Today, the word "innovation" is often overused to describe a number of lackluster things and has really become meaningless in a lot of senses. However, we were really floored when we heard that Cannes was hosting its first ever "Innovation Conference" during the 2015 Cannes Lions festival in France. We sent the Labstore team to check out the conference first-hand, and brought back 5 key takeaways we believe represent innovation, framed through the lens of retail. From robots in the retail space, to the rise of RFID technology, we saw some, what we'd call, innovative showcases.

1. A Labstore Knowledge Report
The Lions
Through the
Lens of Retail
A Cannes 2015 Recap

2. ‘Innovation manifests itself in many different forms.’
That notion was very apparent at this year’s first Cannes Innovation Fest during the Cannes Lions Festival
in France. From artifical intelligence, to the rise of the ever-present ‘Internet of Things,’ we saw a number of
great inventions, inspiring talks, and have gathered our top takeaways. Enjoy!
Cheers,
Zac Kraemer,
Brand and Business Development Manager – Global
zac.kraemer@yrlabstore.com
@zacharykraemer
A RETAILER’S TAKE ON THE
CANNES INNOVATION
FESTIVAL
Introduction
Martin Wolf
Managing Director – Europe
Martin.Wolf@labstore.at
About Labstore: Labstore is Y&R’s worldwide retail and shopper marketing network with 20+ offices around the globe and was built to combat the new retail reality – a Globalized, Digitized, Polarized, Personalized
retail environment. With a global perspective and presence, strong digital credentials, and powerful proprietary retail and shopper marketing intelligence, Labstore focuses heavily on the shopper, with a desire to
create true Shopper Chemistry™. Visit YRLabstore.com
Note: We do not claim ownership to any of the imagery showcased in this deck

3. FIVE KEY RETAIL TRENDS SEEN AT THE LIONS
INNOVATION FESTIVAL
Ready...Set...Go!
*Note: Anything that’s underlined in this document is an interactive link!

4. Trend One
ROBOTS ENTER THE CONSUMER MARKET
When The Jetson’s first aired in September of 1962, we were introduced to a futuristic world filled with astounding technology, like robotic maids that would wash your dishes, fix you dinner, and paint
your nails. Even a few years back, those technologies were just a figment of our imagination. Today however, robotic lifeforms are increasingly becoming a part of our everyday lives. With
artificial lifeforms like Apple’s Siri and the soon to be released JIBO, we’re well on our way to a Jetsons-like era.
At Cannes this year, artificial intelligence was definitely a topic of conversation..but not Siri or Cortana. Pepper, the first ‘true social’ companion, which entered the B2C market earlier this year, is the
latest hotbutton lifeform who is much more than a robot, he’s a companion. Able to communicate with customers through the most intuitive interface we know: voice, touch and emotion, Pepper was
created for SoftBank Mobile—one of the largest mobile phone operators in Japan. Pepper is already greeting and interacting with customers in stores!
Retail Insight
We often use technology in retail for two key reasons – 1. To reduce the the friction of the shopping journey for the customer 2. To collect our shopper’s data, allowing us to learn more about them.
Many people don´t trust certain types of technology, such as Facial Recogntion (which could give a personalised price or show an ad based on oour gender) in retail enviroments as it can seem ‘too
intrusive.’ With robots like Pepper, retailer’s can continue to reduce friction, and gather data on shoppers through enjoyable social interactions. As technology advances, we continue to decrease the
border between human and machine step-by-step, and will see a peak in automated services executed seamlessly by machines, robots and artificial lifeforms.
Pepper, Artificial Lifeform/Robot, Japan, 2015
OSHBOT, Robotic Concierge, USA, 2015
JIBO, A Lifelike Family Member, USA, 2015 The Jetson’s ‘Rosie Robot’, 1962

