Recently, Amazon opened its first store in Seattle,Washington on 22nd January 2018. Amazon Go has solved one of thechallenges faced by many retailers – The need to integrate the physical worldwith the digital world. Amazon’s newly opened automated grocery store boasts – “JustWalk Out” technology that automatically charges shoppers for the items in theirbags. Stores and physical experiences play a critical role in valuepreposition.Previews of the space was noted by both the minimal staffand the heavy presence of futuristic technology: the subway-like gates at theentrance, hundreds of cameras overhead, good that are automatically added tothe shoppers’ virtual baskets. Could this model replace traditional retail?I would say, “NO”.
Here’s why I think so.This model is simply not workable for all retailers. Humans aresocial creatures.
We might want every store – to make it easier and faster tocheck out (as no one likes waiting in the line). But we do generally valuehuman interaction. It’s helpful to have people point us in the right directionfor products, suggest alternatives, and confirm something looks good (or not).This is why you see Apple and Best Buy investing in people not technology fortechnology’s sake. Retailers who remember the human side of the equation willultimately be successful even in a post-mobile, post-Amazon world.The most important lesson you can learn from the Amazon Gois you must embrace the use of new technologies. Amazon is using ArtificialIntelligence to automatically add products to your shopping cart when you pickthem up from the store.
Using deep learning algorithm, computer vision, andsensor fusion, Amazon developed ‘Just Walk Out’ Technology.For a small store owner, it seems quite impossible toimplement these techniques because a lot of manpower is needed to create suchsolutions. But how it all runs. If you closely pay attention to the overalloperation, you will realize that Amazon catches the attention of customers byusing a mobile app.With the rise of technology, if you are still relying onwalk-ins without any marketing efforts, you will lose customers to yourcompetitors. Getting a mobile app or a website is easy and it doesn’t cost afortune to get one your own business.
Start small, innovate and see thingsworking for you.That said, for retailers who have not yet fully embraced theMI and AI Technology, it’s most definitely time to get started. Check out ourlatest white paper research on PredictiveAnalytics at Scale in Retail with which you can stay ahead of yourcompetitors with our guide to predictive analytics by learning how to:· Develop a 360° view of your customers, in realtime;· Use automation and prediction for faster, moreaccurate supply chain management;· Anticipate customers’ next clicks and buys withmachine learning integrated in websites and processes;· Get everything to run automatically inproductionGet your free copy Now. Seeour Predictive Application in a Real Life Case here.So if you are interested in learning more, contact us on ourWebsite or on LinkedIn or drop a mail at [email protected]!