On-Demand Webinar: Where is the Point of Sale?

Annabella Pscherer: About today's diva-e webinar: "Where is actually the Point of Sale?". Today, our experts, Karsten Krause-Ablaß and Rudi Geiger, use case studies from Germany, England, France, Spain, Denmark and the USA to show how modern omnichannel services pick up customers where they are right now. My name is Annabella Pscherer and I work in marketing at diva-e and I'm the moderator of the webinar today. Now I'll hand over to Karsten Krause-Ablaß and Rudolf Geiger. A few words about you, please.

Karsten Krause-Ablaß: Yes, good morning. My name is Karsten Krause-Ablaß, I am Managing Director and Head of Marketing at diva-e. I've been working in the field of digitization of customer contact points for about 25 years, from online to CRM to shopper marketing, and the topic of PoS has been on my mind for a long time. We started with the classic VKF, and what have we not experienced in recent years. Olfactory marketing, shopper marketing, customer card systems, customer loyalty systems, multimedia terminals, package design used to be a big topic, is still a topic. The beacons digital signage and augmented reality at the PoS. I myself am a very big fan of classic retail, although of course you greet the Amazon messenger at home every day. I like to be advised, even on 24.12. around late morning I still look for the customer conversation and the intensive advice for gifts. Now we have today with NewStore a new partner of diva-e with the first joint projects. So it's no longer a vision, somehow that could work soon, but we find it very exciting today. And I would be delighted if Rudi would briefly introduce himself and then give us a few insights on the subject of NewStore.

Rudolf Geiger: With pleasure, thank you. So a wonderful afternoon from my side as well. I am responsible for the European activities on NewStore. NewStore was founded by a German, Stephan Schambach, but is headquartered in Boston, Massachusetts in the USA. The largest office, however, is in Berlin. That means, normally I work out of the Berlin office, today I'm more or less in my home office, but I'm still happy to show you how this point of sales is turning more and more into a point of service. We'll try to show you today how this can be done fastest and best in this NewStore presentation together with our partner diva-e. Back to you, Karsten.

Karsten Krause-Ablaß: Let's get right to it then, you brought us something.

Annabella Pscherer: I wish you all a lot of fun and exciting insights during the webinar and Rudi, I'll hand over the broadcasting rights to you now.

Rudolf Geiger: Good. So, right. Then I'll go into full screen mode. All right, let's maybe get started. The agenda for today is, let's talk about where is the point of sale? And how can you now create this transformation from a classic checkout system to a real point of service? And I will also show you live what this looks like in reality. But I'll also show real examples from customers who are already using it today, including in Germany. So the goal is that you can determine afterwards: Okay, what could my store experience look like in the future? How can I serve the customer better? And how can we achieve more sales together? And we will then discuss this in a question-and-answer session at the end. Let's perhaps start with that,

If we take a look at it, on the one hand we have the modern consumer who is increasingly mobile. They are on the road with their smartphones, which means they are also shopping online. More and more. That means this trend is increasing, especially in Corona times. At the same time, many consumers still love shopping in stores. And this is, unfortunately, but also falling. Nevertheless, we have to note that, depending on the industry, the majority of purchases are still made in stores, even if they are declining. And a smaller part is transacted online. Per industry is different, moreover fashion is different, electronics and so on. But by and large, we see that online retail is increasing, but brick-and-mortar retail is falling. But the consumer still wants to have both. They may want to shop online today, but tomorrow, as Karsten just said, they want to be advised in the store. Especially when it comes to products that require a lot of advice. He wants to touch the product, he wants to be able to feel it. Or he just got into the mood to shop in the city. And that's why we, as partners of the retail trade, have to take both aspects into account, because the consumer wants it. And now we have to respond to it, how can we do it best?

That sounds simple now, linking the channels, but it's quite complex. That when we walk into the store today, consumers expect the same services that I'm actually used to online. That is, access to the entire product range. Because the last thing I want to hear is the saleswoman telling me, "We don't have that in your color in your size right now." I believe her when she says that this store doesn't have it in this color and size, but there must be another store that does. And now the salesperson or the saleswoman should be able to get that information quickly in order to better advise the customer and also generate appropriate additional sales. And to accomplish this, a lot is necessary.

