Retail Open Innovation Challenge 2024

BACKGROUND OF THE PROBLEM

Commune currently packs our products using paper-based packaging cartons and materials like styrofoam and honeycomb cardboard. Unfortunately, these packaging materials may not protect our products from moisture damage. We incur an average loss of approximately S$20,000 per year from moisture damage. For moisture-absorbent materials like oak, the damage is considerably higher in the range of S$50,000 to S$60,000. Moisture damage is particularly prevalent during rainy seasons.

In addition to losses from water-damaged products, we have to install dehumidifiers to reduce our warehouse humidity levels to prevent mould. This dehumidifying process is energy-intensive.

As such, we are looking for novel, innovative packaging solutions capable of protecting our products against moisture and during transit. Our parent company’s revenue is about US$50 million; packaging expenses comprise approximately 10% of that amount. This is therefore a considerable business opportunity for potential solution providers.

We aim to switch to eco-friendly materials not just because of cost, but also to meet the evolving consumer preferences for sustainable packaging. We seek a material that offers protection against moisture damage that matches or surpasses the quality of our current packaging, while also being equally priced. Moreover, we anticipate the new material to reduce energy expenses by reducing our reliance on dehumidifiers. This benefit should extend to our supply chain partners too.

In the past, we have explored the following solutions:

• Desiccant bags: Desiccant bags placed within our cartons are only effective for short durations, whereas our products are sometimes stored for years before being delivered to customers.
• Honeycomb cardboard: This material works but is suboptimal since it is 10% pricier and lacks humidity control capabilities.

We are not looking for solutions that:

• Merely resolve moisture issues without also protecting our products from transit damage.
• Are unsustainable.

TECHNICAL REQUIREMENTS / PERFORMANCE CRITERIA

Technical Requirements:

• The solution should be made of recycled materials or be easily recyclable.
• The solution should protect against moisture for a minimum of 3 months, and a maximum of 2 years.
• The solution should be in line with the ISTA 3A Protocol (Durable enough to withstand a global logistics supply chain for a duration of 2 to 3 months under different conditions and environments).
• The solution should be easy to unpack.
• The solution should facilitate a cost-effective and easy implementation across various production sites with minimal capital expenditure.

Performance Requirements:

• The solution should be priced comparably to the current packaging we use. Presently, our packaging accounts for about 10% of the total material cost of the product (excluding labour).

COST TARGET

Cost targets will be determined on a case-by-case basis.

TIMEFRAME FOR DEVELOPMENT

Phase 1: POC development: Q1 2025.

Phase 2: Commercial roll-out: to be determined on a case-by-case basis, target implementation by Q2 2025.

POTENTIAL MARKET / BUSINESS OPPORTUNITY

If the solution is implemented successfully, Commune is willing to explore a further roll-out within Commune’s parent company, which boasts a turnover of approximately US$50 million and operates globally.

Additionally, we are willing to support a roll-out to our customers and extended supply chain. We are also willing to support a rollout across the Singapore furniture industry too.

RESOURCES

OTHER CONSIDERATIONS

We are looking for SMEs and startups with solutions that can be implemented in a relatively short time frame (TRL of 5 and higher).

For Background IP (BIP), both parties will retain their respective IPs brought into the project. In the event of new Foreground IP (FIP) creation, Commune is agreeable to the FIP being retained by the solution provider.

BACKGROUND OF THE PROBLEM

As a leading global brand, Coach seeks to expand its retail operations efficiently across various markets. Since store expansion is one of our biggest investments, we need to make the right decision on the location and visual of new stores to maximise returns. Currently, store expansion decisions are made by triangulating diverse data sources. These decisions are often made 12-18 months in advance, and goal is to maximize better short-term and long-term planning.

Coach is therefore inviting solution providers to propose innovative, proprietary solutions to utilising Artificial Intelligence (AI), Generative AI, Large Language Models (LLMs) and other disruptive technologies to automate decision-making on crucial store expansion criteria such as location, store type, and layout.

The data sources we currently use to make these decisions include (but are not limited to):

• Competitor information
• The average footfall in existing stores
• Per square foot productivity
• Conversation or targeted conversion
• Medium income of the surrounding area
• Demographics of the particular city or region
• General macro-economic factors

We have not attempted any solutions similar to this challenge statement before, and welcome solution providers to propose suitable solutions.

Coach understands that in order to develop the solution, solution providers might need access to our data set(s). We are willing to discuss this in a case-by-case basis depending on the needs of the solution provided and subject to review by our legal team.

