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How does artificial intelligence technology help physical retail stores accelerate their transformation?

Author:QINSUN Released in:2024-03 Click:31

Against the backdrop of the increasing popularity of online shopping, physical retail stores are gradually joining the team of intelligent transformation. With artificial intelligence technology, physical retail stores will encounter a "savior".

At the beginning, artificial intelligence entered the public's vision as a household product on the C-end. Empower product big data analysis and intelligent voice interaction through AI algorithms. After the exploration and experimentation of numerous scientists, the current development trend of AI technology is basically based on the basic methodology of large-scale data+large-scale computing power. In other words, scenarios with sufficient data reserves and clear commercial value will see rapid development of artificial intelligence.

In Amazon Go, a new retail convenience store, there is no cash register or server, and consumers do not have to queue up to check out when they enter the store. Once they pick it up, they can leave. The many "black technologies" involved in this process cannot be ignored. Consumers who exceed the time limit for entering the store can use their mobile phones to scan the code and enter the gate to log in to their ID, and then freely choose products.

The camera behind the shelf uses "sensing technology" and "facial recognition" to identify who took the item, whether it was taken or put back after picking it up. After determining the consumer's true intention, transmit the information to the cloud. In this way, the selected products will automatically be added to the consumer's Amazon app shopping cart on their mobile device.

Industry insiders have stated that the shopping experience in retail stores is not very complicated, but rather a friendly and easy to operate process. Although image recognition is still in its early stages, it is one of the rapidly developing fields of AI, and the main purpose of visual assistants is to help customers find the products they are looking for or provide alternative suggestions. For example, a customer can display photos of a specific product to an AI driven workstation, and the system will return the accurate location of the product in the store as well as other relevant information.

Due to the birth of artificial intelligence, unmanned supermarkets have become a reality. Retail stores only need to use the artificial intelligence system to judge the products selected by consumers, and they can automatically complete the checkout when leaving the store. The entire shopping process is both simple and fast. It is worth noting that although artificial intelligence can help physical stores overcome difficulties and accelerate the transformation and upgrading of physical retail stores, attention should still be paid to returning to the essence of "consumer experience".

By utilizing artificial intelligence technology, powerful fashion brands can create virtual hangers and fitting rooms with gesture walls. By using a touchless display to find the most suitable style, you can avoid the hassle of searching through a pile of clothes. Before trying on clothes, you can check the simulation effect on the monitor to improve the accuracy of fitting. In this way, consumers have more choices.

By setting up a series of smart devices in physical stores, it can also promote physical retail transactions to a certain extent. For example, smart advertising displays. Generally speaking, smart advertising displays can use computer vision to collect customer information about the displayed advertisements. For example, age, gender, body type, and whether they have seen the advertisement.

After combining the corresponding data with artificial intelligence algorithms, store managers can also create segments and associate each displayed advertisement with its corresponding demographic. When new customers stand in front of the display, this algorithm will help display advertisements that are more likely to attract customer attention, thereby attracting customers to come to the shelves and experience related products.

In addition, electronic price tags can already achieve positioning and product navigation functions based on infrared transmission. Compared with the huge annual replacement cost of traditional labels in stores, coupled with potential value such as labor costs, customer reputation, and store image, the investment in electronic price tags can recoup costs within a few years, and in the long run, it can also save retail stores some expenses.

The physical retail industry plays a crucial role in economic development. According to statistics, the sales of physical goods account for about 90% of the total retail sales of consumer goods in society. To promote the transformation and upgrading of physical retail stores towards intelligence and digitization, technologies such as big data, cloud computing, and artificial intelligence are undoubtedly important driving forces.