Madison Reed: How a Digital-First Business Found Brick-and-Mortar Success  

Produced by OnQ

Paul Chapuis, CEO of OnQ, a retail display company, and Tyler Wozny, Chief Digital Officer of Madison Reed, a digital hair color company, came together to discuss the merging of digital and physical retail spaces. OnQ is a retail display company based in Silicon Valley that has evolved to provide interactive displays at scale. OnQ, which has been in business for 18 years, manages displays at around 8,000 locations for Apple and all of the Costco experiences and Walmart. OnQ's partnership with Madison Reed began when the two companies met at NRF in 2019.

Paul also explains that there are two main reasons digital companies are moving into retail. Firstly, it is more cost-effective to acquire customers through retail, and secondly, there is an expectation of omni-channel presence across all retail. Traditional retailers now have web presence, while online companies are moving into the retail space. OnQ has helped brands bridge the gap between digital and physical retail spaces, but their partnership with Madison Reed is unique due to the latter's unique perspective on the market. Paul highlights that when doing technology at scale, there are three things that need to be addressed: device management, content management, and feedback loops. Overall, the presentation shows how OnQ's expertise in retail displays has allowed them to connect with digital companies such as Madison Reed and provide unique and innovative displays for retail customers.

Tyler explained how Madison Reed that offers hair coloring products with a great chemical profile has disrupted the market by offering a high-quality product that customers can use at home, avoiding the harmful chemicals present in cheaper hair coloring products or the high costs of salons. To help customers overcome their reluctance to purchase hair color online and ensure they get the right color match, Madison Reed leverages technology to offer augmented reality and virtual reality tools, including a matching algorithm they spent years developing. The company has also deployed large screens in their hair color bars. The screens allow clients to find their perfect match and also see an animation of the different shade ranges.

Madison Reed's matchmaker screens have contributed to a 20% growth in retail sales and are now a standard feature. About 90% of the time, colorists use the screen to consult with clients, making the experience more fun and accurate. However, implementing Virtual Try-on on the screens has been challenging due to lighting and spatial issues, although it remains the most requested feature. Madison Reed plans to stream the' Women on the Rise' events to its entire fleet to build brand loyalty and empower its staff.

FEB 2023