Technically, the term Internet of Things (IoT) refers to interconnected networks of Internet-enabled devices such as analytics programs, AI software, networks, data hubs, microprocessors, sensors, and other similar objects. And the first to adopt this new trend are retailers. Implementing IoT solutions has really helped retailers control various aspects of their business.
The range of benefits ranges from accurate inventory management to a better shopping experience, less theft, better in-store operations and more conversions with cross-selling . The retail-based IoT is slowly ushering in a new era where smart devices take care of collecting data, sharing and analyzing real-time information in a seamless manner.
Take example of Kaa, which is one of the most popular IoT platforms. The portal has earned its reputation for infusing IoT into the core of countless smart retail services. Its main application areas included
● Give customers a more personalized shopping experience using Bluetooth beacons.
● Ensure permanent availability of products on all shelves with minimal waste and zero replenishment time.
● Set up in-store digital signages to keep customers up to date with the latest offers and schemes and help them navigate discounts, loyalty programs and new products.
● An enterprise-grade security system that ensures foolproof security for mobile payment solutions, smart vending machines and mobile vending machines.
According to a recent survey conducted by Retail Systems Research (RSR), the majority of retailers are of the opinion that IoT is transforming the way they do business in the coming years. But the biggest question that arises is: why is retail the first to adopt IoT? The answer is quite simple – the constant pressure to increase sales, increase margins and bring in more and more business can only be solved with a precise solution like IoT.
Now let's understand the basic mechanics of the retail world. The key to success in the retail business is effective consumer engagement that retains consumers for as long as possible. And the only way to do that is by maintaining an agile and smart supply chain. It must be impeccable and intact, which means that it must be able to take “self” healing measures on its own and carry out predictive maintenance, minimizing downtime for the systems and machines involved. Here are some interesting stories that will strengthen our case:
The core of consumer engagement is taking note of shoppers' digital footprint. To accomplish this task, the store needs to apply fusion algorithms. Adding predictive intelligence to these algorithms helps retailers provide context-based personalized recommendations and better targeted deals to their consumers. For example, a London-based startup – Dandy Lab, created a pop-up that showcased a highly relevant consumer journey. They used Wi-Fi routers, Cisco data analytics, and Wi-Fi routers to make the connection. The flat screen was connected to a Near Field Communication (NFC) terminal for immediate ' readings ', the wall-style was connected directly to a webcam, the shelves were incorporated into the tablet screen and best of all was the installation of a system Cisco DX70 video conferencing system, giving employees and buyers direct access to suppliers and manufacturers. They could personally inform them about the changes and projects they expect or want in the near future.
Similarly, Costa Coffee collaborated with Intel on the development of an SVM (Smart Vending Machine) that featured several advanced concepts such as loyalty card connectivity, remote temperature checking, cashless payments, as well as a digital screen that allowed interaction direct to the consumer. They have installed these services in all of their host stores. These machines were able to provide some real-time data that included alerts for refueling, fault resolution, and timeliness for collecting money. The company was able to mitigate its losses due to excess inventory and provided the customer with a much better coffee selling experience .
The traditional supply chain is quite rigid and definitely needs bailouts to face the hurdles and hassles of digital world. The advent of sensor technologies and IoT has made this a possibility. There are several surprising innovations, such as “RFID”-based smart shelves, which scan every item on the shelf, keeping all related systems informed of the latest inventory status. When they reach a situation of out-of-stock or low stock, these shelves instantly create a demand alert and automatically send this need to the central warehouse. You know MIT Media Lab recently created a fleet of drones called RFly that could hover around dense corners of a warehouse and check inventory. Barcodes were replaced by RFID tags which shortened the identification process. It is a very crucial development for all retail stores if you remember that Wal Mart lost $3 billion because of out-of-stock merchandise as its inventory was expanding at a much faster rate than its sales. .
More and more companies are looking to predict equipment failure before it happens, rather than acting after the damage is caused. The technical advancements in embedded devices and sensors, various sensors are being incorporated into manufacturing devices and various techniques like machine learning methods, latest data fusion algorithms which are implemented in the data communication flow and keep failures under control. control through regular maintenance. In the coming days, the future trend will be to provide optimal maintenance before the system fails. It will be much further ahead, as it will introduce self-healing mechanisms that would completely eliminate the case of failures.
Now let's hear another interesting story. Home Depot recently integrated IoT into its work to design a next-generation customer engagement program. This works through its mobile app, where prospects can search for products using 'visual search' and locate stock as soon as they enter the store. They can also compare products with others and provide professional opinion for their DIY projects. It also provides a preview of how selected products will look in your home.
Ocado, a UK-based online supermarket, recently created largest automated packaging system that used wireless control system. This new strategy allowed the company to coordinate and control the movement of millions of grocery products and streamline the delivery process once the order is placed. The company also employed a thousand robots that scanned thousands of boxes containing more than 50,000 products. These highly efficient and choreographed systems work aggressively to minimize the time lag between order placement and final delivery.
Specifically, retailers hope to implement the Internet of Things in three main areas – supply chain, customer experience and generating new revenue channels. Whether they adopt IoT for one of them or all three, any of them will result in huge benefits for the company as well as the customer.
To conclude, the world of retail is taking a 360-degree change with the help of IoT as numerous innovative trends are coming into this world. This is just the beginning, as the sky is the limit for those who have imagination and IoT on their side. Stay with us and we will continue to bring you more on this topic.
