Sneaker
Case Study

Furniture Showrooms

Microchips attached to furniture on the showroom floor provide potential buyers a new interactive way to shop. Retail stores gain new insight about their business and reduce costs.

The Problem

Sales Personnel Cut Into Margins

On average, sales associates make about $10 an hour. These labor costs add up due to relatively long hours and sales personnel. In fact, their payroll constitutes about 10% of all the costs stores cover.

Onsite Inventory is Expensive

Furniture stores devote on average 22% of their total space to a warehouse area. Retailers have to pay shipping costs to two times–to receive the furniture and again to send it to the customer. Seasonal or trendy furniture becomes obsolete and practically impossible to sell as time wears on.

The Solution

By affixing a microchip-enabled smart tag to furniture, customers can interact with products in the showroom environment with their smartphone.

Advantages

1.
Reduced Costs

This approach dramatically reduces the need for in-store sales reps, eliminates the need for in-store POS, and eliminates the need for in-store inventory.

2.
Loss Prevention

In addition, the chip verifies that a product is authentic, making it impossible for a fraudster to return non-authentic items, which has become a problem for some Brands in the era of counterfeits.

3.
Customer Engagement

Customers spend less time researching products before hand and more time engaging with items in the store.

4.
Seamless Purchase Experience

Allows shoppers to buy the item in-store or save to a wishlist at the touch of a button. Half of brick & mortar retail customers “showroom”– look around the store and then buy online instead. This process would be expedited and made far less tedious by seamlessly making the purchase on a smartphone in the store.

5.
Better Product Information

Provenance, materials, and design inspiration are things that can added to this experience. With this information, consumers can make more deliberative choices and do so with more confidence.

6.
Distributed Work Force

Customers can freely learn about items without the having to wait while for a sales associate. A digital chat experience can be fulfilled instantly from a call center.