Is in-store production the future of retail?

July 7, 2017 Sanjana Saluja

Technology is set to transform the physical stores. It maybe in its very early stages but the benefits for both customers and retailers could well see it become a feature of future stores. JLL Real Views explores how onsite production technology is helping us rethink retail spaces. 

German sportswear giant, Adidas, is leading a retail trend towards in-store production with its pop-up in Berlin, which opened in March 2017. Known as Knit for You, the pop-up let customers design their own sweater, which was knitted onsite with merino wool in under four hours.

The initiative is part of a public-private collaboration between government, business and research institutions, to explore decentralized production methods while giving end users the opportunity to co-create.

“The Adidas project is impressive because it connects the end user to production and involves them in the creative process,” says Dirk Wichner, Head of Retail at JLL Germany. “Standard sales channels involve purchasing products that are delivered to stores several months after the design phase. It’s a challenge for designers to predict upcoming trends.”

Currently it takes Adidas 12 to 18 months to get products from the design stage to stores. It hopes the new customization initiative will also bring financial benefits – it currently sells less than 50 percent of its products at full price but is looking to raise that to 70 percent.

Click here to find out more on how forward thinking brands are using technology to make fast fashion even faster.

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