TECHNICAL REQUIREMENTS / PERFORMANCE CRITERIA

Technical Requirements:

• The solution should have the following basic features:
  1. In POC phase: the model will only be trained on public and/or dummy data. We hope to see a first version of the model to be able to predict some (not all) of the output parameters mentioned before.
  2. Initial output parameters desired include: Expansion location suggestions, projected footfall, footfall heatmap, etc.
  3. Desktop interface deployable on cloud and over mobile.
  4. Ability to prime the model using natural language to ensure the output is as desired.

• We target the solution to have an accuracy of 85%.
• We target the solution to significantly reduce planning time for the opening of a new location (Currently it is between 6 months to 1 year).

COST TARGET

Cost targets will be determined on a case-by-case basis.

TIMEFRAME FOR DEVELOPMENT

Phase 1: POC development: Q1 2025.

Phase 2: Commercial roll-out: to be determined on a case-by-case basis, target implementation by Q2 2025.

POTENTIAL MARKET / BUSINESS OPPORTUNITY

Coach is willing to support further pilot implementations across locations in SEA and ANZ, including both distributor and direct models. This could involve implementing in over 20-30 locations.

RESOURCES

OTHER CONSIDERATIONS

We are looking for SMEs and startups with solutions that can be implemented in a relatively short time frame (TRL of 5 and higher).

For Background IP (BIP), both parties will retain their respective IPs brought into the project. In the event of new Foreground IP (FIP) creation, potential ownership will be determined on a case-by-case basis depending on the contributions of each party.

BACKGROUND OF THE PROBLEM

As a leading global sports retailer, Decathlon aims to provide the best immersive in-store experience to encourage repeat visits and purchases. We seek novel in-store digital experiences that are social in nature to allow customers to: 1) interact with and experience, 2) learn about, and 3) share our products digitally.

To that end, Decathlon invites solution providers to propose innovative digital solutions to enhance our store experience. We are specifically looking for solutions that are social in nature and that allow our customers to interact with online and offline sport(s) communities.

We believe enhancing our in-store digital experience will boost our conversion rates and increase average order quantities per customer.

Our current in-store digital experience is outdated and ineffective. Despite past efforts, post-Covid digitisation of our point of sale has stalled, leaving our approach traditional and lacking modernity.

Solutions we have tried which failed to significantly increase engagement or conversion include:

• QR codes for product information.
• Standard touch screens for interaction.
• Virtual Reality (VR) gamified immersive experiences.

• AI-Driven personalised sports coaching pods: pods that are equipped with biometric sensors and cameras to provide instant personalised coaching. Customers could share their performance data and progress through social media.

• AR mirrors for virtual try-ons: for customers to see how certain items fit them physically
• Customisation options: to visualise personalised designs on-the-go.
• Smart shelves with sensors and digital screens: to display dynamic content Interactive floor displays.
• AI-powered assistants for personalised recommendations
• Interactive product holograms: to enable customers to learn more about specific products
  

TECHNICAL REQUIREMENTS / PERFORMANCE CRITERIA

• The solution should have the following basic features:
  1. Ability to integrate with our in-house membership programme.
  2. The solution should fit within a 5m2 space and have a maximum height of up to 2 meters.
  3. Ideally, the solution should be applicable across multiple sports categories. This includes categories with bulky items (E.g. cycling) and smaller items (E.g. running or weight lifting).
  4. The solution should require minimum to no support from our sales support staff.
  5. The solution should be sustainable and contribute to the circular economy.
  6. The solution should immediately demonstrate its effectiveness clearly and concisely.
  7. The solution should be easy to understand and operate. It must work in the context of a Decathlon Store; a loved brand that is multi-sport and accessible.

• We target for the solution to enable an increase in conversion rate of at least 5%.
• We target for the solution to allow an increase of quantity (number of items) sold per customer by at least 10%.

COST TARGET

Cost targets will be determined on a case-by-case basis.

TIMEFRAME FOR DEVELOPMENT

Phase 1: POC development: Q1 2025.

Phase 2: Commercial roll-out: to be determined on a case-by-case basis, target implementation by Q2 2025.

POTENTIAL MARKET / BUSINESS OPPORTUNITY

Decathlon seeks to pilot solutions in our Kallang experience store, with potential expansion to our 50-60 pick-and-collect stores, and up to 200 stores in total.

We aim for exclusive long-term use and offer extensive global rollout to make the business opportunity attractive for the solution provider.

RESOURCES

OTHER CONSIDERATIONS

We are looking for SMEs and startups with solutions that can be implemented in a relatively short time frame (TRL of 5 and higher).

For Background IP (BIP), both parties will retain their respective IPs brought into the project. In the event of new Foreground IP (FIP) creation, potential ownership will be determined on a case-by-case basis depending on the contributions of each party.

