|
Shopping center developers, owners and managers that are looking for new
ways to attract and entertain shoppers - and keep them shopping longer -
have a lot of tools to choose from these days. A wide array of video and audio technologies are now available to create
multimedia displays of a scope unimaginable even five years ago. Meanwhile,
the cumbersome old ATM kiosk of the 1980s has evolved into an informational
and promotional center that, more often than not, is connected to the World
Wide Web. Speaking of cyberspace, today's smart center owners don't fear
Internet shopping as they did only a year or two ago; instead, they are
setting aside space in their malls for facilities that enable shoppers to
surf the Web in between visits to their stores. There are entirely new worlds that are opening up for those who make their
living in the retailing and shopping center industries - and we have the
latest in multimedia and interactive technologies to thank for that. Check
out what the vendors appearing on the following pages have to offer and
remember - whatever you want to do, there's a technology out there for you. NEW VIDEO TRENDS
"Traditionally, retailers have used video in stores to entice people to
move into a particular location, entertain them, and influence them to
buy," according to Craig McManis, director of marketing for Long Beach,
Calif.-based Pioneer New Media Technologies (www.pioneerusa.com). A
subsidiary of Pioneer Electronic Corp., the company is a manufacturer of a
variety of products, including industrial DVD-Video players. In the "old days," recounts McManis, retailers used to hang TV monitors in
their stores to entice, entertain, and influence shoppers - but the
monitors themselves were usually bulky and unattractive, and the images
they presented were not particularly compelling. The late 1980s/early 1990s
saw the evolution to projection-cube video walls, typically comprised of
stacks of video monitors that create a series of diagonal images. With this
type of configuration, notes McManis, "You can create a large, virtually
seamless video image, a great tool for big images that performs well in
ambient light." One example of this type of technology at work can be found at San
Francisco's Discovery Channel Store at the Sony Metreon. Here, a 120-foot
long video wall system, engineered by Burbank, Calif.-based Innovative
Design Technologies (www.innovativedesign.com), displays MPEG2 encoded
Discovery Channel programming, animation and other "tidbits designed to
engross and engage visitors," according to company co-founder Brett
Armstrong. This video wall system consists of 72 Sony 50-inch cubes in a 2
by 36 configuration, he notes, "and looms high above shoppers in the 11,000
sq. ft. outlet." FIBER OPTICS AT WORK
Denver-based Stratavision Inc. (www.stratavisiondisplay.com), a division of
American Shizuki Corp., utilizes fiber optic technology that "delivers
superior quality, seamless images that can be seen up close and at maximum
viewing angles," says company president Chuck Robertson. Stratavision is a large-format, non-matrixed/non-modular video display that
accepts all standard video formats. It uses fiber optics to deliver a
single, high-resolution image on screens ranging from 50 inches to 200
inches in size at distances of from 6 feet to 50 feet. "The fiber optic
technology actually lets us bend the picture without distorting it," says
Robertson, "allowing us to customize the size and shape of the screen." The first installation of Stratavision in a retail mall is slated for
August, reports Robertson. In addition to providing a medium by which mall
owners/developers can generate new revenue streams (through sales of video
ads), Stratavision "provides a new attraction for the mall and a more
entertaining mall experience," he says. Also, Robertson says that, "For
mall retailers, it [Stratavision] provides an opportunity for high-quality
advertising right inside the mall, when customers are close to their stores
and in a buying mood." UPDATABLE SIGNAGE
Exciting things are happening in the world of "updatable digital signage."
