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.
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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Sarkozy: Anyone who “consults Internet sites which promote terror” should go to jail
Sarkozy: Anyone who "consults Internet sites which promote terror" should go to jail | http://t.co/u34fQrH8
There’s an app for that: How researchers pwned your mind
Researchers turn smartphone users into unwitting minions with a simple app
With mobile users becoming more reliant on their devices and accompanying applications, researchers from Northwestern University have discovered the ease with which user’s mobility can be “soft” controlled.
As smartphone apps become further and further integrate into our daily lives, you have to wonder if we’re in control of our desires or if mobile applications are starting to controlling us.
To discover the ease with which app users can be manipulated, researchers from the McCormick School of Engineering at Northwestern University underwent a study to determine whether they could change the habits of a smartphone user’s mobility through gaming and social-networking applications. The goal was to compel them to visit areas less frequented.
How can an application affect on our decisions on a daily basis?
Like with advertising, we can be compelled by Foursquare to achieve or maintain our “Mayor” standing at a particular restaurant or venue. We might be manipulated, for instance, to travel not to the local pizza shop, but instead to the Chinese food store that we’ve been visiting repeatedly for the last month.
The research was conducted by John Rula and Fabián E.
Bustamant and titled, “Crowd (Soft) Control Moving Beyond the Opportunistic.” They used four foundational elements that work together offer individuals incentives:
- Location: The location desired stated in terms of latitude and longitude, and optionally altitude and heading.
- Action: The type of action to be triggered at the particular location and time.
- Expiration Time: The time when the request is no longer valid; this is used to control the timing and relevancy of actions.
- Ranking: The relative importance of the location. This can be used by the game to differentiate incentives by priority Rula and Bustamant created an Android-based augmented reality game titled, “Ghost Hunter,” which required users to chase monsters and ghosts throughout the neighborhood. The objective of the game was to “zap” the ghosts and monsters by capturing the augmented image on their mobile phone’s camera. But what users were not aware of was the researcher’s underlying intent.
The researchers had positioned the ghosts in exact locations, around a predetermined building. The resulting photographs of the “ghosts” enabled the researchers to create a 3D picture of the building from the collected images. While the photographic modeling of the building was successfully crowdsourced by the unsuspecting “Ghost Hunter” gamers, what the researchers had also discovered was the ability to compel users to capture images of the building from angles and locations typically not frequented, as the image below indicates.
While mobile users are concerned about their privacy, the ease with which they can be “soft” controlled raises a whole new issue altogether. Games and social networks not only offer a means of learning more about the people who use them, they can potentially offer a way to control their actions. Manipulating users into conducting illegal acts or luring them to dangerous locations is very much a reality.
Only days ago, three Japanese tourists were mislead by their GPS into the Moreton Bay in Australia during a low tide and became trapped in the thick mud. With the tide rising, they were forced to abandon their waterlogged rental car.
Ultimately, users will have to decide for themselves where they draw the line. As the research reiterates, “As augmented reality gamers can be trusted to exercise their best judgment during play, users of extended location based applications should be trusted to judge the suggestions made through CSC (Crowd Soft Control).”
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/
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/
I Know What You Did Last Winter (Snow Job)
For those who believe revenge is a dish best served cold...
Like so many around the country, David Welles has had to endure a long cold Winter this year -- only made worse by the volume of snow in front of his Chicago home, and the untimely disappearance of his snow shovel. While Welles is no better equipped to dig his way out of a snowstorm than anyone else without a shovel, he was perfectly equipped to identify the perpetrator -- or, at least her car. That's because Welles works for a security company by the name of Tunnel Vision Technology, and it appears as though he's been visiting the supply closet.
While we'll presume that David's "eagle eye" came with a receipt, the snow shovel he caught his neighbor stealing on digital video didn't. Under ordinary circumstances, one might turn the evidence over to the police. Then again, under ordinary circumstances, it's not likely there would have been any evidence. But, these are no ordinary circumstances, and these are no ordinary times.
David's shovel was probably worth less than $25, maybe ten on the street. The trail was cold before it was laid. And the "perp" wore gloves, so no fingerprints. This wasn't about money. This was about the age's-old relationship between a man and his tools. Besides, Welles had another idea. He entered an arms race, added a dose of PsyOps... and then he turned to YouTube. The result? What Welles calls, "The Quadrilogy of My Favorite Snow Shovel". See the results for yourself.
(NOTE: If you are ONLY connaisseur of revenge, skip to the mid-point.)
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Mixed Messages: US Govt. Tells Companies to Collect User Data, But Not To Use It
Last month the US Federal Trade Commission testified before Congress in order to establish "Do Not Track" legislation, challenging companies to either self-regulate, or face potentially stiff laws prohibiting the tracking of Internet users. This week the US Department of Justice testified before congress to establish regulations requiring data retention for the purposes of investigation and prosecution.
"Data retention is fundamental to the department's work in investigating and prosecuting almost every type of crime," US deputy assistant attorney general Jason Weinstein told a congressional subcommittee on Tuesday. "In some ways, the problem of investigations being stymied by a lack of data retention is growing worse." Weinstein acknowledged that greater data retention requirements raise legitimate privacy concerns but "any privacy concerns about data retention should be balanced against the needs of law enforcement to keep the public safe."
Emphasizing the vast disparity between the testimony of these two Federal organizations is the following statement from the FTC's own prepared statement to Congress expressing a principal of "reasonable security and limited retention for consumer data" among companies collecting sensitive data.
"A key to protecting privacy is to minimize the amount of data collected and held by ISPs and online companies in the first place," according to John Morris, general counsel at the non-profit Center for Democracy & Technology. "Mandatory data retention laws would require companies to maintain large databases of subscribers' personal information, which would be vulnerable to hackers, accidental disclosure, and government or other third party access."
The DOJ's request would require "an entire industry to retain billions of discrete electronic records due to the possibility that a tiny percentage of them might contain evidence related to a crime," says Kate Dean, executive director of the Internet Service Provider Association. "We think that it is important to weigh that potential value against the impact on the millions of innocent Internet users' privacy."
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