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Apple and Xbox both win Cannes Lions Experience Awards

Both Apple and Microsoft nabbed top honors and best in class innovative awards for Brand Experience and Activation, a new category at Cannes Lions. Apple won the Big Lion for "Today at Apple" program that is bringing education experiences to Apple's 500 stores, and teaching Apple consumers how to use products.

Apple won a Grand Prix award in Entertainment Lions for Music for "Welcome Home," the stunning HomePod spot featuring singer FKA Twigs, directed by Spike Jones and created by TBWA\Media Arts Lab. The short film is very complex to shoot, but presented in a visually stunning way with the singer just saying one word to the HomePod and transforming her whole world.

As Angela Ahrendts, Apple's senior VP for retail, spoke in a Cannes talk prior to the award ceremony.

“[Today at Apple] can have a big impact on the role these stores play in the community. It has to serve a bigger service than just selling.”
— Angela Arendt, VP of Apple Retail

Experiential design is essential for commerce today when you can buy and order practically anything online. To go into a store physically, then demands an 'experience' and one that complements what consumers are looking for naturally and provides ways to learn and grow is exciting. Understanding the customer journey is vital to brand engagement and business success. Angela Ahrendt has previously revitalized the British iconic brand Burberry, bringing in technology and heralding a new wave of popularity among young consumers.

“Apple for decades was known as somebody who makes magical products. Now I feel they’re making magical experiences, and important experiences.”
— Rob Reilly, McCann

At a time when retail is dying, Apple is reinventing the store experience and making it meaningful and enjoyable for customers.

Nick Law, chief creative officer of Publicis Groupe Global, served as jury president of Creative E-Commerce this year. 

“This is the engine of our industry. It’s also a battleground for the new economy. If people don’t figure out their strategy for e-commerce, they won’t have a brand or business.”
— Nick Law, Publicis

Xbox Design Lab's "Fanchise Model" Campaign with McCann

Xbox Design Lab came up with a fun way to encourage gamers to create their own unique  controllers by rewarding them with perks. These fan-created designs are rewarded based on the sales of their controllers, and are featured in Xbox marketing campaigns worldwide. Gamers are invited to create and claim their unique popular designs. 

Cannes Lions is running now through June 22, 2018.

tags: Cannes Lions, Apple, Xbox, Experience awards, fans, designs, today at apple, Grand Prix, music awards
categories: Industry Insight
Wednesday 06.20.18
Posted by Elf
 

Amazon Adopts AR Kit in its latest iOS Shopping App Just Before Black Friday

With Virtual Product Previews, Amazon's shopping app gives customers the ability to see how products look inside their home using AR technology.  

Amazon iOS app.png

Amazon employs Apple's AR Kit in its latest iOS app to let you view thousands of products in your home, before you buy them. Just in time for the start of the holiday season, the updated app uses augmented reality (AR) kit technology to help customers make better shopping decisions based on aesthetics and fit within their existing living spaces.

After opening the app, you click on the camera icon and choose AR view. Then you can select from thousands of items for your living room, bedroom, kitchen and home office. This ranges from electronics to kitchen appliances, home decor, toys, furniture and more. A nice feature of the app is the ability to move items around and get a full 360-degree view, which can help you finalize your purchase decisions so that you are choosing the best products for your personal aesthetics. Using the new app's AR Kit technology (version 9.21.2) requires iOS 11 and is compatible with the iPhone 6S or newer models.

Image via Amazon

Image via Amazon

AR Kit offers tremendous opportunities for showcasing products and building spaces and environments. This ability to recognize objects and showcase them virtually in context, is helpful in a variety of industries, ranging from retail to architecture and construction, landscaping, aviation and the automotive industry.

AR Kit can determine surfaces that any object is placed on and track the movement of the camera in relationship to its surroundings, using the rear camera feed and Core Motion data. In addition, AR Kit can also figure out the right lighting for virtual objects placed into a scene.


 

tags: Amazon, iOS, shopping, Black Friday, AR Kit, Apple, products, home, layout, virtual products, augmented reality, industry insight
categories: Industry Insight
Thursday 11.02.17
Posted by Elf
 

How Amazon's Purchase of Whole Foods Is Poised to Reinvent the American Retail Landscape

Amazon’s $13.7 billion dollar purchase of Whole Foods earlier in August offers unprecedented vertical integration in one of the largest industries in the country - grocery shopping.

whole-foods-amazon.jpg

Amazon's recent acquisition of Whole Foods surprised many and put grocery chains on alert. Why would the e-commerce giant spend $13.7 billion to acquire Whole Foods' 460 brick and mortar stores while slashing prices? The answer lies in Amazon's expansion into grocery retail, the largest category of consumer retail and the biggest untapped market for Amazon. Getting Whole Foods grocery store customers offers Amazon access to a larger retail market with persistent demand and access to a wealth of data to inform its expansion. It's clear Amazon believes that the future of grocery shopping lies online.

