Cases: how technologies help to solve business problems in retail Blockchain in retail Big Data in retail 3D printing in retail Chat-bots in retail Internet of things in retail Sharing economy in retail Autonomous vehicles in retail Drones in retail Computer vision in retail AR/VR in retail Machine learning in retail Omni channel in retail

1. Cases: how technologies help to
solve business problems in retail
Alex Isachenko, CEO, Managing Partner, CoreTeka +380 93 570-56-28, isachenko@coreteka.com

2. FOCUS
CoreTeka focuses on three main categories: Retail, Transportation, Automotive.
Retail Transportation Automotive

3. CONTENT
• Blockchain
• Big Data
• 3D printing
• Chat-bots
• Internet of things
• Sharing economy
• Autonomous vehicles
• Drones
• Computer vision
• AR VR
• Machine learning
• Omni channel

4. Blockchain

5. BLOCKCHAIN IN RETAIL
• Micropayment and pay-per-use
• Consumer participation in product
development
• Direct purchases
• Decentralized marketplaces
• Product warranties and insurance
• Sharing economy
• Customer loyalty programs
• Product quality and food safety
• Automated in-store payments
• B2C certificates
The retail sector has already discovered practical applications of Blockchain system: ensuring the authenticity of high-value products
(diamonds and art) to locating stolen goods and protecting both customers and sellers from fraudulent transactions.

6. CASE: EVERLEDGER
Everledger uses the blockchain to track diamonds, from the mine to the end customer. This permanent ledger ensures that
diamonds are certified and reduces the risk of forgery of documents. It can also prove who bought a specific diamond and
be securely updated if that diamond is then sold on to someone else.

7. CASE: MARTINE JARLGAARD
Provenance has, in collaboration with Martine Jarlgaard, proved blockchain‘s potential for forging greater trust in businesses
along a fashion supply chain, enabling brands to provide verified information about the materials, processes and people
behind products.

8. Big Data

9. BIG DATA IN RETAIL
Order management
Predicting trends
Forecasting demand
Optimizing pricing
Identifying customers
Customer behavior
analytic
Targeted promotions
Personalizing the in-
store experience
Customer journey
analytic
eCommerce
Optimization
By pulling together data streams from sales, operations, inventory, revenue, and other sources, big data analytics are helping retailers
fine-tune their operations to reduce costs, increase customer satisfaction, and generate more profits.

10. CASE: TARGET
Target targets pregnant mothers before they share the baby news. Using data about women‘s shopping habits, Target was able to
identify that women buying specific products may mean that she‘s anywhere from a few weeks pregnant, to very close to her due date.

11. CASE: COSTCO
Costco helps solidify customer loyalty with fast warnings. A California fruit packing company warned Costco about the possibility of listeria
contamination in its stone fruits. Costco notified the specific customers that purchased those particular items.

12. 3D Printing

13. 3D PRINTING IN RETAIL
By means of 3D printing technology additive manufacturing can change every single step of the supply chain and offers fully customised
retail products.
• Individualized production
• Easy printing of spare parts to fix existing
products
• Decentralized and on-demand
manufacturing
• Dematerialization of the supply chain
(less transport, stock cost, manufacturing
cost and retailing cost)
1,32
2,08
2,99
4,32
5,46
5,72
2015 2016 2017 2018 2019 2020
Predicted worldwide retail profits from 3-D printed
customized goods ($ bln)

14. CASE: STAPLES
Staples were one of the first to actually sell 3D printers in 2013. Then, they proposed in-store 3D printing services in their New York and
Los Angeles stores to allow people to directly print their design in store. Now everyone can upload 3D design to site and receive the
necessary detail.
Upload your 3D design file
or choose one of designs
Staples will 3D print
the design
Ship your 3D prints to
your home or office

15. CASE: MATTEL
Mattel presented 3D Printer, the ―ThingMaker,‖ which will allow children to print their own toys at home. The device works in
conjunction with a 3D printing app that offers a simple interface for designing items that can then come to life via Mattel‘s ThingMaker
as well as with other standard 3D printers already on the market.

16. CASE: FEETZ
Feetz‘s business model is straightforward: a customer performs a rudimentary 3D scan of their feet, and submits the data to Feetz. Feetz
uses their custom algorithms to generate a specific shoe 3D model in the selected design and at the correct sizing. They then produce
the shoes and ship to the customer for payment.
Download app
Take 3 pics of each foot to
get your 3D foot model
Choose your shoe
Select a design and
additional features
Printing
3D printer produces details and
humans assemble them
1
2
3

17. Chatbot

18. CHATBOTS IN RETAIL
• Real-time notifications
• Feedback
• In-store assistance
• Process orders
• Order tracking/shipping information
• Notify customers about the latest
collections
• Find the nearest store
• Gift guides
• Product recommendations
• Personal stylists
• Giveaways, promotions, and trivia
Chatbots in retail are the key to high-value, personalized client engagement. Besides, chatbots in retail are an opportunity for retailers
to stay competitive with players like Google and Amazon who are dominating the online retail landscape.

