22
March
2017

A Fact File on the Internet of Things in Retail

The Internet of things in retail has already played a massive role and will continue to do so in the years to come. With the increasing dependency of retailers on internet technology and the growing demands of the modern-day customers for both – an enhanced in-store experience and omnichannel experience, internet of things in retail will continue to revolutionize retail in the time to come.

Internet of things in Retail

The following statistics as per the latest Zebra Retail Vision (ZRV) study reveals the same.

  • The Internet of things in retail is ready to be adopted by 70% of retailers across the globe for improving the in-store experience of the customers.
     
  • Integration of e-commerce and in-store experience is important to deliver a proper omnichannel experience to customers. 78% of retailers agree with this.
     
  • Internet of things in retail and machine learning will attract a lot of investments from retailers by 2021. 70% and 68% respectively to be precise.

Internet of things in Retail to improve the supply chain performance

The Zebra Retail Vision study (ZRV) also reveals that 57% of retailers will look to attain automation for various aspects like tracking inventory, shipping orders, etc. In fact, retailers will rely a lot on the various internet of things technologies to address their overall supply chain performance. With the help of sensors and various forms of analytics, real-time visibility can be attained about the status of current inventory. Accordingly, inventory can be managed to reduce out of stocks and enhance the in-store experience of the customers. According to the ZRV study, by 2021,

  • 81% of retailers will look to invest in security sensors and 75% will invest in sensors for the efficient tracking and management of inventory
     
  • 65% will invest in automation for better inventory management and store planogram compliance
     
  • 71% and 70% of retailers will invest in sensors for tracking customer footpath and location-based marketing respectively

IoT location based technologies to personalize the customer’s shopping experience

Personalizing the shopping experience, thereby enhancing the in-store experience of customers is the main look out of retailers in this modern day and age. Ideally, retailers should not just know when specific customers are in-store, but also customize their store visit. The ZRV study indicates that this is exactly what will happen with 75% of the stores by 2021. Already, location-based marketing and micro-location marketing have become popular. In the coming years, these aspects of marketing will just keep growing more and more.

iot personalization

(image credit: zebra.com)

The emphasis of retailers will very much be on location-based technologies for more reasons than one, as the above illustration indicates. Sensors will be embedded at various locations in the store to detect the customers’ footpath through the store. They will also help in sending personalized offers on their smartphones. The whole idea will be to generate actionable insights on the customers, so that better merchandising and marketing decisions can be taken. In the coming years, IoT Location technology will continue to drive in-store personalization and enhance the overall in-store experience of the shoppers.

The Growing Importance of Omnichannel Shopping

Largely, retailers today are not sure about their consumers’ exact path to purchase. The boom of e-commerce and mobile shopping in recent times have meant that customers have a lot more options with regards to medium of shopping. Most customers use their smartphones and have access to all kinds of product & price comparisons while shopping. Retailers will have to eliminate the aspect of out of stock merchandise as it dissatisfies the customers the most. This means that they must be spot on with their overall inventory accuracy.

Innovative delivery services will add to the omnichannel experience of the customers, as it will allow omnichannel conversions to take place. Customers want convenience in shopping and services like Buy in-store and shipped straight to home, buy online – pick up in-store, station, etc. offer just that. Delivery models like click-and-collect will continue to emerge in the years to come across the Globe. The following illustration clearly suggests how various delivery services will enable omnichannel conversion and fulfillment to rise by 2021, in comparison to 2016.

omnichannel conversion

(image credit: zebra.com)

Overall, a massive difference may be anticipated as the internet of things in retail continues to gain more prominence in the years ahead.

About Abhishek Mitra

Content is King and Abhishek Mitra firmly lives by it. He is highly committed & passionate in what he does and it's evident through the content that he produces. An MBA Graduate in Media & Entertainment from Whistling Woods International (Mumbai), Abhishek has acquired expertise on developing content pertaining to various verticals overtime due to the sheer knack for it. Apart from being an inspirational scriptwriter in his teenage days, he has worked as an academic research writer in the past. Presently, he handles the content for Tickto.

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