5. Deemed the ‘first social robot,’ of his kind, Pepper is able to
communicate with anyone through talk, touch and emotion. If
you frown, Pepper will understand that something is bothering
you. To cheer you up, he may play an upbeat song.
He learns new things about individual tastes, capable of both
adaptation and self-improvement.
In a retail setting, Pepper is helping shoppers pick out mobile
devices, checking customers out on his touchscreen chest pad,
and entertaining unenthused guests as their parents shop.
Experience PEPPER
Assistant, photographer, storyteller, messenger and companion,
Jibo is the do it all robot for families everywhere. Yet to launch,
Jibo was created to seamlessly integrate with families in their daily
lives. Jibo will take pictures at parties, read you your recipes as you
cook, tell children stories and help them learn, and even moves
and interacts like a real human being, with no activation required.
See JIBO Here
Implemented by Lowe’s in northern Califoria, OSHBOT is able to
help shoppers locate any item in the store and take them to its
exact location. Say ‘hammer,’ and OSHBOT will take you to the
aisle, or hold up a specific screw in front of its camera, and
OSHBOT will locate the item and show you exactly where to find
it in-aisle.
Watch OSHBOT in Action
PEPPER
The Next-Gen Robot
OSHBOT
The Retail Concierge
JIBO
Another Member of the Family
TREND ONE // ROBOTS ENTER THE CONSUMER MARKET

6. Trend Two
THE AGE OF ‘INTERNET OF THINGS’
Today, there are over 2 billion smartphones, 15 billion connected ‘things’ and 200 billion+ mobile search requests on the ‘Internet of Things.’ Whether you think of Google’s ‘connected’ car,
Apple’s wearable watch, or AT&T’s smart home system, you’re definitely thinking in the correct space, which is the simple, yet complex idea that everyday objects have network connectivity,
allowing them to send and receive data, with the goal of making everyday lives more simple. As stated by Samsung’s VP of Product Development in North America “The Internet will be like
electricity in 5-7 years. No one will care about it – it will be everywhere.”
Retail Insight
The consensus on technology was pretty clearly stated at Cannes time and time again: “If you are not fully in mobile within the next 1-2 years, you will lose the game forever,” as one speaker
put it. For retail and shopper marketers, focusing on a mobile-first, digitally integrated solution in the shopper-journey is no longer a nice to have – it is a must-have, to remain relevant and
stay in business.
Starbucks Mobile Ordering System, USA, 2015 AT&T Digital Life Home Security, USA, 2014
Nest Home Connectivity System, Global, 2013

7. Starbucks Mobile Order & Pay system, added to the
current Starbucks app began as a pilot in Portland in
December 2014 and is now expanding to stores across the
United States. The new system allows customers to skip the
line with the easy-to-use feature that utilizes geo-location to
select the closest Starbucks (or a ‘favorite’ store) in the area.
Order your drink and food, pay via app, and pick up at the
drink counter upon arrival.
Learn more about the new feature
Nest Labs first introduced the Nest Learning Thermostat in 2011.
Since that initial release, the company has introduced a second
gen thermostat and smoke-and-carbon-monoxide detector, along
with Nest Protect, which was purchased by tech giant Google, who
launched its own Internet of Things (IoT) initiative called ‘Works
with Nest,’ which pairs Nest products with third-party brands such
as Whirlpool, Big Ass Fans and Mercedes-Benz to further
connect devices in users everyday lives.
See All the Connected Products in the Nest Family
With AT&T Digital Life, users can stay connected to their home
from just about anywhere, with 24/7 professionally monitored
home security and automation from smartphone, tablet, or PC.
Users can lock and unlock doors with their mobile devices, arm
the security system with their PC, check in on the kids or pets via
in-home cameras, or adjust the thermostat on daily
work commutes.
See AT&T Digital Life in Action
STARBUCKS ORDER AHEAD
The New Line-Free Ordering System
AT&T DIGITAL LIFE
An Always Connected Home
NEST HOME SOLUTIONS
The Simple, Functional Smart Home System
TREND TWO // THE AGE OF ‘INTERNET OF THINGS’

