“Technology can not root transformation but definitely accelerate the process of transformation”. The sea change in the way the retail business is carried out in the past from the days of barter to traditional retail formats till now when we see established format, one may notice the role of technology and how technology has speed up the process transformation the last decade. In future a retailer needs to accelerate the change process and one sure ways of success is adoption of right technology. Technology has enabled businesses and consumer to build efficiencies on the basis of the ability to receive and transmit data at a faster speed. This information has today become critical for achieving efficiencies in all aspects of retailing. Inventions in various fields have created numerous opportunities for retailer to make that as a part of innovation process that is profitable proposition for customer as well as the firm. Technology will encourage the smart shopping. This paper discusses various technology driven applications and processes that are used by the retailing and some insight into the technology for the future.
Radio Frequency Identification (RFID)
Radio-frequency identification (RFID) is an automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders. The technology requires some extent of cooperation of an RFID reader and an RFID tag. By the year 2010, RFID tags will be attached to most of the consumer products, turning ordinary products into smart products, the most important concept of the store of the future. RFID not only help retailer manage inventory, but also help increase sales. e.g. At Prada’s, Newyork store, the RFID tags on the clothing is scanned at the doorway. The scan activates a video screen in the changing room that displays other clothing and accessories that are complementary to the item the customer chooses. This feature resulted in an increase in complementary sales at the Prada Store.
Microsoft Tag
Microsoft Tag creates unlimited possibilities for making interactive communications an instant, entertaining part of life. This application transforms physical media (print advertising, billboards, product packages, information signs, in-store merchandising, or even video images)—into live links for accessing information and entertainment online. With the Microsoft Tag application, just aim your camera phone at a Tag and instantly access mobile content, videos, music, contact information, maps, social networks, promotions, and more. It is designed from the ground up for maximum performance with the limited cameras on most mobile phones. Advanced image-processing techniques decode even out-of-focus barcode images, which means Microsoft Tag works with the fixed-focus camera lenses common in most mobile devices. The possibilities are endless for retailers, consider following scenarios:
You go to a store and check out a bathing soap, you see Microsoft tag on the box, you use your Mobile phone Microsoft Tag Reader and you could be shown promotion around the box, you can compare prices with other brand bathing soap with content analysis and of course benefits of each of these.
You go to a store and check out Godrej processed packaged Green Peas and using Microsoft Tag Reader application on your phone you are taken to the Sanjeev Kapoors website and are shown Recipes around the product. You are also shown the nutrition information about the product. This will ensure that you buy other ingredients along with the product for the recipe you
You buy a Laptop from Electronics and see a Microsoft Tag on the backside of Laptop. You click it using Microsoft Tag Reader app on your mobile and voila, you just registered your Laptop. You may also be shown the accessories you can buy for your laptop.
Point of Sale Automation
On it’s packaging, each product carries a barcode, which uniquely identifies it and distinguishes it from all others in a shopping basket. At the checkout, an automatic scanner (slot scanner or handheld reader) reads each barcode on the product. The barcode is decoded to reveal the Article number it represents. This number is passed to a computer, which matches it against a file and retrieves the price to be charged along with a description of the product and related details. Both price and description (and other relevant data) are then printed on the billing receipt.
With the help of barcode technology, retailer can record the identity of every item sold. They can re-order more quickly, reduce their stocks and have financial and marketing information at their fingertips with unbelievable speed, accuracy, and detail. For consumers, it means accurate billing, faster checkouts (and a happy shopping experience).
With increase in consumer footfalls, retailers are now progressing to use mobile-POS systems. Mobile devices enable shopping clerks to carry these handheld computers in rush time for on-the-spot transactions. Mobile POS devices feature an integrated reader (to scan individual items), MSR (for credit card authorization), and wireless-connected portable mobile printer (to generate bills).
Digital signage refers to a variety of technologies used to replace traditional retail signs. Instead of static print signs and billboards, digital signage is composed of electronic signs dispersing content and messages in the most targeted, interactive way.
Liquid crystal displays, plasma display panels and scrolling message boards are a few of the more common in-store devices used to project full-motion video, sound and text. Digital signage enables a retailer to control and display their messages quickly and effectively.
The Digital Sign Network:Creating a digital signage system involves building a network of electronic devices that are controlled remotely from a central location. These devices present information via digital signage software to a targeted audience. Digital signage devices in the network may be plasma or LCD monitors, kiosks, projection displays, HDTVs or other electronic devices.
Using digital signs in a retail environment has many features and benefits not offered by static displays and signage. Dynamic digital signage can grab a customer's attention and influence their purchasing decision right at the point of purchase. It also eliminates the high cost of creating and distributing print ad campaigns. Digital signage is instant and offers the ability to change promotions immediately for various products or particular customers. Another advantage of digital displays over static is that retailers can earn money with their digital signage network by selling advertising space to their suppliers.
