The Consumer Electronics Show sets the agenda for the coming year. Here are some of the products and trends retailers should look out for.

Smart home technology

The product sector with arguably the greatest implication for retailers this year was smart home technology.

The sense at CES, held in Las Vegas, was that customers have reached that tipping point and are willing to spend money to drive convenience, track energy spend and increase safety in their homes.

Smart home tech

Smart home tech

Smart home and wearable technology was out in full force at CES

Millennials were cited as the most likely to invest in technology for their homes, but there was a clear interest from older shoppers too.

A survey of 20,000 American shoppers, carried out on behalf of home television network Scripps Network Interactive, found the most desired products were lighting automations and controls, mobile- and tablet-controlled house systems and doorbell cameras.

For retailers, the opportunity lies not only in selling these products to shoppers, but also in installation and use services.

A key phrase used at CES when describing the potential of smart home technology to retailers was a ‘gateway product’ – an item that will sway consumers to invest in having this technology throughout their home, such as automated lights or connected speakers.

Retailers that have their offer and service proposition up to scratch on this product could see a significant uplift in sales and customer loyalty as a result.

Artificial intelligence

Robotics and AI

Robotics and AI

Artificial intelligence tech such as Amazon’s voice-activated Alexa device and customer service robots divided opinion at the conference

Customer-facing artificial intelligence (AI) technology has started to show green shoots in the UK market in the form of chatbots, deployed by retailers including Shop Direct and social media giant Facebook.

CES showcased how this technology could be moved from the screen into shoppers’ physical lives.

Voice-activated services have been deployed, or are soon set to be rolled out, by tech and retail giants including Amazon, Google and Apple.

This makes it possible for shoppers to buy products from home and without even having to unlock their smartphone.

Even more futuristic – although probably less likely to be adopted by mainstream retailers – is the rise of customer service robots.

With names like Pepper, Einstein and Airbot, they are designed to help customers, such as providing product information or help in navigating a shopping centre.

Whether a shopper has a question about a product while browsing online, is trying to locate a retail outlet or wants to top up on a household essential by voice-activated ordering, artificial intelligence is set to have a significant impact on customer service propositions this year and beyond.

Mobile wallets

It’s arguable that contactless payment has stolen the thunder of mobile wallet offers such as Apple and Android Pay in the UK.

While the technology has had more uptake in the US, it is a long way off mainstream adoption.

A hot topic at CES was how retailers could speed up this process by putting mobile payments at the heart of their purchasing offer, and accessing data on customer behaviour as a result.

Considered to be the most effective way to achieve this was linking mobile payments to loyalty schemes.

Walmart and Tesco have already done this in the past year, but is it enough to entice shoppers to give over their precious smartphone memory to individual mobile payment apps?

A suggested convenient alternative was for retailers to link their loyalty schemes directly to existing mobile wallet propositions and allow shoppers to pay and collect loyalty points without having to scan a separate card.

Although specifics of scale were not forthcoming, what was made clear was that if retailers want to keep up with changing consumer habits, they needed to reassess their plastic card-based loyalty schemes.

Virtual reality

Virtual reality (VR) headsets were out in full force at the conference.

Since bursting on to the scene with Oculus Rift at last year’s event, the technology, and its implications for the retail sector, have received a great deal of attention from shoppers and commentators alike.

There has been a big push to make VR more accessible for shoppers.

Dozens of headsets with a more affordable price point than Oculus Rift – which sells in the UK for £500+ – were on display, as were smartphone compatible devices and wireless headsets for greater freedom of movement.

However, without the supporting systems to create an affordable and immersive experience, it is unlikely that retailers will have significant sales from VR technology. For the time being, it remains one to watch rather than something for retailers to throw their weight behind.

Virtual reality

Virtual reality

VR headsets provided a variety of in-store experiences and demos, but questions remain about their wider retail implications

Drones

There were two sides to drones at CES this year. On one hand, more and more suppliers, from start-ups to more established players, flocked to the event to show their wares, which varied from drones that could be coded to fly specific routes, navigate underwater and, for no discernible reason, emerge from an egg.

It’s a product category that is gaining traction among hobbyists and gadget lovers and, much like VR technology, is becoming increasingly affordable.

However, the main discussion point about drones at the conference was their viability as a delivery option.

Retailers such as 7-Eleven and Amazon are testing drone delivery in the US and UK. But the consensus at the conference was that the limitations of air drones, from their maximum weight capacity to air regulations, meant they are not likely to be a supply chain gamechanger in the coming year.