BACKGROUND OF THE PROBLEM

TECHNICAL REQUIREMENTS / PERFORMANCE CRITERIA

Technical Requirements:

• The solution should have the following basic features:
  1. The ability to upload a 2D floor plan in the system.
  2. The ability to instantly project the floorplan in 3D into an in-store LED Cave.
  3. The ability to customize layout and play around with various appliances, furniture and other SKU’s including customization of variables such as colour and composition.
  4. The ability to physically print out the visualization once the customer is satisfied.
• The solution should be able to integrate with our warehouse management system, including all our SKU’s.
• The solution should be able to integrate with our ERP system (Microsoft Business Central).

• We target the solution to enable an increase in our conversion rate. Currently our conversion rate stands at approximately 60%.
• We target for the solution to increase new homeowners group buy turnout by 3X.
• We are looking for a potential ROI within 2 years after implementation of the solution.

COST TARGET

Cost targets will be determined on a case-by-case basis.

TIMEFRAME FOR DEVELOPMENT

Phase 1: POC development: Q1 2025.

Phase 2: Commercial roll-out: to be determined on a case-by-case basis, target implementation by Q1 2026.

POTENTIAL MARKET / BUSINESS OPPORTUNITY

Gain City is looking to support a further pilot implementation in our store in Tampines. If successful, a second roll-out is possible in other megastores we operate.

We are looking to gain exclusive rights to utilize the solution for Singapore and are happy to support further roll-out to 2 other stores in Singapore.

RESOURCES

• Up to S$15,000 to support the pilot development.
• Proposals will be evaluated on a case-by-case basis depending on the quality and feasibility of the proposed solutions.

• Mentorship and support for solution development.
• Access to relevant datasets, and pilot site(s).

• Up to S$10,000 grant support from EnterpriseSG.

OTHER CONSIDERATIONS

We are looking for SMEs and startups with solutions that can be implemented in a relatively short time frame (TRL of 5 and higher).

For Background IP (BIP), both parties will retain their respective IPs brought into the project. In the event of new Foreground IP (FIP) creation, potential ownership will be determined on a case-by-case basis dependent on the contributions of each party.

BACKGROUND OF THE PROBLEM

HomesToLife is a home furnishing brand selling a range of furniture from sofas to dining tables. We are looking for an end-to-end 3D visualisation system to speed up the furniture customisation process, thus shortening sales cycles and increasing conversion.

Customers make purchasing decisions based on different factors, including price, furniture aesthetics, and (primarily) space constraints. This causes delays in their purchasing decision

Our goal is to facilitate customers’ decision-making process to increase the number of conversions when the customers receive their quotations. Our current rate from closing to quotation is about 80%, meaning 20% of our customers do not make a purchasing decision after receiving a quotation. We would like to increase this conversion percentage by implementing an end-to-end 3D visualisation system. We believe significant efficiency gains can be achieved by allowing customers to understand how the particular piece of furniture they are interested in fits into their floor plan.

We are therefore looking for an end-to-end system that can be used both in-store and online, where customers would upload their floor plans and a generative AI system automatically configures the furniture inside their homes.

Our current customer journey can be expressed as follows:

1. Customers visit and determine if they like a particular furniture. They will be able to see different variations in our retail store.
2. Sales team will note down a customer’s preferences on variables including size and colour.
3. A quotation will be provided including price, customisation and a visualisation of the layout and floor plan (through a regular picture).
4. The quotation will be provided immediately, or alternatively it will be shared later via WhatsApp or email

• Instagram stickers of our furniture paired with pictures taken by customers to show what integration might look like.
• home 3D solutions. We opted against implementing such solutions as they often rely on existing floor plan templates rather than allowing for direct visualisation of the customer’s floor plan.

TECHNICAL REQUIREMENTS / PERFORMANCE CRITERIA

Technical Requirements:

• The solution should be able to integrate with our Sage CRM system to automatically populate the floor plan based on the quotation and specific piece of furniture the customer has selected.
• The solution needs to be integrated into the HomesToLife website as a login member-only feature (accessible after logging in).
• The solution should be deployable via laptop.
• The solution should include a login and account function.
• The solution should enable customers to upload floor plans or photos of their homes.
• The solution should be fully integrated with the HomesToLife database of furniture (CAD-drawings can be made available).
• The solution should automatically configure possible layouts using generative AI, giving customers 3 different options for what the furniture would like inside their homes.
• The solution should also allow for manual configuration too so that our sales team can edit the configuration if needed.
• The solution should be integrated with our quotation system so automatic quotations can be provided.
• We are open for integrations with open-source LLMs for image generation, prompting and questioning.
• We are looking for integration with an AI assistant that can guide the customers by providing feedback (on material and style choices, discounts etc.) throughout the process.