Why? The systems that have been in use up to now, the checkout systems or other systems, were basically not developed or programmed for this purpose. This means that many POS systems now have a more modern front end. There is then a mobile interface that allows me to do this on the tablet, so to speak. But the architectures underneath are still the old systems that were in use ten or fifteen years ago. At the same time, the back-end systems were not necessarily built for this purpose, because their architecture comes from a different decade. And so the task now is how can we do the whole thing faster and with less risk?

And when I look at what the status quo is today. So, when I go shopping in Munich, in Hamburg, or even in America, it very, very often still looks like this. You can see me in the picture here in a real world scenario in the sports store in Munich, where I'm still standing in line at the checkout just like I used to. Or if I also go to other stores, at other competitors also in Munich, there it looks the same. But also fashion stores in America, there it looks no different. But in 2020, it should actually be possible to give the customer a different experience at the point of sale. And if we take a look at why is that actually the case? Then these examples are not alone. NewStore issues a so-called Omnichannel Leadership Report every year. In this report, we observe how about 200 brands in the retail segment are behaving and doing. In other words, how successful are they? Or, which services are being played or not played? And we found that there are many examples where things are not yet as they should be. But that means you shouldn't rely on the fact that the others aren't doing it any better. Instead, we should concentrate on how we could do it better. Now I would like to show you some examples.

If we now take a look at the successful concepts, what are they? And if we look at one of the most successful retail concepts of recent years, we inevitably end up with the Apple retail store. In this store, you will no longer find a conventional checkout. That is, you shop there and the salesperson checks you out right away directly on your smartphone. There's still a checkout somewhere, tucked away in the very back corner by the way, but that's no longer the goal. The goal is, how can I serve the customer optimally at the point of service? Another example, which has become very successful in recent years, is Amazon. I've achieved a level of convenience that some brick-and-mortar retailers can't even offer. But customers go to the retail store in the afternoon with the same expectations that they had in the Amazon online store in the morning, and they expect similar services.

And now it's a matter of either achieving this expectation of the customer, of matching it. Or even to exceed it. And that's actually why NewStore was founded. That is, how could we manage to bring that convenience of an Amazon experience combined with the simplicity of the Apple model combined in a new business model, like we've also seen from Uber. And all of that in the cloud, please, so that I can just deliver it very, very quickly. If I could link that together, then I would have a modern retail approach. And that is exactly what NewStore stands for. That is, instead of patching together a wide variety of solutions from a wide variety of manufacturers. That means, for example, a tablet-based solution to offer extended store hours, for example. Or to offer a mobile point of sale, or clienteling cross, tools. Because with that, you're driving the salespeople in the store crazy, because they can't operate three different systems. There's a cash register, there's a tablet, there's a different user interface, there-. That's where the salesperson sits back and says, "No, I'm not going to do that." Many omnichannel projects have come to nothing and were not used. And that's what we have to cut short now, so to speak. All in all, we believe that retailers must learn to operate a store in the same way as a website. Because the beauty of a website is that I know exactly when, where, who, what is in the store. Who is doing what, who is doing what, who is where, what they want et cetera. And that's exactly what we need to achieve. And that was also the vision of our founder Stephan Schambach, who at the time also founded eCommerce companies such as Intershop in Germany and Demandware, which he then sold to Salesforce. And it was with this vision that he set out five years ago to address this issue.

In practice, what it looks like is that today we have customers live in Europe, in the U.S., and in Asia that are taking exactly this approach. And we will then see in the demo what this looks like in practice. But I would like to show a few examples that are already using this productively today. We now see a number of companies from the sports sector, from the fashion, luxury and lifestyle sectors. Why these products in particular? In general, it's about products that need to be explained. This means that you can also offer such concepts for suppliers of tools. Telecommunication devices, smartphones, for example. In other words, everything where I have a sales process that requires explanation, where I want to serve the customer in a, possibly flagship store, in order to signal the added value of my products accordingly.

Karsten Krause-Ablaß: Or also to let the service be felt. So as not to say, "I'm sorry, that's not possible here right now," or "The computer can't do it right now." That's such a classic fail, that it makes the experience worse.