8. Trend Three
MORE CONNECTED DEVICES. MORE DATA.
It’s expected that marketers will have access to 20x more consumer data within the next 2-3 years, as connectivity and data volume increase and cost for data storage decreases. “9 out of 10
people don´t know what to do with their existing consumer databases” stated Marketing professor Jerry Wind. “Imagine how they will feel like in 5 years.” With this exact realisation in mind,
comapnies like IBM are working on a realtime-data mining tool called Watson, that has the ability to source marketer data and compile it into infographics and consumer insights in real time.
Retail Insight
Mastering core-metrics of existing database structure is one of the most important first steps for marketers today. This means cleaning out old, invalid or incorrect data and building an ongoing
development process for future data mining. Think before you open new input fields in your database. Focus on the most essential information you want want to have in future.
With brands shifting large portions of media dollars to direct and digital media, smart, optimized data mining strategies can help to reduce media costs, optimize customer retention and loalty
processes and allow for micro-segmentation campaigns. As we continue to further harness the true power of data, we may even be able to have real-time-optimized pricing structures based on
number of people in the store, mood of the potential shopper or weather.
Macy’s Free Wifi Network, USA, 2012 Rebecca Minkoff Smart Mirror, USA, 2015
IBM Watson, Global, 2015

9. For shoppers to give up their personal data, there has to
be a strong give and take between the retailer and the
shopper. Free Wifi is the perfect example of a tactic that
works. Macy’s rolled out free wifi in select stores back in
2012, and today, offers free wifi in nearly all of its 850
store portfolio.
IBM’s artificial intelligence system, Watson, learns as it collects
and interacts with the world and the data in it. As IBM puts it, the
system Observes, Interprets, Evaluates and Decides, just as a real
human being would rationalize. What makes Watson different
than most systems is it doesn’t just analyze numbers and statis-
tics..it can also read through and interpret research reports, tweets,
or even your mom’s latest facebook posts to form theories and
reports in a number of unique ways.
Take a look at Watson
Rebecca Minkoff is bridging digital and in-store in a new, seamless
way. With a series of touch screen mirrors that allow shoppers to do
anything from order a coffee or champagne, look at the latest
collection of clothes, call a sales assistant, or even order clothes for
in-home delivery, Minkoff’s new store is a shining example of how to
properly use digital to create a great experience for shoppers, while
also collecting unique data to better understand the retailer’s key
customer profiles and shopping habits.
Get a tour of Minkoff’s new SOHO New York Store Here
FREE WIFI. FREE DATA
Showroom Away with Macy’s Free Wifi Network
SEAMLESS DATA COLLECTION
Rebecca Minkoff’s new Smart Mirror Technology
A NEW WAY TO HARNESS DATA
IBM’s Watson
TREND THREE // MORE CONNECTED DEVICES. MORE DATA.

10. Trend Four
RFID STORYTELLING
Today, many brands are already embedding RFID technology into their marketing material. As RFID chips become increasingly affordable, and more mobile devices are able to interact with
the technology, brands are increasingly utilizing the technology to the point of even starting to embed RFID chips into their actual product, to further extend the salesfloor and mine
consumer data. Brands like Lego are utilizing RFID technology in-store, paired with augmented reality to showcase final built Lego products via digital monitors, and select winemakers even
use the service directly on their product to tell the story of the wine right through the bottle.
Retail Insight
As content becomes increasingly important in the shopper journey, brands are continually leveraging RFID technology to further influence shopper decisions through a multitude of
showcases across varying channels, from text, imagery, or video, all of which can be accessed with the tap of a mobile device. In a store, brands can push product recommendations at the
shelf in real time, or even upsell the next best product after a shopper just started to consume a less expensive option.
This developling communication platform gives brands the chance to stay connected with their customers throughout their differing shopper journeys, building new dimensions of brand and
product exposure.
AWear Technology, Isreal, 2015TapIt RFID Technology, Global, 2015
Disney Magicband, Global, 2015

