Tag Archives: Fashion

The glass was cracked, not broken


Google Glass is back

Customer value

Advances in wearable computing are affecting both the consumer and business space. Where wearable computing used to be science fiction territory, devices are now reaching the mass market for consumption, with the Google Glass being the most high-profile example: a pair of glasses augmented with a small display and a tiny computer with wireless networking and GPS functionality. At its core, it is just a tiny mobile computer with novel display technologies and user interfaces. This might seem unimpressive, but what is impressive is that the Glass puts the display directly in the user’s field of view and creates a user interface based on voice, gestures and taps of the glasses’ frame. (Gray, 2013) 

B2.1

The challenge with these wearable gadgets is to find a value proposition. Smart glasses need to add to the reasons people put glasses on their face. When the Glass was released, Google hoped that the early adopters would flesh out the value proposition, but the biggest challenge turned out to be the form factor of the Glass: many people do not enjoy wearing glasses. Given this behavioural observation, the value proposition to keep the Glass on your face had to be a good one. (Benbajarin, 2013)

Business model

The business model is an ecosystem platform and like all platforms, it uses an army of developers trying to create new value-adding apps. (Dashevsky & Hachman, 2014) Partners that built apps for the Glass ecosystem included Twitter, Facebook, CNN and Elle (Gaudin, 2013). Actually, Google did not really know what to do with the Glass, which is why they built a developer program first, attempting to use the wisdom of the crowd. (Shaughnessy, 2013)

Let’s have a look at the components. It all started with a product idea. The next step was validation. Through a crowdsourced competition, Google tried to find out what the Glass could be used for. The third step was rapid evaluation of the ideas. Next, the ecosystem was formed and developers were selected to line up in the ecosystem. The fifth step was financing and acquiring funds. The last component was the proposal of a tentative launch date of the Glass and improving, or iterating, the design with customer feedback.

Reflecting on this business model, it is obvious that Google’s own investments were relatively low, even after the invention phase was over. The developers were the ones bearing the costs. Therefore the main risk for Google was not a financial risk, but a reputational one: the risk of not getting the product right and having to close the project. (Shaughnessy, 2013)

Institutional environment

 Shortly after its launch, people began to fret about the social implications. Two questions dominated the debate: (1) Is the video component of the Glass a threat to our privacy? (2) Will people be able to concentrate on what is in front of them when they get distracted by the internet all the time?

Privacy

The problem is that people cannot consent to filming or being filmed by the Glass. With the Glass, Google is able to compute what a user is seeing and the idea that you can become part of someone else’s data collection was quite alarming to many. (Arthur, 2013)

“With a phone, the person I am taking a picture of will notice me; with the Glass nobody knows whether or not they are being watched, no matter what they are doing.” (Arthur, 2013; Klepic, 2014)

The Information Commissioner’s Office (ISO) warned about the use of wearables and the resulting chances on breaches of the Data Protection Act. The Glass’ wide scope for data collection led to more chances for breaking UK law than any other device. (Fox-Brewster, 2014) Should movie theatres, concert venues and casinos try to ban the Glass? And how are corporations going to stop employees from photographing confidential trade documents? (Klepic, 2014) Banning or restricting the Glass was also a major issue for restaurants, hospitals, sports grounds and banks (Gray R. , 2013)

Distraction

The second debate evolved around the question: Will people will able to concentrate on what is in front of them when they get distracted by the internet all the time? This legal question was about the safety of using the Glass in traffic. The Glass is supposed to stop people from looking at their phones, but people are fundamentally incapable of looking away from what they are doing for a few seconds without losing their concentration. If texting and calling while driving is illegal, how could constantly incoming notifications that are only an eye movement away be legal? (Klepic, 2014)

Why the glass broke

In January 2015 Google stopped selling the Glass, that was made available as an early prototype to fans and journalists in 2013. As described in the section “Business model” Google wanted to release the Glass to the public so customers could provide feedback that Google X could use to improve the design. (Colt, 2015) However, Glass Explorers treated it like a finished product, despite everyone at Google X knowing that the Glass was still a prototype with major functionality errors to be solved. (Bilton, 2015)

The section “Customer value” already described that it would be difficult to create customer value. Google advertised the Glass in terms of experience augmentation, while in reality, no one was comfortable with wearing the camera on their face in the way of normal social interaction. (Weidner, sd) The Glass failed to be  “cool”. Google desperately tried to make the Glass seem cool by putting it on models during Fashion Week, in fashion advertorials and in the hands of fashion influencers, eventually reinforcing that the Glass was not cool. This is a typical case of a post-modern marketing failure. (Haque, 2015)

