written by Donald Carson July 30, 2019
The retail industry is volatile. The function and procedures of the stores are changed every time to serve the customers better.
Internet of Things is a concept that was invented in 1999, which stands for a system of interrelated computing devices to transfer data over a network.
Since then, a large number of global business solutions have adopted the concept to get benefits in logistics, inventory and supply chain management.
Apart from these, the adaptation of this new technology has its impact on pricing, customer relationships, product management, shopping and delivery experience, and thus has a tremendous economic impact.
Better Customer Acquisition
The modern technology has enabled enterprises to leverage data. IoT is the technology that offers more personalized shopping to the customers.
Even ordinary devices are integrated with IoT technology to collect data. The increased level of data flow through the technology benefits the business owners to get more information about their customers from their shopping behavior.
More detailed information means a more personalized shopping experience.
The Internet of Me increases the opportunity to bring together the best of the physical and digital world. It allows two-way consumer interaction and improves the in-store experience. Another technology is powered by IoT, named beacon technology.
It is a location-based technology that allows business organizations to provide personalized coupons and discounts to shoppers. In addition, the technology benefits the customers with contactless scanners that allow them to avoid waiting for more time.
The automation system, use of sensors and analytics involved in IoT technology help the global retail industry improve the efficiency of the supply chain.
It enhances the security of the supply chain with the system of radio frequency identification that employs inventory tracking. Data steam that is monitored continuously, enables to track the assets and minimizes the risk of theft or counterfeiting of items.
The security cameras in the physical stores are replaced by the IoT and AI technology to track shoppers in-store through an in-depth behavioral analysis.
Minimized Operational Cost
Although the initial cost of integrating IoT technology in a retail store is high, it outweighs the long-term benefits that the business organizations can gain over time.
It helps the businesses not to run out of stock with any product with the installation of sensors on smart shelves that can track products with low inventory level.
In addition, the automated system helps analyze the customer demands for specific products and thus allows the retailers to continue with their revenues by stocking those products.
Optimized Supply Chain Management
The IoT-driven devices and the industrial internet utilized in the retail business can add more than $14 trillion to the economy of the world by 2030, as per studies.
You can optimize the operation of a complex supply chain with connected devices and products. The inventory tracking procedure or data visualization technology makes it easier to track the products throughout the supply chain.
It also helps consumers to track their orders when those are under the production and distribution process. Customers can use IoT devices in the supply chain to improve store operations and minimize the cost.
The Internet of Things technology allows retailers to create a new revenue stream. By expanding the channels, the retailers get enabled to earn increased revenue.
It can be implemented in businesses like household appliances, health and wellness products and home security products.
IoT offers the retail companies to create integrated platforms. It helps sell future products, collect in-home customer data like their consumption habits and communicate with other IoT-driven devices.
Apart from this, the IoT technology enables the retail business owners to increase revenue by saving a lot of money with improved inventory accuracy. It is increasing the availability of on-floor sales associate and minimizing the out-of-stock situation.
Examples of IoT in Modern Retail Industry
Amazon is a significant retail company to utilize IoT technology. They have introduced a physical shop Amazon Go, where shoppers can go and collect whatever they need.
There is no cashier, as the store is operated by the self-service checkout procedure.
Internet of Things and Artificial Intelligence, these two technologies are the key to operate such retail store. These technologies enable the shopper to shop as per their requirement, get the total amount that in the Amazon App, and see the time they spent in the store.
Amazon has three such stores. They are located in Seattle and another in Chicago.
Apart from Amazon, there is another retail brand named Rebecca Minkoff. It has integrated IoT in their retail shop.
The benefits of IoT technology have revolutionized the global retail industry. The stores of Amazon and Rebecca Minkoff are the future of the retail stores worldwide. It can save the time of the consumers and allows the business organizations earning more revenues.