Article

Awaiting Germany's kiosk boom

In Germany, trendsetting Kaufhof is exploring a wide range of kiosk applications as national activity picks up.

April 4, 2002 by Eckhard Reimann — Owner, ERCM

An explosion in kiosk activity in Germany has been predicted for many years, but the big bang has yet to occur. Perhaps electronic commerce and Internet expenses have dominated the budgets of German retailers, or there may be other reasons for the slow pace of kiosk development.

And now it appears the electronic commerce and the Internet may help ignite an explosion in kiosk deployments.

A German company, Kaufhof, is an established leader in kiosk deployments, with dozens of applications in progress. It stated its first program in 1995, and has installed 1,000 kiosks systems and uses 30 multimedia applications.

In the German retail environment, several key points of emphasis have emerged. These include:

• Customer service, providing directions for finding store merchandise and making shopping more convenient.
• Kiosks that provide information about available products, an in-store sales support system.
• Kiosks to increase convenience shopping e.g. as customer direct services and/or pick-up solutions.
• Kiosks in the context of a multimedia store layout concept - such as a speaking shelf or as a multimedia poster.
• Kiosks to create a multimedia emotional shopping atmosphere ("selling by smell" and addressing all senses).
• Kiosks as regional/local virtual marketplaces and public door to the Internet,
• Kiosks in form of ATMs as multi-functional terminals in cooperation between banks and retailers.
• Kiosks as in-store Internet kiosk systems at the point of sale which closes the gap between online and offline stores (from "bricks and mortar" to "bricks and clicks" or "clicks and mortar").

Successful kiosk projects must acknowledge that kiosk users are unique. They may not be familiar with technology, including PCs and multimedia applications. Designers must consider the environment and ambience of the location; promotion and advertising of the kiosk; the psychological barriers to use; the targeted demographic of potential users; value to the customer of using the kiosk; the integration of kiosks into overall marketing plans for the products; and the unique characteristics of their customers.

"Sales people and customers should understand kiosk systems in addition to and as support for their shopping process," said Georg Thaler, Managing Director Innovation Management of Kaufhof. "The kiosks will never replace the sales people. But the computerization will no longer stop in front of the doors of the stores; in contrast there will be a lot of opportunities for everybody - retailers and customers: multimedia worlds will turn shopping into an event and the sales sales people will be able to concentrate again to their main key competence, the qualified and individual serving of the customer. And the stores will be able to increase their product lines."

The following table illustrates the present status of Kaufhof's kiosk and multimedia projects:

General Services:

• Customer Orientation System - 173 kiosks per end of 1999.
• Orientation Help "Magic Screen" - static and/or animated light signals to find specific kiosks
• Surf-Inn / Internet Café - training, state-of-the-art technology and drinks in the space-age look of the surf-inn Internet café of the new millennium - 273 kiosks per end of 1999
• Stairway-to-Heaven - in order to address specific actual themes
• Perfuming of Store (test) - for specific sales promotion and visual merchandising
• Interactive Shop-Window - unique in Germany
• Smilomat - test in "Fun-for-life" store for market research of customers` wishes and opinions

Kidz world:

• Computer Games (test) - the latest age-specific computer games and video games for children: children will be in their element with fun fittings and bright colors for every product group.

Game World:

• Games Chair - overview and test of actual Nintendo and Sony games - 19 kiosks per end of 1999
• Toys Info System - total overview about all toys - four kiosks at end of 1999

Fashion:

• Styling Mirror - individual consultation on fashion and colours and information on the latest trends every season as well as virtual dressing for women, styling experience and personal on-screen fashion show - "German Multimedia Award in Gold 1998" as the best German kiosk application and German Retail Award 1998- 10 systems per end of 1999
• Body Scanning (test) - for mass customization of men's clothing

Home Textiles:

• Bath Studio (test) - simulation of various designs
• Curtain Studio - individual designing of one's "dream window" - 5 kiosks at end of 1999
• Mattress Studio - selection of individual mattress - 7 kiosks at end of 1999

Household Goods:

• Gift Registry Kiosk - 45 kiosks at end of 1999
• Household Goods Order Center (test) - information of actual inventory of china, silverware and kitchen utensils - 10 kiosks at end of 1999
• Electrical Goods Order Center (test) - information about electrical goods

Media World:

• Book Info Kiosk - database with about 450.000 books with details via audio and video presentation - 32 kiosks at end of 1999.
• Music Info Kiosk "Touch the music" - information, advice and entertainment at the touch of a screen - search of tittles, themes, authors, stars out of a central music database - 48 kiosks at end of 1999
• Tech Lab - information about PC hardware and software - 13 kiosks at end of 1999
• Software / Game Station - overview and test of actual computer games - 29 kiosks at end of 1999
• Debitel.net Station - information about news in and about Internet - 88 kiosks at end of 1999

Ticketing:

• Ticketing Kiosk (test) - calendar of events and ordering of tickets

World of Sports:

• Sport InfoDesk- actual and store-specific information about sporting goods and sport services - 63 kiosks at end of 1999
• Golf Simulator (test) - test of individual golf rackets

Gourmet heaven:

• Food Order Center - ordering of foods via WebKiosk in the new online food store with over 1,500 products and recipes from around the world - 10 kiosks per end of 1999
• Wine Consultant - information of wines and assistance for selection of wines depending on specific meals - 13 kiosks at end of 1999
• Cosmetics: Isle of Parfums - news about Top Tive of parfums - award for "Best Multimedia Application 2000." 16 systems in place at end of 1999.

Eckhard Reimann is ownerof the Strategy Consulting Bureau for Interactive & Database Marketing "E.REIMANN:CUSTOMERIZED M@RKETING (ERCM)" in Oberursel (Ts) near Frankfurt/Main in Germany (http://www.ERCM.de , author of a lot of articles about multimedia, Internet, eCommerce, Database Marketing and Customer Relationship Management, editor of the kiosk specific microsite at http://www.iBusiness.de/ekiosk , Board of the only German kiosk conference and exhibition SMARTKIOSK (http://www.smartkiosk.de) and organizer of the above mentioned "eKiosk" working group of the German Multimedia Association (http://dmmv.de ).