Bionic Mannequins Spy on Shoppers to Boost Luxury Sales
Store mannequins are meant to catch your eye. Soon you may catch theirs.
Benetton Group SpA is among fashion brands deploying mannequins equipped with technology used to identify criminals at airports to watch over shoppers in their stores.
Retailers are introducing the EyeSee, sold by Italian mannequin maker Almax SpA, to glean data on customers much as online merchants are able to do. The 4,000-euro ($5,072) device has spurred shops to adjust window displays, store layouts and promotions to keep consumers walking in the door and spending.
“It’s spooky,” said Luca Solca, head of luxury goods research at Exane BNP Paribas in London. “You wouldn’t expect a mannequin to be observing you.”
The EyeSee looks ordinary enough on the outside, with its slender polystyrene frame, blank face and improbable pose. Inside, it’s no dummy. A camera embedded in one eye feeds data into facial-recognition software like that used by police. It logs the age, gender, and race of passers-by.
Demand for the device shows how retailers are turning to technology to help personalize their offers as growth slows in the $245 billion luxury goods industry. Bain & Co. predicts the luxury market will expand 5 percent in 2012, less than half last year’s rate.
“Any software that can help profile people while keeping their identities anonymous is fantastic,” said Uché Okonkwo, executive director of consultant Luxe Corp. It “could really enhance the shopping experience, the product assortment, and help brands better understand their customers.”
Eye-Level
While some stores deploy similar technology to watch shoppers from overhead security cameras, the EyeSee provides better data because it stands at eye level and invites customer attention, Almax contends.
The mannequin, which went on sale last December and is now being used in three European countries and the U.S., has led one outlet to adjust its window displays after revealing that men who shopped in the first two days of a sale spent more than women, according to Almax.
A clothier introduced a children’s line after the dummy showed that kids made up more than half its mid-afternoon traffic, the company says. Another store found that a third of visitors using one of its doors after 4 p.m. were Asian, prompting it to place Chinese-speaking staff by that entrance.
‘Changing Landscape’
A spokesman for Benetton declined to elaborate on where or why the clothier is using the EyeSee.
Max Catanese, chief executive officer of the 40-year-old mannequin maker, declined to name clients, citing confidentiality agreements. Five companies, including leading fashion brands, are using a total of “a few dozen” of the mannequins with orders for at least that many more, he says.
Burberry Group Plc (BRBY) and Nordstrom Inc. (JWN) are among retailers that say they aren’t on the list. Even so, they are helping blur the line between the physical shopping experience and Web retailing by setting up WiFi, iPads and video screens at their outlets to better engage shoppers.
Nordstrom, a U.S. chain of more than 100 department stores, says facial-recognition software may go a step too far.
“It’s a changing landscape but we’re always going to be sensitive about respecting the customer’s boundaries,” said spokesman Colin Johnson.
No Choice
Others say profiling customers raises legal and ethical issues. U.S. and European Union regulations permit the use of cameras for security purposes, though retailers need to put up signs in their stores warning customers they may be filmed. Watching people solely for commercial gain may break the rules and could be viewed as gathering personal data without consent, says Christopher Mesnooh, a partner at law firm Field Fisher Waterhouse in Paris.
“If you go on Facebook, before you start the registration process, you can see exactly what information they are going to collect and what they’re going to do with it,” said Mesnooh. “If you’re walking into a store, where’s the choice?”
So far Almax hasn’t faced obstacles to selling the dummy, CEO Catanese said. Since the EyeSee doesn’t store any images, retailers can use it as long as they have a closed-circuit television license, he said.
Some clients have asked for the Eyesee to be rigged to recognize employees so they don’t muddy the picture of customer behavior. In those cases, workers have to agree to be filmed, says Catanese. That option may be extended to shoppers, where loyal spenders would be invited to opt-in in return for rewards, he said.
Not Deaf
“The retail community is starting to get wise to the opportunity around personalization,” said Lorna Hall, retail editor at fashion forecaster WGSN. “The golden ticket is getting to the point where they’ve got my details, they know what I bought last time I came in.”
To give the EyeSee ears as well as eyes, Almax is testing technology that recognizes words to allow retailers to eavesdrop on what shoppers say about the mannequin’s attire. Catanese says the company also plans to add screens next to the dummies to prompt customers about products relevant to their profile, much like cookies and pop-up ads on a website.
Too much sophistication could backfire, says Hall, because it’s a fine line between technology that helps and technology that irks.
