Discovering the Potential of the Retail Industry with IoT
The number of connected devices is increasing every day. They are not only changing the way we live our lives but are also bringing dramatic changes in the entire industry. According to Mckinsey, the Internet of Things offers a potential economic impact of $4 trillion to $11 trillion a year in 2025. In the current industrial scenario, implementation of the internet of things is more evident in the retail industry. Retailers have now been able to collect information from various devices and process it to make smart decisions.
Let’s observe how the Internet of Things has revolutionized retail industries:
Improved Retail Experience: Customers can take help from the robots with the touch screen menu to find a product instead of walking in multiple corridors. Smart mirrors installed in various retail stores help the customers to see how a garment will look on their body without actually wearing it. They can also scan the bar codes on the product to get the corresponding information from the internet.
Precision in Inventory Tracking: Employees in production department can get precise data about the work in progress and the finished goods. Retailers can track and manage their inventory to meet their customers’ demands regardless of complications in the supply chain.
Prevention of Fraud and Shortage: Products are tagged with RFID tags which alert the retailer of a theft attempt. These tags also help the retailers to keep a track of their goods which are sold online in large quantities and have high chances of theft/shortage.
Improved In-store Experience: With IoT, retailers have various opportunities to improve their customer’s in-store experience. Customers in the close vicinity of the store receive targeted offers. They also receive special deals and offers while inside store thereby improving their shopping experience.
Make most of In-store Flow: With the IoT, retailers are able to collect insights about customers’ interests, purchasing patterns, etc. Using GPS and locations, they send notifications to their customers’ devices about the available promotional schemes, discount coupons, etc. to enhance customer experience.
Sync between Storage and Smart Shelf: With IoT, retailers are now able to track their goods, available inventory on the shelf and in the storage, manufacturing and delivery times, etc. This helps them to manage their inventory and eliminate the chances of an empty shelf in the store.
This being said, we still see a lot of potential in the retail industry to make use of IoT. The retailers should understand that the IoT isn’t just about sensors and connectivity — it’s about creating new customer experiences, revenue streams, and business models.