Unlocking The Benefits of IoT in the Retail Industry

So long as it can connect to the internet and with other enabled devices, it’s part of the Internet of Things (IoT).

With the advancement of technology, the IoT ecosystem has grown exponentially, affecting every industry from finance and advertising to research and sales. IoT has also made a huge impact on retail, as IoT processes offer streamlined services to consumers and businesses alike by making the buying process easier for both parties. It doesn’t stop there! In this blog post, we will discover the future of IoT in retail and how you can unlock the benefits this technology offers for your brand.

Understanding IoT and Retail

80% of retailers surveyed agreed that IoT will drastically change the future of retail technology and the future of retail experiences. Well, that change is happening now. You may have already noticed the recent shift in brands away from brick and mortar to eCommerce. This is largely due to the fact that more and more consumers are choosing to do their shopping online rather than in store.

Examples of IoT in the Retail Industry Today

Many businesses have already dabbled with integrating IoT into their retail strategy; for one brand, IoT enabled them to join the physical retail game. Who is that? Amazon. Amazon went from purely online to in-store with its physical shop, Amazon Go. Shoppers can simply head into the store and walk out with whatever they need. No cashiers, no self-service checkout, just you, your basket and sophisticated image recognition software paired with artificial intelligence.

These AI-powered eCommerce merchandising tags on each item are read as consumers pass through the turnstile. After you’re done shopping, your Amazon App shows you the items you purchased, how much each item was, the final amount, and it even shows you how long you spent in the store. This process is the most pain-free and streamlined system to date and just one example of the future of IoT in retail. Currently, Amazon has three of these stores in its hometown of Seattle, and one store that has recently opened in Chicago. The eCommerce giant plants to open over 3,000 by 2021. 

Amazon isn’t the only business that’s looking to leverage the power of IoT for retail. Other brands like Rebecca Minkoff have begun to integrate IoT enabled devices in their customer experience as well. For example, Rebecca Minkoff has begun using smart mirrors to help shoppers along their retail journey. These mirrors allow customers to browse through different sizes available in the store, request help from reps and view complementary pieces to the ones they’ve already picked out.

These IoT retail use cases show how these devices are empowering brands by providing their customers with an easier and more streamlined browse and checkout process.

Benefits of IoT in Retail

It’s simple to see that the internet has forever changed the way users engage with their favourite brands. IoT enabled services and devices are furthering that change with how they affect physical interactions between consumers and businesses. The following are some of the benefits your brands can leverage with IoT in retail:

• Inventory Management: Sensors placed on shelving units can help monitor current stock of items. In addition, RFID chips are a cost-effective solution for locating items with specific qualities like colour, size and style.
• Supply Chain Management: IoT in retail supply chain also builds off of IoT in inventory management. The data acquired by the previous step can help businesses identify which vendors are the most cost-effective. In turn, brands can also adjust their production schedules. Businesses can also use the information gathered to schedule maintenance. Daniel Newman, Forbes Contributor, also notes that “the IoT is set to revolutionise the supply chain with both operational efficiencies and revenue opportunities made possible with just this type of transparency.”
• Personalisation: With the vast amounts of data retailers will gain with smart retail IoT enabled devices tracking inventory, they will also acquire loads of information about their consumers. This data can be used to help create personalised marketing and advertising campaigns to more accurately target shoppers.
• Cybersecurity: With the advancement of technology comes the advancement of hackers. Cybersecurity has been a major issue this year and IoT has been seen as a concern for many users. However, there also many benefits of IoT to cybersecurity. Encryption helps convert sensitive data to code in order to prevent unauthorised access, device authentication helps identify specific devices, and there are also access logs to view and monitor malicious activity. While IoT and security may not always go hand in hand, there are still some benefits of IoT retailers could leverage for cybersecurity purposes.
• Customer Experience: Just like Amazon Go and the other examples of IoT noted above, IoT can help enhance an in-store shopper’s experience to be more streamlined and hassle-free.

The benefits above are just a small list of what IoT has to offer. Many of these advantages may even be the solutions you need to address your current business challenges and bring your brand into the future. Adapt to the changing times and consider how IoT may help elevate your retail game.

Final Thoughts

Hopefully, these IoT retail examples have shown you how you can unlock the benefits of IoT for your brand. Go beyond the screen and provide your consumers with the best customer experience possible by integrating IoT into your retail experience. Here are the most important points we covered today:

• The future of retail lies with IoT-enabled devices that empower businesses to provide more streamlined services to their customers.
• IoT is currently present in the retail industry with brands like Amazon and high-end luxury brands like Saint Laurent and Rebecca Minkoff.
• IoT technology will help retailers with more precise inventory and supply management.
• Although there are concerns about security with IoT, it offers many benefits to users as well.

Now that you know some more about the future of IoT in retail, let us know in the comments below how you’ll be integrating IoT into your business plan for 2019!