A promotional prompt or a reminder about where to find women’s shoes “could become a digital version of a very pushy sales assistant,” she said. “And we all know how we feel about those.”
To contact the reporter on this story: Andrew Roberts in Paris at aroberts36@bloomberg.net
To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net
iSpy: Apple Spy Planes @ WWDC
Attention sunbathers:
Why are these 1960's spys looking to the sky? Perhaps they're eyeing the competition.
Apple made many notable announcements at yesterday's Worldwide Developers Conference (WWDC). But less attention has gone to the fleet of spy planes bringing Apple's new aerial mapping software down to earth.
Also eyeing the competition is Google, who's mapping software will be replaced by Apple's new offering in iOS devices this Fall. Similarly, Google is said to have launched its own fleet of spy planes. Making the friendly skies a little less so.
With a resolution capible of focusing on objects as small as four inches, sunbathers might want to embrace their tan lines this Summer.
UK reopens probe into Google’s Street View data capture
The ICO re-opened its investigation after a US probe uncovered more detail about the data captured Google is back under investigation after gathering personal data while cameras on its cars took pictures for its UK Street View service.
The Information Commissioner’s Office previously dropped a probe into the affair after being told limited data had been “mistakenly collected”.
However, it said it had since become aware of reports that a Google engineer had deliberately written software to obtain a wider range of material.
The ICO has asked for more information.
Corporations Are People, My Friend. But, IP Addresses Are Not.
When a judge makes a good decision, it shouldn't be news. But, in this case, it's very good news indeed. This week New York Magistrate Judge Gary Brown for the United States District Court for the Eastern District of New York filed a 26-page ruling pointing out that the person listed as an Internet account holder is often not the person using the account.
"It is no more likely that the subscriber to an IP address carried out a particular computer function–here the purported illegal downloading of a single pornographic film–than to say an individual who pays the telephone bill made a specific telephone call," Brown said in his Order & Report & Recommendation, filed May 1.
"An IP address merely identifies the location where a certain activity occurred", Brown noted. A computer in a household is usually shared, which means a child, a boyfriend, or any other visitor, is just as likely to be using the computer. Brown also noted that many households now have a wireless network. If the network is not secured, many people, including neighbors and strangers, can be sharing that IP address without the original account holder's knowledge.
"Considering the weak relationship between an IP address and personal identity, it's likely copyright holders were accusing the wrong people of violating copyright", Brown noted. Mass-BitTorrent lawsuits relying entirely on IP addresses to identify copyright infringers were a "waste of judicial resources," he wrote.
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Social Networking Bill of Rights
BackgroundCheck.org has developed an interesting infographic seaks to address your rights as a social network user. (Click below for a larger view.)
Via: http://www.backgroundcheck.org/social-networking-bill-of-rights/
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‘Massive’ credit card data breach involves all major brands
This breach has already been confirmed by the big processors, and seems to be larger in scope than prior breaches.
VIA http://money.cnn.com/2012/03/30/technology/credit-card-data-breach/?source=cnn_bin
FBI’s most wanted smartphone
FBI Can't Crack Android Pattern-Screen Lock | Threat Level | Wired.com
Pattern-screen locks on Android phones are secure, apparently so much so that they have stumped the Federal Bureau of Investigation.
The bureau claims in federal court documents that forensics experts performed “multiple attempts” to access the contents of a Samsung Exhibit II handset, but failed to unlock the phone.
An Android device requires the handset’s Google e-mail address and its accompanying password to unlock the handset once too many wrong swipes are made. The bureau is seeking that information via a court-approved warrant to Google in order to unlock a suspected San Diego-area prostitution pimp’s mobile phone. (For details on the pimp investigation, check out Ars Technica‘s story on the case.)
Locking down a phone is even more important today than ever because smart phones store so much personal information.
What’s more, many states, including California, grant authorities the right to access a suspect’s mobile phone, without a warrant, upon arrest for any crime.
Forensic experts and companies in the phone-cracking space agreed that the Android passcode locks can defeat unauthorized intrusions.
“It’s not unreasonable they don’t have the capability to bypass that on a live device,” said Dan Rosenberg, a consultant at Boston-based Virtual Security Research.
