Retail is the most competitive industry and it has always been. It is unlikely that anything in this regard will change in the future. The latest technologies are moving towards the development of e-commerce and increasing the flow of sales via the Internet. And this is logical: payments are made quickly, there is no need to waste time on customer service, and besides, getting closer to your customers is sometimes more convenient in the environment in which they are used to being – these days it is the Internet.
In Western retail, smart contract technology is being used to organize the management of delivery and storage of goods, VR and AR, blockchain, cryptocurrency, Big Data, and the Internet of Things. The last two are developing at a rapid pace: Western manufacturers are increasingly releasing smart devices that can be easily "connected" with each other. In retail, this is widely used in the automation of manual labor. In progressive companies, you will no longer find a person performing routine tasks – a robot has been working for him for a long time.
What areas of digitalization will be relevant in the near future?
Robotization of routine operations
In retail, robots can be used to automate all sorts of routine operations. First of all, these are cashiers. In the near future they will be replaced either by smart machines or by well-known self-checkout counters, which have already been tested by many retail chains. Such cash desks allow reducing the number of cashiers by 3 times, and the full payback of the equipment occurs within 6 months.
They are also close to accounting specialties, including those who count and sort cash from cash boxes. This operation is quite within the power of special devices. The cash drawer is placed directly into the system and handles the cash on its own. The speed of its operation is amazing: the device is capable of processing more than 3.5 thousand coins per minute. No staff assistance is required, and revenue data is automatically transferred to the ERP system.
Data sorters
Most of the people performing routine operations are also involved in warehouses. This is time-consuming. In addition, human resources are limited, while the machine is capable of performing any task 24/7. Therefore, warehouse robotization in the retail sector is considered one of the key development areas.
The global trend shows: the optimization of workplaces with a large number of routine operations significantly increases the efficiency of the warehouse. The control system can process over 2 million warehouse operations per day, and with the help of technologies supporting bar coding, voice control and reading a QR code, the data processing speed increases several times.
Intelligent technology
Human labor is being replaced by machine labor on a massive scale and throughout the world. However, you can automate not only routine operations, but also the performance of larger tasks. Artificial intelligence is capable of learning: it remembers all structures, interactions, patterns and forms an error-free algorithm that makes your life easier. Moreover, artificial intelligence does not need to be trained - it can do it on its own. This is its key advantage.
The main feature of artificial intelligence is the maximum extraction of useful information from a huge amount of data. However, this will not be possible if you provide inaccurate information to the algorithm. Therefore, the data collection stage is of great importance for the entire business, and this is where we usually start working with our clients. The right methodology and technology for obtaining information determines the success of your sales and the entire business, and also allows you to get the most accurate forecasts.
Process Mining
If you cannot do without human work, and there are many business processes in the company, Process Mining technology comes to the rescue. It analyzes the received data and reveals everything that is usually hidden from the eyes of a manager: all kinds of loops, delays in the work process, lack of qualifications of employees, work progress, etc.
Many shopping malls have long used Process Mining technology as a way to enhance their shopping experience. It allows you to imagine the way the customer interacts with the store and identifies the weaknesses of the sales. In fact, this is a special approach to data analytics, however, it can do a tremendous job: increase sales, reduce costs, improve the efficiency of business processes, monitor and predict results.
Computer vision
The fact that modern technologies allow computers to recognize faces and images is no longer a secret to anyone. How can this be used in retail? The system automatically recognizes the resulting image and compares it with the loaded template (or, in other words, the planogram). It contains information about the layout of products.
The success of the store's sales depends on how the products are arranged on the shelf. Therefore, to facilitate and accelerate the control of the display of goods, computer vision allows you to create a photo recognition system. That is, at the moment when the merchandiser uploads a photo of the displayed shelf, the program automatically informs him that the goods are not displayed correctly. It also has access to the warehouse database and advises on what to add or replace.
Studies have shown that the introduction of computer vision technology can reduce the time of the merchandiser by 40% and increase the turnover by 5%.
Recognizing customer behavior
Artificial intelligence allows you to better know your customer. He is able to count the number of visitors, the number of converted and repeat customers, determine their gender, age, physical characteristics (height and weight, for example), race and much more. Based on all of this data, you can predict customer behavior and increase sales.
For example, you are analyzing customer activity and now you can organize the space in the store so that people spend more time in it than they planned. This will provoke spontaneous purchases and significantly increase your average check. Considering that more than 80% of people buy on impulse, the benefits of this technology for retailers are clear. Especially for those who trade offline: according to statistics, 8 out of 10 spontaneous buyers prefer a real point of sale to a virtual store.
IT is a must have for modern retail
Digitalization will continue to gain momentum, and the market will define technologies that will help improve business efficiency and remain successful in a highly competitive environment. We need to understand that in modern retail IT is a necessity, a must have for any entrepreneur.
Integration of the best retail practices with the digital world will allow innovation chains to increase financial performance, attract additional customers and differentiate themselves from competitors. Saving on innovations and abandoning new technologies can lead to losing the competition. Today we must not forget that only continuous development based on digital technologies can ensure success and prosperity in the future.
There is no need to be afraid of new technologies – the benefits of using IT solutions in retail will be tangible for every employee of the company. It is not as expensive as you might imagine – with the right approach, all the costs of innovations will pay off in one year, and the savings will increase in the future. What businessman doesn't dream of more rational distribution of his funds? And of course, your competitive advantage will only grow from this.
Follow the latest trends, be open to experimentation and become a market leader!
