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2016 Digital Signage Trends In Russian Retail

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Sergey Galeev

by Sergey Galeev, CEO, AddReality

According to Rosstat (Russian Federal State Statistics Service), the retail business in Russia has decreased by 10% in 2015, including a 15% drop in December. The main factors that have caused this situation include an insufficient demand from the population, high taxation level, lack of financial resources. The retailers are now faced with the goal of increasing an average bill, improving customer loyalty and attracting new clients.

Resources control and rational management are very important for retail businesses, especially large chains with a wide network of shops. There are many solutions in the market that aim to automate business processes in retail: warehouse and sales management, systems for procurement departments, software for the management of digital POS-materials.

The IT expenditures of Russian companies have decreased by 10-20% in 2015. The retailers prioritize those IT solutions that directly influence additional revenue attraction or cost saving, solve everyday tasks: for example, cutting the cost of marketing materials and increasing the sales of high-marginal goods. Fashion and beauty retail are actively implementing digital POS-materials- since the beginning of 2016 screens, video walls and sensory panels have been installed in many clothing, shoes and cosmetics shops.

Digital POS is a worldwide trend and due to the solutions for centralized media content management, the investments for the installation of digital screens pay themselves back very fast. The expenses for the logistics and manufacturing of printed banners recede into the past, as any marketing campaign is now created, renewed and launched remotely in every shop of a chain in a few minutes- from a PC or a tablet.

Alongside the optimization of expenditures, another factor that drives the transition to modern digital devices in Russian market is the introduction of EGAIS in 2015 (Unified state automatic informational system-- a state system dedicated to the control of alcohol production and turnover) and the new requirements for cash registers. The use of modern equipment, software and online data exchange instead of legacy devices with the limited functions helps to utilize the cash desk for marketing purposes. Integration with the analytical services and digital POS-materials provides retailers with an opportunity to optimize marketing funnel, monitor the effectiveness of advertisings in real time- for example, to track how a particular marketing campaign has influenced sales of a particular SKU.

There is a definite dependency between the retail and IT industry- we live in a time of a consumer type change and the retail is obliged to comply. What do the modern shoppers, the so called “Generation Z” need? They are the adepts of modern digital technologies and don’t want to watch “everyone’s” advertising- they need a personalized offer. They are open towards the virtual reality, put less and less trust in “real life” sales- including the shop assistants.

Russian retail is becoming more and more technological- and that is the forecast for the upcoming years, not only 2016. Digital technologies open a wide range of opportunities for retailers to optimize the expenditures. The main benefit of the digitalization of a shop is that the customer behavior, effectiveness of every marketing campaign, interaction of the visitors with the touch devices, quality of services- are now becoming measurable, meaning that the control and adjustment of retailer’s expenses will be faster and more efficient.

Sergey Galeev, CEO of AddReality. Sergey is the ideologist, co-founder and general manager of AddReality LLC. Has an extensive managing and entrepreneurial experience in IT, advertising and retail, directed the realization of complex digital projects. Sergey has conducted joint work with the industry leaders Ratmir Timashev, Steve Blank, David Cooks and many others. Sergey is a regular speaker at international conferences and an acknowledged expert in Digital Signage and retail.

AddReality is a cloud-based Digital Signage platform, enabling enterprises worldwide to create, edit, manage and deploy digital content. The solution comes with an intuitive editor for marketing campaigns personalization. AddReality provides a powerful tool for centralized remote management of the entire network of digital devices at the Point of Sale: audio players, tablets, video walls, touch tables, interactive kiosks and mirrors. The platform is especially effective for clients in retail, banking and HORECA businesses, governmental and educational organizations.

AddReality customers include Microsoft, Nike, Yves Saint Laurent, Lancôme, Russian Railways and more.

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