Rudolf Geiger: Exactly. That's why we see ourselves as less suitable for cash-and-carry products. But for consulting-intensive products from the luxury, fashion, and sports sectors, it works very well. That is, the use cases that are used there could be, for example, in the store. I no longer want to be in a position where the salesperson tells me, "I don't have it in your color right now." Access must be possible, and not just at the checkout, where someone else may already be collecting. But directly at the point of sale, at the point of service, where the salesperson is selling, to have access to the stock levels of other stores. Where I can give that information in real time. Where I myself am also a mobile point of sale. But also that I can expand the online business. That I can say, "I would love to have this jacket in this color. But I need it now, in an hour in Hamburg at Jungfernstieg." That is, can I do that or can I not do that? That's something that even Amazon can't do that well, because they don't have the stores that some retailers would have but before in the city. And that's what we want to empower now. And the whole thing from a centralized system in the cloud to make the whole process easier. That already exists.

Sports brands, fashion brands, sporting goods brands are already using that today, they're using it productively. Also in Germany. And the target architecture would then look like this: you say, I have a web store, it stays as it is. I have a call center solution, which also remains as it is. I have backend solutions, CRM solutions, ERP solutions, they all stay as they are. These would now be virtually docked onto a cloud solution, and the sales staff on the sales floor would now receive a smartphone app, so to speak, in order to be able to offer all these services in the retail store.

And that looks like this. In other words, this is what the new point of sale would look like. That means you no longer have conventional checkouts, you no longer have servers in the store. You operate the whole thing from a smartphone, combined, for example, with a credit card reader that could be docked magnetically, for example. The whole thing then also controls a physical store cash register, because there are still people who want to pay cash as well. But that's also controlled via the smartphone, so that in the end I basically only have a smartphone, a drawer and a mobile printer, so to speak, which is controlled via AirPrint or a WLAN. Because I still have to print out an invoice, print out a delivery bill, a label for a shipping agent or whoever. And these are real examples also in Germany, which are now in use. That means I have picked out two now.

One is a fashion company in Berlin, the company is called Anine Bing. It's a Danish fashion brand that was founded by a Danish model. The other one is Burton Snowboards. I picked out the store in Munich, but they are also live in Zurich, Lausanne and so on. And the whole thing looks like this: I don't have any more cash registers there. Instead, the customer gets advice. The salesperson advises the customer from the smartphone. That also works with a tablet, by the way. But the tablet is quite bulky and quite large. That is, try scanning with the tablet when you have to hold both hands. That works better with the smartphone, which is why the smartphone form factor has caught on. The same with the fashion store, for example. Here you see the shopping experience also here at Anine Bing in Berlin. And this is what the point of sale, for example, would look like. Good. So much for the general overview. I would now like to switch briefly to another mode, so that I can show you what this would look like in practice. To do this, I'll connect my phone to the screen so that you can see how it looks in practice. And you should now see a smartphone on your screen. Is that right, Karsten?

Karsten Krause-Ablaß: Very much so. Yes, let's see.

Rudolf Geiger: Excellent. That is, I would now simulate a few examples of how something like that looks. And example one would be, I'll take the web browser here. And I would now, for example, go to the website of my customer. Let's assume that this is a brand called Dodici. The brand doesn't exist, we just invented it to show a web store as a demo example. But let's assume that this is the web store where the consumer, who is researching articles on the existing website of a fashion brand, is looking for a nice jacket. The next autumn is coming for sure, so let's pick this all-weather jacket. But in addition to the normal store, you can now see here that on the product detail page, here, I also have real-time inventory information. That means I can now see on the website, this jacket, I could buy it right now at the 5th Avenue store. It's sold out at the Atlantic Store, unfortunately, but it would be available again at a Spring Store. And online it's available anyway. That means I can decide now, do I want to have it shipped to me online like before? Or, do I want to have it now?

We call that instant gratification, that instant gratification that I can just have an added value immediately. And if I have a network of stores downtown, then I should use that network. And that's the added value that I can have over pure players. And let's give the example. I would say, this jacket, in this color, in this size, I want it. And I've sort of added it to a shopping cart now. That's now my shopping cart in my web store, or in my example, on my cell phone. And now I can say, "No, I don't want it sent to me. I actually want to pick it up." And now I have the opportunity, so to speak, to say in the checkout process, I would like to pick it up. And now that I'm sort of the Emily Parker in my example. Again, I'm going to put my name in here. Emily. Parker. And my address is sort of, I live in New York. Does the system now suggest to me, I can pick up this jacket in this color in this size in these stores. Because in the background NewStore optimizes, where is the merchandise? So by stock and by distance. And so now I can pick it up there. And I would now say, "Okay, I'd love to. I'd like to pick it up at 5th Avenue, and now I would kind of start a Buy Online, Pickup In Store process. As an online shopper, I've now completed that and I'm now getting my jacket and keys and heading into the 5th Avenue store because I'd like to pick up the jacket.

