Article

Kiosks gaining importance at Globalshop

A look around the world's largest store design and in-store marketing show is an indication of the growing importance of kiosks in retail.

April 4, 2002 by

Editor's Note: Mike Smith is a multimedia software industry analyst and president of Upstart Visions in the Washington, D.C. area. Julie Segel is a broadcasting hardware specialist with background in television production.

This is a special report from Globalshop, the world's largest trade show for retail displays, and includes a look at key exhibitors and a report on the keynote speech.

CHICAGO - The city has been called "the City of Broad Shoulders" and the "City that Works." Both monikers were apt at Globalshop as the city welcomed nearly 25,000 guests and more than 1,000 exhibitors to the cavernous McCormick Place exhibit hall.

Globalshop organizers wisely set up a separate area for Interactive exhibits that allowed kiosk industry players to see a number of kiosk developments in one place. Other areas of focus were store fixtures, visual merchandising, retail operations and construction and point-of-purchase. But our interest was in the I3 area for In-store Interactive Ideas.

KIOSKmarketplace visited booths of market leaders ELO TouchSystems, Cybertotems, Frank Mayer and Associates and Kiosk Information Systems. New hardware systems form Pioneer, Compaq and Panasonic proved worth checking out. And we found a reason to look forward to next month's KioskCom show at another booth.

Topics driving conversation on the Globalshop floor included tabletop kiosks, less intrusive communications tools, simplicity of design and retailer usability. There was buzz about thinner- yet-larger plasma screen units and displays. With the coming of bandwidth, digital signage is now a reality, and display panels are becoming more affordable. Digitizing graphics, photos and video images is empowering this new generation of in-store products.

Pioneer had a 50-inch XGA display monitor and showcased a video wall now running at Eddie Bauer and Best Buy stores. The company showed test-market interactive displays underway at Payless Shoe Source. On giant screens, software produced by Scala Multimedia integrated videotape, character generation of point-of-purchase messages, animations and Pioneer corporate logos. Panasonic was touting its 3000:1 contrast resolution plasma screen - a 42-inch model priced at $10,000.

Compaq offered both large-screen and desktop monitor alternatives from its booth. The "Deskpro" display system offered retailers a flexible platform that is easy to manage for instore computer display.

Here's a closer look at the kiosk-oriented displays.

ELO on the MAC:

An I-Mac invasion was on display at the ELO Touchsystems booth.

Barbara Van Gennep, marketing communications manager, said it was interesting to see all the retail kiosk applications and noted how "global" the industry has become. Joining her at ELO was applications engineer Jason Ford, who designed and exhibited ELO's first tabletop kiosk on the I-Mac platform by Apple Computer.

"The I-Mac with I-Touch is a good fit for customers who want a tabletop," said Ford. "It's a self-contained unit. You just load your software and you have an information browser or any other application that requires touchscreen technology. The Mac has great graphics power and makes for excellent display output for moving pictures."

Ford and Van Gennep said the new model is cost-effective for smaller stores, permits USB, Modem or Fire Wire ports, and has built-in audio speakers. ELO is based in Freemont, Calif.,

Cybertotems - "location, location, location"

Shawn Proffitt, president of Florida-based Cybertotems, was at Globalshop to showcase his company's first tabletop prototype. It's a fully-encased, shock resistant kiosk. He said Cybertotems was fortunate that its spot on the trade show floor was at the top of the escalator leading to the Interactive showcase area, and drew lots of interest.

"The gods of retail must have been smiling on us," said Proffitt, watching a line of traffic waiting to see kiosks Cybertotems designed for the U.S. Navy and other custom units. "We really lucked out on this location."

Cybertotems introduced a tabletop model just in time for Globalshop. It's a smaller version of other kiosks, with a swivel, steel casing and a combination lock on the back. "We don't want our retail store customers to be afraid of the technology," Proffitt said, adding that he believes it is easier to use.

"We are here to do the market research and learn what our retailers think," said Proffitt, a former Microsoft executive who said he believes strongly in gaining customer feedback before finishing the new model.

Frank Mayer & Assoc. - Pokemon at Blockbuster

Mention Pokeman play stations and Nintendo in ear shot of an eight-year-old and you get their immediate attention. Frank Mayer & Associates has shipped 5,000 kiosks to Blockbuster stores, and and another 1,000 are on their way, according to Bill Miazga, executive vice president of Frank Mayer.

