The Internet of Things is expected to take off globally in the year 2017. According to IDC, the digital signage usage itself will grow from $6 billion in 2013 to $27.5 billion in 2018, as retailers continue to digitize the consumer experience. In India too, there will be a number of retail companies who are expected to take the lead and deploy solutions on a pilot basis to determine the effectiveness and ROI of IoT in their retail business.
Indian brands and retailers that want to take advantage of the Internet of Things will innovate in these areas:
1. Enhanced product visibility coupled with consumer experience1.
With more and more product launches and limited shelf space availability, it has become a challenge for brands to get customer eyeballs at the point of sales. As a result, brands and retailers will use IoT solutions like digital signage, heat maps to determine where exactly should their promotion material be placed and for how long. Proximity sensors coupled with camera data will determine the nature of engagement with the customer and will be used to redefine strategies.
2. Optimize store operations
Traditionally, the Indian retail industry has used low-cost labor to deliver operations. However, with the costs going up, retailers feel the need to optimize the operations cost and streamline efficiency.
For example, RFID technology and other sensors can provide the central with real-time data about the inventory in the store, the shopper behavior etc. will allow retailers to better manage store assets and employees. Lighting, refrigerators, and other store assets will be controlled centrally based on the data provided by these sensors. This will not only reduce the costs but also provide a holistic view of the areas that need to be further optimized.
3. Improved supply chain management
With the vast geography of the Indian market, supply chain management has always been a problem. Retailers would like to not only avoid stocking low selling products but also want real-time data of what products are selling and the dynamics behind these sales. This will help them proactively solve the stocking issue and lead to an increase in sales.
IoT-enabled systems such as weight sensors can trigger real-time inventory actions. It will also help provide data for analysis to understand stocking and the impact of time of day, weather and other environmental conditions on product sales.
Fleet management software will help ensure that the products are dispatched on time and do not remain in the warehouse and are stocked as quickly as possible.
EasyReach provides solutions in each of the above areas to help retailers innovate and optimize their operations. For more information, please contact [email protected]