The best explanation for why the Glass failed is that it entered the wrong market. The Glass could be a transformational tool for professionals, like truck drivers, train conductors, machine operators, police or airplane pilots. The problem is that Google did not target these professional and B2B audiences. Instead, they targeted journalists and celebrities. (Monetizing Innovation, 2016)

Raise the glass “The Glass is back”

Alphabet reintroduced the Glass to the world. It officially ended its initial ambition to make the Glass a consumer device, because of privacy concerns and because of the fact that the Glass simply looked unfashionable. Finally, the potential for use in business, as a tool for training, has been acknowledged. (Tsukayama, 2017) The Glass is now advertised as an enterprise focused device aimed at the healthcare, manufacturing and energy industry. Despite the first consumer preview being unsuccessful, it did reveal the potential of using the Glass in these specific institutional contexts. (Hern, 2015)

References

Arthur, C. (2013, March 6). Google Glass: is it a threat to our privacy? The Guardian: https://www.theguardian.com/technology/2013/mar/06/google-glass-threat-to-our-privacy

Benbajarin, B. (2013, September 16). Wearable Gadgets: In Search of a Value Proposition. Time: http://techland.time.com/2013/09/16/wearable-gadgets-in-search-of-a-value-proposition/

Bilton, N. (2015, February 4). Why Google Glass Broke. New York Times: https://www.nytimes.com/2015/02/05/style/why-google-glass-broke.html

Colt, S. (2015, February 4). Google knew Glass ‘wasn’t even close to ready,’ but Sergey Brin pushed it out. Business Insider: http://www.businessinsider.com/why-google-glass-failed-2015-2?international=true&r=US&IR=T

Dashevsky, E., & Hachman, M. (2014, April 15). 16 Cool Things You Can Do With Google Glass. PCMag: https://www.pcmag.com/feature/308711/16-cool-things-you-can-do-with-google-glass

Fox-Brewster, T. (2014, June 30). The Many Ways Google Glass Users Risk Breaking British Privacy Laws. Forbes | Security : https://www.forbes.com/sites/thomasbrewster/2014/06/30/the-many-ways-google-glass-users-risk-breaking-british-privacy-laws/#3068e6e147d8

Gaudin, S. (2013, May 16). Google Glass ecosystem grows with Twitter, Facebook and CNN apps. Computerworld: https://www.computerworld.com/article/2497625/emerging-technology/google-glass-ecosystem-grows-with-twitter–facebook-and-cnn-apps.html

Gray, P. (2013, May 14). The business value of Google Glass and wearable computing. Techrepublic: https://www.techrepublic.com/blog/tech-decision-maker/the-business-value-of-google-glass-and-wearable-computing/

Gray, R. (2013, December 4). The places where Google Glass is banned. The Telegraph: https://www.telegraph.co.uk/technology/google/10494231/The-places-where-Google-Glass-is-banned.html

Haque, U. (2015, January 30). Google Glass Failed Because It Just Wasn’t Cool. Harvard Business Review: https://hbr.org/2015/01/google-glass-failed-because-it-just-wasnt-cool

Hern, A. (2015, July 31). Google Glass is back! But now it’s for businesses? The Guardian: https://www.theguardian.com/technology/2015/jul/31/google-glass-wearable-computer-businesses

Klepic, J. (2014, January 23). People Aren’t Seeing the Legal Problems Ahead With Google Glass. Huffington Post: https://www.huffingtonpost.com/jure-klepic/people-arent-seeing-the-legal_b_4113417.html

Monetizing Innovation. (2016, April 28). The reason Google Glass failed that no one is talking about. Monetizing innovation: http://monetizinginnovation.com/2016/04/the-reason-google-glass-failed/

Shaughnessy, H. (2013, May 3). Google’s Innovative New Business Model For Google Glass. Forbes | Tech: https://www.forbes.com/sites/haydnshaughnessy/2013/05/03/the-radical-new-business-model-behind-google-glass/#7715cd6a3d8a

Tsukayama, H. (2017, July 18). Remember Google Glass? It’s back and ready for work. The Washington Post: https://www.washingtonpost.com/news/the-switch/wp/2017/07/18/remember-google-glass-its-back-and-ready-for-work/?utm_term=.2f69bcd0090f

Weidner, J. (sd). How & Why Google Glass Failed. Investopedia: https://www.investopedia.com/articles/investing/052115/how-why-google-glass-failed.asp

Introducing the future of fashion with Coded Couture


“We’re about to change the fashion industry by bringing the customer’s personality into the design process through data technology”. – Aleksander Subosic, co-founder of Ivyrevel.