Miazga said the program and a new retail fast-food display contract with Burger King were reasons to bring new interactive kiosks for children to the Globalshop show floor.

"Nintendo gave us a mission like the astronauts from Apollo 13 faced," said Miazga. "This is what we've got to work with, `now go make us something.' "

Frank Mayer designed the housing and carriage structure of the Blockbuster kiosks, which allow kids to plug in their own Nintendo games. A port for their game media had to be created as well.

Another interactive kiosk on the Globalshop Interactive show floor was the Burger King Virtual Fun Center, designed for kids from 4-10 years old. A built-in camera allows children to pose for pictures that they can then "place" inside the animation of the video game. These units are going to be housed in B-K play areas to help draw more traffic.

"Burger King is really ahead of the curve on this type of interactive media," said Miazga.

He said Burger King management wanted in-store video games with touchscreen technology to make better use of existing play areas and keep kids engaged. The games include solar systems, puzzles, "weird news" and animal animation morphs to stir-up young imaginations. With nearly 500 units being shipped to company stores, the hamburger chain is set to offer the kiosk to regional franchisers.

"At Frank Mayer, we are able to give unique design concepts to our retailers, in order to play-off their own brand equity and brand recognition," said Miazga.

Kiosk Information Systems (KIS) - Welcoming the cost-conscious

KIS has been around since 1993 and provides kiosks for consumer, business and public audiences. Its products for Little Tykes Toys, Budget Car Rental and General Motors dealerships are sizeable projects.

However, Pete Snyder, vice president of sales and marketing for Colorado-based KIS, came to Globalshop with more affordable alternatives for retailers.

"We have a kiosk aimed at this market that goes for $1,700, is cast aluminium with a PC shelf under the counter, and answers the need for improved price without compromising excellent design," Snyder said.

The company's emphasis on the Web is evident in its marketing and ordering systems.

"We are going to the Web and Web-based marketing for most of our customer applications," said Snyder.

KioskCom - "And now a word from our sponsors?"

Lawrence Dvorchik is at the Globalshop show to meet potential exhibitors for his own convention, KioskComcoming up April 22-25 in Orlando. He was seen tossing mini-football giveaways at his booth.

The fifth annual conference and trade show will be held at the Renaissance Orlando Resort at Sea World. Case studies by the the federal government including GSA and the FTC, Wells Fargo, American Airlines, PNC Bank and Burger King will be part of the conference.

"This one should be our largest ever," said Dvorchik. "The focus is much more cross-industry than Globalshop (which is primarily retail). We plan on having a mix of government, financial industries, and all major business segments including the retail side."

Keynote Speech

"You are all storytellers," keynote speaker Bran Ferren told a packed house of retailers, store designers and kiosk manufactures.

Ferren, chairman and chief creative officer for Applied Minds Inc. and a former Disney Imagineering president, was the creative force behind Disney's imagineering research and development. He recently helped form Applied Minds, a consulting company providing advanced technology and creative design.

"You are competing with other marketers for the disposable income of the public," said Ferren. "You have to articulate a vision and tell a story."

His key points for retailers:

• Vision - understanding your industry role as communicators. "What will make your message future-proof and how do you provide context?"
Talent - Ferren cited 600 percent turnover in retail employment and said the industry must do better at retaining good employees.
Trust - customers carry the brand message. They have to trust marketers. Ferren spoke of a persistent relationship with them and "predictive CRM" at the point-of-sale as the future of in-store marketing.
Story - Ferren challenged Globalshop attendees to win over customers by creating a good environment for the story (and that is where kiosks come-in).
Speed - "Viscosity of information" or the speed of the Internet means marketers must understand the information flow.
Education - smart customers are good customers. "We need better leadership and the Internet is a critical educational tool," said Ferren.

In closing, Ferren said retailers are really "educators."

"We are in a New Age of Enlightenment," he said. "You have a critical role to play. I am glad to come to Globalshop because the best teachers are the ones who articulate a vision. Young people spend so much time in retail environments and our mission must be to reach them."

Smith can be reached at msmith@upstartvision.com