Now in real time, here's what happens in the store: Let's assume now that this is the salesperson's phone in the store. The salesperson has the smartphone in her pocket. And in her pocket, she has the NewStore Fulfillment Application that you see here now. And in my example, you see down here, bottom right, the Profile button. Now in my example, I'm Rachel Johnson, and I work at the 5th Avenue store. And I'm able to get Order Requests right now. But I can also deactivate myself because I'm on a cigarette break or lunch break right now. Then I would sort of log out of the Distribution Network and say, "Sorry, I can't do that right now." Then NewStore would automatically forward it to the next person defined in the workflow in the backend. But if I have time, then I'm part of the fulfillment process, so I would get appropriate orders. So that's why we're going to go in here. You can see the button, it's called Orders, down here. And in the Orders, you can see now that I have received a Request from the Emily Parker that she would like to pick something up. Now, my phone may be vibrating in my pocket, but I'm talking to an existing customer in the store. Then I can't pull out my phone and say, "Sorry, I have to do something else here." Instead, there's a timer running, which you can see up here.

That means, if I don't do anything for two minutes, then NewStore would automatically forward that request to the next defined person in the store. So that always ensures that someone is taking care of that order. But if I have time I can now, for example, say "accept". "Accept" means I'll take care of it. Why? The system has said that this jacket in this color in this size is in this boutique. But it may not be the case after all. Why? The jacket could have been stolen. It may have been sold this very second. It may be dirty or scratched. That means it's in the store, but I can't sell it. That means, as a salesperson on the floor, I now have to be able to initiate actions-, what. Now you see a button like this right up here, in the corner. Where I can say "Sorry, cannot fulfill the order.", or I just cannot fulfill this order. In that case, the whole thing would go back to the distribution line. And now the call center agent can act and, for example, call the customer and say, "Sorry, we have a problem here. We can't do this. May we suggest something else?" But because that all happens in two to three minutes, we usually reach the customer before they've even left the building. And that, of course, is a service that you can't offer like that today, but you can make elegant very quickly with NewStore. But even if I say no, I have the jacket there, I also have to verify that it's really the case. I also have to verify it, is it not scratched. And in that case, I would take my smartphone here now. You see here such a scan button. And I would now go over the size four and scan it. If I do that now with my smartphone, you can see that now here.

If I go now, for example, here on the product, but I go to size six. Then you see it doesn't work because I scanned in the wrong item. But if I now scan in the right item, size four for example, then it works. That is, NewStore also ensures that the salesperson on the floor can no longer make a mistake and scans the correct item, so to speak. And also confirms, yes, I really do have that one there. There is nothing worse than the customer coming into the store, I want to pick up my things. And then I get told, "Sorry, mistake made." No go. You can also see now that NewStore automatically supports the process. That is, I automatically created all the necessary documents. That means invoice, delivery bill, return label or cleaning instructions, warranty certificate; whatever you want to give the customer. And now I print the whole thing out on my printer of choice, for example, second floor, second floor, front office, back office or whatever. And print the whole thing out. Now the wireless printer is rattling, that can be an AirPrint printer, that can be a network printer. And now I've taken the jacket, the documents, kind of put them in a bag and say, now I have this order fulfilled, so "Complete Order".

And now you see that this Order is also for Emily Parker for her Waiting for Pickup. That means I know that the Emily is now coming into the store, but I have prepared everything in the best possible way. The whole pick and pack process. But who is actually the Emily Parker coming to me in the store? That means the saleswoman should also be able to prepare herself. That's why you see a second app that NewStore offers called the Store Associate App. That is, I have times logged in here now, I work here at the 5th Avenue store. I have my Goals here. So, my dashboard is that as well, here. I have my Tasks here that I have to do. I have the New Arrivals that have come in here, so as a salesperson, I know everything that my newest collections are. And in the bottom right corner, you now also see a people icon like this, where I can now say, who is the Emily Parker? And as a salesperson, I can now search. Now I search for the Emily and find the Emily Parker here. And now I get all the information I need as a salesperson. I see, whoops, the Emily is a power shopper with gold status.