Whether it is intended to build a brand, influence customer behavior or simply provide information, the dynamic visual experience created by digital signage should ultimately increase sales. In order to achieve that goal, retailers will need to design the appropriate system.
Soft Safety Tags
This technology is being used by most of the retailer for garment merchandising today. This technology reduces labor time for retailers and reduces the damage caused to clothing by hard tags. The new soft tags are paper thin, flexible, and attach to an inconspicuous area on a garment, or can be embedded into the fabric.
While the product protection attributes of the soft security tags are similar to traditional hard security tags, the process of handling them at the point-of-sale (POS) is different. With hard tags, a device at the POS alerts the associate to remove the tag; with the soft tags, however, that same device automatically deactivates the soft tag, which remains in the garment, eliminating a step.
Soft tags are mostly attached in the sewing operation and withstand processes like garment dyeing and acid washing. The tags must also stand up to processes after the garment reaches the consumer's hands, such as machine washing and dry cleaning, without breaking apart and possibly damaging the merchandise.
Benefits
- Less damaging to garments that traditional tags
- Provide increased security
- Discourage black market sales of designer merchandise
- Require less sales associate labor
Multi media kiosks are a versatile way to extend customer service and marketing efforts. A multi-media kiosk that provides customers with access to information needed to plan an entire party. Using touch screen technology, customers can compile a list of items, including prices, which need to be purchased. They can also receive information on where to find the items in the stores where these kiosks are located.
Further advances in kiosk technology allow for access to the company's web site and other specially selected sites. In addition, large flat screen kiosks can double as in store signage for special promotions, price updates (if connected to a corporate host), and new products.
Benefits
- Can be a point of differentiation for store
- Increased promotional/marketing opportunities
- Increased customer service
Virtual Showroom
Instead of walking around a showroom floor, customers will be able to view computerized images of room interiors and furnishings. The technology has the potential to offer thousands of home-decorating items that cannot be displayed on the retail floor.
The system replicates the exact dimensions of rooms, as specified by customers, and incorporates images of products the customer is considering. It provides a computer generated, three-dimensional, image of how the room would look with the planned additions. Customers can mix-and-match different colors, styles of wood, and patterns for the kitchen, bath, bedroom and great room.
With the aid of this new technology, to provide an environment where a store can truly collaborate with its customers. It makes buying accessories and furnishings much easier because it eliminates a great deal of the guesswork. If customers do not know the dimensions of their rooms, one can have some typical room layouts that can be used to give the customer a general feel for how a new cabinet or fixture would look. Furthermore, the technology offers the opportunity for other exciting retail applications. It could be used to put together a digital outfit, allowing the customer to experiment with different shoes and accessories.
Benefits
- Can display more options that on an actual show floor
- Eliminates need for customer guesswork
- Fewer customer returns
- Increase in customer satisfaction
- Creates increased sales opportunities (a customer interested furniture may become interested in window treatments)
Neural Networks
A neural network is an information system that recognizes objects or patterns based on examples that have been used to train it. Each training example is described in terms of a set of characteristics and a result. Neural networks often do well with identification and discrimination tasks even when some information is missing because they operate by applying numerical weights to many different characteristics. In its learning phase the neural network uses statistical methods to optimize a set of internal weights that relate each inputs to each of the possible results. This is a numerical attempt to mimic the typical human ability to recognize and relate various variables and its impact on the output.
In this case neural marketing is used to evaluate consumer expectations and simulate a response to those expectations by adjusting components of the marketing mix. Data available for each store includes:
- Selling square feet
- Inventory
- Unit sales volume
- Sales personnel information
- Competition factor
- Local advertising expenditures
- Promotions
Using these variables a network can be trained and then used for sales forecasting. Clearly neural networks have an ability to understand relationships in a data set. This can be made use of in numerous ways. Prerequisite for accurate results is efficient Management Information Systems (MIS).
Personal Shopping Assistance (PSA)
The Personal Shopping Assistances (PSA), which are small tablet computers clipped to shopping cart, are activated with a loyalty card. A customer can simply find the products that he/she needs by typing out the words on the touch screen. He would be then directed to the correct aisle – floor plan included. Regular purchases show up on a favorite list, with price and location. Special offers are flagged up as the customer moves from one section to another. This technology also enables the customer to write out the shopping list online – at home or work – and soon it will be automatically downloaded to the PSA. The integrated scanner provides a running total of the shopping and fast track treatment at the checkout. This is future store initiative of METRO Group. This initiative is a cooperation project between METRO Group, SAP, Intel, IBM and T systems.
Conclusion
Technology will no doubt play a key role in creating future successes. Using the technology to collaborate with suppliers to make supply chain more agile in response and more efficient. Use technology to empower customer may be the new business reality for retailer. There is a need to understand the requirement and adopt appropriate technology solution to create sustainable efficiencies.
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