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6 Ways IoT Is Transforming Retail As We Know It - Plug and Play Tech Center

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6 Ways IoT is Transforming Retail As We Know It


By David Smith Published on Dec. 05, 2019

Everyone who knows anything about the internet will likely have come
across the acronym IoT. Some say it is the hottest buzzword in tech now,
and that's hard to dispute. Several years ago, Facebook's Mark
Zuckerberg said he'd be focusing on building devices that can talk to each
other. It's only been a few years since, and the reality of such devices is
upon us.

An Introduction About IoT


IoT refers to the Internet of Things, and we consider how it will impact
retail. If there is one idea that IoT represents through and through, it is
the idea of interconnectedness. IoT stands for all the smart technologies
of today and their connected devices.

IoT comprises hardware, software, data services, systems integration,


and telecoms services. IoT is relevant in how our interconnected devices
and technologies play (interact) with each other, and with humans. It is
also applicable to how these deal with the vast range of present-day
problems and create new solutions for them.
Today's reality is that the manufacturing costs for smart devices are
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increasingly lower than they used to be. Therefore, the adoption of these
devices is growing across sectors, including retail.
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Common Examples of IoT


In reality, IoT isn't far-fetched at all. It already lives in our homes. Amazon
Alexa and similar voice assistants, smarty lighting, and automated
security systems are some of the common examples of the Internet of
Things.

We all know how it's easy to tell Alexa to complete our shopping list by
merely reading out the shopping list. We're probably even more aware of
the young lad who had Alexa doing his homework (he's not alone in this
ingenuity!).

In anticipation of setting up repetitive tasks soon, Alexa even stores all


conversations

Yes, IoT is for Everyone. Also Retailers.


Everyone can benefit from the Internet of Things. These include
individuals, small enterprises, and large enterprises. Consider for a
moment how a retail store may be able to use IoT in its operations.

They could dim the lights when they have a small number of customers,
for instance. How about adjusting the air conditioning system as more
people enter? These are straightforward possibilities for IoT in retail. The
best part of IoT is its ability to do a task without the involvement of any
person.

Possibilities for IoT-Driven Retail


As retail increasingly embraces IoT, it could invite the new wave in retail
revolutions. Research by Global Market Insights, Inc. says IoT retail will
eclipse $30 billion by 2024. Another projection puts this figure at more
than $35 billion by 2020
(https://www.marketsandmarkets.com/PressReleases/retail-iot.asp). It
will include every facet of retail imaginable – manufacturing, field service
monitoring, supply chain, and inventory management.

6 Areas of Retail Where IoT Has the Most


Impact
The aspect of retail with the most significant influence of IoT is improving
the customer experience, online and offline. Many cutting-edge hosting
providers such as Apex Hosting (https://apexminecrafthosting.com/) are
aware of the benefits of IoT to retail and are ardently working on
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delivering infrastructure to enable this purpose. Proponents of IoT
report more precious and more profound insights into customer
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preferences. Customer-focused data is easily the most significant gift of
IoT to retail. Such data could come from interactions with Alexa.

IoT in retail multiplies the number of channels retail operators can exploit
to reach new and existing customers. Imagine the possibilities of
targeted outreach in building customer loyalty and helping with
retention.

At present, retailers are using IoT sensors to monitor customer


satisfaction, monitor food safety, track assets, and provide supply chain
insights.

#1 Using Smarty Shelves for Inventory and Supply


Chain Management
Traditional stores and omnichannel retailers now use IoT retail to
modernize and upgrade their operations and streamline inventory
management.

Smart shelves and other similar innovations take automated inventory


management to a whole new level. They give store managers the benefit
of real-time notifications and updates on sales levels. They also gave
updates on stock levels and alerts once an SKU (Stock Keeping Unit) falls
below the reorder level. Smart shelves eliminate manual errors, aside
from saving money through preventing overstocking and shortage.

Smart shelf systems depend on Radio-Frequency Identification (RFID)


technology. These consist of three elements:
1. An RFID tag to attach to the item or product.
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2. An RFID reader.
3. An antenna.
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The RFID reader uses radio waves to read the data the RFID tags
transmit. The IoT platform then receives this data for storage and
analysis.

RFID tags are like barcodes – a device can read and store digital data from
a tag or a label. There are other exciting advantages to RFID systems. The
most notable is that RFID systems can read RFID tag data outside the line
of sight. It contrasts with traditional barcodes that must line up with an
optical scanner.

Retailers can monitor goods throughout the entire supply chain. Tracking
systems report valuable data such as location, temperature, shock and
tilt, and provide profound insights into traceability and quality control.

Tracking solutions help ascertain that materials are safe, have timely
delivery, and remain in ideal conditions during transportation. These data
can help the retailer improve the efficiency of their transport logistics,
minimize product damage, and prevent loss.

Logistics businesses are reaping benefits and immense value from IoT. A
survey of business leaders in a Deloitte Review about the Internet of
Things and its ability to reshape supply chain management yields
significant outcomes. Seventy-four percent of those who implemented
initiatives like sensor-dependent logistics saw increases in revenue.

