Connected Retail Market is Set to Grow by 400%! A Sneak-Peek into IoT Use-Cases that will Drive this
Connected retail market is expanding as more and more retailers are connecting the value chain. This is evident in the new research from Transparency Market Research (TMR).
The report mentions that North America will have a strong demand for connected retail but Asia Pacific will also show a strong demand during this forecasted period.
In 2016 the connected retail market was estimated to be US$16.30 billion but the forecasts for 2025 is US$82.31 billion which is 400 % more than 2016.
The growth of connected retail is powered by all the sub segments in retail including the online segment which has grown tremendously in the recent years.
Adoption of IoT by retailers
IoT in retail has potential to disrupt end-to-end processes. Here are some of the many use-case of IoT in retail
- data monitoring in real time from stores and deriving insights,
- enriching the in-store experience of customer using the collected data and
- Streamlining store operations.
Smartphones has paved the way for retailers to personalize the communication with the customer in-store and help them to strengthen their brand.
Recent increase in usage of beacons has also helped retailers to connect with the customer as they enter their store. Supply chain is the key area in which retailers are using IoT to streamline the supply chain operations.
79% of retailers globally are expected to adopt IoT which will definitely transform the retail industry.
L.L.Bean, an American retail company which specializes in clothing and outdoor recreation equipment, has taken the usage of IoT to another level by embedding sensors in coats and boots to collect data which will then be received by a blockchain system.
This information will be used by retailers to analyze temperature data, and how often customers wear and wash the clothing.
Key IoT applications in Retail
Below are few important areas in which retailers are using IoT:
- Store Management: Smart store management is key for optimizing the operations of a retail store. And Internet of Things (IoT) has potential to play critical role in enabling this.
- Logistics and Fleet Management: IoT enabled fleet management and telematics devices are being deployed for route optimization. Such applications help ensure better visibility of the goods on the move and reduce distribution time and cost
- Warehouse Management: Major retailers like Amazon are leveraging IoT based solutions for warehouse automation and digitize the fulfillment process.
- In-Store Experience: Converting the footfalls into sales has been the biggest goal and also a challenge for the global retailers.
Increasingly retailers have embraced the idea of sophisticated in-store experience to achieve higher footfall conversion.
To cater to this demand from retailers, IoT solution companies have designed products that ensure a seamless in-store shopping experience for the visitors.
This includes geo-fence based products to deliver personalized offers and promotions, interactive kiosks to display store catalogue and answer FAQs’, omnichannel experience to provide best of online and offline shopping and more.
For example, IoT enabled monitoring of the refrigeration units. IoT sensors can help retailers to collect data about energy consumption, power failure and temperature variations. Analysis of this data can come in handy to reduce costs and improve efficiency.
Human intervention is being increasing replaced with IoT enabled robotic devices for product handling, packaging and dispatch in the warehouse
The demand for connected retail and the usage of IoT is going to grow multi-fold in the coming year and it’s important for retails to adopt the new technologies and provide a great user experience and streamline their operations.
Need help with implementing IoT solutions for your retail store, please connect with our experienced IoT consultant to book a free session.
To know more about the usage of IoT in retail and use cases please visit our detailed blogpost on Top 4 Internet of Things (IoT) Retail Use Cases and Examples