This trend represents the latest in the evolving use of video in the retail
setting, says Pioneer's McManis. Updatable digital signage is based on a product known as a "plasma display
panel," according to McManis, of which Pioneer New Media Technologies
produces several models. "These are like lightweight televisions or
computer monitors, less than 4 inches deep and 40 inches to 50 inches
diagonal, that a designer can comfortably hang nearly anywhere inside a
store." Plasma display technology, combined with the wealth of content made
available by computer technology and the bandwidth of the World Wide Web,
makes possible signage whose messages can be changed instantly, according
to McManis. This is changing the way in which many retailers and mall
owners do business, he says. "A clothing retailer, for example, can have someone sitting at a desk in
the home office, monitoring both a stock control screen and a digital
signage screen on their computer," explains McManis. That person can note
that the weather in the Southeast is extremely hot, and decide to promote
sales of shorts and T-shirts in the retailer's stores as a result. "That
individual pushes a few buttons and downloads some content via the Web to
the updatable digital signage in specific stores in the Southeast region,"
he says. "In turn, that same person can check the stock control screen, and
almost immediately check the response to the promotion as it runs." SOUNDS
While visuals are an important part of creating a distinctive environment
for retailing, sound is also a powerful tool, notes John Miceli, president
of Orlando-based Soundelux Showorks (www.soundelux.com). Sound is intrinsically more interactive in its application, according to
Miceli. "It is different from watching a visual, where the content is
completely controlled and presented," he says. "When used correctly, sound
can create an atmosphere or a mood, or take a mood a little further, by
causing people to tap into their own imaginations." Soundelux Showorks specializes in systems design and installation. A
production arm offers digital sound design, music composition, digital
dialog recording, and post editorial for feature films, television, theme
parks and special venues. The company's systems division specializes in the
design and installation of audio, video, lighting and show control systems
for high-technology entertainment venues, including theme parks,
simulators, theaters, casinos, resorts, performing arts centers and themed
retailers and restaurants. On the retail side, Soundelux clients have
included The Official All-Star Cafe, NikeTown, and Mills Corp.'s Ontario
Mills (Ontario, Calif.) and Katy Mills (Houston). At the same time, the use of sound in creating atmosphere in a mall is very
cost-effective. "For the experience that can be created," notes Miceli,
"audio technology is very available and very reasonable in cost." AN IN-MALL NETWORK
Sights and sounds are brought together by Irvine, Calif.-based Skytron
Corp. (www.skytron.com) in the form of its national large-screen mall
network. The Skytron Network delivers this programming on patented 4 ft. by 7 ft.
HDTV tri-screen displays. These are suspended in mall food courts and other
outside-the-home venues, forming multi-sided systems that engage audiences
from every direction. Additionally, each screen is individually
Internet-addressable, enabling programming and advertising to be
specifically tailored to individual locations. Programming is centrally controlled and distributed via the Internet and
satellite, according to Skytron chairman and CEO Joe Salesky. Programming
includes lifestyle, fashion, food, sports and entertainment, he notes, much
of it provided by New York City-based Centerseat Inc. (www.centerseat.com),
a global digital media and commerce facilitation company. TAILORED PROGRAMMING
Mall managers can switch between Skytron's network offerings and local
programming, adds Salesky, enabling them to provide features such as local
sports events or other items of interest to local mall shoppers. Addressing shoppers that are already inside a mall is the main purpose
behind the Skytron system, says Salesky. This is a relatively untapped
field when it comes to advertising, he notes. "Research has shown that approximately 70% of all purchasing decisions are
made within a mall, and that 68% of all consumer products are purchased at
the mall - but only 1% of advertising is expended there," explains Salesky. Building upon other research showing that 33% of all mall traffic winds up
in the food court, Skytron places its displays in this strategic area. "The
food court is a part of the mall where people are seated and receptive -
very much like a television viewing audience at home," notes Salesky. But,
unlike a home viewing audience, "Shoppers in a food court are aisles, as
opposed to miles, from products," he explains, "and because they are in the
mall, they are receptive to hearing ads about products." The Skytron Network's programming is interspersed with advertising spots,
typically following a 1.5-minute ad spot with a 3.5-minute non-ad segment
pattern, according to Salesky. "Advertisers get their spots placed, not
against a bunch of other ads, but against a program appropriate to their
audience," he explains, "so that they can effectively reach a particular
demographic." The Skytron Network is currently being deployed throughout the mall
portfolio of Chattanooga, Tenn.-based CBL & Associates, adds Salesky,
following the completion of a pilot program in three of the REIT's
Nashville-area malls. BRICKS AND CLICKS TOGETHER
Smart shopping mall owners and managers no longer view Internet-based
retailing as a threat, according to Brent D. Earles, executive vice
president of Sales & Marketing for Irving, Texas-based BigFatWow, Inc.
(www.bigfatwow.com). This company's product, BigFatWow!, is an
entertainment destination that provides free, high-speed Internet access
and HDTV quality programming for mall shoppers. Launched this past April,
the company, as of this writing, has agreements to place its "Wow Centers"
in 20 malls (see sidebar on page 108). "What we are seeing in the shopping center industry is the kind of
evolution we saw with other industries in their relationship with the
Internet," says Earles. "After 1998's year of curiosity, 1999 was a year of
resistance by the shopping center industry to the Net and e-commerce," he
notes, "with 2000 shaping up to be a year of acceptance and integration." A Wow Center consists of up to 12 Internet computer stations/"Wow Stations"
equipped with full T-1 access, explains Earles. These stations allow for
comprehensive Internet access with site-blocker software ensuring that
these public stations remain family-friendly, he notes. In addition, Wow Centers are configured to accommodate up to six 42-inch,
flat-panel, gas-plasma displays with HDTV capability, plus six 27-inch TV
monitors. Sound cones deliver high-quality sound at strategic points for
programming and advertising where audio is essential. Benefits to mall owners include incremental revenues from the Wow Centers,
according to Earles. Also, "Mall owners can integrate their Internet
initiatives directly into their malls," he says, giving them "the power to
promote mall-specific advertising, branding and customer service features."
