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50 May 2014 | beautystorebusiness.com Beauty Culture iStockphoto.com/bingimages.com Retailers Lack Supply Chain Execution Retailers aren't prepared to meet consumer expectations for customer-order fulfillment, according to a new report, "Supply Chain Exe- cution 2014: Making Omni-Channel Profitable," from RSR Research. Sixty percent of respondents provide direct- to-consumer fulfillment from their distribution center. However, less than half offer the following: • Same-day delivery, 12% • In-store reservation of inventory for consumer in-store purchase, 17% • Same-day ship, 20% • Ship to store from "direct" distribution center for consumer in-store pickup, 29% • In-store purchase of online inventory for shipment direct to consumer, 29% • Drop-ship from vendor direct to store, 31% • Store-to-store transfer for pickup in-store, 34% • In-store inventory pick for consumer in-store pickup, 36% • Online visibility into in-store inventory, 37% • Drop-ship from vendor direct to consumer, 39% • Ship from store direct to consumer, 49% 3D Beauty Mirror Supports Sales Facial-visualization and imaging-technology company ModiFace has launched a 3D Augmented Reality Makeup and Anti-Aging Mirror that is designed to help beauty brands and retailers market their products to consumers standing at cosmetic counters as well as shopping at home. The proprietary technology can simulate makeup products, such as blushes, lipsticks and eye shadows as well as antiaging skincare effects, such as dark spot correction, facelift, brow lift, cheek volume enhancement and jaw contour- ing, on any consumer standing in front of the Beauty Mirror in real time and in full 3D. The Beauty Mirror uses ModiFace's patented photorealistic skin and shade simulation technology for full photorealistic 3D simulations shown on camera images, allowing makeup and skincare effects to be displayed on the user's face without requiring a photo upload. Each one is customized and precisely calibrated to match the brand's product portfolio. Consumers can try any number of cosmetic colors by tapping a shade palette on the Beauty Mirror screen. They can see the effects of skincare products simulated on a split screen with before and after images showing potential results. Consumers can also view all makeup and skincare effects from different angles. The stand-alone kiosk includes a touch screen monitor with a camera for in-store use, as well as a mobile app that can be used on a tablet at store counters or on a consumer's own tablet or smartphone. ■ Do you have culturally relevant information that our readers ought to know? Send it to senior editor Manyesha Batist at mbatist@creativeage.com. Shrinkage Prompts Increased Loss Prevention Shoplifting, employee or supplier fraud, organized retail crime and administrative errors cost the retail industry more than $112 billion globally last year, according to the 2012-2013 Global Retail Theft Barometer, and represented 1.4% of retail sales, on average. According to the study, courtesy of Checkpoint Systems and Euromonitor International, shrink is on the rise in most countries with increases noted in shoplifting, employee theft and organized retail crime. The lowest shrink rates were recorded in Japan (1%), followed by Hong Kong, Australia and Germany (1.1%). The United States came in at 1.5% of retail sales. The highest rates were recorded in Brazil and Mexico (1.6%). Global retailers blamed lagging economic recoveries and organized retail crime for high theft rates. The cost of shrink to U.S. shoppers averaged $300 per household. Among the most stolen merchandise reported by the retailers were fashion accessories, jeans, footwear and lingerie/intimate apparel, high-value electronics such as Apple products, consumer health such as allergy treatments and milk formula, electronic games, satellite navigation/GPS and mobile-device accessories such as cases and earphones. Retailers with particularly strong investments in loss prevention told researchers they believe they manage shrinkage well, and typically reported shrink rates well below the respective country average. In fact, U.K. and German retailers stated that improving loss-prevention methods helped them to keep shrink under control. According to Per Levin, president and chief sales officer of shrink management & merchandise visibility solutions for Checkpoint Systems, the trend in deploying RFID-based solutions that combine protection with visibility at the item level is growing among savvy retailers, as they look for more effective shrink-prevention strategies. B e a u t y C u l t u r e 0 5 1 4 . i n d d 5 0 Beauty Culture 0514.indd 50 3 / 3 1 / 1 4 2 : 2 0 P M 3/31/14 2:20 PM