By slashing Whole Food prices by as much as 43%, Amazon can offer healthier food options affordably to larger markets in areas typically dominated by grocery supermarket chains like Kroger, Walmart and more. Supermarket chains lost $12 billion in value after Amazon's announcement to slash Whole Food prices. The grocery stores had already taken a massive hit after Amazon's purchase of Whole Foods was made public.

As Amazon acquires new Whole Food customers, the company also expands its core business based on free delivery services through Amazon Prime. Amazon Prime is a popular subscription option for just $10.99/month or $99 for the year and in use by 80 million Americans annually, according to 2017 data estimates by the Consumer Intelligence Research Partners (CIRP) firm. Amazon announced that Amazon Prime will become the customer rewards program for Whole Foods customers, thus giving special savings and in-store benefits to Prime members. Amazon hopes to convert Whole Food customers into Amazon Prime members.  In essence, the company has found a way to vertically integrate consumption. How many companies do you know that offer you options to buy the latest book you want to read, watch movies for free (through your Amazon Prime subscription), send a gift to a family member, order groceries and buy clothing, home appliances and technology products all on the same site? 


Anticipating Grocery Needs and Desires via Access to Consumer Data and Insight

Your purchase habits and even browsing history are not going unnoticed. Amazon already uses that information to help provide you with better recommendations for products you may want to have right away or later. Amazon is arguably the world’s greatest organizer of consumer data - both purchasing and intent - already. Adding fresh groceries and the power of a well established brand such as Whole Foods, offers a whole new level for the technology giant to compete at and a segway into the $800 billion dollar annual food and beverage marketplace.

Amazon is already masterful in providing useful recommendations. These recommendations can now extend to your grocery shopping, including replenishing supplies when low or finding and ordering groceries for recipes on the go or using Alexa. Since Amazon already remembers your purchasing history so well, you can benefit from discounts, coupons and other privileges that you do not have to the same degree with your local grocery store. This incentive in turn, encourages you to shop more with Amazon online, enjoying both convenience and better pricing. For Amazon, this leads to more customers, greater customer retention and a longer, more rewarding customer lifecycle.

Purchasing Whole Foods helps Amazon gain even more data, specific to grocery shopping. Amazon's mastery of how to leverage data is already apparent in its booming e-commerce business. Access to Whole Foods' customer data will help Amazon better understand the needs of customers, predict new behavior and create a long-lasting, loyal customer base.
 

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Whole Food data helps Amazon understand the grocery buying habits, patterns and preferences of customers. This insight adds to Amazon's ability to see the connections between different product purchases across categories. All of this data in turn, provides more insight into the needs and wants of customers.

Grocery shopping is something most people do every week. Unlike e-commerce products such as technology or apparel, grocery shopping is essential, frequent and also habitual. This kind of insight into consumers is very valuable as it enables Amazon to tailor individual grocery shopping experiences. Amazon can also upsell other products like it is already doing at Whole Food stores by offering Amazon Echo products right next to fresh produce. While selling technology products next to grocery store items may not be easy at a local grocery store, this combination and others may grow in popularity now through Amazon.

Existing Whole Foods customers also are considerably more affluent than shoppers at other grocery stores, with $1000/month available in discretionary income on average, according to Business Insider. Upselling new products is a natural next step, as well as offering convenient delivery services same day through Prime Now or in the next two to three days via Amazon Prime.

From a customer's point of view, Amazon's purchase of Whole Foods offers convenience. For example, if a customer just finished a favorite snack or grocery staple, Amazon will then remind the person to buy more right when he or she needs it. With just a click of a button, you can have it delivered to your doorstep - no driving, no fuss.


Photo of Whole Foods CEO John Mackey via AP

Photo of Whole Foods CEO John Mackey via AP

Disrupting Existing Grocery Store Chains

How will Amazon's purchase of Whole Foods and expansion across the country, change existing grocery store chains? While the full extent of Amazon's entry into the retail grocery store marketplace remains to be seen, some changes can be predicted. Existing stores and big grocery chain giants such as Kroger, Costco and Walmart will have to compete with Amazon's known brand quality assurance and speed as well as ability to offer lower prices. 

Amazon is known for its swift, easy and personalized shopping experience. With just a click of a few buttons, you have ordered what you wanted, discovered a few things along the way and got the best prices and quickest delivery. 