Interestingly, the average supply chain contribution to a company's


profits grew from 4 percent to 8.5 percent in as little as one year. At this
point, industry leaders started to see supply chain revenue contributions
on the order of 10 percent.
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#2 Checkouts without Cashiers


In another telling contrast to traditional retail outlets, the checkout
cashier may only be a machine. Apps and device cameras are replacing
human cashiers at the point-of-sale (POS). It just might be the final days
for checkout lanes.

Stores can do much more with fewer systems, while mobile POS
terminals will undoubtedly grow in number.

Artificial intelligence (AI) systems like Shoplift employ computer vision


systems to identify suspicious behavior or possible theft. Install these in
your store to improve stock visibility. Systems can detect not-for-sale
items such as reusable shopping bags or merchandise that have not been
through scanning when customers attempt to carry them past a
checkpoint. The system also alerts store staff to respond appropriately in
such situations.
(/)
#3 Using Beacons for Timed and Targeted Notifications
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Beacons are tiny Bluetooth devices that send discount vouchers, or event
invitesVIDEO
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(/RESOURCES/VIDEOS) coverage
CORPORATE INNOVATION area. Businesses
(/RESOURCES/TAG/CORPORATE-INNOVATION) HEALTH TECH (/RESOURC

can attach them to counters, walls, and anywhere suitable within the
vicinity of the store. Now that you think about those captivating
notifications, there's every chance you've been "Beaconed" and didn't
know it!

Such alerts can cause a potential customer to go into a store and take
advantage of the offer. Stores may also let prospects in on on-the-spot
contests or promotions, just as customers already in the store, may enjoy
instant discounts.

#4 Digital Signage to Showcase IoT Retail's Interactive


Shopping Experiences
To uplevel customer engagement, stores can use digital signage. These
may be in-store digital displays, intuitive device touch screens, or even
digital-out-of-home (DOOH) applications.

These may go along with beacons or other smart devices to help retailers
with real-time design offers, targeted promotions, and product
groupings, based on the captured data.

IoT pushes digital signage beyond the league of display boards. There is
scope to collate data concerning buying patterns and behavior.
Touchscreens in fitting rooms can suggest alternate designs or sizes,
summon an assistant, or suggest accessories. Stores can acquire data on
shopper's trials and final choices to buy.
Built-in facial recognition systems that recognize you as you pass by take
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the spookiness of IoT beyond anyone's wildest imaginations. These
systems can alter the digital display to do what is likely to win the
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customer's attention and business.

#5 Asset Tracking
Retailers use IoT to track missing shopping baskets and carts.
Successfully tracking these assets can enable stores to lower the cost of
replacing them. Shopping carts are expensive, costing $75 to $250 to
replace each (http://www.nbcnews.com/id/44431406/ns/business-
retail/t/shopping-cart-advances-just-keep-rolling-
along/#.XVWae5NKi8W). Sensors on assets like shopping carts enable
retailers to track them to their exact location. There can also be status
updates and alerts for when there is any damage to them.

Installing tracking devices on baskets or carts, function indoors and


outdoors, and can run for several months or years without any need to
change the batteries. These sensors can help retailers grow customer
experience by ensuring they always have an ample number of shopping
baskets and carts available for shoppers.
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#6 Makes IoT Retail Outstanding


Once the latest and greatest technology is involved, everyone is
impressed. Next-level tech like a robot assistant to help with routine
errands. Some businesses are currently using robots to check inventory
and restock shelves.

Companies are also developing service robots to give the customer the
help they need to find the right products. Some of China's restaurants
have debuted robot waiters. At the very least, some customers will be
fascinated by the idea.

Conclusion
There are around 7 billion IoT-connected devices, according to IoT
Analytics (https://techjury.net/blog/how-many-iot-devices-are-
there/#targetText=There%20are%20about%207%20billion,to%20data%20from%20IoT%20Analy
It could reach 25 billion by 2021
(https://www.gartner.com/en/newsroom/press-releases/2018-11-07-
gartner-identifies-top-10-strategic-iot-technologies-and-trends), and
retailers will account for a large chunk of those. As IoT networks become
more widely available, retailers will use the technology more. It will
traverse all parts of their operations, improving business efficiencies, and
enhancing the customer experience.

There continue to be emerging applications of IoT in retail; many wacky,


many weird. Ever thought of a diaper-monitoring system? Or a bug
catcher? These might go a long way in making for a great experience. IoT
opens up multiple doors of opportunity for retailers. Still, it has the
potential to be the product the customers will want to buy.
About the author: David Smith is a cryptographer with 12 years of
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experience in both the public and private sectors. He is currently working
on his second startup (currently in stealth mode) that will track and
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interpret the use of contactless payments in the Greater China region.

At Plug and Play’s Retail accelerator


(https://www.plugandplaytechcenter.com/retail/) we match large
corporations with top-tier startups that are changing the world as we
know it. Join our platform today.

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