Four times a year, Kim Tchai and Vera van Beaumont delve into discussions about retail & hospitality, creativity & business, ownership & leadership and everything else that comes up. In this third Deepdive, they focus on innovation, digitalization, and AI: threat or blessing?
Kim and Vera, last time we talked extensively about sustainability. In many ways, isn't innovation the key to a more sustainable Tchai?
Kim: “Innovation is never an isolated endeavor. It has a purpose, a direction. You don’t innovate just to innovate; you do it to achieve something. Whether it’s conveying the customer story more effectively, working more efficiently, or reducing our environmental impact, ‘sustainable innovation’ is definitely a key theme for us.”
Vera: “Ultimately, you have to partner with customers in this. The demand for more sustainable solutions is growing, but when higher costs are involved, it often becomes challenging. We see innovation as a way to inspire customers: here’s how it can be done, and this is the positive impact you can make.”
Can you give an example of such sustainable innovation?
Vera: “Top of the list is the use of materials. Many new materials are being developed from sustainable raw materials, with a less damaging production process and plenty of opportunities for recycling or reuse. It is up to us to assess which materials are already applicable to our customers.”
Kim: “In the past, we have occasionally experimented with groundbreaking materials, which then turned out to have a six-month delivery time. We have to ensure that we can create 500 shop-in-shop installations consistently and that they all look the same.”
Vera: “Right now, significant strides are being made in materials. At Tchai, we’re on top of these developments. We want to continue to stimulate and challenge customers to go for a sustainable material.”
How do you convince a customer to choose innovative, sustainable materials?
Kim: “By providing insight into the positive impact of such a material. We are currently working on detailed product passports. This will allow us to substantiate numerically how a display made of a more sustainable material performs compared to a regular display.”
Vera: “We also want to offer a sustainable alternative as standard in future quotations. The customer will then know exactly what the additional costs are and what the added value is. Now we already do that sometimes, but far from always.”
What’s a recent innovation that is fully embedded in the daily operations of Tchai?
Kim: “I think innovations often go through the same cycle. It starts as a hype; everyone is talking about it. Then it becomes a niche; the frontrunners start applying the innovation first. After that, everyone begins using it, and it becomes a standard application among all the other tools at your disposal. Or the innovation gets replaced by the ‘next big thing,’ of course. To answer your question: 3D printing has proven to be a very relevant innovation for us.”
Vera: “Initially, 3D printing was perfect for us to create small prototypes of designs. Look, customer, this is how it will look. Now, 3D printers give us much more creative freedom than ever before. I don’t mean that we’re printing all kinds of organic shapes; we can engineer much more intelligently. By making small parts ourselves, for example, a display can suddenly be made much easier or assembled more efficiently.”
Kim: “3D printing fosters creativity on various levels. Not just in design but also in production, logistics, and assembly. If a standard solution doesn’t exist, we create it ourselves.”
Sustainable materials, 3D printing, they are very tangible things. At the same time, the world is rapidly digitizing. How does Tchai deal with that?
Vera: “Our specialty lies in the physical space, that’s true. When it comes to digitalization, you really have to separate two things. On one hand, it’s about how we use digital applications in developing brand spaces, and on the other hand, it’s about integrating digital possibilities into the brand spaces themselves.”
Kim: “For example, what I really like on the development side itself is how we use VR to present new designs. With a VR headset on, it feels like you’re stepping onto the store floor yourself. This way, we can give customers a truly realistic idea of the overall space and brand experience.”
Vera: “That’s a striking example indeed, but we are also constantly developing tools to automate processes, share data and to let customers do more themselves. For instance, we offer our Tchai Installation Tool that springs into action after the inspirational creation process and the production of your shop fixtures are finished. In this personal space you will find: up-to-date planning, floor plans, installation information, brand area photo’s, snagging lists, deliverables and signed documents from all your shop-in-shops, stores or product presentations. In our secure database you will be able to see your whole retail installation history.”
Kim: “We also have a Tchai Maintenance app for retail installations and interiors that have already been set up. With one app, you can manage maintenance, adjustments, repairs, and updates for all your locations. We keep certain items in stock for the customer and make it clear through the app what we have and when we deliver.”
Vera: “Excuse me, but I want to mention just one more tool (laughs): our Digital Signage Tool. In the past, we had to visit all locations to adjust audiovisual or digital content on displays. Now we (or the customer) can adjust the content in all stores across Europe with just two clicks. Meanwhile, the app collects data on how shoppers are using a display, for example.”
Kim: “What I find much more interesting is the ability to create content very specifically targeted with the same ease. The same instore presentation, has an action only in the Netherlands on Koningsdag. Or only in Amsterdam during gay pride. After that, the content runs with the rest of Europe. That way you can really connect with a specific target group.”
That bring us to the application of digital on the store floor. What is Tchai’s vision on this?
Kim: “I think ‘phygital’ is a nice term. Physical and digital are increasingly becoming one. Ultimately, it’s about what digital adds to the brand experience. A great example is those spectacular augmented reality billboards you see on LinkedIn or Instagram. They’re super cool, but if they’re completely disconnected from what’s happening in your store, they do very little for your brand. All for the likes, but then what?”
Vera: “We really position ourselves as a partner and don't shy away from asking the customer: why do you want to apply this innovation? A few years ago, “data is king” suddenly became the mantra. You saw data collection everywhere, without much being done with that data. Today, we can learn so much from the information we gather, that user data alone helps us continually optimize retail presentations. See, that's when it's relevant.”
You just touched on the hype phase that every innovation goes through. Should we talk about AI, too?
Kim: “AI is developing so fast that the hype remains big, even though it is already widely applied. AI is simultaneously in the hype, niche, and adaptation phases!”
Vera: “At the very front end, we obviously use AI as inspiration for the creative processes. That works fantastically well. On the engineering side, we don't think this is possible yet. For now that is too detailed, too specialized. I do think there will come a time when we put some models into AI and then ask it to make an optimal construction out of them.”
Kim: “Oh yes, if that allows us to assemble and transport thousands of displays more intelligently, that would be fantastic. Everyone in our field is trying to engage with AI in a good way. For example, we are very cautious about never uploading anything with our customers’ logos into AI. You can see the awareness around privacy, copyrights and data management increasing significantly.”
Do you only see the positives and opportunities of AI or is it also partly a threat to Tchai?
Vera: “How many entrepreneurs who saw the Internet as a threat in the late '90s are still in business today, do you think?”
Kim: “Good point, Vera! AI forces you to reflect on your own added value. What do we add, and how can AI help us with that? We say: ‘creating genuine connections’ is the core of what we do. How do you ensure that consumers make a genuine connection with a brand? All the practical stuff AI can help us with, gives us even more room to focus on that. If the work gets done faster and the fulfillment is more efficient, then we are going to deepen our conceptual strength and partnership with the client.”
Vera: “The better the tools become and the more professional the output, the greater the risk of it all becoming similar. The true distinction lies in your authenticity, in your roots. What makes you unique as a brand? That’s where the human component is most important. Ultimately, you want to touch people on the store floor.”
Kim: “If you don't know what story to put into an AI tool, you won't get what you want out of it. Bad input, bad output. That will never change. It all starts with the story you want to tell.”
Vera: “Funny enough, the fourth Deepdive is exactly about that: storytelling! Great cliffhanger, Kim. We’ll continue our conversation soon.”
Missed the first edition of Deepdive Dialogues? Read here +