She's already placed 28 orders with us, and on average, she never shops for less than $500. I have the button here where I can see all the sales history as a seller from my smartphone. Where did she buy what and when. And I have a button here in the profiles, it's called Closet, like closet. And there I can see in an Instagram style visualization what she's shopped for so far. So she's been shopping more dressy, more sporty, more sexy? Whatever. That means in ten seconds I know, who is Emily Parker? What kind of customer is she? And I can then, at the end of the day, conduct the whole sales conversation better. So, now the Emily walks into the store and says, "Hi, I'd like to pick up my jacket." I don't have to go to the click and collect counter now. But rather, any salesperson on the floor can pull out their smartphone, now uses the app that you saw earlier. I now search by name, by order number, or I scan the code that she has on her smartphone, for example, or printed out. And now goes here, and then have this article, see the whole, okay wonderful, I have done. Paid is already in the online store. And therefore I now hand over the goods to the Emily and hand over the bag and so the goods are now delivered. And you can see that the status has changed accordingly and I have now processed my orders, so to speak.

Karsten Krause-Ablaß: But ideally, in the case of such a power shopper, you would hand her a glass of champagne and add five items from the wishlist so that she can take a look at them.

Rudolf Geiger: Exactly. We want to take a look at that example, too. Before we do that, I wanted to show you what the backend looks like. Because we have now seen how it looks from the salesperson's point of view. But now I'm going to log into the backend so that we can also see what it looks like for management. I'm going to go into the backend system now, and depending on my login information-, so the CEO sees something different than the sales manager. Do I have my dashboards here where I can now see how is the sales in the store is? Which store is doing well, which store is doing poorly? But you see a button here, which is also called Sales. And in the Sales we now see here that today, August 12, we got a web order from the Emily Parker with in-store pickup. And the whole thing is completed, which means I have a Complete status.

Now, when I go in here, into this order, you can see now in real time what happened. That was now, for example, this jacket. We see that here. If I click on it here I see, when was it sold? Everything in real time. I'm going to go in here now for a second. Then we see that Emily Parker bought it online, so to speak. It was then sort of forwarded to the 5th Avenue fulfillment location. That's where the Rachel Johnson got it. The Rachel Johnson then picked it, packed it, got it all ready. Then she sort of waited until the customer came by. Then he came and then it was handed over. That means I can see what happened where and when at any time. And if I go in here now also into these orders, into details, I go in here into the order. Then you also see the other details, like payment method, for example. I'll scroll down here for a moment. So, how is the payment made, for example? But I also see the documents down here, for example, the invoice. And you can see here, this is the invoice now.

And now we give as an example what Karsten just said earlier. The Emily is a power shopper, goes home, now shows the jacket to the life partner and then says, "How do you like the jacket?" And now he or she says, "Don't like it at all, would like to exchange it. Go back and exchange it." Now the Emily could sort of go back into the store with the bag and go into the store and say, "I'd like to exchange the jacket." Then the salesperson on the floor would again pull out her smartphone. Do you see my smartphone on the screen here?

Karsten Krause-Ablaß: You can see it.

Rudolf Geiger: She would take this application here and down here you see the scan button again. That means I can now search for the order, name, order number. Or I can just scan the order here and now I see here, that was this order. That was an in-store pickup, for example, at our store in Hamburg that we did eleven minutes ago. That was our order that we made earlier. I can see at what price, with what discount, or even by whom it was sold, and can now take the necessary actions. For example, start the returns process. Now I make a return here, I have to choose which item I want to return. Because he could have bought two but only return one. So partial returns are also supported. Then I would like to say, why do you want to return it? Do you want to return the whole thing because you didn't like the color or because something else was wrong? In my case, I would say, fine by me, the color does not fit. Then I check whether the goods are saleable, that is, not scratched or in saleable condition. Or if I have to sort of iron the merchandise on, send it back, or whatever. Then we'll assume that would be okay for now. So it's not worn yet, so I can sell it. Then I could give the customer a credit or a refund with my smartphone in my hand. That is, directly from my smartphone, which is now a point of service, I could now have a gift card printed out, so a voucher. But I could also transfer the money back to the payment method, so to the original payment method.

