so I follow a lot of people and small boutiques that carry those styles. 

As I’m going through my feed, I’ll see a pair of jeans or a cute blouse in the styles that I like, so that’s helped me a lot when I’m shopping. It’s helped me expand and learn about new stores, and it’s also helpful for smaller boutiques too. Tiny boutiques will pop up on my feed that I’ve never seen before, so I often end up buying things from them, too. In that way, I feel like I’m doing my part to help small brands. 

My thing is that I come up with my own style in my head, but I don’t always know how to search for what I’m looking for on an online site. For example, I was trying to find my prom dress online last month. I was looking for a dress on Lulus and I knew exactly what style and theme I wanted for my dress – an icy platinum look. But on so many online sites, you can’t really look up icy platinum in their little search engine. So, I went to Pinterest to find what I was looking for.

With Pinterest, I literally typed in icy platinum prom dress! So many options came up and I was able to find some dresses that I liked. From there I looked at the names of the dresses, did a Pinterest search again and ended up finding the exact icy platinum dress I wanted! 

Let’s talk about thrift shopping! Tell us a little bit about why you like thrift shopping and how that’s helped you with your style.

I like thrifting, and feel like I’ve been thrifting before it was a trend! I like it because the clothes are super cheap there. I’m also a big fan of early 2000 styles. There are a ton of options in terms of clothes and accessories items from that decade at stores like Goodwill. And, like I said before, it’s also cheap. My friends and I can walk in there with $50 to spend and can buy probably close to that number of shirts! How could you not want to go there?

Side note: After speaking with my Gen Z’er for this blog, I took a closer look at the thrift shopping trend. According to according to a report from GlobalData and the online thrift store ThredUp, the secondhand market is projected to reach $77 billion by 2025 and is growing at a whopping 11 times the rate of the broader retail clothing sector. The drivers of the growth are younger consumers who are drawn to thrifting for its sustainability and eclectic and cool styles.

As a Gen Z’er, what else helps influences how you shop, either on social media or online or in a store?

A big part of my influence in what I like to shop for and wear is honestly music. I love older music, like Fleetwood Mac and Lynyrd Skynyrd – mostly bands from the 60s and 70s. I like the styles from that era. Sharon Tate is another style icon of mine. I would say she a big influence on the clothes and accessories that I buy.   

Let’s talk retail!

At Ketner Group, we love digging into all things retail – even with our kids! Get in touch today to find out how our retail expertise can help drive brand awareness and supporting your marketing goals.