Jul 12, 2023

Tech integration, fast connectivity, and immersive hyper-real applications are transforming the way people shop. The breathtaking technologies and astounding innovations that are dominating the discourse today would have been exclusively reserved for the glitzy home of Iron Man, had it been 2008. Such is the exponential pace of innovation. In the realm of retail, newer technologies and innovations are shaping people’s shopping experience, making it more interactive and immersive. Meanwhile, Indoor Mapping, Geofencing, Artificial Intelligence, and Extended Reality are taking the centre-stage in reorienting retail for the future. Experience-as-a-Service (EaaS) models have been popping up with luxury brands taking the lead by crafting curated experiences for their customers. Generative AI and Extended Reality seem to be on the cusp of becoming the next versions of smartphones, integral to everyone’s daily lives. Between all this frenzy, there are various facets of shopping experiences, and most of them are ridden with technology that works behind the scenes. Growth Ahead Talking numbers, in 2021, the global retail market generated sales of over $26 trillion with a forecast to reach over $30 trillion by 2024. For this year, it is projected to reach $28.64 trillion. Region-wise, Asia Pacific is projected to amount to 61% of the world’s e-commerce business, according to Statista. The technologies supporting these growths are expansive in nature; intertwined with other technologies, and show endless innovation capabilities. Moreover, the landscape for retail technology has widened than ever before. Newer technologies are now being implemented in various branches of the retail sector be it ecommerce or physical stores. Here are the technologies that are shaping the way consumers shop: Extended Reality Virtual screens, hand gestures, and an immersive experience combined, presents an opportunity that seems straight from a science fiction movie or throwback to some graphic dystopian novel. But with major breakthrough in technology, Augmented Reality and Virtual Reality applications are being embedded across domains. For brands/companies, this will result into a much more efficient inventory management, less returns, more personalised shopping, and better data analytics and collection. Moreover, this will also minimize the need for physical store expansions. Until now, majority of the online shopping experience have been in 2D. XR will present consumers a new 3D platform that will enhance the overall shopping experience. The XR devices will enable customers to virtually try on products such as clothing, accessories, or cosmetics. It will also allow retailers to showcase their products in an interactive and engaging manner. Through AR or VR experiences, customers can explore and interact with 3D models of products, rotating them, zooming in for closer inspection, and even customizing certain aspects. Extended Reality has the potential to transform the retail industry by providing immersive and interactive experiences that enhance customer engagement, improve product visualization, and streamline the shopping process. Artificial Intelligence It’s no surprise now as to what and how AI can affect the lives of humans. The modules of AI are endless, and so is its applications. For retail, AI has been contributing in number of ways. From analysing consumer behaviour through extensive data to streamlining workflows and manging inventory, it has been providing unparalleled value all around. AI is being extensively used in majority of retail practices. Be it logistical demands or analysing stacks of data, it helps in every nook and corner. The foreshadowing of AI in retail had been witnessed all the way back in 2018 when Amazon had announced 1-hour delivery on its platform by region-wise forecasting of various products and moving them into small warehouses for efficient and quick delivery. The applications of AI span Inventory Management, Interactive Chat, Customer Insights and Engagement, Demand Forecasting, and Operational Optimization. This translates into capitalizing the purchase power that a customer comes by. Various major and unconventional players like Hitachi, Accenture, and Intel have jumped the gun to set-up their own AI enabled data platforms that provide these solutions to a number of retail stakeholders around the world. The latest breakthrough in AI – Generative AI – has become a point of contention as well, mired in speculative fear and fraught with issues of ethics and compliance. Big retailers are gauging their way to incorporate this latest trend for making their entire workflow automated and efficient. The moral implications, mounting job losses, and other disruptions are all under consideration, as employers and employees seek ways to minimize its adverse impact on humanity. Metaverse Metaverse is a mega virtual world with seemingly no end. The opportunity that it presents for retail and commerce is second to none. Retail in Metaverse could be understood as an extension of e-commerce, where instead of 2D viewpoint, customers can interact in 3D with materials, clothes, and other items. According to a GE Capital Retail Bank research, 81% of consumers conduct online research before making a purchase. The Metaverse has the capability of eradicating this research and provide a more immersive experience. Almost a game-like