Meanwhile, "Wow Centers keep shoppers in malls longer with a fun,
entertaining experience," says Earles, "while building loyalty by providing
a convenience and a service to shoppers." KIOSK KORNER
Today's kiosk represents a huge leap forward from the original ATM
(automated teller machine), according to Doug Fonte, CEO of North Salt
Lake, Utah-based Companion Systems (www.companionsystems.com), a maker of
drive-up kiosks and canopies, interactive kiosks, surrounds and enclosures,
and financial centers. Not only has technology grown more advanced, its uses have also multiplied.
"The reach of the kiosk has gone far beyond the limited transaction
capability of the old ATM - what we see happening with them now in shopping
centers is definitely multifaceted," says Fonte. "In today's center," he
notes, "kiosks can entertain, they can inform, and they can also connect
you to virtually anybody's Web site." "The use of kiosks is growing in retailing because, in my opinion, they
provide a new and easily accessible channel to consumers," according to
Karen Etingin, vice president for public relations at Mountain View,
Calif.-based VDO Road Digital Inc. (www.vdoroad.com). This company provides retail, "e-tail" and mail-order businesses with
customized broadband solutions that include the multimedia, Web-enabled
e-commerce kiosk ROADAGENT. This is an interactive shopping agent/kiosk
whose features include touch-screen access, secure credit card
transactions, high-quality video and audio for product presentation, and
software that allows shoppers to browse product information, listen to
product videos, and place orders for delivery. A CASE FOR KIOSKS
There are other reasons for the kiosks' growth in popularity, says Etingin.
"There is the novelty aspect, a growing ease-of-use aspect, and there is
the fact that consumers can shop from the comfort of their home, the
privacy of their laptops, and increasingly, from kiosk locations within
malls and shopping centers," she explains. Some barriers to widespread use of shopping kiosks remain to be overcome,
says Etingin. "Technological hurdles include the need for broadband
connections in locations that may not currently have them," she notes, "as
well as the cost of Internet connections in malls and shopping centers."
But, she adds, "I feel that once landlords begin to see and understand the
value of terminals and kiosks, internet/broadband access will increasingly
be viewed as a necessity for their tenants, rather than a tenant
improvement." Many landlords have apparently already gotten the message in some form or
the other. There are currently some 250 Centerlinq kiosks in 20 malls in
the United States, reports Melanie Baker, director of marketing for Van
Nuys, Calif.-based Centerlinq (www.centerlinq.com). This company's kiosks
are the backbone of an interactive marketing, advertising and promotional
network located within shopping malls and accessible by consumers via the
Internet. This mall system consists of large video monitors in common areas such as
food courts, and interactive touch-screen videos in other key high-traffic
areas. Consumers can repeatedly access the Centerlinq system for
money-saving coupons, sales notices and premiums; meanwhile, advertisers
can have links to their Web sites featured on the system. NON-RETAIL DEPLOYMENT
Outside the shopping center, "We have found that e-tailers are searching
for affordable points of contact with the public, and the e-commerce kiosk
is the way to give them just that," according to Rohit Bhapkar, director of
strategic relationships and marketing for Etobicoke, Ontario-based e-smart
Commerce (www.e-smartcommerce.net). This new company, which began operations this past February, plans its
first kiosk deployment for August 2000, Bhapkar reports. The lobbies of
rental apartment buildings are the initial target for kiosks that allow
tenants to shop online for groceries, pharmacy/drug items, books, recorded
music, and possibly toys and/or pet supplies. "Tenants are eagerly looking forward to the service," says Bhapkar. "They
have given great responses in the surveys and focus groups that have been
conducted," he says. "In particular, our tenant survey revealed that 15% to
45% of tenants, depending upon the item, would use the kiosk to actually
shop for these items." SHOPPERS MONEY BOARD
Currently deployed in a number of grocery stores in various Minnesota
markets, the Shoppers Money Board (SMB) is a proposed nationwide network of
instant coupon/store location touch screen systems, according to John
Matthias, president, owner and creator of St. Louis Park, Minn.-based
Shoppers Money Board (www.shoppersmoneyboard.com). Designed to be located at the mall and retail store entrances, the Shoppers
Money Board is a type of kiosk with a large interactive touch screen, 3
feet high and 4 feet wide, that is capable of displaying 48 product spaces.
