Posted On: April 28, 2018, By: Rachit Mehra558 Views
When Levi’s adopted IoT for real-time inventory monitoring in one of its San Francisco store three years ago; it indicated that IoT was on a cusp of changing every business sector including retail. In fact, they gained much more in the process – in the form of improved customer experience and deeper understanding of customer behaviour based on the items they tried and sizes they picked. This made it clear that IoT touched retail only to have massive benefits for the industry in future.
According to an article by the Wall Street Journal, the market size of IoT will touch 1.7 trillion dollars by 2020. According to an Ericsson report, the world will see 28 billion IoT enabled devices by the year 2021. Let us find out exactly what this technology is.
What is IoT?
IoT technology enables everyday items around you to integrate with the Internet, and connect and communicate with each other seamlessly. This happens via intelligent sensors present in these items that are programmed to understand and record actions, communicate digitally and perform certain actions. For instance, the system notifies the management about real time walk-ins versus staff presence to manage breaks and improve conversion, data on which stores have lower conversion than expected, or, was the inventory refreshed as per SOP, and there’s so much more.
IoT has revolutionized the retail industry to a large extent by increasing its business efficiency. It has brought about a completely new dynamic of customer engagement by marrying the physical realm with the digital.
Impact of IoT on Retail:
→ Retail giant Avery Dennison uses IoT sensors to track upto 10 billion items
→ Tesco uses smart devices that allows shoppers to find, scan and pay for products anywhere in the store
→ Amazon’s dash button allows you to press a button on a product and have it delivered to you
This blog talks about the positive impact of IoT platforms in the retail industry in 4 main areas:
Increasing Business Efficiency
Managing a retail outlet is a massive undertaking. With an intelligent IoT platform, you can supercharge your operational efficiency beyond the capabilities of any human or mechanical system.
Video analytics data can identify busiest store hours and help you increase operational efficiency by assigning these times to your top employees
Improving In-Store Safety & Security
Machine-to-machine technology enables seamless flow of communication between interconnected physical devices. Via a network of sensors, cameras and RFID enabled devices, security systems are established across multiple locations to take action at the right time.
Optimising Customer Experience
With IoT systems in place, you can create a hospitable retail environment that boosts in-store conversions with the power of data.
Enhancing In-Store Health & Hygiene Factors
Your store’s hygiene outlook has a powerful impact on foot traffic and ultimately, conversions. Cleanliness and ambience have been known to affect consumer behaviour favorably.
You can integrate air purification and dehumidification systems in your store with an IoT network to create a pure, clean and refreshing in-store environment for your shoppers.
Advanced analytics can help you understand how factors like in-store temperature can impact conversions.
How Can You Start Off With IoT in Your Retail Business?
With KocharTech, you get a highly advanced IoT platform that relies on a host of smart devices inter-connected on a network. By actively leveraging Artificial Intelligence and Machine Learning, KocharTech platform offers advanced video analytics capabilities that can translate into actionable strategies for business optimisation in retail.
The KocharTech IoT platform offers the following benefits for retail businesses:
The product stack consists of temperature, humidity, light, CO + smoke sensors, people counting systems and advanced video equipment. This coupled with Artificial Intelligence and Machine Learning creates a system that constantly learns on the fly and improves business optimisation strategies with data.
Towards an Evolving IoT Strategy
As IoT puts together different business functions in an integrated environment, stabilized by a unified IoT platform, businesses are betting heavily on it. And it is closely tied with retail functions, unlocking the improvement potential that otherwise remains hidden. However, the big question here is how swiftly you would shift towards having an evolving IoT strategy in place. Our take – the sooner it is embraced the better.