configuration where consumers can step in the virtual stores and get the feeling of being in a highly personalized shopping space. In 2021, luxury apparel brand Louis Vuitton stepped in the metaverse by realising a mascot that users can play with. Another luxury brand Balenciaga entered the virtual world by launching skins and apparels for characters in Fortnite. Other big retail brands such as Adidas, Walmart, and Nike also followed suit and kept their one-foot in the Metaverse. Luxury brand Louis Vuitton’s game in the Metaverse One could either review products in a more effective manner by making their avatars – a digital version of the customer – wear it to gauge how it would look on themselves or buy it as a digital product that their avatar would wear. Internet of Things (IoT) A widely-used technology, Internet of Things (IoT) devices are present in everyday scenarios. In simple terms, everyday objects such as refrigerators, cars, air conditioners, lighting, fitness trackers, and similar items are connected to the internet for smart connectivity and data collection. This is achieved through small hardware pieces such as actuators, sensors, and programs that are embedded in IoT-enabled or smart devices. IoT also presents a tremendous capability of interoperability. Current trends already show IoT devices using the likes of AI, Analytics, AR/VR, 5G etc. “There’s no doubt that Industrial IoT is the future. With democratization of electronics and rapid advancements in 4G/5G rollouts, we are at the cusp of Industrial IoT revolution,” said Naman Jain, CEO, Falcon Autotech. Rom Eizenberg, Chief Revenue Officer, Konkakt.io identifies pervasiveness and multi-use approach as two defining IoT trends. “IoT has increasingly been adopted by major network providers like Cisco into their access points and has become a part of their network upgrade/refresh cycle. More recently, IoT is also being integrated into smart lighting, which means significant cost-savings and ease of use for large and small retailers alike”, says Rom. “IoT is also crossing the border of storefront customer experiences and expanding into the supply chain, logistics, and in-store distribution”, he adds. Location-as-a-Service (LaaS) Utilizing geographical location from a user to deliver content, information, or functionality relevant to their whereabouts is at the core of the Location-as-a-Service model. The services usually rely on technologies such as GPS, Wi-Fi, cellular networks, or Bluetooth to determine the precise location of a user or device. Location technology can be used for navigation, mapping, advertising, proximity marketing, emergency services, and asset tracking among other applications. The market for location data is huge, and so is its use. Geofencing is another example where location technology plays a pivotal role in understanding consumer behavior and targeting them for curated advertisements. New York-based Social Network Service providing firm Foursquare allows users to discover and share information about local businesses and attractions. Users can check in at specific locations, leave reviews and tips, and receive personalized recommendations based on their location history and preferences. “Location Intelligence enriches property information by providing valuable geospatial context. It integrates sociodemographic data, real estate market trends, environmental risk assessments, surrounding infrastructure, and points of interest information. This enables professionals to target specific buyer segments, forecast property values, assess environmental risks, and evaluate the desirability of a location,” said Yanqing Zeng, Lead Data Scientist at JLL. “Location Intelligence empowers data-driven decision- making and enhances market analysis in the real estate industry,” she added. The location technology market trend shows the growth spur of the location industry. The expansion of technologies such as AR/ VR, Metaverse, and eCommerce is set to increase the role of Location services even more as the need for better-curated content and even more personalized ads. Indoor Mapping For retailers with huge stores and vast number of products, Indoor mapping comes off as a magic wand. Mapping out the entire store area, aisles, and products makes the entire shopping experience smooth and efficient for the customers. Indoor Mapping involves capturing, modeling, and visualizing the layout, features, and points of interest within a building to provide accurate and interactive maps for navigation and location- based services. Most of the times, Indoor Mapping relies on technologies such as LiDAR (Light Detection and Ranging), 3D imaging, Wi-Fi fingerprinting, Bluetooth beacons, and other sensor-based systems. These technologies scan the area around them and chalk out the details of the physical structures, layout, dimensions, and objects within a building. This also helps in mapping the points of interests like restrooms, information desks, shops, restaurants, and other amenities in a huge area. By providing accurate and interactive maps, indoor mapping enables users to find the shortest routes, locate desired destinations, and navigate efficiently within buildings. The maps can be integrated into mobile applications, kiosks, or digital signage systems, allowing users to access the plan and navigation assistance on their smartphones or interactive displays. This