Recently we have seen e-commerce industry finding new opportunities with the IoT. In fact, it is expected the third industrial revolution will be IoT leading the boulevard. In a 2015 survey IDC shared that around 82% retail outlets are completely satisfied using digital signage.
Some raw numbers
‘The retail market’s investment in IoT will touch the mark of $53.75 billion in comparison to $11.17 billion in 2014′ says a report. The significant rise clearly points towards the boom in the retail industry. According to a survey conducted by IDC, 80% retailers believe that the IoT will drastically change the way business is done, while 16% sit in between considering this as just another trend.
In a report shared by Juniper research, they have mentioned that by 2020, worldwide retailers will spend around $2.5 billion in IoT. The growth is quite obvious as Cisco predicts that by the year 2020 there will be a significant hike of around 35 billion devices connected to the internet.
Advantage of IoT to retail business
We recently came across some figures stating the rise of IoT worldwide. However, it isn’t just the IoT booming with such a fast pace, it has the company of retail sector, which indeed creates a massive market. How will things go if the two combine together? Let us discover the ways in which the retail sector can relish the growth better with IoT:
1. Customer Experience
With IoT joining hands with the retail industry, undoubtedly the customers will have personalized buying experience. They’ll be getting suggestions based on their last purchase and the products and services they visited lately. The same might probably increase the sell as the buyers will see the things they like on priority. Also the same will save their lot of time, which implies a happy shopping experience for them and better revenue for retailers.
2. Optimized operations
With IoT looking after your store operations gets easy. With the help of IoT sensors, you can manage the store operations effectively. It enables you to take better decisions by providing employee insights and store management. By tracing the inventory details you can neither run short nor will flood with the stock. Not only these but if you deal in some kind of temperature-sensitive or perishable inventory, IoT ensures you to regulate the right temperature throughout the journey.
3. Reducing fraud and shrinkage
According to a report, in the year 2014 retailers in North America faced approximately $42 billion loss due to shrinkage. Yes, the figures are quite high and here IoT lands as a solution. In fact, big companies like Panasonic and others have started using powerful cameras and smart shelf technology to keep a check on the inventory instead of relying upon the traditional receipt system.
4. Go Mobile
Starting with laundry services till finding and booking the destination to visit this weekend, the world is going mobile. Today around 70% retailers allow their customers to buy products and services online and return in store. The online retail market is growing faster than like never lately and this is the beginning. With IoT amalgamating into the everyday retail market, you may expect that in the coming days, cement and mortar are present just to create the offline identity, while the online market will handle the shopping.
5. New revenue opportunities
Imagine having a sensor on your washing machine, which automatically orders detergent for you, as soon as it is about to finish. Or suppose, having the one on your refrigerator and Kitchen pantries to order the grocery before it finishes. For now, it might sound fairy fable, but with IoT getting advanced, these products can be connected to the retail outlets and the things are possible.
Though IoT marked its presence in almost all the sectors today, but it has made the maximum contribution in the retail market segment. In the coming days, retail businesses have a lot to take from IoT, it’s just on you, how much you want to grab.