Finding unique clothing can be difficult; custom-made clothing is usually not affordable and designing your own piece requires design experience, which most people lack. Ivyrevel, part of the H&M Group and the world’s first digital fashion house, partnered up with Google to solve this issue by combining couture with data technology. Together, they created the Data Dress: “A personalized dress designed entirely based on a user’s context signals” (Brook, 2017).

235498-Kenza_Dress_1-8fd19f-large-1485948420

How does it work?

First, install the app and select an occasion e.g. party, gala or business, and a style for the dress. Then, simply carry your phone wherever you go (which you probably already do) and the app will use Snapshot API to learn from your daily activities, with your permission. During seven days, the app will capture context signals and ask you to confirm certain the data to ensure that it corresponds with your lifestyle. By doing all of the aforementioned, you become part of the value creation process. Finally, the data is passed through an algorithm that creates a virtual custom-made dress, ready for you to purchase.

Will customers buy the Data Dress?

According to a survey by Bain & Company, +/-30% of shoppers were interested in designing their own clothing. Furthermore, they found that unique products lead to lower return rates and create a deeper connection between shoppers and retailers (Wiggers, 2017). Thus, there is a potential market for the data dress.

235508-app-pr-visual-86d024-large-1485955461

Efficiency criterion

  • This video, shows that Kenza lives in Stockholm where it is -2°C and that she visited a fancy restaurant. Therefore, the app made her a black velvet dress with crystal details, reflecting her lifestyle. This shows that consumers will get a truly unique, on-trend, and custom-made dress. Additionally, consumers become part of revolutionizing the way we look at fashion. For fashionistas interested in technology this is the ideal combination, and it allows them to be early adopters within their community.
  • Ivyrevel aims to ‘merge fashion creativity with technological innovation.’ (Ivyrevel.com). Thus, by introducing the data dress, Ivyrevel will achieve this goal. Regarding costs, Ivyrevel is not dependent on designers and won’t need to invest much in production, since it already has a clothing line and production facilities. According to Adformatie.nl, the dress will cost €93.
  • I expect that Google will receive financial resources by allowing Ivyrevel to use its API technology. Additionally, Google enhances its positive reputation regarding technological innovation and receives positive WOM.

Feasibility of Required Reallocations

Currently, the app has launched in closed alpha stage and is being tested by selected global fashion influencers (Brook, 2016). Since not much information is available regarding the specific institutional arrangements and –environment, I will propose a few.

Ivyrevel must consider:

  • The protection of consumers’ privacy. Consumers are responsible for granting tracking permission and Ivyrevel will not share their information with other parties.
  • Safe payments within the app.
  • Production processes that are carried out under ethic conditions.

It is important that Ivyrevel makes clear arrangements for these kinds of issues to prevent problems from arising.

References

http://www.ivyrevel.com/se/codedcouture/codedCouture.html

Google blog: https://android-developers.googleblog.com/2017/02/fashion-gets-digital-upgrade-with.html

Brook, J. (2017, February 06). Fashion gets a digital upgrade with the Google Awareness API. Retrieved March 6ƒ, 2017, from https://android-developers.googleblog.com/2017/02/fashion-gets-digital-upgrade-with.html

Business Insider: Wiggers, K. (2017, February 07). Google partnered with H&M-backed fashion startup Ivyrevel to build customised ‘data dresses’ Retrieved March 6, 2017, from http://www.businessinsider.com/google-partners-with-hm-ivyrevel-for-coded-couture-project-2017-2?international=true&r=US&IR=T

Adformatie: H&M, Google en MediaMonks personaliseren jouw kleding. (2017, February 9). Retrieved March 6, 2017, from http://www.adformatie.nl/nieuws/hm-google-en-mediamonks-personaliseren-jouw-kleding

UNITED WARDROBE An Infinite Closet in Your Pocket



Imagine you bought a pair of sneakers. After wearing them a few times you realize they don’t fit properly. Even though they are as good as new, you are not able to return them. You could try to resell them online on Facebook or Marktplaats, but you have some uncertainties about safety and security. This is where United Wardrobe comes in: a hip, social and safe fashion platform.

United Wardrobe is an online platform for buying and selling second hand fashion. The key aspects of the platform are safety, sustainability and service. But United Wardrobe is more than just a marketplace platform, it is a community where you can chat with other fashion lovers, follow users and favorite each other’s products. These social functions empower users to become co-creators of value.

How does it work?
A user can create a profile and upload products for sale. The moment a buyer has paid for a product, the seller receives their contact details. As soon as the package has been received, United Wardrobe transfers the money within 14 days to the seller (United Wardrobe, 2017). This relates to what Carson et al. (1999) define as institutional arrangements, the formal and informal rules of exchange created by specific parties to a specific exchange, in this case the exchange of fashion.