not only help customers and visitors with better efficiency but also increases the customer experience. Macy’s, a New York based retail giant in has implemented Indoor Mapping in majority of their stores across the USA. Company developed an app for the customers from where they can use the application. The app provides a detailed indoor map of the store, including different departments, sections, and brand-specific areas. The map highlights points of interest, such as customer service desks, fitting rooms, restrooms, and elevators, making it easier for customers to locate these amenities within the store. Macy has also integrated their mapped area with the store’s inventory. Customers to check product availability and get real-time information about stock levels. This helps them make informed decisions about their purchases. Live in-store navigation with the help of Indoor Mapping “The global Indoor Mapping market is predicted to thrive substantially during the assessment timeframe from 2022 to 2030 at a healthy CAGR of approximately 32.56% to attain a valuation of around USD 92.36 Billion by the end of 2030,” according to Market Research Future. Autonomous Delivery Autonomous technology is being hailed as one for the future. Surprisingly, that future is not far off. Already hundreds of retailers and service providers have started using autonomous drones and vehicles to move their product around and deliver it to the customer’s home. Autonomous delivery vehicles are equipped with advanced sensors, cameras, and navigation systems that allow them to perceive their surroundings and navigate without human assistance/ on their own. These vehicles can operate on roads, sidewalks, or dedicated delivery lanes, depending on the regulations and infrastructure in place. It is especially relevant in lastmile delivery, which refers to the final leg of the delivery process from a distribution hub to the customer’s doorstep. Last-mile delivery is often considered a challenging and costly aspect of the logistics chain, and autonomous delivery can help address these challenges by offering efficient and cost-effective solutions. These autonomous bots have better reliability and efficiency and also eradicate the possibility of human error. As technology rises and sees more innovation, we could feasibly see drones and pods roaming all around us delivering groceries to houses in a matter of minutes. Starship technologies, a Robotics Company, is using their robots to navigate sidewalks and deliver packages within a certain radius. Several retail companies, including grocery stores and food delivery services, have partnered with Starship Technologies to test autonomous robot deliveries in various cities. Starship Autonomous Robot’s delivering goods “The benefits of autonomous delivery for the logistics industry are clear from both an efficiency and environmental perspective. Robotic delivery is affordable, convenient, and environmentally friendly, enabling services to be deployed at a fraction of the cost and with no-hassle for the customer”, said Alastair Westgarth, CEO, Starship Technologies. While talking about last-mile autonomous delivery, Daniel Laury, co-founder and CEO, Udelv in an interview said, “End-to-end last mile battery-electric autonomous delivery solutions answer the two greatest challenges of modern commercial fleets: a massive shortage of drivers and the electrification of fleets. But they also require the end consumer to meet the delivery vehicle at a time and location of their choosing to retrieve their goods.” Live Warehouse Until recent years, warehouse management has been a tedious work that many types of technologies or humans have tries to make efficient. However, not much had come to fruit until recent years when moving storage aisles were developed. Automated warehouse management involves the integration of realtime data, connectivity, automation, and intelligent systems to enhance efficiency, accuracy, and productivity in warehouse management. Smart robots or Automated Guided Vehicles (AGVs) moving around some set perimeter, the aisles fitted with IoT sensors, AI, and ML, have become a thing of trend. From Amazon to Walmart, moving aisles have been reforming workflows of major retailers. So rather having to go on a search and find trek in a stadium-area- warehouse, the aisle containing the item which has been ordered comes to you. These specially help in timely and efficient deliveries. Automated Guided Vehicles are equipped with sensors and navigation systems to move efficiently and safely without human intervention. AGVs can transport pallets, bins, or other containers, optimizing the movement of goods within the warehouse. Last year, Amazon Robotics debuted two fully autonomous warehouse robot, Proteus and Cardinal. The company said in its blogpost, the robot “can operate in a manner that augments simple, safe interaction between technology and people — opening up a broader range of possible uses to help our employees — such as the lifting and movement of GoCarts, the non-automated, wheeled transports used to move packages through our facilities.” Amazon’s Cardinal Robot in action at a warehouse The world of retail is huge, and with the addition of internet into it, the end seems to be endless. As Tim Berners Lee said, The Web as I envisaged it, we have not seen it yet. The future is still so much bigger than the past.