Analysis: Surveillance of Consumers Raises Issues

Natalia Pozuelo-Arbide, The Carroll News

Consumer behavior is an area where top executives are always searching for answers. The success of a company relies on reaching a target audience through appropriate means of communication. This goal isn’t new, but what has changed is the way companies are seeking the mindset of their consumers.

Specifically in fashion, the latest development in technology is achieving this goal faster than ever and maybe even creepier than ever. This past May, Colliers, a brokerage that controls the real estate in one of London’s most popular luxury retail locations, partnered with Gyana, according to the online publication the Business of Fashion. Gyana is a human mobility tech firm that has GPS location data from smartphones using sensor technology installed by telecom companies such as Q2. This means Colliers oversees shopping behavior through these popular London streets.

Before we decide if this is a genius corporate technique or simply an invasion of privacy, we first have to look at the details. Gyana will first use the location tracking features installed in countless apps on consumers’ smartphones. This will enable Gyana to trace the time consumers enter the store and how long they stay there. Next, the information has the potential to match with a consumer’s age, profession and the countless other details they decide to type into their apps. Further, consumers who think they’re playing it safe by blocking the location feature are spotted every single time their phone dings nearby telecom towers. It is clear retailers have moved past the stages of monitoring consumers through surveillance store cameras and are strategically placing more sophisticated surveillance devices that monitor consumers’ every step.

Now, let’s examine why companies choose to support these invasions of privacy. In 2019, we have countless direct-to-consumer brands like Asos, Boohoo, Revolve and Fabletics that have instant access to consumers’ data which can be used to strategically tailor new marketing campaigns that target an audience. As a result, traditional retailers are falling behind and claim that collecting information about their consumers through new technology, such as Gyana, is absolutely necessary. That is why Saks Fifth Avenue and Adidas are some of the countless brands that have hired Axis Communications to install smart cameras in their stores that can watch movement and calculate a consumer’s age, gender and more.

Other companies, including UnTuckit, Express, Club Monaco, Richemont and Ulta, have been using RetailNext, a surveillance technology company, to install devices on top of every store fixture, ranging from tables to rolling racks, according to Business of Fashion. As soon as a customer walks into a zone, the camera records how they are interacting with products. They can track how much time they spend with a product and see which ones they bother to look at. Creepy or genius? Well, top global marketing claims RetailNext allows stores to adapt and develop their inventory and measure the overall success of retail stores in the same way online businesses develop and calculate marketing techniques.

When it comes to the individual’s right to privacy, Gyana, RetailNext and Axis Communications say they collect the data without the person’s identity. Retailers will examine consumer behavior but have no way to identify who entered stores. Supporters of this technology argue it helps companies create and enhance consumers’ in-store experience.

Members of Gen Z are the most experienced generation in realizing how technology, when used appropriately, is making great strides. There is a sense of trust in technology to make a positive impact in the world. In this case, companies should promote, with transparency, that their technology is only being used to enhance the user’s experience.

Editors Note: Information from Business of Fashion was used in this article.