11. Tapit is a global technology platform which leverages a
range of contactless technologies including Near Field
Communications (NFC) and Beacons (BLE), allowing
brands to create, deliver, manage & measure engagement
through a unique database management system.
Unlike traditional RFID, brands can track unique TapIt
buttons from anywhere in the world, change their
forwarding location, and measure analytics in real-time.
Find out about TapIt here
Disney has recently addressed the full experience guests partake
in when visiting Disney resorts around the world and as a result,
have launched MagicBand, a colorful, waterproof wristband that
lessens the friction in a guests journey. The sensor-enabled bands
allow guests to do a number of things like; unlock your hotel door,
enter theme parks, get onto rides, charge food and merchandise
purchases and even interact with Disney characters and rides
throughout the park.
Get more information on MagicBand Here
With the high speed chase that fashion has become in today’s
culture, AWEAR’s new technology turns the streets into a shopping
floor..literally. The small digital chips, which can be sewn into any-
tying from shirts to shoes allow anyone interested in products they
see on the street to hold up their phone, and identify specific arti-
cles of clothing via the small chips.
Learn more about AWear Here
TAPIT RFID TECH
TapIt’s easy to manage RFID system
AWear Fashion
The Street
DISNEY’S ALL-IN-ONE WRISTBAND
Everything you need in life, right on your wrist
TREND FOUR // RFID STORYTELLING

12. Trend Five
NEW BUSINESS MODELS MOLDING US
New company structures and cultures are shaping the way brands across all categories conduct business and interact with their customers. Business models like Uber, AirBNB, Spotify, and
new-age start-ups require little to no overhead to turn a profit. On average, Macy´s requires 62 employees to return $10mm in revenue, Sears requires 63 employees for that same turn,
whereas Amazon requires just 17 people on average to return that same $10mm in revenue. Thus, as new businesses begin to form, existing well-established brands are being forced to
evolve their business models to compete with the smaller, leaner competition.
Retail Insight
The founder and CEO of Soundcloud (who also operates with a start up mentality) summed up his business model quite simply, saying: “We build up one user-experience and spend as
much time needed to fully optimize it. Once this is established, we can expand the dimension without any big increase of efforts. We started Soundcloud to be a good platform for musicians
and worked 2 years on reaching that level until we were satisfied. Then we extended for music listeners, which took another 1.5 years. And now we are in a phase where we can monetize this
thing.”
Having a look at retail and it´s shift to become omnichannel, we many take a cue from the founder of Soundcloud, to perfect and optimize one shopper-journey at a time, to reach the best
possible shopping experience and mirror more simple, newer retail business models.
Urthbox Subscription Service, US, 2015
Birchbox Subscription Service, Global, 2012
Fooji Food Ordering System, US, 2015
LOLA Tampon Replenishment, US, 2015 BirchBox New York Store, Global, 2015
AirBNB Room Booking App, Global, 2012

13. Social Media meets Seamless meets Food Emojis.
That’s the best way to describe the newest food
ordering concept now launching in a number of urban
cities across the United States. The idea behind the
system is simple: Link your twitter account, tweet an
Emoji at @fooji, and it’s ordered to your door for $15 all
in. A new, simple, frictionless way to order at
4pm or 3am. Simple as that.
See the new start-up here
Travel has reached a point of reinvention. Empowered Millenial
shoppers, and even the younger Gen Z’ers are impatient and
willing to go after what they want without willingness to wait.
Companies like AirBNB, the global ‘Home to Hotel’ booking app,
have recognized that core need for the younger, more impatient
generation, and grown exponentially, since launching in 2012. They
don’t ‘own’ properties, but rely on the people in the communities
the play list their own properties for rent, to list on the app.
Check out AirBNB Here
There are subscription services for everything and anything these
days. Birchbox for beauty, Dollar Shave Club for razors, Blue Apron
for the meal maker, Urthbox for health nuts and even tampon
replenishment! The fact is, Subscription Services aren’t going
anywhere; the replenishment factor is a no-brainer for busy shoppers
who are looking for ways to streamline their lives, and likewise,
curious consumers who are interested in trying new products without
commiting to a full-sized, full-priced product.
See above links which reference a multitude of subscription services
EMOJI FOOD ORDERING
FOOJI Offers Emoji-Based Social Media Ordering
SUBSCRIPTION EVERYTHING
The new way to explore...ANYTHING!
AIRBNB
Hotel Booking...2015-Style
TREND FIVE // NEW BUSINESS MODELS MOLDING US

14. Martin Wolf – Managing Director – Europe, Martin.Wolf@labstore.at
Zac Kraemer – Brand and Business Development Manager – Global, Zac.Kraemer@yrlabstore.com, @zacharykraemer
YRLabstore.com
Get in Touch!