Another method, but that wouldn't make sense now, because we know the Emily is a power shopper with Gold status. Why would I let her go and pay her that $800 if she is a power shopper? As a salesperson, as Karsten said earlier, I would now say, "Emily, too bad you didn't like the jacket here, too. But, have you ever thought about the following product?" And now, as a salesperson, you see a magnifying glass like this down here. I now have access to the entire catalog from the entire company. Whether the products are in the store or not in the store. And therefore I could say, for example, how would you like this watch here? I would now try to sell this watch to the customer. And we see now that I have here on my smartphone all the information that I need to sell this. So I would now be able to sort of, for example, show the watch as it looks. I would have all the other information, like rating and reviews, recommendations. Just like I'm used to on a website. That means even though it's my first day today in the Dodici store, as a salesperson, I get the tools at my fingertips to sell this product. And if I manage to sell this product now, I would put this product in the shopping cart now. And now we see that this product is now in the shopping cart for the Emily Parker. We also see that I've automatically offset the credit that she got by returning the jacket against the new purchase, and that she only has to pay the delta.

At the same time, we also know that if she comes home now, again with an $800 watch, then maybe the Emily's life partner is not quite satisfied. And if we now say, "Don't you want to bring something for your husband, too? Because, that might make more sense." Then I could also do an up-sell now. So I would now go here and say, "For your husband I have here a very special, nice shirt." Let's take this blue polo shirt, for example. Let's take the shirt here. Blue Shirt. For example, let's take the polo shirt here. That is, I'm selling this polo shirt now, saying, surely this will be great for her husband. To appease him or whatever. And would now go here and say, I want to have this product. Says the Emily: "Yes super, exactly. Do you have that there in the store in the size Small? Because a man needs a small." And now comes the decisive moment. As a salesperson, I now have this Inventory Lookup button here.

Now I can look it up in real time, so I have it in the e-commerce warehouse. But in my store, in the 5th Avenue store, I don't have it, like hell I don't. In all the other stores, I have it. So the customer is standing in front of me, wants to buy the shirt, but I don't have it there. And that's what I mean, that regardless of the location of the merchandise, we still have to sell it. And I could now say to the Emily, "Emily, I don't have the shirt there now. But I could get it to you in an hour if that's okay with you. Because, I have it in the other store. Would that be okay with you?" And now that could go like this. Then I say wonderful, would like to have. Now I sort of add this to the shopping cart and you can see that my shopping cart now looks like this. My shopping cart is the return of the jacket. An item from the store because we had the watch in the store. And an item that is not in the store, because it is in the other store. Now you see that the salesperson sees, that's flagged as shipping and I can't do anything wrong. Because I have to, before I do the checkout, I have to type in the shipping address where to send it. So, I can do little wrong as a seller. So now I'm saying here: Add address. Now, I may have an existing address, for example, home address, office address. But I may want to send it somewhere else.

So now on the fly I can add a new shipping address. And now let's say the address is, for example, in Hamburg. Then you can see now that NewStore also supports Type Ahead, just like you're used to on Google. That the seller can make as few mistakes as possible when entering the new address. That is, we make it as easy as possible to capture this new address. Or I'll take an existing address. But even the existing address can be wrong, because CRM data is often never up to date. So I can now ask the Emily, "Emily, do you still live at 55 Thompson Street?" If she says "Yes," then I just do "Continue." If she says "No," I can now update the address on my smartphone, standing in the store. And from my smartphone, I write that to the cloud, from the cloud to the CRM system, and so I'm updating her CRM data at the same time. And so now I have the ability to do that. Next step. Since I have my address in New York, now NewStore is calculating Shipping Options in real time. That means if I know the pants are also in New York, I can offer an hour delivery time. But if the pants are in Los Angeles, but the shipping address is New York, then this option should not be offered at all. That means the salesperson doesn't have to worry about, where is the merchandise actually?

