The Internet of Things is the interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data. For example, your fridge reminding you when you’re out of milk, and then ordering it for you. How is the Internet Changing Retail as we know it? Today, the widespread use of the Internet and Smartphones has opened up new knowledge channels for consumers. Retailers are experiencing heightened demands from today’s tech savvy, empowered consumers, who have limitless choice and price transparency online. Using just their smartphone, consumers can see actual products, read reviews, share their opinions, switch from one online shop to another, and purchase the product.
Why is the Internet of Things a Big Deal in Retail? By adopting IoT, retailers transform & become experience-based retailers. They combine the online and in-store experience for customers improving consumer shopping experience. Retailers become much more profitable, efficient, and unique. Investing in IoT data solutions provides a granular understanding of their customers. Provides the ability to learn how their products are performing. Enables new ways to engage with new and existing customers. There are some challenges of Experience-Based Retail. Having to adapt to new different regulatory environments, particularly in relation to consumer data privacy legislation. Managing the delivery of goods to consumers. Managing and controlling supply chain and stock control. Moving from generalized to personalized interactions with consumers. This is how Some Retailers are Implementing IoT Technology. American Apparel is using RFID tags & data analytics to improve inventory management. Kroger is utilizing sensors in containers to monitor goods on the move. Tesco launched smart devices so mobile payment can be taken around the store (not necessarily at the checkout). Walmart rolled out robotics for greater efficiency & customer service. Avery Dennison uses IoT sensors to track up to 10 billion items. According to the 2015 Global Shopper Survey, 96 percent of retailers are ready to bring IoT devices into their operations in the hope that it will strengthen relationships with consumers.
Retailers embracing IoT technologies will inevitably come to know much more about all aspects of their business, not only about their customers and products but also their supply chain as well. Merchants are turning to IoT technologies to simplify and enhance the store experience, reduce operating costs and create new revenue streams. The Internet of Things is here and already disrupting the retail industry. Are you ready for the change?