From Personalized Marketing to Smart Shelves, IoT is Revolutionizing Retail

Written By
I. Mitic
August 30,2019
A report by Global Market Insights suggests that IoT investments in retailing will total more than $35 billion per year by 2024. Key retail-market players agree that the technology will continue to rapidly expand.

For example, Amazon plans to open as many as 3,000 Amazon Go stores nationwide by 2021. The stores, which facilitate shopping and eliminate waiting in lines, has been praised by customers. Fully automated Amazon Go stores are equipped with sensors and other hardware. Amazon intends to place the stores in office spaces, on college campuses, and in airports across the US.

Not only do intelligent devices and universal connectivity make shopping easier, they also enable streamlined supply chains and management systems. About 72% of North American retailers are considering implementing IoT technology to adapt their activities in real time. Also, IoT brings some fantastic marketing opportunities.

One of the most attractive innovations is proximity marketing. Using in-store geo-fences, the IoT system sends information about discounts and special offers to passersby. Smart supermarket shelves equipped with RFID allow personalized advertising and the display of detailed product information. One major US retailer recently implemented a cloud-based display solution on its shelves so consumers can compare nutritional values of different products or scan coupons with their smartphones.

Digital signage seems to be very efficient at attracting customers. One study found that more than 75% of shoppers entered a store because a sign attracted them, and more than 68% eventually made a purchase. IoT has further enhanced digital signage to make it interactive. Thanks to mapping sensors, it is possible to identify high-traffic areas and upsell items there.

IoT in retail has expanded rapidly across the markets of developed countries, but emerging economies are catching up fast. Asian omnichannel distributors have noticed the great potential of deploying IoT in the Indian retail market and say they plan to introduce it in the region.

About author

For years, the clients I worked for were banks. That gave me an insider’s view of how banks and other institutions create financial products and services. Then I entered the world of journalism. Fortunly is the result of our fantastic team’s hard work. I use the knowledge I acquired as a bank copywriter to create valuable content that will help you make the best possible financial decisions.

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