A San Diego federal judge days ago approved the warrant upon a request by FBI Special Agent Jonathan Cupina. The warrant was disclosed Wednesday by security researcher Christopher Soghoian, In a court filing, Cupina wrote: (.pdf)
Failure to gain access to the cellular telephone’s memory was caused by an electronic ‘pattern lock’ programmed into the cellular telephone. A pattern lock is a modern type of password installed on electronic devices, typically cellular telephones. To unlock the device, a user must move a finger or stylus over the keypad touch screen in a precise pattern so as to trigger the previously coded un-locking mechanism. Entering repeated incorrect patterns will cause a lock-out, requiring a Google e-mail login and password to override. Without the Google e-mail login and password, the cellular telephone’s memory can not be accessed. Obtaining this information from Google, per the issuance of this search warrant, will allow law enforcement to gain access to the contents of the memory of the cellular telephone in question.
Rosenberg, in a telephone interview, suggested the authorities could “dismantle a phone and extract data from the physical components inside if you’re looking to get access.” However, that runs the risk of damaging the phone’s innards, and preventing any data recovery.
Linda Davis, a spokeswoman for forensics-solutions company Logicube of suburban Los Angeles, said law enforcement is a customer of its CellXtract technology, which it advertises as a means to “fast and thorough forensic data extraction from mobile devices.” But that software, she said in a telephone interview, “is not going to work” on a locked device.
All of which is another way of saying those Android screen locks are a lot stronger than one might suspect.
It was not immediately clear whether the iPhone’s locking system is as powerful as its Android counterpart. But the iPhone’s passcode has been defeated with simple hacks, the latest of which was revealed in October 2010.
Clearly, the bureau is none too happy about having to call in Google for help. The warrant requires Google to turn over Samsung’s “default code” in “verbal” or “written instructions for overriding the ‘pattern lock’ installed on the Samsung model SGH-T679.” Google spokesman Chris Gaither would not say if Google would challenge any aspect of the warrant. Google, he said, does not comment on “specific cases.” “Like all law-abiding companies, we comply with valid legal process. Whenever we receive a request we make sure it meets both the letter and spirit of the law before complying,” he said in an e-mail. “If we believe a request is overly broad, we will seek to narrow it.” Photo: Mike Dent/Flickr
Via http://www.wired.com/threatlevel/2012/03/fbi-android-phone-lock/
How tiny antennae threaten to upset the balance of power
Damn the Lawsuits — It’s Full Speed Ahead for Aereo In New York
NEW YORK — Aereo, the startup which aims to rock the TV world by renting you a remote high definition antenna that allows you to watch and record broadcasts via a web browser, launched Wednesday despite lawsuits which allege that the company is violating the copyrights of broadcasters who own the programming.
Two lawsuits have been filed against Aereo (and it has filed a counterclaim of its own) but there is no court injunction preventing the launch, so here we go. In what is perhaps a little tweak at the broadcasters who are trying to shut Aereo down — or just good business of the “first taste is free” variety — Aereo takes to the airwaves with a 90-day free trial, up from the 30 days initially planned. After that 90 days, it’ll cost New Yorkers $12 a month to get the roughly 20 channels broadcasting in this market in HD.
That is, assuming Aereo is still around in 90 days.
The suits against the start-up, whose backers include broadcast veteran Barry Diller, allege that Aereo is blatantly violating the copyrights of broadcasters who air shows that are otherwise available generally only via cable and satellite middlemen, or if you have your own HD antenna attached to a TV set. Aereo contends it has the legal right to provide this service because its potential customers a) have the right to these broadcasts, made available as they are on publicly-owned airwaves and b) have the right to put an antenna anywhere they want to pull in these signals for our own, personal, non-commercial use.
Aereo essentially says it is merely enabling legal private behavior, and charging for that convenience.
Copyright is a justifiably powerful tool which often trumps all — and I am no lawyer — but I’ve already made clear that I find Aereo’s theory compelling. That said, I’m fantastically interested in how the arguments on both sides will be made. Either way this case will change things: Someone is going to do what Aereo is doing, even if it’s only the broadcasters who didn’t bother to, first.
Via http://www.wired.com/epicenter/2012/03/johncabell/
Malls track shoppers’ cell phones on Black Friday
He knows when you are sleeping...
NEW YORK (CNNMoney) -- Attention holiday shoppers: your cell phone may be tracked this year.
Starting on Black Friday and running through New Year's Day, two U.S. malls -- Promenade Temecula in southern California and Short Pump Town Center in Richmond, Va. -- will track guests' movements by monitoring the signals from their cell phones.
While the data that's collected is anonymous, it can follow shoppers' paths from store to store.
The goal is for stores to answer questions like: How many Nordstrom shoppers also stop at Starbucks? How long do most customers linger in Victoria's Secret? Are there unpopular spots in the mall that aren't being visited?
