Swedish Startup Space

H&M jumps on the Ibeacon-bandwagon – with Shopjoy’s technology

Written by on October 30, 2015

Breakit reveals that H&M have placed so called Ibeacons, which can be used to track cell phones, in selected Stockholm stores. Swedish startup Shopjoy are providing the technology.

An increasing number of expo’s and stores are using the beacon technology, which makes it possible to send push-notifications to cell phones moving in the vicinity of deployed beacon hardware. Breakit has previously written about, among other’s, Trueflow’s book-expo app and Shopjoy’s collaboration with SJ (articles in swedish). The Swedish grocery giant Ica are using the system in some of their stores as well.

It is now clear that fashion giant H&M, in secret, have implemented Ibeacons in their store at Drottninggatan, along with a few other stores in Stockholm.

“Right now we are working with a small group of test-users, a test with Ibeacon-solutions in a number of stores within the Stockholm area”, the company’s PR division writes in an email to Breakit.

The beacon system is developed by Apple. The idea is that the beacon boxes will notice when your phone is in the proximity and send out information in the shape of push-notices to you. The requirement for a beacon to register the mobile is that Bluetooth is turned on and that the mobile’s positioning system function has been activated.

H&M will however not reveal how they use the technology. But after further email correspondence, the PR division writes that they cooperate with Swedish company Shopjoy.

“We use their hardware in this test, which is consequently running in selected stores within the Stockholm area. We decline further comments beyond that”, the PR division writes.

Shopjoy has declined to comment the collaboration.

How the project is developing is not clear. In general, beacons are used for so called retargeting, among other things. In brief, this can be explained as positional advertising, where you receive a push-notice regarding a sale when you are approaching a store.

If one looks at what Shopjoy have done previously, an example is the company’s collaboration with SJ where visitors of the train operator’s stores could receive push-notices with various messages regarding traffic and benefits through the SJ-app.

Shopjoy also describe on their homepage that it can be used for advertisement and as a channel for various offers. A company can create specific messages for their customers based on time and place, and send a message to the phone while it is passing by the stated location.

What the collaboration means in economical terms for Shopjoy is not clear at this moment but considering that H&M turned over $17,7 billion and made a $2.3 billion profit last year, it can be expected that the clothing giant will become one of Shopjoy’s definitely largest customers.

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