Rather, NewStore in the backend now optimizes what shipping options are available for this dress or for this shirt, in what size in what color. And in that case, we see that could be quite fast. Let's take today, so from three to five. I would like to have this option. And you can see now I've now updated the shopping cart here. Now I could check out. But now the Emily says, "No, you can't do that at all. That's your problem, that you don't have the merchandise here. I'm not paying $15 for shipping. I want Free Shipping." So the salesperson can now create a discount down here, depending on her role in the company and her permissions. You can see that here with the "More" button below. Now I can sort of coupon, I can discount, I can discount the entire cart or just a line item, I have authorization only up to five dollars or ten dollars, or whatever. Now in my case, I would kind of, let's take the $15, for example, down. And say here Free Shipping, for example. So, that's what I'm going to do here. And now you see I took the $15 back down from Shipping. And now I can ask the customer, "Does all this fit?" She says, "Yes, now I'd like to cash out." The last thing you want to hear now is the salesperson saying, "That's the cash register over there, please get in line back there." Because, everything has worked wonderfully so far, but I don't want to line up behind three Chinese women now and then pay. Why can't I pay you right away, like in the Apple Store? And that's exactly what we're doing now. I can now virtually pay this amount directly from the smartphone. I can now say: How do you want to pay? Do you have a voucher? Do you want to pay in cash? Do you want to have a combination, voucher and cash? Do you want to pay with a credit card? With a credit card reader, like you see, for example, in every store there, with the credit card reader for example. Or do you want to do it quasi manually, for example? So, all these options are supported by NewStore. But also modern methods, like Ali Pay) Google Pay, Apple Pay are supported.

And that could look like this, for example: I would say now as a salesperson, you can check out right here with me and turn me now into a point of sale. This is the salesperson's phone. What I'm going to show you now is a second cell phone, which is more or less the customer's cell phone. Wait a minute, I'm going to go over here for a second. Now you should see a blue cell phone, is that right? Karsten, can you confirm that for me? (Karsten Krause-Ablaß: Yes.) Good. On the right side is the saleswoman's cell phone, and here is the customer's cell phone. The customer doesn't have any software on her cell phone, it's just the normal camera. She would now go over virtually the seller's phone with her smartphone, and NewStore would now transfer into the customer's browser the check-out page. That means she wouldn't be checking out on somebody else's device. She would virtually now pay here on her personal device using her preferred payment method, using her fingerprint. Especially in Corona times, that's quite relevant because I don't have to touch another device. I would now pay with my finger on my trusted device, check out quasi now - bing - on my device and at the same time you see now on the other device-. I'm going to go back out here for a second. Sorry, that was my screen change here.

So, now you're seeing my phone again. Now you see on the device of the saleswoman that it is paid and now I can ask: Do you want to have the whole thing printed out? Do you want it emailed to you, do you want both? And now I can sort of say, thank you very much for your purchase, for example. And now you've seen me sort of turn a return, which is normally a problem, into an opportunity by selling an item that's in the store and selling another item that's not even in the store. And the customer didn't even have to wait in line at checkout, I gave her a very quick shopping experience without doing anything. And the last example I want to show is-. We were dealing with a known customer so far, after all. But now we assume that a customer comes into the store who has never shopped before. A completely unknown customer. He just comes in, needs a quick gift for his wife, says, "Hello, I'd like to have that. Please pay." Then the saleswoman would now walk over with the smartphone, she would scan the whole thing again as shown earlier in the example. That's what you see here. I would open up the shopping cart, I can now say, "Have you shopped with us before?" Then the says: "Yes I have, I don't have time." If the now says yes, I can now either search and find it like we did earlier. I can create a new record. But if he says, "No, I just want to get out. Pay up, quick. I'm in a hurry." That's bad for me as a merchant, because I always don't know, who is the customer actually in front of me? But I have to respect it. Now I say, "You want to pay. How do you want to pay? With the credit card?" So, now we're going to do credit card here. So, the credit card I record here now. I pay, check out, put the goods in his hand (Karsten Krause-Ablaß: And out goes the customer.) and out goes the customer.