While U.S. malls have long tracked how crowds move throughout their stores, this is the first time they've used cell phones.
But obtaining that information comes with privacy concerns.
The management company of both malls, Forest City Commercial Management, says personal data is not being tracked.
"We won't be looking at singular shoppers," said Stephanie Shriver-Engdahl, vice president of digital strategy for Forest City. "The system monitors patterns of movement. We can see, like migrating birds, where people are going to."
Still, the company is preemptively notifying customers by hanging small signs around the shopping centers. Consumers can opt out by turning off their phones.
Via http://money.cnn.com/2011/11/22/technology/malls_track_cell_phones_black_friday/
Apple’s New Low Cost Gaming Console
First, I AM NOT a fanboy. My phone is an Android. Even when the iPhone was introduced, I steadfastly held onto my WindowsMobile phone, waiting for Palm to introduce something better. I have a Windows7 PC, laptop, AND netbook. When the iPad was first released, I thought it was gorgeous, but lacking. And, it was. Apple introduced an improved model a few months later, and a thinner, even more improved model less than a year later. Admittedly, I bought that one. And I love it. But I owned two Windows tablets well before the iPad was even a twinkle in Steve Jobs' eye. So I was predisposed, even before Jobs said it was the Next Big Thing.
Today at E3 in Los Angeles Nintendo showed the world the Wii U. Which looks and sounds like the birth-child of an Apple iPad and a LeapFrog LeapPad. (Yes, we own a LeapPad.) This, on the heels of Apple's WWDC where they emphasized major changes to Game Center that make it more XBox Live than Yahoo Games. At the same time, quietly and without any significant emphasis, Apple announced AirPlay Mirroring. Which, at first blush, sounds like someone accidentally left a slide in the Keynote deck from last year's WWDC. But, in reality, mated to a $99 Apple TV 2, it turns the iPad, iPhone or iPod Touch into an accelerometer-equipped wireless TV gaming console (minus the console).
But, I'm not buying each of my kids a $499 iPad, when I already spent $249 on the Wii 4 years ago. And then I spent $179 each for two DSi's a couple years later. Plus, each one of the Wii game disks cost me between $30-$50, and then each one of my kids' DSi cartridges cost me another $20-30. And, if they want to play each other, I have to buy two of the same game! Worse yet, once they've conquered a particular game, it's useless.
Do the math. If I'm lucky, I'm only into it for a grand, or so. Now Apple's going to try to get in on the game? Apple has been focusing more recently on price, but their products are not what I'd call the "budget option."
Even if I just bought each of the kids the cheapest iPod Touch, that would still be $210 a piece. Plus every game is going to be another $0.99 to $5.99. And then there's the Apple TV 2 for another $99. That would be close to $500, just to replace what they already have.
On the other hand, that is half what I spent on Nintendo products. And it means that every game they purchased could be played on or off the TV. Going forward, they could purchase anywhere from as little as 3 to as many as 40 times the number of games for the same money as a single cartridge or disk. Of course, the AppStore only has a little over 60,000 to choose from, compared to around 2000 total Wii and DSi titles. And, there's another 35,000 or so iOS educational apps. Each of which could never be lost or damaged -- even if the whole device was lost or damaged. And, by purchasing the apps from the same account, everyone in the house can play the same game, at the same time, together or apart, for just one single purchase. It doesn't hurt either that the iTouch does more than play games. My son, for instance, could use the calendar for scheduling. And both my kids would love to have an MP3 player. Which, again, would allow them to share music under the same account. There are dictionary and thesaurus, flash cards, SAT prep, and other good apps. Plus, the Apple TV 2 also has a few tricks, other than being a slave to iPad, iTouch, and iPhone. It's certainly a competent media player and Netflix tuner (even before jailbreaking).
Until yesterday, I might have been worried that they'd fight over a computer to sync. But, come Fall, not only will that be unnecessary, but -- with the addition of a Bluetooth keyboard and the Apple TV -- each practically becomes its OWN computer, portable and home video and MP3 player (also capable of wirelessly streaming from my iTunes library), handheld game machine, gaming console, PDA, and videoconferencing device. To do it up right: $210 iTouch, $99 ATV, add a nice screen for less than $200, and a $69 Bluetooth keyboard. Effectively, the same price as purchasing each of them a desktop computer, but one that fits in their pockets. Even the Apple TV 2 is pocket-sized.
Fine! I take back what I said about the "budget option."
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