• The solution should enable an increase to the overall number of quotations by about 20%.
• The solution should increase our conversion rates by at least 10% (from 80% currently, to 90%).

COST TARGET

Cost targets will be determined on a case-by-case basis. 

TIMEFRAME FOR DEVELOPMENT

Phase 1: POC development: Q1 2025

Phase 2: Commercial roll-out: to be determined on a case-by-case basis, target implementation by Q21 2025.

POTENTIAL MARKET / BUSINESS OPPORTUNITY

If the solution is successful, HomesToLife is willing to support a further roll-out across other stores. We have existing premises in China (300 stores) India (18 stores), Singapore (6 stores) as well as Taiwan, Philippines, Korea and Japan (4 stores).

Additionally, we are open for solution providers to deploy their solution in other non-competing market segments.

RESOURCES

OTHER CONSIDERATIONS

We are looking for SMEs and startups with solutions that can be implemented in a relatively short time frame (TRL of 5 and higher).

For Background IP (BIP), both parties will retain their respective IPs brought into the project. In the event of new Foreground IP (FIP) creation, HomesToLife is agreeable to FIP being retained by the solution provider.

BACKGROUND OF THE PROBLEM

Rémy Cointreau operates many Global Travel Retail (GTR) stores, notably in places like airports. In these competitive retail environments where many brands are represented, meeting retailers’ expectations for brand exposure, including brand space, visibility and presentation can be very challenging. Many brands are displayed on standard wall bays, gondola fixtures, endcaps or generic shelves with routine Point of Sales Materials (POSM). Moreover, each Retail Service Associate has limited time (on average only 3 minutes) to engage with customers, making it difficult to engage customers to ultimately increase customer conversion.

To address this, we are seeking innovative solutions to create novel retail experiences to enhance customer engagement and drive sales. We believe an immersive brand experience can be created through elements such as tasting, education and/or discovery of products without the presence of a Service Associate.

Many brands have tried different approaches, including scented notes, digital screens, self-discovery touch screens, QR codes for information, digital cocktail recipes. Whilst these tools are digital and sustainable, they lack real attraction and immersion.

Rémy Cointreau welcomes all solutions for new product interactions and enhanced customer experiences. The solution must be pragmatic and consider space and time constraints, as travellers have limited time to engage.

TECHNICAL REQUIREMENTS / PERFORMANCE CRITERIA

Technical Requirements:

• The solution should have the following basic features:
  1. The solution needs to fit into the gondola and wall bays to be used during activations.
  2. The solution needs to fit the following indicative dimensions (in case it is a physical piece):
     • Height: 320 mm
     • Width: 275 mm
     • Base length: 400 mm
• The solution cannot have a short expiry date (at least three months).
• The solution must be sustainable (sustainability is a key strategic focus of the group).
• The solution must be accessible to customers (without support from sales representatives).
• The solution must follow the standard approval requirements of airport retailers.
• The solution should integrate with different pre-existing loyalty programmes (these programmes are brand-specific)

Performance Requirements:

• We target the solution to increase our conversion rate (current average rate at 30%).
• We target the solution to increase the number of items purchased.
• We target the solution to monitor the engagement (e.g. how many customers are engaging with the activation).
  

COST TARGET

Cost targets will be determined on a case-by-case basis.

TIMEFRAME FOR DEVELOPMENT

Phase 1: POC development: Q1 2025.

Phase 2: Commercial roll-out: to be determined on a case-by-case basis, target implementation by Q2 2025.

POTENTIAL MARKET / BUSINESS OPPORTUNITY

If the solution is implemented successfully, Rémy Cointreau is willing to explore further roll-out and development in up to 30 stores and 50 activations. Additionally, we are looking to use the solution exclusively for the first year after implementation.

RESOURCES

• Up to S$30,000 to support the pilot development.
• Proposals will be evaluated on a case-by-case basis depending on the quality and feasibility of the proposed solutions.
• Disbursement of incentives will only be upon achievement of agreed-upon milestones.

• Mentorship and support for solution development.
• Access to relevant datasets, and pilot site(s).

• Up to S$20,000 grant support from EnterpriseSG.

OTHER CONSIDERATIONS

We are looking for SMEs and startups with solutions that can be implemented in a relatively short time frame (TRL of 5 and higher). For Background IP (BIP), both parties will retain their respective IPs brought into the project. In the event of new Foreground IP (FIP) creation, Rémy Cointreau is agreeable to FIP being retained by the solution provider.