When a particular space on the touch screen is pressed, a money-saving
coupon is quickly printed. This system quickly and easily allows consumers to obtain store coupons and
locate the store within the mall, eliminating the need to clip coupons or
remember to bring them to the store. "My intent was to make this as easy as
possible for consumers to use," says Matthias. "Customers simply touch a
product space and the coupon for that product is printed in seconds," he
notes. In addition to the value offered by the coupon, the colorful lighted touch
screen presents the product brand image in an attractive manner, says
Matthias. "In effect, the Shoppers Money Board serves as an
in-mall/in-store billboard," he says, "capable of delivering promotions
that meet the needs of today's consumers in areas such as brand selections,
new products information and additional bounce-back product savings." AT THE POINT OF SALE
Your customers have been lured into your store by an array of sights and
sounds. You've directed them to the merchandise you needed to move
yesterday. They have availed themselves of money-saving coupons at one of
several kiosks located in and around your store. Now they're ready to check
out. What better time to cross-sell them other products or services, offer them
an extended service plan on their purchase, or gather some information
about them? That's the concept behind the POS marketing technology offered
by San Jose, Calif.-based ReceiptCity.com (www.receiptcity.com). ReceiptCity.com ads show up on Web-enabled color terminal displays located
at checkout counters. Along with the line-item listing of purchases, the
system flashes ads, on-screen coupons, information about in-store
promotions, and messages to the customer that is checking out. Everything
that the customer sees is targeted precisely to his/her own purchases - pet
food ads go to people who buy pet food, diapers to those who buy diapers,
etc. Retailers utilizing this system can customize messages to different
situations, according to ReceiptCity.com marketing communications manager
Anne Knight. "And importantly, ad presentation does not extend payment
transaction time," she notes, adding, "The number of ads a shopper will see
is determined by the time it takes to complete the transaction." WHAT'S NEXT?
Plasma display panels. Interactive kiosks. MPEG2 encoded programming.
Large-format video displays. Look at the multimedia and interactive
technologies of today - and behold what's on tap for the retailing of the
future, says Pioneer's McManis. "First, imagine the application of today's wireless telecommunications
technologies - such as Bluetooth, a wireless communication chipset - that
we all will soon have in our cell phones and personal assistants," says
McManis. "Then picture a plasma display sign located in a mall," McManis says,
painting a mental picture. "You walk up to it and see an image of a shirt
you might like to purchase. Your personal assistant with Bluetooth starts
communicating with the sign. And the sign downloads an electronic coupon to
your personal assistant, which says that if you go to a certain retailer
within the next half hour, you'll get 20% off this shirt." The interplay of wireless technology and plasma display signs will be the
wave of the future in shopping center retailing, according to McManis. "It
will be the way for all of us to navigate through stores and shopping
centers," he says, "and it is based on real-world technologies that are in
place today."O In a deal announced this past May, BigFatWow reached an agreement with
Phoenix-based shopping center developer Westcor Partners that gives
shoppers access to the Internet, information and entertainment in the form
of "Wow Centers." Westcor's first Wow Center is slated to be launched at its new Paradise
Valley Mall, a 1.2 million sq. ft. regional center that is anchored by
Robinson's-May, Macy's, Dillard's, and JCPenney. Currently under
construction, the mall is scheduled to open in July 2000. "We're very excited about the integration of 'bricks and clicks' at
Paradise Valley," says Julie LaBenz, director of strategic marketing for
Westcor. Located adjacent to the new corporate headquarters of high-tech heavyweight
Sun Microsystems, Paradise Valley Mall is sited in a market with "a very
high-tech residential base," according to LaBenz. "We know that there is a
lot of Internet usage in this market," she notes, "and so we wanted to make
sure from the start that Paradise Valley is on the cutting edge when it
comes to this kind of technology." To be located on the mall's lower level near its main entrance, The Wow
Center in Paradise Valley Mall "opens up some enormous opportunities for
us," according to LaBenz. "First, we see it as providing an amenity for
shoppers," she notes. "At the Wow Center, they can check their e-mail and
view a wide variety of Web-based video and graphics on a high-speed
Internet connection," she explains. Additionally, "The Wow Center user interface will provide marketing
opportunities for marketing partners and sponsors," says LaBenz, "as well
as help shoppers navigate the mall and find what they want." Like growing numbers of traditional retailers, mall developers such as
Westcor are taking a more positive view of the e-commerce world of the
Internet, opening the way for concepts such as the Wow Center, says
BigFatWow executive vice president Brent Earles. "I think [these groups] are starting to realize that e-commerce is not the
enemy - any more than catalog companies were when they first hit the
scene," according to Earles. "As a matter of fact," he notes, "some of the
greatest stores you see in malls today started out as catalog companies." Westcor plans to open additional Wow Centers in other malls in its
portfolio later this year. "We are always interested in adding value to our
shoppers' experience," adds LaBenz "By installing a Wow Center, we increase
our mall's functionality and enhance the services shoppers can enjoy," she
notes. At the same time, "BigFatWow's ability to help define and implement
Westcor's Internet strategy is also a powerful component of this alliance,"
according to LaBenz.
|