RetailTechNews rounds up some of the biggest stories in the European retail technology space. In this week’s edition: Social Media Is an Active Commerce Channel; Payment by Cryptocurrency; Fashion Platform Farfetch Launches Tech Accelerator; and Retailers Not Ready for GDPR.

Social Media Is an Active Commerce Channel

According to a data study by digital services provider Avionos, social media is an active commerce channel that is more successful at driving sales than influencer marketing. While the majority of consumers (60%) have never purchased a product on the back of promotion by a celebrity or social influencer, 55% of consumers have made a purchase through a social media channel, such as Facebook, Instagram, or Pinterest.

However, brick-and-mortar stores are far from obsolete: the majority of consumers (63%) prefer to buy expensive items such as electronics or furniture in physical stores; 52% of respondents combine online research on future purchases with in-store shopping.

The Avionos report also reveals that increased customer expectations are driving brands and retailers to step up their game in terms of their digital and technological strategies. “Traditional shopping experiences are no longer enough. Consumers want every interaction from brands and retailers to be quick, personalised, and informative –whenever and wherever they are”, says Scott Webb, president, Avionos. “Amazon has changed the game, particularly in the way that it has raised the bar for consumer expectations. This has caused retailers to revamp their omnichannel strategies and focus on offering experience-driven commerce that provides engaging content, personalised experiences, and shoppable moments across all channels.”

For the purpose of the study, Avionos surveyed more than 1,400 consumers about their online shopping habits, preferences, and expectations for 2018.

Payment by Cryptocurrency

A new product by Israeli startup Virtual Crypto allows brick-and-mortar and online retailers to receive payments in real time in Bitcoin and other cryptocurrencies. Dubbed 'NetoBit', the solution enables purchasing, selling, and converting Bitcoin and other cryptocurrencies in retail points of sale, e-commerce websites, and online shops on devices such as ATMs, tablets, PCs, and mobiles.

The custom-designed NetoBit Cash tablet is a tool for retailers to securely receive payments in Bitcoin and cryptocurrencies, with transactions up to a value of USD$3,000 (£2,149) guaranteed. Payments are cleared immediately, with the retailer making their own decision on receiving payments in cryptocurrency or whether they want it converted into conventional currency.

According to Alon Dayan, co-founder and CEO, Virtual Crypto, the mission of the company is to contribute to two important global targets: “One is creating blockchain products and services that are accessible to businesses and users in every industry. The second is helping to turn Bitcoin and cryptocurrencies from dormant assets sitting in users' digital wallets into money that functions like real money that allows making and receiving easy, user-friendly, and secure payments in real time."

According to the company, the new payment solution differs from competitors’ products thanks to a validation algorithm that predicts whether a transaction will be approved, to its multi-cryptocurrency approach that identifies the best exchange rates and lowest commissions, as well as back-office capabilities that are compatible with a large number of cryptocurrency ATMs and points of sale.

Fashion Platform Farfetch Launches Tech Accelerator

Ahead of a potential IPO in 2018, luxury fashion-centric tech platform Farfetch is investing in technology. The company is launching a technology accelerator dubbed 'Dream Assembly'. Partnering with major labels such as Burberry, Dream Assembly will offer startups in the fashion industry a helping hand by providing mentorship, networking opportunities, and access to early-stage funding.

The accelerator will operate from Farfetch’s Lisbon offices, including workshops and mentorship meetings on topics such as e-commerce, marketing, technology, fashion, logistics, and operations. The programme is combined with networking opportunities as well as direct access to business leaders to help startups negotiate their first steps in fashion retail.

Stephanie Phair, chief strategy officer, Farfetch, said: “Farfetch is the global technology platform for the luxury industry. Now we want to give back to startups and the fashion technology ecosystem. Through the Dream Assembly accelerator, we’re aiming to give access to the best expertise and mentorship that Farfetch can offer.”

Retailers Not Ready for GDPR

The majority of retailers are not ready yet for compliance with the new European data privacy regulations. According to research by Ecrebo, 57% of retailers say they aren’t ready for GDPR at all, while 41% claim they have measures in place for the new regulations coming into effect.

The survey was conducted among 101 UK retail decision-makers. According to the study, retailers also find it hard to implement personalisation strategies in their organisations, with more than three-quarters of those surveyed saying they have not yet been successful in delivering personalised offers due to technological and data obstacles.

“Retailers are striving to remain relevant and competitive as they try to keep up with their customers, who are becoming more demanding about what they want in-store, particularly around personalised offers. Our consumer research, which we ran in parallel with the retailer research, supports this view with almost three-quarters of consumers saying personalised offers keep them loyal. However, if retailers don’t have the technology in place to support them, that could present a problem both in the short and longer term”, comments David Buckingham, CEO, Ecrebo.

Brexit remains another challenge, the survey finds. Retailers are worried about increased import prices, difficulties when trading across borders, and the general uncertainty of the economic future.

“In addition to changing consumer demand, the retail industry is also shaped by intense competition and external forces, including regulations and political shifts, like Brexit, in addition to advances in technology. With that in mind, retailers have their work cut out for them in the race for market share against their online counterparts. Importantly, loyalty schemes and the ability to personalise offers will be a key tool and will have a major role to play going forward, as will the technology that facilitates them”, Buckingham concludes.