19. CASE: E-BAY SHOPBOT
In October 2016, eBay released its Messenger chatbot ShopBot for ecommerce. ShopBot can brag of its excellent contextual
understanding and machine learning abilities as well as its friendly language. ShopBot understands what users are looking for by
processing their text messages and images to find the best match.

20. CASE: 1-800-FLOWERS
American floral retailer 1-800-Flowers has launched a chatbot for Messenger that allows users to order flowers and gifts. Customers of the
1-800-Flowers bot are asked to enter the recipient‘s address, full name, and phone number. After the chatbot gathers this information, it
displays a confirmation note and asks the customer to confirm that everything is right.

21. IoT

22. IoT IN RETAIL
• Maximize in-store flow management
• Improve traceability of inventory before
and after the point of sale
• Reduce fraud and shrinkage
• Connect the store shelf and the back
room
• Personalized interaction with
consumers
• Deliver just-in-time promotions and
coupons
Internet of Things is a network of connected physical objects embedded with sensors that communicate, analyze and share data. In
retail, the ―things‖ can include RFID inventory tracking chips, traditional in-store infrared foot-traffic counters, cellular and Wi-Fi tracking
systems, digital signage, a kiosk, or even a customer‘s mobile device.

23. CASE: AMAZON DASH BUTTON
Amazon has already implemented ‗click and go‘ buttons technology with their Dash buttons. It can be placed near anything in the
household that needs frequent replenishing, such as paper towels or garbage bags. When a user notices they‘re running low, they simply
press the button to reorder the product online.

24. CASE: COOP
Coop Italia showcased a digital design concept of store built on Microsoft technology. Their supermarket of the future blends old-
fashioned open displays and in-person interaction with large interactive screens that offer customers information on the food they‘re
buying, from nutrition facts and allergy warnings to carbon footprint data and even recipes and wine pairings.

25. Sharing
economy

26. SHARING ECONOMY IN RETAIL
The retail industry has recognized the growing demand for pay-to-use options and is striving to meet it. Retailers creatie leasing and
rental offerings for a variety of products, and new companies forming based on a rental model.
• Renting goods, services and space
is becoming more popular than
owning
• Renting saves consumer money
and the hassle of maintenance
• Suitable for urban living an limited
space
• More environmentally friendly

27. CASE: DSW
DSW retailer announced the adding of a rental service, as well as shoe repair and storage facilities, to some of its 511 shoe-and-
accessories stores.

28. CASE: WE ARE POP UP
We Are Pop Up is the simplest way to book unique pop-up spaces and ShopShares in Europe. Meet innovative brands and collaborate
on creative retail.

29. Autonomous
vehicles

30. AUTONOMOUS VEHICLES IN RETAIL
Fully autonomous or self-driving vehicles will probably change the entire mobility ecosystem. Self-driving vehicles can have a great
impact on location decisions for retailers.
Increasing catchment areas
Extraordinary levels of customer service
Decreasing delivery time
Neighborhood centers

31. CASE: ROBOMART
Robomart aim is to bring the groceries, baked goods and prepared foods of the supermarket aisle to your doorstep. A benefit for
retailers is that retailers who license the technology will retain all of the customer information rather than giving it away to Uber,
Postmates, Instacart or others.

32. CASE: LOWE‘S LOWEBOT
Home improvement retailer Lowe‘s introduced the LoweBot in 2016 at its stores in San Francisco. Customers can ask LoweBot—by
speaking or using a touch screen—where to find items they need inside the store. The robot also performs real-time inventory tracking as
it cruises down the aisles.
Voice recognition
Inventory scanning
Autonomous navigation
Obstacle avoidance

33. Drones

34. DRONES IN RETAIL
74% 73%
54%
45% 44% 44%
32%
15%
For which of the following products would you be open to
trusting drone delivery?
Two-thirds of consumers expect to receive their first drone-delivered package in the next five years and 36% expect it in the next two.
Consumers willing to pay for shipping within the hour and are open to getting drone-delivery across categories.

35. CASE: DOMINO'S
Drone deliveries of pizza are now a reality, with the first commercial delivery of food by drone to a customer, anywhere in the world,
successfully completed in New Zealand in November 2016.

36. CASE: WALMART
Walmart has been granted a patent for in-store drones that would transport items from one department to another. A human worker
receives a request from a customer, via a ‗display screen or as a text message‘, who then attaches the item to the drone.

37. Computer
Vision

38. COMPUTER VISION IN RETAIL
• More effective retargeting
• Real-world product & content
discovery
• Image-aware social listening
• Frictionless store experiences
• Retail analytics
• Emotional analytics
• Image search
• Direct mail processing
The future of retail could be led by computer vision and mixed reality technologies to transform the way we shop and interact with
brands. Emotion plays a huge part in marketing, so retailers are now looking at innovative technologies that push the boundaries of
interaction and emotion in the buying experience.