“Why would you want to shop anywhere else?”

Grocery stores may slash prices in certain categories and items to keep pace with their new rival. They may also go out of business if they cannot adapt quickly enough or are unable to recognize the areas that they can excel in and dominate.

In other industry sectors, Amazon already owns several brands of its own, particularly in apparel such as Lark & Ro, Ella Moon and Ma and others and even its own movies such as Manchester by the Sea. Companies like Kohl were forced to adapt quickly by creating their own private labels - basically their own differentiated product - so that they could survive and thrive. After numerous mishaps, Kohl's private brand now accounts for 50 percent of all of its sales.

Grocery stores may also have to adapt in a similar fashion by providing more groceries with their own brands that their customers love.

In the immediate interim, customers can still continue to shop right at the 460 Whole Food stores available in 42 states that now fall within the Amazon family. In some respects, this will help customers who may be reticent about buying groceries online to keep purchasing at their favorites stores - just at more affordable pricing and with better discounts and access to other products via Amazon.

Accelerating Food Delivery Services to Your Home

Food delivery via Amazon is already a popular service, whether done online or via the mobile app. With the ability to order groceries now and also have same or next day delivery, Amazon is now a top competitor for providing groceries - something you need every week. The company still offers its personalized, speedy and secure checkout process online, which in many ways, is better than a direct purchase within a store. 

A customer can also stay on budget, buy just from a pre-planned shopping list and place orders quickly without waiting in long lines or trying to find a parking spot in a crowded grocery store parking lot after work.

Lower Prices and Access to Healthier Food More Affordably

One of the biggest arguments for a person to continue to shop at any given grocery store is the cost of food. Buying locally often saved the customer money as there was no shipping cost involved. There may be a cost for traveling to and from the store. Purchasing healthier food typically involves higher costs. Healthier food is often more expensive than versions filling most grocery aisles today that are loaded with saturated fats, GMO, high fructose corn syrup and synthetic ingredients that are hard to pronounce. Even as public education about nutrition and food quality has improved, cost has remained a significant barrier to buying healthy food.

Amazon did not delay in taking action to address this. Within just three days of the FTC approving Amazon's purchase of Whole Foods and its first day as new owner, Amazon slashed prices by as much as 43 percent! While some products remained the same, there were significant changes to prices on popular and quickly consumed foods such as bananas, eggs, avocados, chicken, beef, salmon and more.

Pricing was formerly a barrier to entry for new customers at Whole Foods and Amazon's lowered pricing has had an immediate positive effect for consumers while disrupting the food retail industry.

Amazon's bold move offers a way for consumers to have access to healthier foods more affordably. It also forces food retailers to adapt quickly and come up with more effective pricing strategies.
 

Photo via Whole Foods on Facebook

Photo via Whole Foods on Facebook

Changing the Suburban and Strip Mall Landscape

Without a doubt, Amazon's foray into the grocery store marketplace will have a tremendous impact upon the industry. But its reach extends beyond just brick and mortar grocery stores to their environments. Many grocery stores are in suburbs or in strip malls. As customers buy more groceries online, they will be less likely to spend their time in strip malls. There will be fewer physical grocery stores, just like the disappearance of bookstores over time after Amazon changed the way people discover and buy books.

Maybe former strip malls and grocery stores will be converted into distribution centers or fulfillment centers. Recently, Amazon filed a patent application for drone towers in city centers. These drone towers will have their own warehouses and loading docks. 
 

Amazon Will Have to Grow Its Own Distribution Networks

Finally, in addition to its effect on grocery chains, Amazon's purchase of Whole Foods will also require that the company build better distribution networks across the country. As Amazon builds this and supplies customers with fresh groceries, recommended items and other products on their wish lists, food retailers across the country will also have to adapt in providing speedy delivery and high quality products at lower prices.

In conclusion, Amazon has raised the bar in terms of convenience and affordability and in anticipating consumer needs and desires with its vertically integrated, swift shopping experience personalized to each customer. At the very least, customer grocery store shopping experiences will improve. We can expect savvier shoppers and hopefully, healthier ones too.

How will the American retail landscape look in the years to come? While the answer remains to be seen, we would love to see some of these strip mall areas and former grocery stores turned into parks and community green spaces.

 
tags: Amazon, Whole Foods, grocery store, retail, stores, online, e-commerce, delivery, food, quality, cost, affordability, demand, consumer expectation, access, learning, change, growth, planning for growth
categories: Industry Insight
Wednesday 08.30.17
Posted by Elf
 
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