Revolutionising retail: Smart mirrors provide a glimpse of future shopping


Dana Alomar
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A new wave of augmented reality mirrors are set to transform fashion and retail by offering people the opportunity to virtually try on clothing in real-world scenarios.

These mirrors provide an immersive experience by overlaying computer-generated 3D content on to the physical environment.

Zero10's AR Mirror concept represents a retail innovation that shows how conventional digital screens in physical stores can be transformed with AR software.

Speaking with The National at the Seamless Middle East 2024 event in Dubai, George Yashin, founder and chief executive of Zero10, emphasised how this pioneering solution heralds a new era in retail engagement, providing virtual try-on features that elevate customer interaction, increasing foot traffic in stores, enhancing advertising recollection, and collecting invaluable consumer insights.

Zero10's booth at Seamless Middle East 2024
Zero10's booth at Seamless Middle East 2024

“When we put our mirror right in the store window, it brings a lot of customers to the store. So, we drive traffic a lot,” he said.

Recently, fashion brands have experimented with technologies like augmented reality and virtual reality to enhance their in-store and online experiences.

Coach, for instance, utilised these AR mirrors and storefronts to enable customers to virtually try on items such as the Tabby bag, effectively bridging the gap between online and offline shopping experiences.

As a fashion brand owner 14 years ago, Mr Yashin realised people were tired of seeing the same things repeatedly when he was at Paris Fashion Week, and as soon as the Covid-19 pandemic hit, he decided to think about how technology could reshape the fashion industry.

Since the launch of the AR mirrors in early 2023, notable brands such as Tommy Hilfiger, UGG, Macy's, and Disney have also embraced Zero10's AR and AI solutions to enhance customer engagement and elevate the retail experience.

A shopper uses Zero10's virtual try-on AR mirror at a Coach store.
A shopper uses Zero10's virtual try-on AR mirror at a Coach store.

Children showed the most enthusiasm for the AR mirrors, expressing excitement and curiosity. This heightened interest among kids contributed significantly to the brand's visibility and ultimately boosted business.

“We saw it in a Macy’s x Disney project, and as a result of a two-month pilot started last year, the activation has been extended twice till the end of this May.”

Zero10 has traditionally operated in the American and European markets, but this year they are targeting entry into the Middle Eastern retail sector.

"In 2024, our primary focus will be on the Dubai market and the entire Middle East because there are many exciting developments happening here," he explained. With numerous fashion retail stores and malls opening in the region, Yashin is confident that Zero10's solutions will align well with the market's needs.

In recent years the retail industry has undergone a significant transformation driven by technological advancements, innovative gadgets and the global impact of the Covid-19 pandemic.

The rise of self-checkouts, click-and-collect order processes, and digital apps have reshaped traditional brick-and-mortar stores into dynamic "bricks and clicks" environments.

The global e-commerce market will surpass $6.3 trillion this year, marking a notable increase from $5.8 trillion in 2023, according to eMarketer, a leading market research company.

The forecast indicates a thriving e-commerce landscape, with projections suggesting sustained growth. By 2027, experts predict the industry will exceed $7.9 trillion, highlighting online retail platforms' immense potential.

Despite e-commerce's promising prospects, the industry's rapid expansion has led to retail outlet closures.

PwC UK reported that more than 14,000 outlets owned by multiples and chains, comprising five or more stores, have vacated high streets, shopping centres, and retail parks.

The closure is a trend reflective of shifting consumer preferences towards online shopping.

With the e-commerce sector evolving, businesses face a compelling imperative to embrace digital transformation and capitalise on its potential.

Digital technologies provide such an opportunity, making it possible to enhance operational efficiency and reduce face-to-face interactions.

A recent IBM survey involving nearly 20,000 global consumers highlighted the growing interest in digital integration across both online and in-store shopping experiences.

Findings revealed that three in five consumers express a desire to utilise artificial intelligence during their shopping journey.

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Production:

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Range:

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

What is graphene?

Graphene is a single layer of carbon atoms arranged like honeycomb.

It was discovered in 2004, when Russian-born Manchester scientists Andrei Geim and Kostya Novoselov were "playing about" with sticky tape and graphite - the material used as "lead" in pencils.

Placing the tape on the graphite and peeling it, they managed to rip off thin flakes of carbon. In the beginning they got flakes consisting of many layers of graphene. But as they repeated the process many times, the flakes got thinner.

By separating the graphite fragments repeatedly, they managed to create flakes that were just one atom thick. Their experiment had led to graphene being isolated for the very first time.

At the time, many believed it was impossible for such thin crystalline materials to be stable. But examined under a microscope, the material remained stable, and when tested was found to have incredible properties.

It is many times times stronger than steel, yet incredibly lightweight and flexible. It is electrically and thermally conductive but also transparent. The world's first 2D material, it is one million times thinner than the diameter of a single human hair.

But the 'sticky tape' method would not work on an industrial scale. Since then, scientists have been working on manufacturing graphene, to make use of its incredible properties.

In 2010, Geim and Novoselov were awarded the Nobel Prize for Physics. Their discovery meant physicists could study a new class of two-dimensional materials with unique properties. 

 

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Safety 'top priority' for rival hyperloop company

The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.

He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.

“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.

“Only once the system has been certified and approved will it move people,” he said.

HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon. 

With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.

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