39. CASE: WALMART
Walmart is developing facial recognition technology to detect unhappy shoppers. The technology uses video cameras at store checkout
lines that monitor customers' facial expressions and movements to try and identify varying levels of dissatisfaction, according to a patent
filing.

40. CASE: AMAZON GO
Customers are expected to use the Amazon Go App in their smart device and scan the 2D barcode to enter the store and then they can
enjoy shopping. The "just walk out" technology, used by Amazon Go, combines machine learning, computer vision, AI and sensor fusion
technologies.
The customer needs to
open Amazon go app to
enter the store
Sensors on the shelf note
when items have been
picked up
Camera capture when
customers stop in front of
shelves
Upon leaving, the user is
billed for the items and a
receipt is sent to phone

41. Voice
recognition

42. VOICE RECOGNITIO IN RETAIL
«…Even if they‘re not shopping, some people are waking up in the morning and asking a device the weather or their schedule for the
day. In the coming years, more people will get used to asking for things as opposed to getting on their browser and typing in
something or going to an app to make an order.» – Arielle Einhorn, Senior Research Analyst at JLL.
• Fulfilling orders consumers have already
made in the past
• Easier and secured payment
• More effective communication between
staff (through earpieces)
• Additional information on products
• Better in-store experience
• Engage in commerce in situation when
hands or vision are occupied

43. CASE: STARBUCKS
Starbucks provides voice recognition experience for customers who download the Starbucks mobile app. Customers speak with My
Starbucks barista on their phone or device just as if they were speaking with an in-store barista.

44. CASE: DOMINO‘S PIZZA
Domino‘s Pizza‘s virtual ordering assistant Dom, which lets consumers dictate orders via mobile devices while on-the-go, has reached a
half-million orders since its 2014 launch, suggesting that more food brands should consider investing in voice ordering technology.

45. AR VR

46. AR VR IN RETAIL
AR for customer VR for retailer
AR and VR are both of the same spectrum and aim to add similar value in retail, providing personalized and engaging experiences.
While AR consists in overlaying digital content upon the real world, enriching it with interactivity, VR immerses users into an alternate
reality.
• Store design
• Shelf / assortment
layout
• Contextual store walks /
real-time views of store
performance
• What does it look like in
my home?
• What does it look like
on me?
• Tell me more about this
product / how to use
this product.

47. CASE: IKEA
IKEA was one of the earliest retailers to integrate AR into its product catalogue. IKEA has been using AR technology to bridge the gap
between the customer‘s perceptions and the reality of the products.

48. CASE: HYUNDAI VIRTUAL GUIDE
Hyundai wants to make the usage of owner's manual easier with its Virtual Guide: an augmented reality app for smartphones and tablets
that puts answer to the most common points of confusion at your fingertips.

49. CASE: MASTERCARD & SWAROVSKI
Luxury diamond retailer Swarovksi announced it would be partnering with Mastercard and tech company YouVisit to provide an all-new
virtual reality shopping experience.

50. Machine
learning

51. MACHINE LEARNING IN RETAIL
Stocking and inventory
Behavioral tracking -
marketing
Behavioral tracking – theft The shift towards efficiency
Initial implications of artificial intelligence and machine learning in retail will involve much less physical automation and direct
replacement of human workers and much more augmentation of the current retail experience with data and decision-making.

52. CASE: YOUBOX
Taking inspiration from companies like Netflix and Spotify, French e-book subscription service Youboox saw its recommendation engine
as its long-term-growth engine. Youboox can recommend the perfect book for you—and the perfect recommendation engine.

53. CASE: GLAXOSMITHKLINE (GSK)
GSK, a global healthcare company developing pharmaceuticals and healthcare products, has used Luminoso‘s natural language and text
analytics technology as a non-invasive solution for gaining insight into parents‘ growing concerns about vaccinations.

54. Omni-
channel

55. OMNI-CHANNEL IN RETAIL
Omni-channel as a philosophy is about providing consistent, yet unique and contextual brand experiences across multiple customer-
aware touchpoints, including brick and mortar, marketplaces, web, mobile and social.
Omni-channel marketing
New mobile payment
solutions
Omni-channel supply chain

56. CASE: AUCHAN
The Auchan‘s latest innovations includes the click and collect service, which is currently in test mode inside the hypermarkets. Orders are
prepared for collection at a designated area inside the store, and can be purchased at the checkout together with other items being
purchased inside the store.

57. CASE: TIMBERLAND
Timberland has implemented ―TouchWalls‖ with large interfaces that display online-only inventory, allowing users to touch product
photos to view expanded information and build their personalized shopping list for both in-store and online-only products. Customers
can also use a tablet to tap NFC-tagged inventory, and rich product information will instantly load on screen.

58. THANK YOU FOR ATTENTION!
Alex Isachenko, CEO, Managing Partner, CoreTeka +380 93 570-56-28, isachenko@coreteka.com