The Carousel of Progress may be a whimsical ride at Disney World, but in the realm of retail technology, it serves as a poignant reminder that the future is not just a distant dream – it’s here.
During the holiday season, my family and I had the opportunity to visit Disney World, where an unexpected epiphany happened on the Carousel of Progress in Magic Kingdom. For those unfamiliar, this ride serves as a homage to Walt Disney’s World’s Fair exhibit, offering a speculative exploration of future technologies. As the ride guided us through the years, reaching a period dubbed “the future,” we encountered visions of virtual reality headsets and voice-command-operated smart appliances, once deemed fantastical. The ride really made me sit back and marvel at the fact that the future has arrived. Transitioning to the first week of 2024, recent headlines, particularly those from major retailers such as Walmart and Amazon, reinforced this sentiment, prompting contemplation on the extraordinary advancements in retail technology that are shaping our contemporary reality.
Let’s start with Walmart. In a Women’s Wear Daily article from January 9th, Adriana Lee reported on the new tech that Walmart rolled out at the Consumer Electronics Show in Las Vegas this month. Their announcement covers 3 major categories that all retailers should be paying attention to.
First, they are diving into the world of social media with an augmented reality community platform called Shop With Friends. It allows people to shop and try on items virtually and then share that experience with their friends. Sounds like a virtual trip to the mall. You could even get Orange Julius delivered to complete the experience!
Next, they are ramping up their generative AI search capabilities by allowing customers to search a lifestyle or theme, and the tool will draw together appropriate products from across the store. They are partnering with Microsoft to leverage the company’s large language models to improve results. Collaborations like this should greatly speed up innovation and quality.
Lastly they are going after their last mile fulfillment initiative in part by enlisting drones to expand their reach to nearly 2 million homes in the Dallas area. Success will undoubtedly lead to expansion.
Now on to Amazon! They are working on an AI driven shopping assistant designed to offer better personalized recommendations. In a Retail TouchPoints article from January 8th, Adam Blair outlined how they are using large language models to improve size charts across multiple brands and they are rolling out Fit Review Highlights which scans through relevant customer reviews to recommend sizing up or down.
There’s no question that innovation will be a growth diver in 2024 and beyond. Walmart is embracing collaboration with Microsoft to supercharge their results, and other companies will undoubtedly do the same as they look for competitive advantage and the growth that comes from improving their customer’s experience. One of my favorite AI driven tools is Lily AI which is making waves by using large language models, coupled with a strong dose of human expertise, to create a generative AI driven search engine that allows customers to search in consumer as opposed to retailer language. In a WWD interview with co-founder Purva Gupta, Lauren Parker reviews the origins of the company as well as the vision forward. What strikes me most is that the combination of AI and industry expertise seems to be a major factor in the product’s success. It’s currently being used by both Retail and DTC, and serves as a great example of good tech applied to a pain point that is increasing business.
The retail tech frontier, as showcased by Walmart, Amazon and companies like Lily AI is a realm of boundless opportunities and challenges, and it is through adaptation and strategic integration that companies will navigate this terrain successfully. The Carousel of Progress may be a whimsical ride at Disney World, but in the realm of retail technology, it serves as a poignant reminder that the future is not just a distant dream – it’s here, and companies willing to embark on this tech odyssey will undoubtedly shape the retail landscape for years to come.
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