IoT in Retail: Smart Shopping Experience

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Smart Shopping Experience Smart integrated retail shopping experience for the consumer with advantage of building comprehensive consumer buying behavior and minimizing time at checkout counter. 1

Transcript of IoT in Retail: Smart Shopping Experience

Page 1: IoT in Retail: Smart Shopping Experience

Smart Shopping Experience

Smart integrated retail shopping experience for the consumer with advantage of building comprehensive consumer buying behavior and

minimizing time at checkout counter.

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Page 2: IoT in Retail: Smart Shopping Experience

Need

Retail Consumer •On average customer spends 15%-20% of total time in checkout queues. •Footfall at stores like Big Bazaar over weekend is ~5000-7000, which stresses the store infrastructure on all fronts. •Customer spends considerable time on searching the isle and looking for assistance in the midst of a chaos. •Customer don't get personalized recommendation on substitutes and complementary products for example someone’s buy toothbrush but not paste, buy shampoo but not conditioner. Retail Chain Owner•Owner spends considerable money and square footage on 15-20 checkout counters and manpower but still resulting in customer dissatisfaction•Inventory is not digitized hence managed with a delay and involves lot of manual interventionManufacturer/Supplier•No direct and instant access to consumer choice and buying behavior resulting in a supply demand gap in factors such as count, size, price and features 2

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Target Customer

• Primary revenue earning customers are the business owning and operating multi product retail chains/stores such as Big Bazaar, Hyper City, Lifestyle, Pantaloons, Reliance Trends, etc. Revenue will be tapped from both digitizing the aisle bundled with cart.

• End consumer will only use the smart cart along with a mobile app, which later we will use to target ads and offers. Initial focus would be on metro cities because of density and addressable size.

• Data captured through consumer behavior will be sold to manufacturers and suppliers which they can leverage to better design and target products.

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Stores Cart per Store

Store Count (Metros)

Total Carts (Year 1 Projection)

Big Bazaar 150 130 19500

Reliance Trends 150 75 11250

Lifestyle 150 43 6450

Pantaloons 150 50 7500

Total 600 298 44700

• https://en.wikipedia.org/wiki/Big_Bazaar ; https://en.wikipedia.org/wiki/Reliance_Retail ; • https://en.wikipedia.org/wiki/Lifestyle_Stores; https://en.wikipedia.org/wiki/Pantaloons_Fashion_%26_Retail;

We estimated through local Gurgaon market survey that each store would at least need 150 smart shopping carts and considering only metro locations of 4 retail chains, we see initial market size of ~45 K carts

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Value Proposition

• Digital screens placed in the store and information sent to smartphones and tablets through dedicated retailer apps will create ‘endless aisles’ that will enable digital experience for the customer.

• Smart cart would be built around existing metal shopping cart with a smart phone holder, USB port, RFID reader and/or bar code scanner, a security lock on the wheels, a chip which uniquely identifies the cart and protects the cart from being stolen.

Use case• Customer picks up smart cart, attaches smart phone and turns on the smart shopping

application thereby accessing the shopping list created before hand. • Customer scans the (RFID/Bar Code) product while dropping it into cart, which updates

the current inventory and the bill. RFID scanner is on cart and bar code scanner on mobile app.

• Recommendation algorithm running on mobile app advice on substitutes, complements and healthy supplements based on products in the cart. Customer can also view layout of the store and category of product in an isle through info-graphics on the phone.

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Value Proposition (Cont…)

• Customer bill is ready before they reach checkout counter, they simply pay while the helper transfers product to a normal cart. Normal cart is kept outside store and can be carried to parking lot.

• With faster checkout owner can reduce no of billing/checkout counters and leverage space for shelving there by utilizing space for productive purpose.

• Smart cart will be integrated with ERP/billing system, discounts portals, manufacturer coupons, and mobile wallets for payments. Mobile wallet will help to increase speed of checkout.

• Store owner gets instant inventory update as all aisle content is digitized before adding to the software cloud, which tracks inventory in real time.

• Consumer buying behavior data collected will be leveraged by manufacturers for supply-demand matching, finer customer segmentation and product targeting.

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