The institutional arrangements of United Wardrobe meet three criteria set by Carson et al. (1999). Firstly, they are efficient in a sense that they enable joint profitability and create incentives for users to contribute. Next to this, they are feasible given the characteristics of the exchange of products. Finally, they are achievable in a sense that United Wardrobe has succeeded in growing the platform and community. These institutional arrangements allow United Wardrobe to tackle safety and security issues such as scamming, which no other marketplace platform has succeeded to do.

Users are an important part of United Wardrobe’s business model and enable more creation of value than the company could create on its own. In fact, without its users, the company would not even exist. This is the essence of value co-creation, where new ways are identified to support either the customer’s or the firm’s value-creating process (Saarijärvi et al., 2013). An interesting feature on the website is a page where you can see what the most popular search terms are. This reflects a customer value co-creation mechanism where the firm has refined user data and returned it to the users (Saarijärvi et al., 2013). United Wardrobe has won several prizes with its concept including Dutch Online Retail Experience Award 2015 and the public award of Accenture’s Innovation Awards in 2014.

From my own experience with the platform I can assure you that it is a fun and easy way to sell some clothes. Everyone has clothing at the back of their closet they never wear. A pair of trousers that you might hate another might love, so get up and make that extra money. From an environmental perspective I think this business model is a great step towards a better planet by recycling fashion.


Sources:
Carson, S. J., Devinney, T. M., Dowling, G. R., & John, G. (1999). Understanding institutional designs within marketing value systems. Journal of Marketing, 115-130.

Saarijärvi, H., Kannan, P. K., & Kuusela, H. (2013). Value co-creation: theoretical approaches and practical implications. European Business Review, 25(1), 6-19.

United Wardrobe (2017) unitedwardrobe.com. Available at: https://unitedwardrobe.com/en/about Accessed on 15/02/2017

Personalized Online Adverstising Effectiveness: The Interplay of What, When, and Wher


If you go to any website, or online store specifically, your behaviour is tracked. Landing page, time spent, clicks, exit page: you name it, it is tracked. But even when you leave a page, a company does not really leave you: they saw what you clicked on, and based on your browsing behaviour, they retarget you: they show you a (sometimes personalized) advertisement on another channel, hoping you will come back and purchase the product you viewed.

Retargeting can either be done during or after a website visit, and is done based on a customer’s visit. When showing personalized recommendations, for example, it is important to take into account the quality of the recommendation, the level of personalization and the timing. This is what Bleier & Eisenbeiss (2015) looked at: what should they show, when should they show it, and where should they show it.

As with any academic article, past literature is analysed and hypothesis are developed. In order to test the what, when and where of personalized online advertising effectiveness, Bleier & Eisenbeiss conduct two large-scale field experiments and two lab-experiments. The first field experiment looked at the interplay of degree of content personalization(DCP), state, and the time that has passed since the last online store visit, at a large fashion and sports goods retailer, who carries over 30000 products. The second field experiment, conducted at the same retailer, looked at the interplay of placement and personalization. Based on the results from these two field experiments, two lab experiments were designed: one focussing on web browsing in an experiential model, the other focussing on goal-direct web browsing.
Within this paper, thus, many things are studied and confirmed. The papers shows the importance of how to determine the effectiveness of online personalization’s, and which one works best when. When a customer sees a personalized ad right after his/her website visit, the ad becomes more effective. This is mainly because preferences are not constant: they can over time. Thus if you liked a shirt 5 minutes ago, you will mostly still like it now. Thus if a company is able to directly respond to a consumer’s behaviour, the CTR is expected to be higher.

While the effectiveness of recommendations decreases over time, the level of personalization plays a moderating role. This means that high-level personalization in later stages of the decision making process have lower effectiveness, because of changes in customers tastes’ and preferences. The personalized ad is therefore not applicable anymore. Thus, the more personalized an ad, the sooner after a website visit it should be sent. Moderate personalized ads are thus more effective over time, as they take into account these changes in preferences. As visual recommendations are often highly personalized, these type of recommendations are more relevant shortly after a visit. Cross-sell recommendation, which is a more moderate recommendation type, performs better later in time

So what does this all mean? When retargeting customers and showing them personalized ads, it is important to keep in mind how long ago they visited a website. Given that this research was performed at a large fashion/sports retailer, it would be interesting to see whether the same conclusions hold for other settings. What do you think? And when do you consider (personalized) ads target to you most effective?


Bleier, A., & Eisenbeiss, M. (2015). Personalized Online Adverstising Effectiveness: The Interplay of What, When, and Where. Marketing Science, 669-688.