So, the trick is now again, I have another chance to ask him: Do you want me to print it out for you? Or do you want it emailed to you? The nice thing is, if he says capture by email, then yes I have an email address from him. That means I have something where I can identify again and I have a transaction. And I could now send an e-mail as it were as a follow-up: "Thank you very much for your purchase. Do you want to get more information from us?" to get the double-opt-in. And that's worth its weight in gold, of course. And a customer of ours, that's the Danish fashion company Ganni-. So they were able to get the data capture rate of seven percent-. So they used to only know seven percent of the customers in the store, to 85 percent. And that, of course, is worth its weight in gold for a brand like Ganni. Alright, I hope my short demo was able to show you, how could we sort of dovetail the online business with the retail business? How can we do that as simply as possible? As seamless as possible? How can we do the whole thing from the smartphone? Because I would also run the whole store from my smartphone. And not only selling, but I would also do the inventory, so cycle counts.

I would do the receiving, receiving of goods, transfers, so all the administrative tasks that a salesperson has to do in the store, directly from a smartphone. You don't have servers in the store anymore, you just sort of have a smartphone, you have a credit card reader in the store, and so we're talking about being able to run a store from a smartphone. And so the point of sale would transform into a point of service. Good. I hope that gave you a quick overview of what something like that looks like. And I would now like to hand back to Annabella. (7 sec.)

Karsten Krause-Ablaß: We can take another look at where you see the best use case for this? So, is it the classic brand stores? The flagship stores? Do you also see it in retail, in the classic retailer? Or is it more home brands? I think that's the big question, the classic retailer is dying out a little bit. The brands, the flagship stores are coming more strongly because the focus is also on the brand experience and not just on pure sales. What do you see as the ideal target image?

Rudolf Geiger: Exactly. So, what we've found-, I mean, there's no use complaining. Retail has always been difficult. And retail is becoming even more difficult, because it's getting tougher and tougher, because the competition is simply getting bigger and bigger. And also the onliners, they learn very, very quickly how retail works. Because they have data. I know that this is what is bought in Hamburg and that is what is bought in Munich. And that's why onliners learn very quickly how retail works sometimes faster than retailers have to learn how online works. And that's why we see the best fit in advice-intensive products. That is, cash and carry products where I go in-. I'll take this butter dish, I'll take this and I'll shop this some more, they don't need that kind of thing. But consulting-intensive products, that means luxury, lifestyle, fashion, sports. Electronics, too, for example. Whether it's phones or televisions. We see Bang&Olufsen flagship stores, we see Dyson flagship stores. But I can also imagine the same for tool providers, whether it's a Bosch or whatever. Or telecom providers that want to do something like that. That's where I see a lot of benefit in that context. But not now in the food sector or other segments, because there are other requirements.

Karsten Krause-Ablaß: Even if you look at places where it's still more innovative, like China. Where the service experience is actually above all else, right up to the point where you bring your dirty laundry with you to try out a washing machine in the store and then achieve a real brand experience and can sell it.

Rudolf Geiger: Exactly. It's also the case that the brand experience is one thing. But in Corona times, for example, it was like this, a brand experience in the store helps me very little. So, all the luxury companies had wickedly expensive stores in Milan, Paris and London, but the store was closed. At the same time, we had 100 handbags lying around in eCommerce Warehouse and the merchandise was in the store. That means that we had to connect the online business, which had increased, with the stores and the fulfillment was then done from the stores. In this way, we were able to use the stores in the major cities of New York, London, and Paris as mini-fulfillment centers and still offer one-hour delivery times. And that was an added value, even during the Corona times. Because the point of sales is where the customer is and not just where we would like him to be.

Karsten Krause-Ablaß: I'm a fan of that. These are methods or ideas that have been around for a while, but the technology that you also offer, for example, that just makes it. Especially this pickup, which many people want. But I still have to wait in line, and then they don't know me, and then there's a lengthy search, "What's that? The way you prepare it for the salesperson, this shopping experience is first of all really good for the customer who has ordered online and picks up in retail or vice versa.

Rudolf Geiger: So the goal is to simplify that, because there have already been approaches to doing something like that. For example, when I go to the Hugo Boss website today, I see the inventory. I know that this retailer has this color available. Only then I have to call there, end up either in the store; hope that somebody answers the phone, or in the call center and hope that I'm not on hold. And then it gets reserved for me there. But that's not a process that's really seamless. That's where the whole thing has only been done up to the halfway point. That's where we go a step further and say, I have to think it through to the end so that the customer will also accept it.

Karsten Krause-Ablaß: Let's see, Annabella, are there any questions?