AI is everywhere, and for a few years, technology has been making its way into store shelves, too. Thanks to the advancements in visual intelligence, retailers can finally free themselves from the most mundane and open-to-error routines. Image recognition and visual intelligence technologies may be fresh concepts for some retailers, but we already see a fast adoption in the industry with customized visual intelligence.
According to Statista, the market for AI in retail is projected to grow exponentially, reaching $23.32 billion by 2027.
Image recognition technologies in general still have a long way to go, but when we think about the retail industry and CPGs, it has long passed the point where it’s a futuristic concept—today, image recognition and visual intelligence technologies are must-haves for the industry.
Which Technologies Power AI in Grocery Retail?
Artificial intelligence can create a masterpiece artwork if fed with the right elements, and that applies to grocery retail. To bring out the near-perfect stock and shelf management operation, there are four main elements that AI takes advantage of: data collection, image recognition, data visualization, and data analytics.
With continuous and uninterrupted image data from shelves, AI creates a product map that works almost errorless within a couple of weeks. The best part is that AI considers each store separately to create customized results. With the self-learned data, AI detects the shelf stock, creates shelf analytics, and helps the staff streamline retail execution without relying on human effort.
Why Visual Intelligence in the Retail Industry is Essential
We can safely say that businesses that adopted technology were the winners of the pandemic, and the post-pandemic era will be no different. And if there’s one technology that fits almost every player in the retail industry is visual intelligence which practically automizes many processes.
Retailers have to deal with an enormous amount of data, and visual intelligence allows them to use this data more effectively. Visual intelligence is already being used by some retailers, but for many, it’s still in its infancy stages.
The retail industry uses visual intelligence for a wide range of purposes. From shelf management to stock management, visual intelligence is an essential component that helps retailers streamline their stock & shelf operations and make better decisions.
The major way that retailers use visual intelligence is through image recognition. This technology allows retailers to identify and track products across their stores in real-time. This information can then be used to help with inventory management, planogram compliance, replenishment, on-shelf availability, and more.
How AI Customization Boosts Sales & Customer Experience in the Retail Industry
Artificial intelligence solves many problems in the retail industry. The first thing is, of course, eliminating human-caused errors, thanks to machine learning. With AI, retailers can have more transparency between teams without coming across mistakes, which speeds up the process to give shoppers a better in-store experience. But that is only the basis of visual intelligence for retailers; the more exciting thing is its effect on sales and customer experience.
With valuable insight into real-time shelf & inventory analytics, stores can turn shoppers into buyers easily. Walmart’s AI adoption is a great example of the impact of new technologies. According to Gartner’s report, the retail giant reached 200% to 300% ROI within 12 months after implementation by reducing misclicks and theft and shrinking product loss by 50%, with the help of visual intelligence and AI.
Here at Vispera, we offer an easy-to-implement image recognition and visual intelligence solution in two main categories: Storesense and Shelfsight. With Storesense, you can track in-store execution KPIs in real-time, reach all retail channels, boost productivity, and increase team performance with a mobile solution, leaving almost no room for mistakes & errors.
Shelfsight, a more automized shelf tracking solution, gives you real-time analytics with near-perfect accuracy with shelf top cameras, which makes it the most effective way to leverage image recognition in retail. With Shelfsight, you can get real-time insights into in-store customer behavior and retail analytics with fixed cameras that are powered by image recognition technology. See how Vispera streamlines the in-store operations with a simple implementation requesting a pilot.
So, Why do CPG Brands Still Fall Behind the Technology?
Another area where visual intelligence shines is the CPG industry. Visionary CPG brands use visual intelligence for decision-making based on historical sales data to make better, more profitable decisions for product placement and future strategies. As a result, brands that start using visual intelligence keep on embracing the new normal for retail in a faster pace. For example, one of the Fortune 500 CPG companies in beverage category began its visual intelligence integration in Turkey with Vispera’s image recognition solutions. After seeing the impact, the giant has implemented the technology into its operations in seven countries.
On the other hand, the majority still use decades-old technologies and methodologies to maintain their operations more proactively.
The lack of new technologies comes with a big price tag that’s been somehow normalized in the industry. For example, CPG brands still reach failure rates as high as 80% when it comes to launching new products. Taking advantage of customized visual intelligence in test groups and pilot areas is bound to reduce the rates, thanks to real, errorless insights and analytics.
The Future of AI In Retail: How Customization is Becoming Essential for the Industry
When we think about customization, the first thing that comes to mind is the end-user and their experience. Still, the term is also becoming essential for businesses that need customized solutions. Thanks to the nature of AI, retailers, and CGPs can take advantage of visual intelligence solutions that speak to their own needs. As we mentioned above, the industry is adopting AI solutions faster than ever, which is expected to quadruple in four years' time, and with new solutions powered by AI and visual intelligence stepping into the picture, expecting more smart stores is only natural.
Here are the top areas where customized AI changes the game for retailers and CGPs:
Physical store analytics: Visual intelligence solutions allow retailers to get insights into how consumers behave, what they buy, where they spend their time, which products they don't see at all, and more. With this information, retailers can optimize their store layout, display products with low sales, or update the prices of products with high margins.
Better marketing strategies: With the in-store insights that come from the analyzed visual data, CPG brands and retailers can make better decisions for their marketing campaigns, backed by real-time customer data.
Data-backed visual curation: Retailers can have better insight into their stores’ hotspots for each category of goods. With the analysis of in-store customer behavior, decision-makers can create the perfect shelf curation that appeals to the customer and lead to increased sales.
Seamless inventory management: Executing the inventory management for each store is quite challenging when relying on the human workforce. AI and visual intelligence solutions can keep track of inventory with near-perfect accuracy. According to Forbes, companies that implemented the visual intelligence technologies have already increased product sales from 3% to 5% by improving on-shelf availability and online product availability from 5% to 15%.
How Can You Take Advantage of Customized AI Solutions?
Here at Vispera, we offer retail visual intelligence solutions to make the tech adoption process shorter, easier, and more available for everyone. With Vispera’s AI-powered solutions, your can transform conventional methods into automatized methods and step into the new age with real-time analytics & reports with 96+% accuracy.
Get a demo to see how Visepa works now.